BCK - MCQs Set 01

BCK/MCQs/1: Introduction to Business & BCK Page |1
C.A. FOUNDATION
BUSINESS AND COMMERCIAL KNOWLEDGE
MCQ’s Set
Chapter 1: Introduction to Business & BCK
1. Non-economic activities do not include

(a) Affection & love for family (b) Passion about some hobby
(c) Emotional Reasons (d) Livelihood Motive
2. Which forms of business is much appreciated and regarded as an economic HERO

(a) Partnership (b) Sole proprietorship (c) HUF (d) Joint stock company
3. ………………… Business enjoys a separate entity status under the Income-tax Act.
(a) Sole proprietorship (b) Hindu undivided family (c) Partnership (d) None
4. Maximum number of member in a Private company

(a) 50 (b) 100 (c) 150 (d) 200
5. LLP makes a hybrid form of business organization i.e. containing the features of both
(a) The Corporate forms as well as HUF form (b) The Corporate forms as well as proprietary form
(c) The Corporate forms only (d) None
6. NGOs stands for

(a) Non-Good organization (b) Non-Government Organization
(c) Non-Great Organization (d) Non-Government Origin
7. Choose non-economic activities among the following

(a) A maid servant cook food for family members
(b) A teacher teaching in a school
(c) A boy helps an old man in crossing the road
(d) A lady officer in Army
8. The maximum partners can be in a partnership business

(a) 10 (b) 50 (c) 15 (d) No Limit
9. Which of the following a features of Joint stock company

(a) Perpetual succession even all its members die
(b) Joint stock company has a separate legal entity
(c) Public Limited company has no limit of membership
(d) All of these
10. The ………………. successive generations of an undivided family are known as HUF
(a) 3 (b) 2 (c) 1 (d) s
11. …………………… occupations involve maximum risk & uncertainty
(a) Profession (b) Business (c) Employment (d) None
12. BCK is:

(a) vast (b) eclectic (multidisciplinary)
(c) ever evolving and expanding (d) all of the above
13. “The universe of business is vast, range of business activities is huge and there is functions within a given
functions like retailing”, which domain of BCK is defined in the above statement.
(a) BCK is vast (b) BCK is eclectic
(c) BCK is expanding (d) None of these.
14. “It derives vocabulary from diverse filed like military and biology”, which domain of BCK is defined in the
above statement.
(a) BCK is vast (b) BCK is eclectic (c) BCK is expanding (d) None of these
15. Just like army, business draw their …………………. to beat their competitor.
(a) strategy (b) logistic (c) bulls (d) bears
16. In a fast evolving and expanding sphere of knowledge, obsolescence (outdatedness) is high, thus we need to
stay updated and develop the capability to learn, unlearn, and relearn a fast pace. Which domain of BCK is
defined in the above statement.
(a) BCK is vast (b) BCK is eclectic (c) BCK is expanding (d) None of these
17. Human activities are divided into …………………… activities.

(a) economic (b) non-economic (c) both a and b (d) none of these
18. “What do I get in return or what is in it for me or self-interest” means

(a) economic (b) non-economic (c) both a and b (d) none of these
19. Non-Economic activities are driven by ……………………

(a) emotional (b) sentimental reasons (c) altruism (d) all of the above
20. Human engagement in all social, religious, cultural, personal, recreational, charity and patriotic activities are
bundled together as ……………………
(a) economic (b) non-economic (c) both (a) and (b) (d) none of these
21. Income generated by rendering personal time physical, sweat, intellect and psychic energy is called
……………………
(a) interest earning (b) earned income (c) property income (d) none of these
22. Income earned by letting out property is called ……………………

(a) interest earning (b) earned income (c) property income (d) none of these
23. Economic activities are productive:
(a) hunting of animal and gathering fruits (b) farming, teaching, law, medicine
(c) manufacturing and developing software (d) all of the above
24. Saving is converted into ……………………

(a) investment (b) wealth (c) both (a) and (b) (d) none of these
25. Unspent income comprises ……………………

(a) investment (b) wealth (c) saving (d) none of these
26. In broader perspective business may be defined as spectrum of

(a) production (b) distribution
(c) trading of goods and services (d) all of the above
27. From perspective view business is:

(a) broader (b) medium (c) narrow (d) all of the above
28. Business may be defined as an economic activity comprising the entire spectrum of activities pertaining to
production, distribution and trading of goods and services, which perspective is defined here:
29. Business may be defined as a particular type of activity or industry such as retail business, real estate business
and IT Business etc., which perspective is defined here:
30. Business may be defined as usual occupation of creating, owning and actively operating an economic
organisation i.e. a firm, which perspective is defined here:
31. …………………… is a contract of service between to employee and employer.

(a) employment (b) professional (c) independent (d) none
32. Features of employment generation includes:

(a) periodic compensation (b) recruitment and selection
(c) Minimum qualification (d) all of the above
33. …………………… is rendering of service of a specialised nature with prescribed qualification for a fee.
(a) employment (b) professional (c) independent (d) none
34. Mode of establishment “membership of a professional body”

(a) employment (b) professional (c) business (d) none
35. Source of livelihood “wages and salaries”

36. “No prescribed qualification is required”
37. “Substantial investment is required”

38. “Certainty of income”

39. “Transfer of interest / succession is possible”

40. “It is the value of goods and services produced in the a country during a particular period”
(a) GNP (b) GDP (c) economic (d) growth
41. A firm is not only the owner, it is as much other investors, lender, employee, customer, supplier, and there
arc know as ……………………
(a) interdependence (b) stake holder (c) organised activity (d) systematic activity
42. Sales, profit, returns on investments is part of:

(a) economic objective (b) organic objective
(c) social responsibilities (d) legal and ethical objective
43. Survival, health, growth and diversification of capabilities is part of:

44. Community service, education, health, sanitation, heritage is part of:

45. Respect for law in letter and spirit fair, practice, transparency, use of green technologies is part of:
(a) Economic objective (b) organic objective
46. Business may be classified as:

(a) micro (b) small (c) medium and large (d) all of the above
47. A concept equalizer to hindu undivided family, represents:

(a) Sole proprietorship (b) partnership
(c) joint family business (d) all of the above
48. Autonomy of being one's own boss:

(a) Sole proprietorship (b) HUF (c) Partnership (d) LLP
49. Minimum members 2 and maximum 200
(a) sole proprietorship (b) Private company (c) Public company (d) LLP
50. …………………… is an agreement and not contract

51. Mutual agency - that is one for each other

52. The family members are the automatic co-owners (called coparceners) by birth
53. Fate as a concern going concern-enduring life of business in the foreseeable future
54. Succession of ownership

55. Family pool of resources

56. Which of the following statements distinguishes business from entrepreneurship

(a) Entrepreneurs are the business owners too
(b) All business owners are entrepreneurs too
(c) Entrepreneurs seek out new opportunities and pursue innovative business ideas
(d) (a) and (b)
57. Sustainable development / business imply:

(a) consistent economic performance (b) attention to social problems
(c) harmony with nature (d) all of the above
58. The Indian Companies Act provides for the registration of:
(a) private limited and public company
(b) one-person company and small company
(c) defunct company
(d) all of the above
59. HUF cannot comprise members of a:

(a) Hindu & Sikh family (b) Parsi family (c) Buddhist family (d) Muslim family
60. BCK Vocabulary Strategy is taken from …………………… discipline.
61. BCK Vocabulary Logistic is taken from …………………… discipline.

