BCK MCQs Compiler For CA Foundation Dec 23 by CA Sanchit Grover 2

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Business Economics,
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MCQs Compiler for

BCK (Dec 2023)
(All Past Years &
MTP Questions covered)
By:- CA Sanchit Grover

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MCQ Compiler for Business & Commercial Knowledge For CA Foundation
CHAPTER - 1 INTRODUCTION TO BCK
Q1) Which of the following means an (a) Non mutual agency

Economic activity?
(b) Hybrid form of business organization
(MTP Mar 2018, MTP Mar 19)
(a) Production of Goods (c) Social & Environment concern
(b) Production of services (d) Public Sector
(c) Consumption of Goods and Services
Q6) Perpetual succession indicates_______
(d) All of the above (Dec 2020)
Q2) Which of the following is not an economic (a) Registration of partnership firm is
activity ? (Dec 2020) compulsory.
(a) Land owner compensate the tiller of land in (b) Limited scope for rising fund
form of food grain
(c) Separate legal entity, separate from its
(b) Doctor consulting his own family members
(c) Online teaching (d) Liability of the partners is limited to his
(d) Consumption of food items contributes to capital
Q3) According to Incomes tax Act, which of the Q7) Which of the following is the recently
following cannot be a source of income for introduced form of business organization in
HUF? (Dec 2020) INDIA wide companies Act 2013?
(Dec 2020)
(a) Income from Salary
(a) LLP
(b) Income from house property
(b) Sole proprietorship
(c) Income from business and profession
(c) OPC
(d) Income from other sources
(d) Private limited company
Q4) What is popular psychological motive in
case of profession as an economic occupation? Q8) Which of the following concern is related
to business and commercial knowledge?
(Dec 2020)
(Nov 2019, MTP May 2020, MTP March 2021)
(a) Service to clients
(a) Sustainability
(b) Economic achievement
(b) Sociology
(c) Source of livelihood
(c) Traditional
(d) Membership of professional body
(d) Social At large
Q5) Limited liability partnership is ________
(Dec 2020) Q9) Which one is not a feature of LLP
(Nov 2019,May 2019,MTP May 2020)
Prepared by : CA Sanchit Grover 1

CHAPTER - 1 : INTRODUCTION TO BCK
(a) It is a legal entity separate from its member Q14) A Hindu undivided family business ............
formed by a group of people who do not
(b) No limit on maximum no. of members constitute a family: (Nov 2018)
(c) Every partner is only agent of firm (a) Can be
(d) Registrar of firm is the administrating (b) Should be
authority
(c) Cannot be
Q10) ________ is an Idea which corresponds to
business commercial knowledge (Nov 2019) (d) Normally
(a) Social Q15) Which of the following is not a merit of

LLP (Nov 2018)
(b) Sustainable development
(c) Political (a) LLP is a separate legal entity

(d) Economic (b) Designated partners should ensure control
Q11) Find odd one out. There can be over compliances
partnership between (Nov 2019) (c) Bothe a & b
(a) Natural person (d) None of the above
(b) partnership firm Q16) Minimum number of director for private
(c) Artificial Person company: (Nov 2018)
(d) Any Combination of natural and artificial (a) 10
Q12) A partnership may be formed to carry on (b) 15

(Nov 2019) (c) 02
(a) Any trade (d) 03
(b) Profession Q17) Which of the following is related to an
(c) Occupation economic activity (Nov 2018)
(d) Social Enterprise (a) Self Interest
Q13) Which of the following is not (b) Social Interest

characteristic of an economic activity? (c) Selfless concern
(Nov 2018)
(d) Sentimental
(a) Economics Activities are productive
Q18) The attribute of a profession does not
(b) Economics Activities are Income generating include (May 2019)
(c) Economics Activities are sentimental (a) Rendering of specialized nature of services
(d) All of the above (b) Certificate of service from government
2 Prepared by : CA Sanchit Grover

(c) Self imposed code of conduct (MTP Oct 2020,MTP March 2021,MTP March
2022)
(d) All of the above
(a) Separate Legal Entity
Q19) The Companies Act, 2013 provides
registration for (May 2019) (b) Incorporation not mandatory like normal
partnership
(a) One person Company
(c) Designated Partners
(b) Small Company
(d) Hybrid form of Business Organisation
(c) Defunct Company
Q24) Which of the following statements cannot
(d) All of the above be associated with Business? (MTP Oct 2020)
Q20) Business as an institution is ________ (a) Revenue and profits are core to every
(May 2019,MTP Oct 2019) business
(a) Job Creator (b) Only an educated person can start a
(b) Job seeker business
(c) Both (c) Capital is needed to start a business
(d) None of the above (d) It is better to be aware of Legal

Compliances for all businesses
Q21) Which of the following is part of HUF?
(May 2019) Q25) Dormant companies can be incorporated
for which of the following purposes? (MTP Oct
(a) Hindu and Sikh family 2020)
(b) Parsi Family (a)For Future Projects
(c) Both a & b (b) Holding Intellectual Property
(d) None of the above (c) Both A or B
Q22) Which of the following statement is (d) Only for creating a dummy company to
correct with respect to HUF book insignificant transactions
(May 2019,MTP May 2020,MTP Oct 2019) Q26) Head of a Hindu Undivided Family is
called? (MTP Oct 2020)
(a) HUF earns income from salary
(a) Father
(b) Four successive generations of an
undivided family form part of HUF (b) Karta
(c) HUF enjoys a separate entity status under (c) Coparcener

Income tax act –1961
(d) Mitakshara
Q27) Which of the following is a non-economic
Q23) Which of the following is not true about a activity? (MTP Oct 2020)
Limited Liability Partnership (LLP)?

(a) Sweets Shop (d) Brand Loyalty
(b) Selling seeds of rare plants Q32) Marketing, Finance, Operations, Human
Behaviour, Law and Policy, Economics, all
(c) Serving free water on a hot summer day together derive BCK. What does it tell us about
(d) Village School Carpenter BCK’s domains?
Q28) Luxury hotels and luxury car companies (MTP OCT 2021,MTP April 2021,MTP March
2022)
compete to get attract the disposal income of
affluent customers. What type of competition is (a) BCK is Vast
it? (MTP Oct 2020)
(b) BCK is Expanding
(a)Direct Competition
(c) BCK is Eclectic
(b) Indirect Competition
(d) BCK is Vague
(c) No Competition
Q33) The structure in which there is a
(d) Both Direct and Indirect Competition separation of ownership and management is
called (MTP OCT 2021,MTP April 2021)
Q29) Which type of economic activity requires
specialised subject knowledge for rendering of (a) Sole proprietorship
services? (MTP Oct 2020)
(b) Partnership
(a) Business
(c) Company
(b) Agriculture
(d) All business organisations
(c) Employment
Q34) Maximum number of members in a
(d) Profession Private limited company are:
Q30) Which of the following is not a (MTP OCT 2021, MTP March 2018,MTP
domain/characteristic of Business and March 2021,MTP April 2021,MTP March
Commercial Knowledge? (MTP Oct 2020,MTP 2022,MTP Aug 2018)
March 2021)
(a) 50
(a) It is Independent
(b) 200
(b) It is Ever Expanding
(c) 20
(c) It is Vast
(d) 500
(d) It is Multi-Disciplinary
Q35) A HUF cannot comprise members of a:
Q31) Social Equity and Ecological Balance are (MTP March 2019,MTP OCT 2021, MTP
a part of? (MTP Oct 2020) March 2018,MTP April 2021,MTP Aug 2018)
(a) Globalisation (a) Hindu & Sikh family
(b) Sustainable Development (b) Jain family
(c) Liberalisation
(c) Buddhist family (a) There are no restrictions on transfer of

