Student Name: _____________________________ Total Marks: 100

Teacher Name: Sir Mubashir Waseem Time Allowed: 2 Hours

Teacher Assistant: Abdullah Zubairi Date: 14 April, 2022
Subject: ITB | PRC-05 Test: Mock

1. In limited partnership all partners have limited liability.

a) True
b) False

2. Before whistle blowing one should consider __________

a) Confidentiality of information
b) Financial position of the company
c) Relationship with other employees
d) Job security and future promotions

3. One of the consequences of unethical behavior is employee turnover.

a) True
b) False

4. When conducting a mirror test a course of action one would ask;

a) How would it impact the society in general?
b) How would it reflect on my career?
c) Is it legal?
d) Is it ethical?

5. Recycling of waste material is an example of __________ principle of social responsibility

a) Integrity
b) Sustaining the environment for future generations
c) Sustaining the environment for future profits
d) Respect for human rights

6. All stakeholders directly or indirectly are part of __________ a company.

a) Material Management
b) Financial management
c) Personnel management
d) Administrative Management
7. Which of the following are advantages of equity financing over debt financing? Select 2 options
a) Dividends are tax deductible
b) Equity owners rank a head of debt holders in the event of liquidation
c) There is no obligation to pay dividends
d) It has no maturity date

8. One of the advantages of short-term finance is that it is subject to lower interest rate because it is
payable within 12 months.
a) True
b) False

9. __________ is a source of short-term finance that can be raised by means of selling outstanding sales
invoices for cash to a third party at a discount.
a) Bank overdraft
b) Trade credit
c) Commercial paper
d) Debt factoring

10. One of the advantages of decentralization is that managers at divisional level are generally better
motivated
a) True
b) False

11. __________ organization is a type of organizational structure that does not have an identifiable
physical existence

12. Which is not the feature of entrepreneurial organization?

a) There is no formal management structure
b) People are empowered to make decisions
c) It becomes inefficient as organization grows larger
d) Operations and processes are generally simple

13. Being a highly technical industry, dealing with combustible products, health safety and environment is
of utmost importance for exploration and production company.
a) True
b) False

14. Building individual houses is a common example of __________

a) Customization
b) Mass customization
c) Mass production
d) None of the above
15. High volume and low variety of production is a __________
a) Continuous process
b) Intermittent
c) Layout
d) Location

16. ERP is more advanced than MRP.

a) True
b) False

17. Material, labor, money and __________ are converted into goods and services.
a) Technology
b) Information
c) Inventory
d) Finance

18. Upstream refers to goods manufactured and distributed.

a) True
b) False

19. The regulatory body to regulate the power sector, to ensure the interests of investors and customers are
protected
a) GENCO
b) NEPRA
c) DISCO
d) KESC

20. The raw materials including cotton and polyester are converted into yarn. This process is called as
a) Spinning
b) Weaving
c) Drawing
d) Sizing

21. To burn off the surface fibers of the fabric to invoke smoothness in it.
a) Singeing
b) Desizing
c) Scouring
d) Folding
22. Growth in sales of national companies is higher than multinational companies in
a) In power sector
b) Pharmaceutical industry
c) Oil extraction
d) None of the above

23. Media and communication departmentalization is not required in

a) In pharmaceutical industry
b) Power sector
c) Oil and gas exploration
d) None of the above

24. Office automation system is also called as __________ system.

25. Transaction processing system is conducted at __________ level.

a) Strategic
b) Tactical
c) Operational
d) Operational and tactical

26. DBMS is a
a) Software
b) Hardware
c) Collection of information
d) A file

27. An inappropriate organizational structure can lead to

a) To poor coordination
b) Conflicts
c) Lack of supervision
d) All of the above

28. Sole proprietorship can be in an __________ structure.

29. Non-executive directors are not on regular payroll of the company so they are regarded as __________
a) Internal stakeholders
b) External stakeholders
c) Connected stakeholders
d) Non-connected stakeholders
30. Natural resources, human resources, capital and entrepreneurship are the __________
a) Stakeholders
b) Assets of the company
c) Pillars of the company
d) Factors of production

31. Which of the following is not a feature of “preference shareholders”?

a) They are issued with a fixed rate of annual dividend evidence before distribution of any dividend to
ordinary shareholders
b) They enjoy more voting rights than ordinary shareholders
c) They have a right before ordinary shareholders to the assets of company in the event of liquidation
d) None of the above

32. The __________ would likely to be e most interested in the financial position of the organization.

33. Of the three main sources of rules that regulate the behavior of businesses, the minimum level of
acceptable behavior is set by which?
a) Non-legal rules and regulations
b) Ethics
c) The law
d) Society