62. BCK Vocabulary Bulls is taken from …………………… discipline.
63. BCK Vocabulary Bears is taken from …………………… discipline.
64. Economic activities are said to be driven by ……………………
65. …………………… behind an activities is such which strongly determine the economic and non-economic
dichotomy e.g., cooking.
66. Production represent the …………………… side of economics.
67. Consumption represent the …………………… side of economics.
68. Under employment one is expected to perform as per …………………… and ……………………
69. Professionalism is often associated with ……………………
70. “It means, investment takes time to fructify and it is uncertain whether it will yield the return as expected”
71. Business is …………………… system as it interacts with the environment.
72. Entrepreneurial endeavours brings about a qualitative change called ……………………
73. There are restrictions on transfer of shares in ……………………
74. True or false:

The chartered accountant are the custodian of a nation's resources.
75. True or false

“Even on economic activities an economic dimension”
76. True or false

Income may be earned in kind too
77. True or false

Agricultural does not comprise industry and hence business.
78. True or false

Agricultural produce used by manufactures as material ingredient, comprise industry
79. True or false

Lack of investible funds or capital is a strong barrier to start a business.
*********
Answers:
1. (d) 2. (b) 3. (b) 4. (d) 5. (b) 6. (b) 7. (c) 8. (b) 9. (d) 10. (a)
11. (b) 12. (d) 13. (a) 14. (b) 15. (a) 16. (c) 17. (c) 18. (a) 19. (d) 20. (b)
21. (b) 22. (c) 23. (d) 24. (c) 25. (c) 26. (d) 27. (d) 28. (a) 29. (b) 30. (c)
31. (a) 32. (d) 33. (b) 34. (b) 35. (a) 36. (c) 37. (c) 38. (a) 39. (c) 40. (b)
41. (b) 42. (a) 43. (b) 44. (c) 45. (d) 46. (d) 47. (c) 48. (a) 49. (b) 50. (c)
51. (c) 52. (b) 53. (a) 54. (a) 55. (b) 56. (c) 57. (d) 58. (d) 59. (d)
60. Military
61. Military
62. Biology (animal Psychology)
63. Biology (animal Psychology)
64. Rationality
65. Motive
66. Supply
67. Demand
68. Term of employment and performance targets
69. Perfectionism
70. Gestation and uncertainties
71. Open
72. Development
73. Partnership
74. True
75. True
76. True
77. True
78. True
79. True
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BCK/MCQs/2: Business Environment Page |1
C.A. FOUNDATION
MCQ’s Set
Chapter 2: Business Environment
1. The Manager are motivated to continuously update their knowledge will help the business is known as
(a) Image Building (b) Meeting competition
(c) Continuous learning (d) Giving direction for growth
2. Actions seek to enhance the organisations performance by establishing a competitive advantage over its
Rivals is known as
(a) Administrative response (b) Competitive response
(c) Collective response (d) None
3. ……………………. can be defined as the process by which organisations monitor their relevant environment to
identify opportunities and threats
(a) Environmental analysis (b) Business Environment
(c) Environmental scanning (d) Micro environment
4. An effective organizational strategy, therefore is one that capitalizes on the opportunities through the use of
strengths and neutralizes the …………………….
(a) Opportunities (b) Threats (c) Strengths (d) None
5. In the PESTLE frame work for environment analysis what does the letter T stand for
(a) Technical (b) Technological (c) Term (d) Tenure
6. Which of Element is a macro environment

(a) Customer (b) Market (c) Competitors (d) Government
7. Which of these element are of Micro environment

(a) Competitors (b) Suppliers (c) Market (d) All of the above
8. Economic resources, the level of income economics policies are example of

(a) Demographic Environment (b) Political Environment
(c) Economics Environment (d) Global Environment
9. Which of these element are not of macro environment

(a) Political Environment (b) Economic Environment
(c) Social Environment (d) Competitors
10. Business and technology are:

(a) interrelated (b) interdependent
(c) interrelated & interdependent (d) none of the above
11. Study of human population is called as ……………………. environment
(a) political (b) demographic (c) global (d) economic
12. Which of the following is not characteristic least resistance strategic response:
(a) simple goal maintaining (b) passive approach
(c) dynamic (d) all of the above
13. Process of strategy formulation starts with:

(a) appraisal of external environment of the organisation
(b) performance analysis
(c) choice of strategy
(d) none of the above
14. Relationship between organisation and environment can be described through:

(a) exchange of information (b) exchange of resources
(c) exchange of influence and power (d) all of the above
15. All are elements of micro environment except:

(a) consumer (b) suppliers (c) competitors (d) society
16. The term PESTLE analysis is used to describe a framework of analyzing:

(a) macro environment (b) micro environment
(c) both macro and micro environment (d) none of the above
17. A company must have capabilities.

(a) the ability to prosper and (b) the ability to change
(c) both (a) and (b) (d) none of the above
18. Business environment represents all external forces, factors or conditions that exert some degree of
impact on the …………………….
(a) business decisions (b) strategies (c) actions taken by the firm (d) all of the above
19. The environment consists of a number of factors, events, conditions and influences arising from different
sources.
(a) complex (b) dynamic (c) multi-faceted (d) far reaching impact
20. The environment is constantly changing in nature. Due to the many and varied influences operating.
21. A particular change in the environment or a new development, may be viewed differently by different
observes.
22. Any environmental change has an impact on the organization in several different ways.
23. The interaction bet ween the business and its environment would bring out opportunities for and threats to
the business
(a) determining opportunities and threats (b) giving direction for growth
(c) continuous learning (d) image building
24. The managers are motivated to continuously update their knowledge, understanding and skills to meet the
predicted changes in the realm of business.
(c) continuous learning (d) image building
25. It helps the firms to analyse the competitors; strategies and formulate their own strategies accordingly.
(c) meeting competition (d) image building
26. Information is to be gathered on economic activity and market conditions, technological developments,
social and demographic factors political-governmental policies and postures, the activity of other
organizations and so on.
(c) exchange of influence and power (d) none of these
27. The organizations receives inputs-finance, materials, manpower, equipment etc.

28. The resources are often categorised as 5 M's men, money, method, machine, material.
29. External environment and catering to them, satisfying the expectations and demands of the clientele groups,
such as customers, employees, shareholders, creditors, suppliers, local community, general public and so on.
30. These include the formations or clarification of the organization's mission; the development of objectives,
policies and budgets; or the creation oi scanning units.
(a) administrative response (b) competitive response
(c) collective response (d) none of these
31. To sustain competitive advantage, organization must achieve an external position vis-à-vis their competitors
or perform internally in ways that are unique, valuable and difficult to imitate.
(c) collective response (d) none of these.
32. It help control interdependencies among organization and include such methods as bargaining, contracting,
co-opting and creating joint ventures. federations, strategic alliances and consortia.
(c) collective response (d) none of these.
33. Environment in terms of how uncertain.