shares
(d) Muslim family
(b) Minimum number of directors are 2
Q36) Which of the following is not an
economic objective of the firm? (c) Private companies are exempted from
deputing various committees of Board of
(MTP OCT 2021, MTP March 2019,MTP April Directors
2021,MTP Aug 2018,MTP Oct 2018)
(d) It can start business upon incorporation.
(a) Sales growth
Q40) Human activities distinguishable by
(b) Improvement in market share presence of the livelihood motives are known
(c) Profits and return on investment as: (MTP NOV 2021)
(d) Conservation of natural resources (a) Economic activities
Q37) Mark incorrect: Partnership implies (b) Non-economic activities
(MTP OCT 2021, MTP March 2019,MTP April (c) Emotional activities
2021,MTP Aug 2018,MTP Oct 2018)
(d) Sentimental activities
(a) Contractual ownership of business
Q41) Nomadic humans bringing their hunt and
(b) Liability of partner is limited to the extent of getting rice in return can be called as? (MTP
one’s share capital NOV 2021)
(c) The contract is an agreement enforceable at (a) Non-economic activity

law is called deed
(b) Sustainable practice of trade
(d) Deed may be registered in India under the
(c) Social entrepreneurship
Partnership Act, 1932
(d) Economic activity
Q38) Mark the Correct:
Q42) Which of the following is a discipline of
(MTP OCT 2021, MTP April 2019, MTP March
medicine and also of BCK? (MTP NOV 2021)
2019,MTP April 2021)
(a) Economics
(a) Hindu Succession Act, 1956 is applicable in
HUF. (b) Laws
(b) LLP firm may be constituted on basis of LLP (c) Sociology
Act 2009.
(d) Psychology
(c) A dormant company can be registered
under Companies Act, 2013. Q43) A company created for a future project
and has no significant accounting transaction
(d) All are correct. is called- (MTP NOV 2021)
Q39) Which of the following is not a feature of (a) Shell company
Private company? (MTP NOV 2021)
(b) Commercial company

(c) One Person company (c) Non-Economic Activities are driven by
emotional or sentimental force.
(d) Dormant company
(d) Non-Economic Activities are not at all
Q44) Which of the following statements important in life
distinguishes business from entrepreneurship?
Q48) The occupation in which people work for
(MTP March 2018, MTP March 2019, MTP others and get remunerated in return is known
April 2019) as: (MTP April 2019)
(a) Entrepreneurs are the business owners too (a) Business
(b) All business owners are entrepreneurs too (b) Employment
(c) Entrepreneurs seek out new opportunities (c) Profession
and pursue innovative business ideas
(d) None of these
(d) (a) and (b)
Q49) Mark Incorrect: (MTP April 2019,MTP
Q45) The Indian Companies Act, 2013 provides Oct 2018)
for the registration of: (MTP April 2019,MTP
March 2018, MTP March 2019) (a) Business has only one motive; profit
(a) Private Limited and Public Limited Company (b) Plurality of the objective is a modern
phenomenon (c) Objective of survival & growth
(b) One Person Company and Small Company of business are called organic objectives
(c) Defunct Company (d) In addition to economic motive, it may have
(d) All of the above non-economic motives like social, ethical or
environmental
Q46) A partnership may not be formed to carry
on: (MTP March 2018,MTP May 2020,MTP Q50) The maximum number of members of a
Oct 2019,MTP Aug 2019,MTP Oct 2018) public company is: (MTP April 2019,MTP Oct
2018)
(a) Any trade
(a) 07
(b) Occupation
(b) 50
(c) Profession
(c) No limit
(d) Social enterprise
(d) 200
Q47) Find out the incorrect:
Q51) Which of the following occupations
(MTP April 2019,MTP March 2019,MTP Aug requires rendering of services based upon
2018) specialised knowledge and membership of an
accreditation and assessment body?
(a) Economic Activities are driven by rationality.
(MTP May 2020)
(b) Economic Activities are guided by self
interest. (a) Employment
(b) Profession
(c) Business (d) Both Company and LLP
(d) Agriculture Q56) Which of the following is a not a part of

BCK lexicon? (MTP March 2022)
Q52) Which of the following statements
characterises the best non-economic activities? (a) Y2Z
(MTP May 2020) (b) B2B
(a) Non-economic activities do not require any (c) B2C

investment of resources
(d) 24*7
(b) These activities do not entail any
operational costs Q57) Which of the following is not an
economic activity? (MTP Oct 2018)
(c) These activities are undertaken by ascetics (a) A son looking after his ailing mother
(d) The underlying purpose of these activities is (b) A chartered accountant doing his own
not earning of a livelihood but social, practice,
psychological or spiritual satisfaction (c) A soldier serving at the border.
Q53) Members of a Hindu Undivided Family (d) A farmer growing millets
are called? (MTP March 2021) Q58) Which one is NOT an economic activity?
(a) Father (a) Purchasing shares
(b) Karta (b) Planting a tree in your garden
(c) Coparcener (c) Audit by a Chartered Accountant
(d) Mitakshara (d) Production & Consumption
Q54) Which among the following is an Q59) HUF Consist of ______
attribute of economic activity?
(MTP March 2022) (a) All person lineally decended from common
ancestor , including wives and unmarried
(a) They are driven by Altruism daughter
(b) They are driven by Rationality (b) All person lineally decended from common
(c) They are driven by Sentimental Value ancestor , except wives and unmarried
Creation daughters
(d) They are driven by Emotional Reasons (c) All male members lineally decended from
common ancestor
Q55) Perpetual succession benefit is enjoyed
by? (MTP March 2022) (d) None of above
Q60) Planning process to gain an edge on
(a) HUF competitors is known as:
(b) Company (a) Logistics
(c) LLP (b) Bulls

(c) Bears (c) Survival, growth, diversification of
capabilities
(d) Strategy
Q61) For sustainable development business Q66) What are the minimum number of
must focus on: directors in case of public company?
(a) Profit (a) 02
(b) People (b) 03
(c) Planet (c) 05
(d) All of the above (d) 15
Q62) HUF enjoys separate entity status under: Q67) Economic Activities are distinguishable
(a) Hindu Succession Act, 1956 merely by the presence of —
(b) Companies Act, 2013 (a) Livelihood Motive
(c) Income Tax Act, 1961 (b) Self – Interest
(d) All of the above (c) Rationality – what do I get in return
Q63) Dormant company is — (d) All of the above
(a) Formed for future project Q68) Which of the following is not a feature of
private company?
(b) Has no significant accounting transactions
(a) All owners have limited liability
(c) Has one person as member
(b) Company issue shares to Raise Funds
(d) Both (A) and (B) above
(c) The Business can continue after death of
Q64) Which form believes most in "Hire and shareholders
fire policy"?
(d) None of the above
(a) Sole Proprietorship
Q69) Which of the following is an advantage of
(b) Partnership partnership over sole proprietorship?
(c) LLP (a) Freedom of working
(d) Company (b) Quick decision making
Q65) Find correct objectives in case of organic (c) More Capital