34. Which of the following is an approach to ethics which combines a concern for the law with an emphasis
on managerial responsibility?
a) Compliance based
b) Integrity based
c) Environment based
d) Sustainability

35. Farrah works in the sales tax section of the accounts department of BCD Co. When the finance director
is on holiday, Farrah notices that BCD Co has not been paying the correct quarterly amounts to the
authorities. Farrah had suspected this for some time and decides to contact the authorities to tell them
about the fraud.
This disclosure is known as __________
What two words correctly complete the sentence?
a) Organizational accountability
b) Confidentiality breach
c) Corporate conscience
d) Whistle blowing
36. Jackson has started his CA program last November in Pakistan after this he started to search the
source for ethical guidance of accountancy profession.
Which of the following bodies is responsible for the issue of international ethical guidance for the
accountancy profession?
a) Standard Advisory Council (SAC)
b) International Accounting Standards
c) Committee Foundation (IASCF)
d) International Federation of Accountants (IFAC-ICAP)

37. An ICAP members are required to comply with five Fundamental Principles. Which of the following
contains three of these principles?
a) Integrity, Objectivity, Honesty
b) Professional competence and due care, Professional behavior, Confidentiality
c) Social responsibility, Independence, Scepticism
d) Courtesy, Reliability, Responsibility

38. Which of the following statements regarding the entrepreneurial structure is correct?
a) It usually allows for defined career paths for employees
b) It often enjoys strong goal congruence throughout the organization
c) It can normally cope with significant diversification and growth
d) Control within the organization tends to be weak

39. Which of the following is a disadvantage of a functional structure?

a) Lack of economies of scale
b) Absence of standardization
c) Specialists feel isolated
d) Empire building

40. Softstance Ltd is an organization that manufacture tissue paper. The business is organized into four
main departments: finance marketing production and administration. What type of organization
structure does softness follow?
a) Functional
b) Matrix
c) Product
d) Geographic
41. H Ltd makes a variety of unrelated products, including bicycles, furniture and electronics. It is aware
that each of these products requires very different strategies and functions. H wishes to use a structure
that will allow for each product to managed separately, but wishes to minimize its overall
administrative costs.
Which of the following organizational structures would be most appropriate for H Ltd to adopt?
a) Divisional
b) Entrepreneurial
c) Functional
d) Matrix

42. Which of the following structures results in a potential loss of control over key operating decisions?
a) Matrix
b) Entrepreneurial
c) Functional
d) Geographic

43. Consider the following statements:

1) Under the functional structure, each department operates as a strategic business unit.
2) The matrix structure will enable rapid decision-making within the organization.
Which of the statement is/are correct?
a) 1 only
b) 2 only
c) Both
d) None

44. M plc is a large company that operates in country G. It manufactures several different products, each
of which is highly complex and extremely specialized. Its sales have grown significantly over the last
several years with each of its products producing a roughly equal number of M’s overall revenue.
Which organizational structure is most likely to be appropriate for M?
a) Geographic
b) Divisional
c) Functional
d) Entrepreneurial

45. Which of the following structures is best placed to address the need for co-ordination in very complex
situations?
a) Functional
b) Divisional
c) Matrix
d) Geographical
46. A business is an organization that ____________by providing goods and services desired by its
customers. Businesses ________________by providing household essentials, clothing, medical care,
transportation, banking, communication, and countless other goods and services.
a) Strives for profit
b) Meet the needs of consumers
c) Societal value
d) Both a & b

47. Services are ___________ of businesses that can’t be held, touched, or stored. Physicians, lawyers,
hairstylists, car washes, and airlines all provide services. Businesses also sell or serve to other
organizations, such as hospitals, retailers, and governments, by providing machinery or goods for
resale, computers, and thousands of other items. Thus, businesses create the goods and services that are
__________________.
a) Intangible offerings and to improve our standard of living
b) Tangible offerings and to improve our standard of living
c) Welfare and to improve our standard of living
d) None of the above

48. Quality of life refers to the general level of human happiness based on such things as _______________.
a) Life expectancy
b) Educational standards
c) Rigors and turbulence
d) Health, sanitation, and leisure time

49. Standard of living is an individual's perception of them

a) Position in life in the context of the culture
b) Value systems in which they live and in relation to their goals, expectations, standards and concerns
c) Health, sanitation, and leisure time.
d) All of the above

50. _________is the money a company receives by providing services or selling goods to customers. You
can choose more than one option.
a) Rate of return
b) Revenue
c) Profit
d) Consideration