(a) first step (b) second step (c) final step (d) all of the above
34. Auditing of environmental influences.

35. Is to focus more towards an explicit consideration of the immediate environment of the organization.
36. The analysis should provide an understanding of current and potential changes taking place in the
environment.
(a) first step in environmental analysis (b) second step in environmental analysis
(c) third step in environmental analysis (d) none of these
37. Environmental analysis should provide inputs for strategic decision making.
(a) First step in environmental analysis
(b) Second step in environmental analysis
(c) third step in environmental analysis
(d) none of these
38. Environment analysis should facilitate and foster strategic thinking in organizations - typically a rich source
of ideas and understanding of the context within which a firm operates.
(a) first step in environmental analysis (b) second step in environmental analysis
(c) third step in environmental analysis (d) none of these
39. The factors which need to be considered for environmental scanning are events, trends, issue and
expectations of the different interest groups.
(a) Event (b) Trends (c) Issues & Expectations (d) All of the above
40. ………………….. are important and specific occurrences taking place in different environmental sectors.
(a) Event (b) Trends (c) Issues (d) Expectations
41. ……………… are the general tendencies or the courses of action along which events take place. Trends are
grouping of similar of related events that tend to move in a given direction.
42. ……………… are the current that arise in response to events and trends. Identifying an emerging issue is more
difficult. Emerging issues start with a value shift, or a change in how an issue is viewed.
43. ……………… are the demands made by interested groups in the light of their concern for issues.
44. Internal environment is composed of multiple elements existing within

(a) organization (b) including management
(c) current employees and corporate culture (d) all of the above
45. The factors that happen outside the business are known as
(a) internal factors (b) null factors (c) macro factor (d) external factors
46. The major types of external environment:

(a) micro environment (b) macro environment (c) both(a) & (b) (d) none of these
47. Micro environment is related to small area or immediate periphery of an organization.

(a) The employees of the firm, their characteristics and how they organized
(b) The customer base on which the firm relies for business
(c) The ways in which the firm can raise its finance
(d) All of the above
48. Macro environment has broader dimensions. It consist of

(a) economic, technological (b) political, legal (c) socio-cultural (d) all of these
49. “the aim of business is to create and retain customer”

(a) Peter Drucker (b) Fedrric (c) Marshal (d) Magginum
50. Consumer is the one who ultimately consumes or uses the

(a) product (b) service (c) both product or services (d) none
51. Competition shapes

(a) business (b) profit (c) forecasting (d) organisation
52. Which of the major questions that may be addressed for analyzing competitions:
(a) Who are the competitors?
(b) What are their business objectives and strategies?
(c) Who are the most aggressive and powerful competitors?
(d) All of the above
53. Competition may be ………………

(a) direct (b) indirect (c) direct or indirect (d) mature
54. Which is not likely to influence an organization.

(a) Owners (b) Board of Directions (c) Employees (d) Surroundings
55. The marketer should study the trends and development and the key success factors of the market he is
operating, which one is not the factor
(a) Cost structure of the market (b) The price sensitivity of the market
(c) Technological structure of the market (d) The market is immature
56. Suppliers form an important component of the micro environment. They provide
(a) raw material (b) equipment (c) services (d) all of the above
57. Organizations have to take a major decision on ……………… production depending on this supplier
environment
(a) finance (b) “outsourcing” or “in-house” (c) In housing (d) suppliers
58. In many cases the consumers are not aware of the manufacturer of the products they buy. They buy product
from the local retailers, big departmental stores or online stores, they are know as ………………
(a) retailers (b) whole sellers (c) distributor (d) intermediaries
59. While population size itself, large or small, may be important to companies that require a “critical mass” of
potential customers, changes in the specific make up of a population's size.
(a) Population size (b) Geographic distribution
(c) Ethic Mix (d) Income Distribution
60. Population shifts from one region of a nation to another or from non- metropolitan to metropolitan areas
may have an impact on a company's strategic competitiveness.
(a) Population size (b) Geographic distribution (c) Ethic mix (d) Income distribution
61. This reflects the changes in the ethnic make-up of a population and has implications both for a company's
potential customers and for the workforce.
(a) Population size (b) Geographic distribution (c) Ethic mix (d) Income distribution
62. Changes in the levels of individual and group purchasing power and discretionary income often result in
changes in spending (consumption) and saving patterns.
(a) population size (b) Geographic distribution (c) Ethic mix (d) Income distribution
63. ……………… refers to the nature and direction of the economy in which a company competes or may compete.
(a) Economic environment (b) Fiscal environment
(c) Industrial environment (d) Export environment
64. Factors that affect the economic Environment: i. e. Capitalism, Socialism & mixed
(a) Economic System (b) Economic Policies
(c) Political-legal environment (d) Socialism
65. Factors that affect the economic Environment: i.e. Industrial policy, Monetary policy
Fiscal policy & Foreign investment policy:
66. Factors that affect the economic Environment: i.e. Government, Legal & Political:
67. ……………… environment consist of factor related to human relationships and the impact of social attitudes
and cultural values which has bearing on the operations of the organization.
(a) Economic System (b) Political-legal environment
(c) Socio-environment Culture (d) Economic Policies
68. The Pestle Matrix includes Political stability, Political principles and ideologies, Current and future taxation
policy, Regulatory bodies and processes and Government policies.
(a) Political (b) Economic (c) Social (d) Technological
69. The Pestle Matrix includes Economic situation and trends, Market & trade cycles, specific industry factors,
customer / end-user drivers, Interest and exchange rates & Inflation and unemployment.
70. The pestle matrix includes lifestyle trends, demographics, consumer attitudes and opinions, brand, company
I technology image, consumer buying patterns & ethic / religious factors.
71. The Pestle Matrix includes Replacement technology /solution, maturity of technology, manufacturing
maturity and capacity, innovation potential, technology access, licensing, patents & intellectual property
rights and patents.
72. The Pestle Matrix includes Business and Corporate Laws, Employment Law, Competition Law, Health & Safety
Law, International Treaty and Law & regional legislation.
(a) Political (b) Economic (c) Social (d) Legal
73. …………………. can be defined as the process by which organizations monitor their relevant environment to
identify to identify opportunities and threats their business for the purpose if taking strategic decisions.
74. The business must continuously monitor and adapt itself to the environment if it is to survive and prosper.
(True/False)
75. SWOT, which is the acronym for strengths, weaknesses, opportunities and threats.
(True/False)
76. Internal environment also include the organization's mission statement, leadership styles and its
organizational culture.
(True/False)
*********
Answers:
1. (c) 2. (b) 3. (c) 4. (b) 5. (b) 6. (d) 7. (d) 8. (c) 9. (d) 10. (c)
11. (b) 12. (c) 13. (a) 14. (d) 15. (d) 16. (a) 17. (c) 18. (d) 19. (a) 20. (b)
21. (c) 22. (d) 23. (a) 24. (c) 25. (c) 26. (a) 27. (b) 28. (b) 29. (b) 30. (a)
31. (b) 32. (c) 33. (a) 34. (b) 35. (c) 36. (a) 37. (b) 38. (c) 39. (d) 40. (a)
41. (b) 42. (c) 43. (d) 44. (d) 45. (d) 46. (c) 47. (d) 48. (d) 49. (a) 50. (c)
51. (a) 52. (d) 53. (c) 54. (d) 55. (d) 56. (d) 57. (b) 58. (d) 59. (a) 60. (b)
61. (c) 62. (d) 63. (a) 64. (a) 65. (b) 66. (c) 67. (c) 68. (a) 69. (b) 70. (c)
71. (d) 72. (d)
73. Environmental Scanning
74. True
75. True
76. True
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BCK/MCQs/3: Business Organisation Page |1
C.A. FOUNDATION
MCQ’s Set
Chapter 3: Business Organisation
1. Present head (MD & CEO) of the ICICI Bank