objectives –
(d) No sharing of profits
(a) Return on investment, survival & sanitation Q70) Investment intensive is the feature of
(b) Return on investment, conservation & (a) Profession

growth
(b) Business

(c) Employment (d) None of the above

Solution to Chapter No. 1
(Q1) (Q2) (Q3) (Q4) (Q5) (Q6) (Q7) (Q8) (Q9) (Q10)
D B A A B C C A D B
(Q11) (Q12) (Q13) (Q14) (Q15) (Q16) (Q17) (Q18) (Q19) (Q20)
B A C C B C A B D A
(Q21) (Q22) (Q23) (Q24) (Q25) (Q26) (Q27) (Q28) (Q29) (Q30)
C C B B C B C B D A
(Q31) (Q32) (Q33) (Q34) (Q35) (Q36) (Q37) (Q38) (Q39) (Q40)
B C C B D D B D A A
(Q41) (Q42) (Q43) (Q44) (Q45) (Q46) (Q47) (Q48) (Q49) (Q50)
D D D C D D D B A C
(Q51) (Q52) (Q53) (Q54) (Q55) (Q56) (Q57) (Q58) (Q59) (Q60)
B D C B D A A B A D
(Q61) (Q62) (Q63) (Q64) (Q65) (Q66) (Q67) (Q68) (Q69) (Q70)
D C D A C B D D C B

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CHAPTER - 2 BUSINESS ENVIRONMENT
Q1) Intellectual property rights and copyrights (a) Role of women in society
is an example of which of the following key
factor of PESTLE Matrix? Dec 2020) (b) Rising income
(a) Social (c) Family structure
(b) Technological (d) Educational levels
(c) Economic Q6) Factors like Trends, Events of different

interest groups are needed to be considered in
(d) Political __________ (Dec 2020)
Q2) According to Peter Drucker aim of the (a) Environment analysis

business is to _________ and ________.
(b) Environmental scanning
(MTP Oct 2019)
(c) Environmental inference
(a) Create and retain customer
(d) Environmental response
(b) Retain customer and create profits
Q7) ABC company is aiming towards Joint
(c) Create and retain consumer venture and partnership with other firms to
mange uncertainty. This is an example of
(d) Retain consumer and maximise wealth following type of Organizational response to
Q3). Stakeholders includes all of the below the environment ? (Dec 2020)
except which? (MTP March 2022) (a) Collective response
(a) Policy makers (b) Competitive response
(b) Investors (c) Micro environmental response
(c) Competitors (d) Administrative response
(d) Promoters Q8) Which of the following is not correct about
Q4) ______ is a framework for macro Business Environment: (Nov 2018)
environment analysis. (Dec 2020, Nov 2018) (a) Constantly charging
(a) Global (b) Simple
(b) Political (c) Multifaceted
(c) PESTLE (d) Complex
(d) Social Q9) ________ are important & specific
Q5) Which of the following is not an example occurrences taking place in different
of socio-cultural environment? environmental sectors (Nov 2018)
(Dec 2020,MTP April 2021) (a) Expectations

CHAPTER - 2 : BUSINESS ENVIRONMENT
(b) Events (d) None of the above
(c) Issues Q14) PESTLE analysis does not include

(May 2019)
(d) Trends
(a) Policy
Q10) An inherent capacity in the orgnisation is
called: (Nov 2018) (b) Technology
(a) Weakness (c) Legal
(b) Opportunity which an organization can use (d) Economic

to gain strategic advantage over its
Q15) What is not a characteristic of business
(c) Threat environment (May 2019,MTP Oct 2019)
(d) Strength (a) Complex
Q11) Which of the following is not a part of (b) Static

Economic Environment of business (Nov
2018) (c) Multi-faced
(a) Family structure (d) Far reaching
(b) Availability of Capital Q16) Macro Environment includes ______

(May 2019)
(c) Monetary Policy
(a) Strength
(d) Industrial Policy
(b) Weakness
Q12) Environmental Analysis helps in:
(c) Opportunity
(Nov 2018, MTP OCT 2021,MTP April
2021,MTP March 2022,MTP Aug 2018) (d) All of the above
(a) Providing input for strategic decision Q17) Internal Environment includes______
making (May 2019,MTP Oct 2019)
(b) Turning threat's to firms advantage (a) Customer
(c) Anticipate opportunities and to take optimal (b) Economic

responses (c) Demography
(d) All of the above (d) Mission & Objectives
Q13) Business environment consist of Q18) Opportunity is (May 2019,MTP Oct 2019)
(Nov 2018) (a) Inherent capacity
(a) Macro Elements (b) Strategic disadvantage
(b) Micro Elements (c) Favourable condition
(c) Both of the above (d) None of the above
Q19) Competition brings direct benefit to Q23) Race, age, income, educational
(May 2019) background, asset ownership, location, etc.
form part of which environment?
(a) Customers (MTP Oct 2020)
(b) Suppliers (a) Demographic Environment
(c) Intermediaries (b) Socio-Cultural Environment
(d) Government (c) Economic Environment
Q20) Change of customer’s liking from oily (d) Technological Environment
foods to healthy packaged foods can be
classified amongst which of the following? Q24) While analyzing technological
(MTP Oct 2020) environment, which of the following is not
considered? (MTP Oct 2020)
(a) Trend
(a) Capital Requirement
(b) Event
(b) Current technology being used
(c) Issue
(c) Upcoming technologies relevant to business
(d) Expectation
(d) The relations with the country creating the
Q21) Which of the following internal strategies technology
to respond to environment involves formulation
and clarification of organization’s mission? Q25) Gain for one is a loss for someone else -
(MTP Oct 2020) this concept can be understood by which of the
characteristics of Business Environment?
(a) Competitive Response
(MTP OCT 2021,MTP April 2021,MTP March
(b) Administrative Response 2022)
(c) Dynamic Response (a) It is Dynamic
(d) Collective Response (b) It has far reaching impact
Q22) Which of the following is not part of (c) It is multi-faceted
internal environment of a business
organisation? (d) It is complex
(MTP Oct 2020,MTP March 2021,MTP March Q26) The term PESTLE analysis is used to
2022) describe a framework for analyzing:
(a) Labour Unions (MTP OCT 2021, MTP March 2019, MTP
March 2018,MTP April 2021,MTP Aug 2018)
(b) Corporate Culture
(a) Macro Environment
(c) Customers
(b) Micro Environment
(d) Organisational Structure
(c) Both Macro and Micro Environment
(d) None of above

Q27) PESTLE refers to: Q31) Atmanirbhar Bharat is a competition for
Global companies in India, this defines which
(MTP OCT 2021, MTP March 2019, MTP April characteristic of the business environment?
2019,MTP April 2021) (MTP NOV 2021)
(a) Political, Economic, Social, Technological, (a) Far-reaching impact
Legal & Environmental factors affecting
business. (b) Complex
(b) All these are external factors. (c) Multi-faceted
(c) All these constitute macro environment. (d) Dynamic
(d) All of the above. Q32) Insufficient capital for Research and
Development is? (MTP NOV 2021)
Q28) Business and technology are:
(a) Strength
(MTP OCT 2021, MTP March 2018, MTP
March 2019, MTP April 2019,MTP April (b) Threat
2021)
(c) Weakness
(a) Interrelated
(d) Opportunity
(b) Interdependent
Q33) The event of conducting commonwealth
(c) Interrelated & Interdependent games in India is an example of the following
element of macro environment:
(MTP NOV 2021)
Q29) A strategic response where businesses
(a) Political-legal environment
are very passive in their behaviour is called as-
(b) Socio-cultural environment
(MTP NOV 2021)
(c) Technological environment
(a) Least resistance
(d) Global environment
(b) Proceed with caution
Q34) An effective organizational strategy
(c) Dynamic response
includes which of the following activities?
(d) Strategic action (MTP NOV 2021)
Q30) Which of the following is one of the most (a) Capitalizes on the opportunities through the
significant macro policy indicators that impact use of threats
business? (MTP NOV 2021)
(b) Neutralizes the threats by minimizing the
(a) Trade policy impact of weaknesses
(b) International trade (c) Neutralizes the opportunities by minimizing

the impact of weaknesses
(c) Tax rates
(d) Capitalizes on the weaknesses through the
(d) Rural policy use of threats

Q35) “Once a company knows what is Q39) The businesses should continuously
happening around it, it can plan and strategise ________ and _________ to the environment if is
accordingly”, this is part of which of the to service and prosper.
following importance’s of business
environment? (MTP NOV 2021) (MTP March 2019,MTP March 2018,MTP
March 2021)
(a) Giving direction for growth
(a) Identify, appraise
(b) Determining opportunities and threat
(b) Monitor, adapt
(c) Image building
(c) Identify, monitor
(d) Continuous learning
(d) Monitor, appraise
Q36) Which of the following is incorrect?
(MTP NOV 2021) Q40) Reforms in Dowry Act and Divorce Act are
the examples of:
(a) Events lead to trends
(MTP March 2018,MTP May 2020, MTP
(b) Trends lead to events March 2019,MTP March 2021,MTP Oct 2019)
(c) Issues raise expectations (a) Economic Reforms
(d) Expectations are opportunities (b) Cultural Reforms
Q37) Which of the following elected by (c) Commercial Reforms

shareholders in organization?
(MTP NOV 2021) (d) Socio-cultural Reforms
(a) Owners Q41) Relationship between organisation and

environment can be described through:
(b) Board of Directors
(MTP March 2018,MTP May 2020,MTP Oct
(c) Employees 2019,MTP Aug 2018,MTP Oct 2018)
(d) Directors (a) Exchange of information
Q38) Which of the following is not a part of the (b) Exchange of resources
economic environment?
(c) Exchange of influence and power
(MTP March 2018,MTP May 020,MTP Oct
2019) (d) All of the above
(a) Market and trade cycles Q42) All are elements of macro environment
except: (MTP March 2018)
(b) Consumer buying patterns
(a) Society
(c) Strength of consumer spending
(b) Government
(d) Interest and exchange rates
(c) Competitors
(d) Technology

Q43) SWOT refers to: (MTP Aug 2018,MTP (ii) Various environmental constituents exist in
March 2019, MTP April 2019) isolation and do not interact with each other.
(a) Strength, Worry, Option, Threat (iii) The environment has a far reaching impact
on organizations.
(b) Strength, Weakness, Opportunity, Threat
From the combinations given below select an
(c) Strong, Weak, Option, Threat alternative that represents statements that are
(d) Strong, Weakness, Opportunity, Think true:
Q44) Which of the following constitute (a) (i) and (ii).

Demographic Environment? (MTP April 2019) (b) (ii) and (iii)
(a) Nature of economy i.e. capitalism, socialism, (c) (i) and (iii)
Mixed
(d) (i), (ii) and (iii)
(b) Size, composition, distribution of population,
sex ratio Q48) Business environment is important to
understand for the following reasons, except?
(c) Foreign trade policy of Government
(MTP March 2021)
(d) Economic policy i.e. fiscal and monetary
policy of Government (a) Gives direction for growth
Q45) What is the single word that can best (b) Determines opportunities and threats
describe today’s business?
(c) Continuous learning
(MTP April 2019,MTP Oct 2018)
(d) Overlooking Competition
(a) Technology
Q49) Which of the following statements is true?
(b) Change (MTP March 2021)
(c) Persistence (a) Consumer and Customer are always the

same person
(d) Profit making
(b) Customer may or may not be the consumer
Q46) Threat is an: (MTP May 2020)
(c) Environmental study is optional for any
(a) Inherent capacity business
(b) Strategic disadvantage (d) Micro Environment is a part of Internal
(c) Unfavourable condition Environment
(d) None of the above Q50) Intermediaries exert a considerable

influence on the business organisation. This
Q47) Read the following three statements: statement is true for? (MTP March 2021)
(MTP May 2020)
(a) Micro Environment
(i) The environment is constantly changing in
nature. (b) Macro Environment

(c) Internal Environment (b) It takes events, trends, issues and

expectations in the consideration.
(d) Economic Environment
(c) It is done by government to know if the firm
Q51) For a business, Inflation as an indicator of is engaged in any anti national activity .
policy shall be most detrimental if?
(d) It helps in formulating future path of the
(MTP March 2022) firm
(a) It is Extremely Low Q55) The ____________ environment refers to
(b) It is Extremely high the nature and direction of the economy in
which a company competes or may compete.
(c) It is Moderate (MTP Oct 2018)
(d) It is Rising (a) Socio-cultural
Q52) Environment scanning only helps to get a (b) Internal

sense of market landscape. Basis this
statement select the correct option. (c) Micro
(MTP March 2022) (d) Economic
(a) False, as it helps in overall strategic Q56) Which of the following statement is NOT
decisions a factor influencing socio-cultural
(b) True, as it only identifies opportunities and environment? (MTP Oct 2018)
threats (a) Family structure and changes in it.
(c) False, as it is only for internal analysis of an (b) Educational levels.
organisation
(c) Launch of mobile phone with advance
(d) True, as it identifies competitors technology.
Q53) The corporate pressure to increase and (d) Position of children and adolescents
improve diversity in the country’s workforce is
an area of study for the consumer businesses Q57) _____ response not merely recognize and
affecting which element of the environment? ward off threats but also covert threat into
opportunities”
(MTP March 2022)
(a) Aggressive
(a) Demographic Environment
(b) Dynamic
(b) Political-Legal Environment
(c) Static
(c) Socio-cultural Environment
(d) Passive
(d) Cultural Environment
Q58) Match the following—
Q54) Which one is NOT a part of environmental
scanning? (MTP Aug 2018) (1) Inherent capacity of an organisation
(a) Identify opportunities & threats affecting (2) Inherent limitation of an organisation
business.