(a) M.K Sharma (b) Sandeep Bakshi (c) Rakesh Jha (d) Deepak S. Parekh
2. ICICI Banks acquisitions of

(a) Bank of Madura (b) UTI (c) Imperial Bank (d) Bank of Mathura
3. The company was incorporated as Infosys consultants Private Ltd. with a capital of
(a) ` 5,000 (b) ` 15,000 (c) ` 20,000 (d) ` 10,000
4. ……………….. Company has also ventured into oil and gas exploration and coal mining activities.
(a) NHPC (b) NPCIL (c) NTPC (d) ONGC
5. Head quarter of ONGC is situated in

(a) Mumbai (b) Pune (c) Mudra (d) Uttarakhand
6. Former name of State Bank of India

(a) RBI (b) Imperial Bank of India (c) Bank of India (d) None
7. SBI was incorporated in the year

(a) 1906 (b) 1807 (c) 1806 (d) 1916
8. Chairman of Wipro Limited

(a) Azim Ji (b) Azim Prem Ji (c) Jatin Ji (d) Prem Ji
9. In ………………. the name was changed from WIPRO Product Limited to WIPRO Limited
(a) 1962 (b) 1980 (c) 1990 (d) 1982
10. Head quartered of DEUTSCHE Bank located in

(a) France (b) Britain (c) USA (d) Germany
11. “Good food, Good life” is the slogan of which company?

(a) Nestle (b) Hindustan Lever Ltd. (c) P&G (d) None
12. IBM operate in over …………………. countries across the globe

(a) 160 (b) 180 (c) 175 (d) 170
13. Present head (CEO) of apple company

(a) David (b) Tom Cook (c) Tim Cook (d) Dion
14. HP stands for
(a) Hewlett-Packing (b) Hewlett-Packard (c) Hemlet-Packard (d) Hemlett-Packing
15. At the present the CEO of Adani Ports and special economic Zone Ltd
(a) Gautam Bhai Shantilal Adani (b) Karan Gautambhai Adani
(c) Arjun Gautam bhai Adani (d) Ravi Gautambhai Adani
16. Which company is the winner of “Golden peacock” award in the paint sector
(a) NEROLAC (b) Shalimar (c) Asian Paint (d) Burger
17. The third larger private sector bank in India

(a) ICICI Bank Ltd. (b) HDFC Bank Ltd. (c) SBI (d) Axis Bank
18. Present CEO in Bajaj Auto Limited

(a) Mr. Rahul Bajaj (b) Mr. Arhul Bajaj (c) Mr. Rajiv Bajaj (d) Mr. Arun Bajaj
19. Third largest mobile network in world

(a) Vodafone. (b) Reliance (c) Idea (d) Airtel
20. We understood your world is the slogan of which company

(a) HDFC Bank (b) ICICI Bank (c) Axis Bank (d) None
21. Coal India Limited incorporated in the year

(a) 1974 (b) 1975 (c) 1976 (d) 1977
22. First store of wall-mart opened in which city of India

(a) Delhi (b) Mumbai (c) Amritsar (d) None
23. In 2016 …………….. Bank was awarded “Best performing Branch” in Micro finance among private sector banks
by NABARD.
(a) ICICI Bank (b) Axis Bank (c) YES Bank (d) HDFC Bank
24. Bharti Airtel was incorporated in the year

(a) 1991 (b) 1993 (c) 1995 (d) 1996
25. American Express Established its First office in India in 1929 in

(a) Delhi (b) Chennai (c) Bangalore (d) Kolkata
26. Microsoft corporation was founded on April 4, 1975 by the

(a) Paul Allen and Bill Gates (b) Paul Thomas and Bill Gates
(c) Paul frank and Bill Gates (d) Paul H. and Bill Gates
27. Full form of ITC Limited in August, 1910

(a) Indian Tobacco Company (b) Imperial Tobacco Company
(c) Indian Tea Company (d) None of the above
*********
Answers:
1. (b) 2. (a) 3. (d) 4. (c) 5. (d) 6. (b) 7. (c) 8. (b) 9. (d) 10. (d)
11. (a) 12. (d) 13. (c) 14. (b) 15. (b) 16. (c) 17. (d) 18. (c) 19. (d) 20. (a)
21. (b) 22. (c) 23. (d) 24. (c) 25. (d) 26. (a) 27. (b)
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BCK/MCQs/4: Govt. Policies for Business Growth Page |1
C.A. FOUNDATION
MCQ’s Set
Chapter 4: Government Policies for Business Growth
1. ………………………… economic policy refers to the gradual decrease in government command and control over
the economic policy.
(a) Liberalization (b) Privatization (c) Globalization (d) Historian
2. …………………………, in its purest form means transfer of government ownership to private hands. In real life.
3. ………………………… refers to taking off restrictions in export and import of goods and services. It also covers
the measures of lifting the trade barriers.
4. ………………………… classified these input of political system into generic functional categories like political
socialization and recruitment, interest aggregation, interest articulation and political communication.
(a) David (b) Almond (c) Thomas (d) Carl J Friedrich
5. Output activities are those which are carried on by ………………………… in response to demands or stresses
placed upon the system in the form of inputs. Outputs generally take the form of governmental policies,
programs, decisions, etc,
(a) Political System (b) Government (c) Decision (d) Programs
6. ………………………… propounded another model on politics-policy relationship which is known as feedback or

the “Black Box Model”.
(a) David Easton (b) Almond (c) Thomas (d) Carl J Friedrich
7. This model identifies that there are many societal demands which are not included in the decisions and
policies designed by the state. In course of time of governments try to look for some avenues to look for a
feedback process towards public policy.
(a) David Easton (b) Almond (c) Thomas (d) Carl J Friedrich
8. Rohit sells fire crackers in Delhi. He was fined by local police for selling fire, crackers with an expii trade
licence. This is the example of …………………………
(a) fiscal policy (b) monitory policy (c) fiscal policy (d) all of the above
9. ………………………… says that “Public Policy is not a decision, it is a course or pattern of activity”.
(a) David (b) Richard Rose (c) Thomas (d) Carl J Friedrich
10. Public policy is a proposed course of action of a person, group of government within a given environment
providing opportunities and obstacles which the policy was proposed to utilise and overcome in an efforts to
reach a goal to realise an objectives or purpose.
(a) David (b) Richard (c) Thomas (d) Carl J Friedrich
11. These are formulated and implemented in order to attain certain objective which the government has in view
for the ultimate benefit of the masses in a welfare state.
(a) Public policies are always GOAL ORIENTED.
(b) Public policy represents the OUTCOME of the government's collective actions
(c) Public policy is Positive
(d) None of these
12. It means that it is a pattern or course of activity or the governmental officials and actors in a collective sense
than being as their discrete and segregated decisions.
(a) Public policies arc always GOAL ORIENTED.
(d) None of these
13. The sense that it depicts the concern of the government and involves problem on which the policy is made.
(a) Public policies are always GOAL ORIENTED
(d) None of these
14. Components of public policy process

(a) Problem identification, policy evaluation. (b) Public policy process, Policy formulation
(c) Policy implementation (d) All of the above
15. Public process are of how many types.