(3) Favourable condition in organisation (d) Competitive
environment
Q61) Socio Cultural Factors affecting business
(4) Unfavourable condition is organisation environment include–
environment
(a) Role of women
(i) Weakness
(b) Education levels
(ii) Threat
(c) Population size (d) Political pressure
(iii) Opportunity
(a) (i) and (ii)
(iv) Strength
(b) (i), (ii) and (iii)
(a) 1(iv), 2(i), 3(iii), 4(ii)
(c) Only (ii)
(b) 1(ii), 2(iii), 3(i), 4(iv)
(d) (i), (ii) (iii) and (iv)
(c) 1(i), 2(ii), 3(iii), 4(iv)
Q62) “Youth are very fond of work from home”
(d) 1(iv), 2(i), 3(ii), 4(iii) is an example of.
Q59) Business environment is continuously (a) Trends

changing its shape and character. It means
environment of business: (b) Events
(a) Complex (c) Issues
(b) Dynamic (d) Expectations
(c) Multi facet Q63) “Mr Ram and Many more people shifted
from one Region to another” the study of this
(d) Far reaching in impact under —
Q60) Which of the following is not included in (a) Economic Environment

organisations response to environment
(b) Socio – Economic Environment
(a) Administrative
(c) Demographic Environment
(b) Least resistance
(d) Political environment
(c) Collective

SOLUTION TO CHAPTER NO. 2

(Q1) (Q2) (Q3) (Q4) (Q5) (Q6) (Q7) (Q8) (Q9) (Q10)
B A C C B B A B B D
(Q11) (Q12) (Q13) (Q14) (Q15) (Q16) (Q17) (Q18) (Q19) (Q20)
A D C A B C D C A A
(Q21) (Q22) (Q23) (Q24) (Q25) (Q26) (Q27) (Q28) (Q29) (Q30)
B C A D C A D C A C
(Q31) (Q32) (Q33) (Q34) (Q35) (Q36) (Q37) (Q38) (Q39) (Q40)
C C D B A B B B B D
(Q41) (Q42) (Q43) (Q44) (Q45) (Q46) (Q47) (Q48) (Q49) (Q50)
D C B B B C C D B A
(Q51) (Q52) (Q53) (Q54) (Q55) (Q56) (Q57) (Q58) (Q59) (Q60)
A A A C D C B A B B
(Q61) (Q62) (Q63)
A A C

CHAPTER - 3 BUSINESS ORGNISATIONS
Q1) Which of the following is a multinational (Nov 2019, MTP March 2018, MTP March
financial service corporation ? (Dec 2020) 2019, MTP April 2019)
(a) IBM Corporation (a) Dr. Reddy's
(b) Walmart (b) Lupin Ltd.
(c) Microsoft Corporation (c) Cipla Ltd.
(d) American Express (d) Sun pharmaceutical Industries
Q2) In 1981, 7 engineers in Pune , Founded the Q6) Which gas company owns India's largest
following company: (Dec 2020) pipeline network? (Nov 2019)
(a) L & T (a) Gail (India) Ltd.
(b) Infosys (b) Bharat Petroleum Corporation Ltd.
(c) Wipro (c) Reliance Industries Ltd
(d) TCS (d) None of the above
Q3) Which of the following company ranked Q7) Which of the following is Indian state
first in fortune 500 company list 2023? owned company: (Nov 2018)
(Dec 2020)
(a) Coal India Ltd.
(a) Walmart
(b) Cipla
(b) Microsoft
(c) HDFC
(c) Intel
(d) ITC
(d) American Express
Q8) Good Food, Good Life is the Slogan of
Q4) How many SBU (Strategic Business Units) which company: (Nov 2018)
does Bharat Petroleum Ltd. have? (MTP Oct
2020) (a) Wal-Mart
(a) Five (b) Cipla
(b) Three (c) Parle
(c) Seven (d) Nestle
(d) Ten Q9) Wal-Mart is ............ company. (Nov 2018)
Q5) Which pharmaceutical company has the (a) Technology

slogan caring for life? (b) food
(c) Retailer

CHAPTER - 3 : BUSINESS ORGNISATIONS
(d) Finance Q15) Who is chairman of Infosys? (May 2019)
Q10) Product & segments of Apple are ........ (a) Nandan Nilakeni
(Nov 2018)
(b) Vishal Sikha
(a) Ipad & Ipad Pro
(c) K.V. Kamanth
(b) Mac book
(d) Sudha Murthy
(c) Both (a) & (b)
Q16) Who is the present MD & CEO of ICICI
(d) None of these Bank (May 2019)
Q11) Which of the following is not an (a) Chanda Kochar

American multinational company: (Nov 2018)
(b) Shika Sharma
(a) WIPRO
(c) M.K. Sharma
(b) Microsoft
(d) Sandeep Bakshi
(c) Intel
Q17) Where is India's largest SEZ?
(d) IBM (MTP Oct 2020,MTP March 2021)
Q12) Which of the following is not related to (a) Hazira

ITC Limited (May 2019,MTP Oct 2019)
(b) Dhamra
(a) Vishal Sikha
(c) Tehri
(b) 1910
(d) Mundra
(c) Kolkata
Q18) In which state did Jamnalal Bajaj start
(d) Sanjeev Puri Bajaj Auto Limited? (MTP Oct 2020)
Q13) Walmart slogan (May 2019) (a) Maharashtra
(a) Save money. Live better (b) Madhya Pradesh
(b) Happy life. Good food (c) Rajasthan
(c) Better food. Low cost (d) Haryana
(d) Good Food. Good life Q19) Ministry of Petroleum and Natural Gas
owns which of the following?
Q14) The Headquarter of Nestle is in
(May 2019) (MTP Oct 2020,MTP March 2021,MTP March
2022)
(a) Vevey, Switzerland
(a) Indian Oil Corporation Ltd.
(b) Basel, Switzerland
(b) GAIL Ltd.
(c) Zurich, Switzerland
(c) Bharat Petroleum
(d) Interlaken, Switzerland
(d) Reliance Industries Ltd (c) ONGC
Q20) Bank of Madura was acquired by which (d) PGCIL

of these?
Q24) Who is the present CEO and MD of
(MTP OCT 2021,MTP April 2021,MTP March Larsen & Toubro Ltd.?
2022)
(MTP OCT 2021,MTP April 2021,MTP Oct
(a) ICICI Bank Ltd 2018)
(b) State Bank of India (a) Keshab Pandey
(c) Life Insurance Corporation of India (LIC) (b) K R Krishanmurthy
(d) HDFC Bank Ltd (c) S N Subrahmanyan
Q21) Which of the following is founded by two (d) None of these

Danish Engineers taking refuge in India?
Q25) Which limited company has businesses in
(MTP OCT 2021,MTP April 2021) Hotels, FMCG and Information Technology?
(a) Cipla Ltd (MTP OCT 2021)
(b) L&T Ltd (a) Wipro Ltd.
(c) Flipkart (b) HUL Ltd.
(d) NTPC Ltd (c) Infosys Ltd.
Q22) Which one of the following is not a (d) ITC Ltd.

foreign company?
Q26) Who is the present chairman of Wipro
(MTP OCT 2021,MTP April 2021,MTP March Limited? (MTP OCT 2021,MTP April 2021)
2022,MTP Aug 2018)
(a) Azim Premji
(a) Dr. Reddy’s Laboratories Ltd.
(b) Rishad Premji
(b) Walmart
(c) Thierry Delaporte
(c) Nestle
(d) (a) and (b)
(d) HP
Q27) Where is the India’s only port-led multi-
Q23) Indane LPG is the product of which product SEZ? (MTP NOV 2021)
corporation in India?
(a) Kochi
March 2019,MTP May 2020,MTP April (b) Mumbai
2021,MTP Aug 2018)
(c) Surat
(a) IOCL
(d) Mundra
(b) NTPC

Q28) Flipkart has its registered office at- Q33) Where are the headquarters of L&T?
(MTP NOV 2021) (MTP March 2018,MTP Oct 2019)
(a) New Delhi (a) Bengaluru
(b) Hyderabad (b) Delhi
(c) Singapore (c) Mumbai
(d) Mauritius (d) Chennai
Q29) Which of the following is not a subsidiary Q34) Which one of the following is NOT a
of NTPC Limited? (MTP NOV 2021) FMCG company?
(a) Kanti Bijlee Utpadan Nigam Ltd (MTP March 2019, MTP April 2019,MTP Aug
2018)
(b) Bharatiya Rail Bijlee Company Limited
(a) ITC
(c) Patratu Vidyut Utpadan Nigam Limited
(b) Dabur
(d) Powerlink Transmission Limited
(c) HUL
Q30) State Bank of India was formerly known
as: (MTP March 2018) (d) Maruti
(a) Bank of Madras Q35) Where are the headquarters of Walmart?

(MTP April 2019)
(b) Bank of Calcutta
(a) Arkansas, US
(c) Imperial Bank
(b) California, US
(d) Indian Bank
(c) New York, US
Q31) Who founded Wipro Limited?
(MTP March 2018,MTP March 2021) (d) None of the above
(a) Azim Premji Q36) Burmah Shell refineries Ltd. was taken
over by Government of India to form (MTP
(b) Mohamed Premji Oct 2018)
(c) Ratan Tata (a) IOCL
(d) Narayan Murthy (b) NTPC
Q32) Who was the founder of Walmart? (c) ONGC
(MTP March 2018,MTP March 2021)
(d) BPCL
(a) Sam Walton
Q37) Who was the co-founder of Microsoft with
(b) Bret Biggs Bill Gates? (MTP April 2019,MTP Oct 2018)
(c) Greg Penner (a) Paul Allen
(d) Luca Maestri (b) Melinda Gates

(c) Satya Nadella
(d) Lucci Hood (c) Flipkart, Amazon, Myntra are online trading
companies
Q38) Which bank provides the digital service
PayZapp? (MTP May 2020) (d) All of the above are correct
(a) Axis Bank Limited Q43) Who is the current CEO and MD of
Infosys Ltd.? (MTP Oct 2018)
(b) HDFC Bank Limited
(a) Salil Parekh
(c) ICICI Bank Limited
(b) U B Pravin Rao
(d) State Bank of India
(c) N R Narayan Murthy
Q39) NESTLE is a beverage partner with which
of the following companies? (d) Nandan Nilekani
(MTP May 2020,MTP Oct 2019) Q44) Which cannot be categorised as PSU:
(MTP Oct 2018)
(a) Coca-Cola India
(a) NTPC
(b) Pepsico India Holdings Pvt. Ltd.
(b) BHEL
(c) Red Bull India Pvt. Ltd
(c) Post & Telegraph
(d) Dabur India Ltd
(d) Power Grid Corporation in India
Q40) Who is the present chairman of Bajaj
Auto Ltd.? (MTP May 2020)
(a) Mr. Rahul Bajaj
(b) Mr. Rajiv Bajaj
(c) Jamnalal Bajaj
(d) Kevin P D’sa
Q41) Identify the Swiss transnational food and

drink company? (MTP March 2022)
(a) Larsen & Toubro
(b) Walmart
(c) Nestle
(d) Unilever
Q42) Mark the correct: (MTP Aug 2018)
(a) Tata Sons is a holding company
(b) Infosys, Wipro and TCS are IT companies

SOLUTIONS TO CHAPTER NO. 3
(1) (2) (3) (4) (5) (6) (7) (8) (9) (10)
D B A C C A A D C C
(11) (12) (13) (14) (15) (16) (17) (18) (19) (20)
A A A A A D D C B A
(21) (22) (23) (24) (25) (26) (27) (28) (29) (30)
B A A C D B D C D C
(31) (32) (33) (34) (35) (36) (37) (38) (39) (40)
B A C D A D A B A A
(41) (42) (43) (44)
C D A C

CHAPTER - 4 GOVERNMENT POLICIES FOR BUSINESS
Q1) Government keeps hold of responsibility Q5) Selling of a portion of ownership from
and private enterprise handle fully or partly the public enterprise to private parties is called
delivery of product and service. Such type of
concept of privatization is known as ………………… (Dec 2020)
(Dec 2020, MTP March 2018, MTP NOV 2021) (a) Disinvestment
(a) Divestment (b) Divestment
(b) Displacement (c) Delegation
(c) Disinvestment (d) Deregulation
(d) Delegation Q6) In which of the following FDI is prohibited

under both the Government Route as well as
Q2) Law making body at central level in the Automatic Route. (Dec 2020)
india______
(a) Atomic energy
(a) Vidhan Sabha
(b) Solar Energy
(b) Lok Sabha
(c) Wind energy
(c) Vidhan Parishad
(d) Biomass Energy
(d) All of above
Q7) ___________ curtail all benefits in some
Q3) The formation of National Skills particular issue. (Nov 2019)
Development Corporation (NSDC) is an
example of which of the following type of (a) Restrictive policies
public policy ? (Dec 2020) (b) Regulatory Policies
(a) Restrictive (c) Facilitating policies
(b) Social (d) None of these
(c) Facilitating Q8) In which of the following sector (s), FDI is
(d) Regulatory prohibited under both routes
Q4) Gradual decrease in government command (Nov 2019,MTP May 2020)

and control over economic policies is (a) Nidhi Company
called_______ (Dec 2020)
(b) Media
(a) Socialization
(c) Real Estate
(b) Liberalization
(d) Shell Company
(c) Globalization
Q9) A type of privatization where Government
(d) Capitalization surrender partial ownership and responsibility

CHAPTER - 4 : GOVERNMENT POLICIES FOR BUSINESS
and sells the majority stake to one or more (MTP Oct 2020,MTP March 2021)
entities is called as (Nov 2019)
(a) Good and Service Tax
(a) Delegation
(b) Make in India
(b) Divestment
(c) Skill India
(c) Displacement
(d) Beti Bachao Beti Padhao
(d) Disinvestment
Q14) Foreign Exchange Management Act
Q10) The form of privatization, where (FEMA), would fall under which of the following
government keeps hold of responsibility and type of Public Policy? (MTP Oct 2020,MTP
private enterprise handles the management of March 2021)
it fully or partly is known as: (Nov 2019,MTP
Oct 2019,MTP Aug 2018,MTP Oct 2018) (a) Restrictive
(a) Disinvestment (b) Regulatory
(b) Deregulation (c) Facilitating
(c) Delegation (d) Advisory
(d) Decentralization Q15) FDI is restricted in which of the following

sectors of economy in India? (MTP Oct 2020)
Q11) NITI aayog has replaced which of the
following: (Nov 2018) (a) Healthcare Business
(a) MRTP Commission (b) Online Gaming Business
(b) Planning Commission (c) Education Business
(c) Financial Commission (d) Atomic Energy
(d) Population Commission Q16) The following statements characterise