(a) restrictive (b) regulatory (c) facilitating (d) all of the above
16. ………………………… curtail all benefits in some particular issue. For example, custom duties may be imposed to
protect Indian products.
(a) restrictive (b) regulatory (c) facilitating. (d) all of the above
17. ………………………… practices regulate the activities of a particular sector of economy. The regulator checks
deviations in set practices
18. ………………………… policies are the ones which facilitates an activity. The conducive policies towards the
development of MSMEs (micro, small & medium enterprises) are an example of facilitating policy.
19. Capitalist Model of government with a strong private sector with individual ownership.
(a) Restrictive (b) Capitalist (c) Communication (d) All of the above
20. Model where the state owned everything.

(a) Restrictive (b) Capitalist (c) Communistic (d) All of the above
33. The form of privatization where government keeps hold of responsibility and private enterprise handles the
manage management of it fully partly is known as:
(a) Disinvestment (b) Deregulation (c) Delegation (d) Decentralization
34. SEBI, RBI and IRDA are:

(a) regulatory institutions (b) policy institutions
(c) satellite institutions (d) goal setting bodies
35. Blackrock invested 30 million USDs as a portfolio investor in Indian stock market. This may be a case of:
(a) FDI (b) FII investment (c) Indirect investment (d) NRI investment
36. The method of FDI other than automatic route called:

(a) NRI route (b) Government route (c) Institutional route (d) Priority route
37. ………………………… refers to taking off restriction in export and import of goods and services
(a) Liberalization (b) Privatization (c) Globalization (d) Both (a) and (b)
38. Which Ruler introduced the policy of peace and Harmony

(a) Chanakya (b) Ashoka (c) Akbar (d) Alauddin Khilji
39. Public policy is guided by social, cultural religious and ………………………… factors.
(a) Political (b) External (c) Internal (d) None
40. The United State of American followed strong ………………………… of Govt.

(a) Communication model (b) Capitalist model (c) Mixed Model (d) None
41. FDI is Prohibited in

(a) Lottery Business (b) Gambling and Betting (c) Nidhi Company (d) All of the above
*********
Answers:
1. (a) 2. (b) 3. (c) 4. (b) 5. (a) 6. (a) 7. (a) 8. (c) 9. (b) 10. (d)
11. (a) 12. (b) 13. (c) 14. (d) 15. (d) 16. (a) 17. (b) 18. (c) 19. (b) 20. (c)
21. (d) 22. (d) 23. (a) 24. (d) 25. (a) 26. (b) 27. (c) 28. (d) 29. (a) 30. (a)
31. (c) 32. (b) 33. (c) 34. (a) 35. (b) 36. (b) 37. (c) 38. (b) 39. (a) 40. (b)
41. (d)
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BCK/MCQs/5: Organisations Facilitating Business Page |1
C.A. FOUNDATION
MCQ’s Set
Chapter 5: Organisations Facilitating Business
1. Which is the "Funding institutions"

(a) RBI (b) SEBI (c) CCI (d) NABARD
2. Which of the following is not "Funding institution":

(a) Industry specific facilitation institutions (IR-DAT) (b) SIDBI
(c) Exim Bank (d) NABARD
3. ……………….. a person or company who organizes shipments for the business firms to get goods from the
manufacture or producer to a market, customer or final point of distribution.
(a) freight forwarder (b) business incubator
(c) financial consultant (d) merchandiser
4. ……………….. helps create and grow young business by providing them with necessary support and financial
and technical services
5. ……………….. helps a budding business quickly launch a product and put it in the fast lane of commercial
success:
6. ……………….. who advises the business on the various sources of finance- domestic as well as foreign; debt as
well as equity, short-term as well as long-term and helps it.
7. ……………….. who helps the business e.g., a fashion house obtain its supplies fabrics, accessories, etc.
8. ……………….. Who was the regulatory body for controlling financial affairs in India before SEBI?
(a) Controller of Capital Issues (b) Reserve Bank of India
(c) Insurance Regulatory and Development Authority of India (d) Government of India
9. When was SEBI constituted?

(a) 1988 (b) 1990 (c) 1986 (d) 1989
10. How many members of SEBI should be from RBI?

(a) 4 (b) 3 (c) 1 (d) 2
11. Where can the first appeal against SEBI be made?
(a) High Court (b) Supreme Court (c) Securities Appellate Tribunal (d) RBI
12. Who regulates the currency in the country?

(a) SEBI (b) RBI (c) Central Bank (d) Finance Ministry
13. One per cent is equivalent to

(a) 50 basis point (b) 75 basis point (c) 25 basis point (c) 100 basis point
14. When was the IRDAI constituted?

(a) 1997 (b) 1998 (c) 1999 (d) 2000
15. Which section of IRDAI Act, 1999 lays down the duties, powers and functions of IRDAI?
(a) section 10 (b) section 12 (c) section 14 (d) section 5
16. Which of the following is a development bank?

(a) SBI (b) PNB (c) ICICI (d) NABARD
17. Second appeal by Investor lies directly to the

(a) High Court (b) Lower Court
(c) Securities Appellate Tribunal (d) Supreme Court
18. There should be free and fair competition in the Market to get the following Benefits?
(a) Encourage Innovation (b) Increases Efficiency
(c) Punishes the Laggards (d) All of the above
19. Who is the "Lender of Last Resort"

(a) NABARD (b) SBI (c) Central Govt. (d) RBI
20. CCI was established by the Central Govt. on 14th October, in the year
(a) 2001 (b) 2002 (c) 2003 (d) 2004
21. Product that perform the same function compete against each other
(a) Direct competition (b) Indirect competition
(c) Both (a) & (b) (d) None
22. Where is the headquarter of NABARD?