Public Policy making, but one of them is false.
Q12) Indigo, Spice Jet and Vistara, operating in Find the odd one out. (MTP Oct 2020)
Indian aviation, are a result of which of the
following is Government’s initiative for (a) It is a collective effort of various
(MTP Oct 2020, MTP March 2021) departments
(a) Privatisation (b) It can only be formulated in a mixed

economic setup
(b) Liberalisation
(c) It focuses on goals and results
(c) Globalisation
(d) It is always formulated with a positive
(d) Foriegn Direct Investment intent
Q13) Which of the following is Government’s Q17) Government Organisations were

initiative for furthering and facilitating operating at really poor profits margins and
businesses in India? insignificant aims and mission. What brought

about a change in their operation and Q21) Economic Reforms introduced in India in
ownership? (MTP Oct 2020) 1992 are called LPG that refers to
(a) Globalisation (MTP OCT 2021, MTP March 2019,MTP April

2021,MTP Oct 2018)
(b) Privatisation
(a) Liquidation of loss-making units
(c) Liberalisation
(b) Popularise Public private partnership
(d) Change of Political Parties
(c) Good governance
Q18) Policy Formulation process is?
(MTP OCT 2021,MTP April 2021)
Q22) Government decides to spend 400 crores
(a) Uni-Directional in the next 5 years for the benefit of women
(b) Bi-Directional entrepreneurs in India. This is an example of?
(MTP OCT 2021,MTP April 2021)
(c) Multi-Directional
(a) Fiscal Policy
(d) Single Point of Contact Oriented
(b) Monetary Policy
Q19) Privatization may not be of
conceptualized in form of: (c) FDI Policy
(MTP OCT 2021,MTP April 2021,MTP March (d) Industrial Policy

2022,MTP Aug 2018) Q23) FDI is prohibited in which of the following
(a) Divestment sectors? (MTP NOV 2021)
(b) Disinvestment (a) Retail
(c) Dedication (b) E-Commerce
(d) Displacement (c) Education
Q20) Simplification of trade restrictions related (d) Chit Fund

to import is an example of: Q24) Prohibition of crackers in Delhi by the
(MTP OCT 2021, MTP March 2018, MTP state government is a type of? (MTP NOV 2021)
March 2019,MTP May 2020,MTP April (a) Protective
2021,MTP Oct 2019,MTP Aug 2018,MTP Oct
2018) (b) Regulatory
(a) Globalization (c) Restrictive
(b) Privatization (d) Facilitating
(c) Disinvestment Q25) Which of the following is an example of
facilitating policy? (MTP NOV 2021)
(d) Aggregation
(a) Companies act 2013

(b) Income tax policy (d) Regulatory, Voluntarily, Continuous
(c) Monetary policy Q30) Identify the one which may be considered
as a public policy:
(d) Micro-small-medium enterprises
(MTP March 2019,MTP April 2021)
Q26) Monetary policy of the government is
affected with support from? (MTP NOV 2021) (a) A decision by a central government to
purchase a fleet of cars.
(a) RBI
(b) An old building to be demolished by a
(b) IRDAI municipal corporation.
(c) SEBI (c) All citizens are to be provided with biometric
(d) NABARD Aadhar card.
Q27) Singapore government gave the business (d) Government passes a special resolution to
option to either take cheap loans or to take change the name of a park.
subsidies on exporting. What kind of public Q31) Mark incorrect as Globalization refers to:
policy is this? (MTP NOV 2021)
(MTP March 2019, MTP April 2019,MTP Aug
(a) Protective 2018)
(b) Facilitating (a) Encouraging regional economic
cooperation.
(c) Regulatory
(b) Integrating the world into one economic
(d) Restrictive
global village
Q28) Which of the following is not a source of
(c) It pares the way for higher factor mobility.
infusion of foreign funds in India?
(d) Drawing countries out of their insulation.
(MTP NOV 2021)
Q32) In case of Maruti–Suzuki, the Union
(a) Listing of a company in NSE through IPO
Government surrendered partial ownership and
(b) Non-Resident Indians sold the majority stake to Suzuki of Japan in
course of time. This is a case of:
(c) Foreign Institutional Investors
(MTP April 2019)
(d) Overseas Citizens of India
(a) Partial Disinvestment
Q29) Public policies are of three types:
(b) Displacement
(MTP March 2018, MTP March 2019, MTP April
2019,MTP Oct 2019) (c) Delegation
(a) Restrictive, Regulatory, Participative (d) Divestment
(b) Restrictive, Regulatory, Facilitating Q33) Mark the Incorrect statement:

(MTP April 2019)
(c) Voluntarily, Participative, Facilitating

(a) FDI is made with an intention of exercising (c) SEZ - Special Economic Zone
control over an enterprise.
(d) FTWZ - Free Trade and Warehousing Zone
(b) FDI is called Portfolio Investment.
Q38) Which of the following is not a form of
(c) FDI is a long run Investment. privatization? (MTP March 2022)
(d) FDI helps in upgradation of technology. (a) Delegation
Q34) Foreign brands were welcomed in India (b) Divestment

and were also allowed to use their foreign
brand name. Which of the following does use (c) Departmentalization
of foreign brand name relate to? (d) Disinvestment
(MTP March 2021,MTP March 2022) Q39) Find out the correct: (MTP Aug 2018)
(a) Globalisation (a) For sustainable economic development, FII
(b) Privatisation is more preferable to FDI.
(c) Liberalisation (b) FDI has strong speculative effect in equity

market
(d) Autonomy of Economy
(c) In India, permission for FDI is not uniform
Q35) Goods and Service Tax (GST), is a form of? for all sectors.
(MTP March 2021,MTP March 2022)
(d) FDI is usually done to reap short term gains
(a) International Trade Policy
Q40) Establishment of central board of film
(b) Inclusive Policy certification is an example of:
(c) Policy Reform (a) Regulatory Policy
(d) Public Welfare Scheme (b) Facilitative Policy
Q36) RBI, SEBI, IRDAI are part of which type of (c) Restrictive Policy
government policy? (MTP March 2022)
(d) Distribution Policy
(a) Restrictive Policy
Q41) FDI in sectors /activities which do not
(b) Regulatory Policy require any prior approval either of the
Government or the Reserve Bank of India is
(c) Protective Policy identified as:
(d) Facilitative Policy (a) Green Channel
Q37) Specified areas where government (b) Priority route
supports business to enhance development
and increase employment are called? (c) Non-commercial Route
(MTP March 2022)
(d) Automatic Route
(a) SEZ - Specified Economic Zone
(b) DTA - Domestic Tariff Area

(1) (2) (3) (4) (5) (6) (7) (8) (9) (10)
D B C B A A A A B C
(11) (12) (13) (14) (15) (16) (17) (18) (19) (20)
B A B B D B B B C A
(21) (22) (23) (24) (25) (26) (27) (28) (29) (30)
D A D C D A B A B C
(31) (32) (33) (34) (35) (36) (37) (38) (39) (40)
A D B C C B C C C A
(41)
D