(a) MUMBM (b) DELHI (c) GURUGRAM (d) BENGALURU
23. July 2014 FDI limit in Insurance sector is

(a) 74% (b) 26% (c) 49% (d)None
24. SEBI draft regulation in its legislative capacity

(a) quasi legislative (b) quasi-judicial (c) quasi executive (d) all of the above
25. The Securities and Exchange Board of India which is the apex body of ………………..
(a) Stock Exchange (b) Banks (c) Insurance (d) RBI
26. The National Institute of Entrepreneurship an Small Business Development (NIESBUD) focuses on training the
………………..
(a) trainers in entrepreneurship development (b) employee of banks
(c) insurance agent (d) all of these
27. Entrepreneurship Development institute (EDI) the national level apex organisation for
(a) entrepreneurship development (b) industrial profile
(c) small scheme (d) facilitating Indian business
28. Role of RBI

(a) the RBI is the apex monetary institution (b) maintenance of economic stability
(c) the country's monetary policy (d) all of the above
29. How many members are appointed by the Central Government in CCI
(a) 3 (b) 5 (c) 6 (d) 2
30. It also sells treasury bills on behalf of the Central Government in order to wipe away excess liquidity in the
economy
(a) SBI (b) CBI (c) RBI (d) Central Government
31. The RBI also makes advances to the Central and State Government which are repayable within ………………..
days from the date of advance.
(a) 86 (b) 85 (c) 88 (d) 90
32. Who says that all the scheduled banks are required to maintain minimum cash reserve ratio with the RBI
against their demand and time liabilities.
(a) Bankers Demand (b) Bankers Cheque (c) Bankers Bank (d) Bankers Policy
33. When foreign exchange reserves are inadequate for meeting balance of payment problem, it borrows from
the
(a) IMF (b) World Bank (c) WTO (d) Foreign Countries
34. Protect the Market for Government Securities and characterise credit in desired direction is the Role of
(a) Central Govt. (b) State Govt (c) RBI (d) None
35. It is responsible for promoting banking habits among people and mobilising savings from every corner of the
country
(a) SBI (b) CBI (c) RBI (d) Central Government
36. The RBI is responsible for the monetisation of the economy, overseas the availability forging currency.
(a) currency policy (b) credit policy (c) credit availability (d) repo rate
37. SLR and CRR are quantitative measures of ……………….. policy
(a) credit policy (b) currency policy (c) repo rate (d) credit availability
38. RBI influences the interest rates through such policy instruments as ………………..
(a) credit policy (b) currency policy (c) bank rate (d) repo rate
39. RBI provides loans to the banks either by direct lending or by rediscounting the bills of commercial banks
and treasury bills, it is known as ………………..
(a) discount rate (b) bank rate (c) repo rate (d) credit policy
40. The rate at which banks borrow money from the RBI against pledging or sales of Government securities to
RBI is known as ………………..
(a) repo rates (b) discount rate (c) bank rate (d) credit
41. It is the rate of interest offered by RBI, when banks deposit their surplus with RBI for short periods
………………..
(a) reverse repo rate (b) repo rate (c) credit (d) bank rate
42. Sine qua non means ………………..

(a) An absolute imperative (b) legal mistake
(c) working with evidence (d) normative investment
43. Chairman of SEBI is appointed by ………………..

(a) State Government (b) Municipal Government (c) Central Government (d) Bank
44. SEBI has to be responsive to the needs of the groups, which constitute the market:
(a) the issuers of securities (b) the investors
(c) the market intermediaries (d) all of the above
45. In which year IRDA allow Private Players to Enter the Insurance sector in India
(a) 1998 (b) 1999 (c) 2001 (d) 1997
46. RBI Act was passed in the year

(a) 1935 (b) 1933 (c) 1934 (d) 1936
47. The rate at which banks borrow money from the RBI for a short period
(a) Repo rate (b) Reverse Repo Rate (c) Bank rate (d) OMO
48. Objectives of SEBI is to ………………..

(a) Protect the interest of consumer (b) Protect the interest of Investor
(c) Protect the interest of producer (d) None
49. ……………….. is an autonomous apex statutory body which regulate and develops the insurance industry in
India.
(a) SEBI (b) IRDA (c) RBI (d) FDI
50. The ratio of liquid asset kept by Commercial Bank itself is known as
(a) CRR (b) Repo-Rate (c) SLR (d) None
51. ……………….. looks after the development of the cottage Industry, small Industry and Village. Industry
(a) RBI (b)PNB (c) SEBI (d) NABARD
52. Role of Government in facilitating Indian Businesses through such schemes Like
(a) Only make in India (b) Only start up India
(c) Both make in India & start up India (d) None
53. NABARD is also known for its

(a) SHG (b) SCB (c) CBI (d) RRB
54. Head quarter of RBI located in

(a) Delhi (b) Mumbai (c) Bangalore (d) Patna
55. One Rupee Notes/coins issued by

(a) RBI (b) SBI (c) State Government (d) Ministry of Finance
*********
Answers:
1. (d) 2. (a) 3. (a) 4. (b) 5. (c) 6. (c) 7. (d) 8. (a) 9. (a) 10. (c)
11. (c) 12. (b) 13. (d) 14. (c) 15. (c) 16. (d) 17. (d) 18. (d) 19. (d) 20. (c)
21. (a) 22. (a) 23. (c) 24. (d) 25. (a) 26. (a) 27. (a) 28. (d) 29. (c) 30. (c)
31. (d) 32. (c) 33. (a) 34. (c) 35. (c) 36. (a) 37. (a) 38. (c) 39. (a) 40. (a)
41. (a) 42. (a) 43. (c) 44. (d) 45. (b) 46. (c) 47. (a) 48. (b) 49. (b) 50. (c)
51. (d) 52. (c) 53. (a) 54. (b) 55. (d)
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BCK/MCQs/6: Common Business Terminologies Page |1
C.A. FOUNDATION
MCQ’s Set
Chapter 6: Common Business Terminologies
1. A Portion of the tax profit out to the owners of a business as a return on their investment is:
(a) Dividend (b) Expense (c) Expenditure (d) Deferred income
2. ……………….. is the process of estimating future demand by anticipating what buyers are likely to do under a
given set of marketing condition:
(a) Cross marketing (b) forecasting (c) market development (d) internal marketing
3. The exploitation of comparatively small market segments by business that decide to concentrate their efforts
is called:
(a) Niche marketing (b) mass marketing (c) market segmentation (d) market positioning
4. Carrying forward of transaction form one settlement period to the next without effecting delivery or payment
is called ………………..
(a) BADLA (b) BETA (c) BLUE CHIPS (d) BASKET TRADING
5. ……………….. is a road map of company’s future,

(a) Objective (b) goal (c) vision (d) aim
6. A brokerage firm is said to be an ……………….. when it acts on behalf of the client.

(a) agent (b) amortize (c) appreciation (d) asset
7. To ……………….. is to change a regular portion of expenditure over a fixed period of time.

(a) agent (b) amortize (c) audit (d) ask/offer
8. A series of payments of an equal amount at fixe intervals for a specified number of periods.
(a) asset (b) arbitrage (c) annuity (d) audit
9. ……………….. means an economic resources that is expected to be benefit in the future.

(a) agent (b) bears (c) audit (d) asset
10. The lowest price at which an owner is willing to sell his securities.
(a) ask/offer (b) audit (c) budget (d) bears
11. ……………….. is a careful review of financial records of an organization to verify their accuracy.
(a) badla (b) audit (c) book value (d) base price
12. ……………….. are amounts owned to a company that are not going to be paid.
(a) badla (b) asset (c) bad debt (d) agent
13. ……………….. is a statement of the financial positions of a company at a single specific time often at the close
of business on the last day of the month, quarter, of the year.
(a) bears (b) balance sheet (c) bull (d) bid
14. ……………….. is a type of long-term promissory note.

(a) beta (b) buyer (c) bond (d) bid
15. It is amount of revenue from sales which exactly equals the amount of expenses.
(a) blue chips (b) buyer (c) bonds (d) breakeven point
16. Carrying forward of transaction from one settlement period to the next without effecting delivery or
payment.
(a) Call option (b) bull (c) bonus (d) badla
17. ……………….. are share of large well established and financially sound companies with an impressive record of
dividends.
(a) Blue chips (b) beta (c) bull (d) buyer
18. Days on which stock market are open.

(a) Base price (b) business day (c) bid (d) bonus
19. The riskiness inherent in the firm’s operation if it uses no debt.

(a) book closer (b) bid and offer (c) business risk (d) beta
20. The trading member who was/has placed the order for the purchase of the securities.
(a) buyer (b) bear market (c) book value (d) bid
21. The final price at which the stock is traded on a given particular trading day.
(a) cash budget (b) close price (c) commodities (d) call option
22. The capital gain during a given year divided by the beginning price.
(a) close price (b) credit period (c) capital gain yield (d) creditors
23. The financial markets for stocks and the intermediate or long-term debt.
(a) bull (b) cash budget (c) bid (d) capital market
24. The length of time for which credit is granted.

(a) credit period (b) commodities (c) call option (d) bonus
25. Product used for commerce that are traded on a separate, authorized commodities platform.
(a) capital market (b) commodities (c) creditors (d) bonus
26. Business combination of two or more entities that occurs when the entities transfer all of their net assets to
a new entity created for that purpose.
(a) creditors (b) bull (c) cash budget (d) consolidation
27. A type of debt instrument that is not secured by physical assets or collateral
(a) debentures (b) debtors (c) depreciation (d) dividend
28. Although ……………….. are considered an asset, if you are owned a vast amount this might indicate problems
collecting monies owned possible cash flow difficulties.
(a) derivatives (b) call option (c) debtors (d) bonus
29. ……………….. is way of spreading the cost of an asset over its expected useful economic life.
(a) depreciation (b) cash budget (c) creditors (d) bonus
30. A security whose price is divided from one more underlying assets.
(a) debtors (b) derivatives (c) depreciation (d) bull
31. A portion of the company’s earning decided to pay to its shareholders in return to their investments.
(a) buyer (b) bull (c) dividend (d) closing price
32. The number of units of given currency that can be purchased for unit of another currency.
(a) equity (b) exchange rate (c) hedge (d) index
33. ……………….. is anything that ranges from cash, deed, negotiable instrument, or for that matter any written
and authenticated evidence that shows the existence of a transaction or agreement.
(a) face value (b) income stock (c) financial instrument (d) index
34. ……………….., which is also known as a government security, is basically any security that is held with the
government and has the highest possible rate of interest.
(a) government bonds (b) hedge (c) index (d) face value
35. ……………….. is time duration during which a capital asset is held/owned by an individual or corporation.
(a) income stock (b) holding period (c) hedge (d) index
36. A statistical measurement of change in the economy or security market.

(a) bull (b) buyers (c) index (d) internet trading
37. Internet trading is a platform with internet as a medium

(a) face value (b) hedge (c) index (d) internet trading
38. __________ occurs when the assets of a division are sold of piecemeal, rather than as an operating entity.
(a) risk (b) stock (c) liquidation (d) limit order
39. The total value is rupee of all of a company’s outstanding shares.

(a) liquidation (b) risk (c) index (d) market capitalization
40. A market that has only potential sellers or only potential buyers but not both.
(a) one-side market (b) put option (c) bull (d) buyers
41. Holding of any individual or institution
(a) portfolio (b) stock (c) risk (d) budget
42. The market price of a share of stock divided by the earnings (Profit) per share.
(a) put option (b) price earnings (p/e) ratio (c) index (d) bull
43. ……………….. is a measure of the effectiveness and efficiency with which managers use the resources available
to them, expressed as a percentage.
(a) stock (b) face value (c) return of investment (ROI) (d) hedge
44. A probable changes of investments actual returns will be reduced then as calculated.
(a) risk (b) strike price (c) stock (d) dividend
45. A certificate (or electronic or other sound) that indicated ownership of a corporation.
(a) risk (b) stock (c) index (d) dividend
46. A market in which there are comparatively low number of bids to buy to sell.
(a) put option (b) yield (c) thin market (d) agent
47. It is the measure of return on investment in terms of percentage.

(a) stock split (b) thin market (c) brand (d) yield
48. An organization’s programme of advertising activities over a particular period with specific aims, for example
an increase in sales of awareness of a product.
(a) yield (b) advertising campaign (c) cash discount (d) brand
49. The services received after the original goods or services have been paid for.
(a) after-sale service (b) agent (c) bull (d) budget
50. Something that makes trade between two countries more difficult or expensive.
(a) benchmarking (b) barrier to trade (c) brand (d) yield
51. Economic or other characteristics of a marketplace that make it difficult for new firms to enter or exit.
(a) brand (b) business model (c) barriers to entry/exit (d) thin market
52. ……………….. refers to the value of a brand.

(a) brand equity (b) agent (c) cash discount (d) bull
53. It is a customer’s awareness that a brand exists and is an alternative to purchase.

(a) business model (b) brand recognition (c) consortium (d) budget
54. A company’s ……………….. is a management’s storyline for how the strategy will be money maker.
(a) business model (b) brand equity (c) brand (d) agent
55. Marketing activity directed from one business to another i. e.:
(a) buying behavior (b) bull (c) business to business (d) budget
56. A reduction in the price of goods given to encourage sale on the case basis.
(a) cross selling (b) cash discount (c) corporate culture (d) bull
57. Advantages that a firm has over its competitors.

(a) Competitive advantage (b) cross selling (c) brand (d) agent
58. A strategy of growing a firm by acquiring other firms for investment purposes; usually little or no anticipated
synergy with the acquired firm.
(a) Corporate culture (b) conglomerate diversification (c) Brand (d) agent
59. ……………….. are the market for product and services bought by individuals for their own or family.
(a) Consortium (b) barrier to trade (c) consumer markets (d) bull
60. Using a customer’s buying history to select them for related offers.
(a) Customer need (b) diversify (c) bull (d) cross-selling
61. ……………….. is want for a specific product supported by an ability and willingness to pay for it.
(a) economy of scale (b) bull (c) customer demand (d) agent
62. ……………….. is a basic requirement that an individual wishes to satisfy.

(a) direct marketing (b) customer need (c) agent (d) bull
63. ……………….. is a desire for a specific product or service to satisfy the underlying need.
(a) customer wants (b) diversify (c) external environment (d) bull
64. When business and non-profit organization market their product, services or causes directly to consumers
based or consumer interests.
(a) customer wants (b) innovators (c) direct marketing (d) e-commerce
65. A company, increases the range of goods or services it produces and sells
(a) diversify (b) economy of scale (c) agent (d) barrier to trade
66. A reduction in costs through larger operating units, spreading fixed costs over large numbers of items/units.
(a) market share (b) joint venture (c) economy of scale (d) agent
67. ……………….. are those that sell in high volumes, with low unit value, and have fast consumer repurchase.
(a) forecasting (b) fast moving consumer goods (FMCG) (c) bull (d) mass marketing
68. ……………….. are those who adopt new products first.

(a) innovators (b) merger (c) bull (d) agent
69. A third party commercial operation established by two or more firms to pursue a particular marker, resource
supply, or other business opportunity.
(a) market share (b) joint venture (c) merger (d) innovators
70. Oral communication with potential buyers of a product with the intention of making a sale.
(a) price (b) stakeholder (c) personal selling (d) agent
71. ……………….. of a product may be seen as a financial expressional of the value of that product.
(a) price (b) personal selling (c) bull (d) publicity
72. Usually one year objectives sometimes known as annual objectives.

(a) mission (b) threats (c) bull (d) short term objectives
73. A person, group or business that has an interest in the outcomes of a firm’s operations.
(a) stakeholder (b) publicity (c) agent (d) opportunities
74. Using the telephone to contact individuals about an advertiser’s products or services or to get support for a
cause.
(a) strength (b) telemarketing (c) acceptance (d) agent
75. ……………….. are any aspect of the external environment which cause problems and which may prevent
achievement of objectives.
(a) test marketing (b) price (c) threats (d) bull
76. ……………….. is a banking or finance organization that specializes in the services of acceptance and guarantee
of bills of exchange.
(a) annuities (b) accepting house (c) account balance (d) publicity
77. ……………….. is the interest, accumulated on an investment but it is not yet paid.
(a) annuities (b) acceptance (c) price (d) accrued interest
78. ……………….. are basically used to conduct transactions with the bank.
(a) automated teller machines (b) bull (c) agent (d) price skimming
79. A company’s first issue of shares to general public is called.

(a) IPA (b) IPO (c) OTM (d) None
80. A market in which stock prices are falling consistently.

(a) bull market (b) badla market (d) bear market (d) research market
81. ……………….. cheque that any bank can refuse to encash or pay because of the fact that there are no sufficient
finance in the bank account of the originator.
(a) cashiers (b) clearing (c) cancelled (d) bounced
82. The rate which banks borrow money from the RBI
(a) repo rate (b) reverse repo rate (c) CRR (d) SLR
83. A bond that pays no annual interest but is sold at a discount below par…
(a) cash discount bond (b) liquid bond (c) treasury bond (d) zero coupon bond
84. ……………….. it is systemic process of removing the barriers to international trade in goods and services
(a) liberalization (b) globalization(c) privatization (d) acquisitions
85. When company charges a relatively high price for a short time where a new, innovative or much improved
products is launched into a market.
(a) price discrimination (b) price sensitivity (c) price skimming (d) pre-emptive pricing
86. ……………….. is a strategy that is used to minimize the risk of a particulars investment and maximize the returns
of an particular investment.
(a) hedging (b) derivatives (c) bench mark (d) depreciation
*********
Answers:
1. (a) 2. (b) 3. (c) 4. (a) 5. (c) 6. (a) 7. (b) 8. (c) 9. (d) 10. (a)
11. (b) 12. (c) 13. (b) 14. (c) 15. (d) 16. (d) 17. (a) 18. (b) 19. (c) 20. (a)
21. (b) 22. (c) 23. (d) 24. (a) 25. (b) 26. (d) 27. (a) 28. (c) 29. (a) 30. (b)
31. (c) 32. (b) 33. (c) 34. (a) 35. (b) 36. (c) 37. (d) 38. (c) 39. (d) 40. (a)
41. (a) 42. (b) 43. (c) 44. (a) 45. (b) 46. (c) 47. (d) 48. (b) 49. (a) 50. (b)
51. (c) 52. (a) 53. (b) 54. (a) 55. (c) 56. (b) 57. (a) 58. (b) 59. (c) 60. (d)
61. (c) 62. (b) 63. (a) 64. (c) 65. (a) 66. (c) 67. (b) 68. (a) 69. (b) 70. (c)
71. (a) 72. (d) 73. (a) 74. (b) 75. (c) 76. (b) 77. (d) 78. (a) 79. (b) 80. (c)
81. (d) 82. (a) 83. (d) 84. (b) 85. (c) 86. (a)
❖❖❖❖❖

BCK - MCQs Set 01

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BCK/MCQs/1: Introduction to Business & BCK Page |1

1. Non-economic activities do not include

2. Which forms of business is much appreciated and regarded as an economic HERO

4. Maximum number of member in a Private company

6. NGOs stands for

7. Choose non-economic activities among the following

8. The maximum partners can be in a partnership business

9. Which of the following a features of Joint stock company

12. BCK is:

17. Human activities are divided into …………………… activities.

18. “What do I get in return or what is in it for me or self-interest” means

19. Non-Economic activities are driven by ……………………

22. Income earned by letting out property is called ……………………

24. Saving is converted into ……………………

25. Unspent income comprises ……………………

26. In broader perspective business may be defined as spectrum of

27. From perspective view business is:

31. …………………… is a contract of service between to employee and employer.

32. Features of employment generation includes:

34. Mode of establishment “membership of a professional body”

35. Source of livelihood “wages and salaries”

37. “Substantial investment is required”

38. “Certainty of income”

39. “Transfer of interest / succession is possible”

42. Sales, profit, returns on investments is part of:

43. Survival, health, growth and diversification of capabilities is part of:

44. Community service, education, health, sanitation, heritage is part of:

46. Business may be classified as:

47. A concept equalizer to hindu undivided family, represents:

48. Autonomy of being one's own boss:

50. …………………… is an agreement and not contract

51. Mutual agency - that is one for each other

54. Succession of ownership

55. Family pool of resources

56. Which of the following statements distinguishes business from entrepreneurship

57. Sustainable development / business imply:

59. HUF cannot comprise members of a:

60. BCK Vocabulary Strategy is taken from …………………… discipline.

61. BCK Vocabulary Logistic is taken from …………………… discipline.

63. BCK Vocabulary Bears is taken from …………………… discipline.

64. Economic activities are said to be driven by ……………………

66. Production represent the …………………… side of economics.

67. Consumption represent the …………………… side of economics.

69. Professionalism is often associated with ……………………

71. Business is …………………… system as it interacts with the environment.

72. Entrepreneurial endeavours brings about a qualitative change called ……………………

73. There are restrictions on transfer of shares in ……………………

74. True or false:

75. True or false

76. True or false

77. True or false

78. True or false

79. True or false

6. Which of Element is a macro environment

7. Which of these element are of Micro environment

8. Economic resources, the level of income economics policies are example of

9. Which of these element are not of macro environment

10. Business and technology are:

13. Process of strategy formulation starts with:

14. Relationship between organisation and environment can be described through:

15. All are elements of micro environment except:

16. The term PESTLE analysis is used to describe a framework of analyzing:

17. A company must have capabilities.

27. The organizations receives inputs-finance, materials, manpower, equipment etc.