CA INTERMEDIATE
TAXATION
CA SANCHIT GROVER
CA INTERMEDIATE
CA SAHIL GROVER
CHAPTER - 5 BUSINESS FACILITATING ORGANISATIONS
Q1) Controller of capital Issues was replaced by Q5) Which of the following financial institution
which of the following Regulatory authority ? is known for dealing in SHG bank linkage
program ? (Dec 2020)
(Dec 2020)
(a) NABARD
(a) IRDAI
(b) IRDAI
(b) Competition Commission of India(CCI)
(c) SBI
(c) RBI
(d) SEBI
(d) SEBI
Q6) The RBI has been vested with extensive
Q2) Which of the following is not an objective power to control and supervise commercial
of establishing the Competition commission of banking system under the –
India (CCI)? (Dec 2020)
(Nov 2019, MTP OCT 2021, MTP March 2018,
(a) To Prevent practices having adverse effect MTP March 2019,MTP May 2020,MTP April
on competition 2021,MTP Oct 2019, MTP Aug 2018)
(b) To preserve and sustain competition in (a) Reserve Bank of India Act, 1934
markets
(b) The Banking Regulation Act, 1949
(c) To protect the interest of the customers
(c) Both (a) and (b).
(d) To ensure restriction of the customers and
other participants in markets (d) None of the above
Q3) SEBI was setup to regulate the _______ Q7) A reduction of 45 basis point will be equal
(Dec 2020) to how much of the following? (Nov 2019)
(a) Insurance market (a) 45%
(b) Security Market (b) 0.45%
(c) Money market (c) 4.5%
(d) Capital market (d) 450%
Q4) IRDAI full form is: (Dec 2020) Q8) Which of the following sets as an indicator
of bank’s liquidity and solvency? (Nov 2019)
(a) Industrial Regulatory Development Authority
of India (a) Statutory liquidity ratio
(b) Institutional Regulatory Development (b) Cash Reserve ratio

Authority
(c) Repo rate
(c) Insurance Regulatory Development Authority
of India (d) Reserve repo rate
(d) Insurance Ruling Development Authority Q9) Which of the following is not regulatory
institution: (Nov 2018)

CHAPTER - 5 : BUSINESS FACILITATING ORGANISATIONS
(a) IRDAI (c) both a & B
(b) MIGA (d) None of the above
(c) RBI Q14) Which of the following is not a Funding

Institution ? (MTP Oct 2020,MTP March 2021)
(d) SEBI
(a) World Bank
Q10) The first appeal of Securities Exchange
Board of India (May 2019, MTP March 2019) (b) NABARD
(c) Reserve Bank of India

(a) Supreme Court
(d) International Monetary Fund
(b) High Court
Q15) Under which section of IRDAI Act can
(c) Securities Appellate Tribunal IRDAI function and impart its duties?
(d) RBI (MTP Oct 2020,MTP March 2021,MTP March
2022)
Q11) Which of the following is not a function
of RBI (May 2019,MTP Oct 2019, MTP (a) Section 11 of IRDAI Act, 1999
May 2020)
(b) Section 21 of IRDAI Act, 1999
(a) Monetary Policy
(c) Section 19 of IRDAI Act, 1999
(b) Fiscal Policy
(d) Section 14 of IRDAI Act, 1999
(c) Custodian of Foreign Exchange reserves
Q16) NABARD as a development bank, is
(d) Controller of Credit concerned with various segments and issues,
except? (MTP Oct 2020)
Q12) Who was the regulatory body for
controlling financial affairs before SEBI (a) Self Help Groups of Men
(May 2019, MTP OCT 2021, MTP March 2019, (b) Tribal Development
MTP April 2019,MTP May 2020,MTP April
2021,MTP Oct 2018) (c) Self Help Groups of Women
(a) Controller of Capital Issues (d) Water Treatment Planning
(b) Reserve Bank of India Q17) The current Reverse Repo Rate is 2.5%.
The difference between repo and reverse repo
(c) Insurance Regulatory and Development shall be 250 basis points. RBI increases reverse
authority of India repo by 150 basis points. What is the new
Repo Rate? (MTP Oct 2020,MTP March 2021)
(d) Government of India
(a) 6%
Q13) SEBI function consists of
(b) 6.5%
(May 2019)
(c) 7%
(a) Quasi Legislative
(d) 7.5%
(b) Quasi judicial

Q18) Which of the following does SEBI not (d) The RBI is the sole authority for the issue of
cater to? currency in India.
(MTP Oct 2020,MTP March 2021,MTP March Q22) Self Help Groups are catered specifically
2022) by? (MTP OCT 2021,MTP April 2021)
(a) Government Organisations (a) All development banks
(b) Investors (b) SIDBI
(c) Intermediaries (c) RBI
(d) Security Issuing Companies (d) NABARD
Q19) Which of the following is not a function Q23) RBI’s role does not include-
of RBI? (MTP NOV 2021)
(MTP OCT 2021,MTP April 2021,MTP March (a) Friend, Philosopher and Guide to
2022) Government
(a) Promotion of Banking (b) Maintain legal stability
(b) Collection of Foreign Institutional Data (c) Regulate inflation
(c) Banker to Government (d) Guide all commercial banks
(d) Funding NABARD Q24) MRTP Act, 1969 stands repealed with the
repealed with the enforcement of the following
Q20) Which one of the following is not a SEBI Act: (MTP NOV 2021)
function as one body?
(a) Foreign Exchange Regulation Act, 1973
(MTP OCT 2021,MTP April 2021,MTP March
2022,MTP Aug 2018) (b) Foreign Exchange Management Act, 1999
(a) Quasi-legislative (c) Competition Act, 2002
(b) Quasi-judicial (d) IRDAI Act, 1999
(c) Quasi-fiscal Q25) What is the constitution of Competition
Commission of India? (MTP March 2018)
(d) Quasi-executive
(a) A chairperson and 6 members appointed by
Q21) Which of the following statements about
the Central Government
RBI is incorrect?
(b) A chairperson and 5 members appointed by
(MTP OCT 2021,MTP April 2021,MTP Oct
the Central Government
2018, MTP March 2019)
(c) A chairperson and 5 members appointed by
(a) It deals largely with Governments, Central
the RBI
and State Banks.
(d) A chairperson and 6 members appointed by
(b) Its role is to ensure monetary stability,
the RBI
including stability of domestic price levels.
(c) One of its missions is to protect the interest
of policyholders.

Q26) Where is the head office of NABARD? (c) Reserve Bank of India
(MTP March 2018,MTP Oct 2019,MTP Aug
2018) (d) State Bank of India
(a) Mumbai Q31) Which one of the following is not the role
of the Competition Commission of India?
(b) Delhi
(MTP May 2020, Oct 2019)
(c) Gurugram
(a) To promote practices having adverse effect
(d) Bengaluru on competition.
Q27) Which of the following is NOT a function (b) To promote and sustain competition in
of RBI? markets.
(MTP March 2019, MTP April 2019,MTP Aug (c) To protect the interests of consumers and,
2018)
(d) To ensure freedom of trade carried on by
(a) Monopoly of Note issue other participants in markets in India.
(b) Banker to the Government Q32) A reduction of 35 basis point will be
equal to how much of the following?
(c) Advancing loan to large business houses (MTP May 2020)
(d) Controller of Credit (a) 3.50%
Q28) Which one is not correct about Bank (b) 0.35%
rate? (MTP March 2019)
(c) 35%
(a) It is a quantitative measure.
(d) 0.035%
(b) It differs from repo rate.
Q33) NABARD ’s refinancing is available to all
(c) It is also known as discount rate. the below except which of the following?
(d) It influences credit availability to particular (MTP March 2022)
sector
(a) State cooperative banks
Q29) When was IRDAI constituted?
(MTP April 2019) (b) Regional rural banks
(a) 1997 (c) Commercial banks
(b) 1998 (d) Private sector banks
(c) 1999 Q34) An example of POC (Point of Contract)
Business facilitator:
(d) 2000
(a) Transport Agency
Q30) Who is the custodian of the nation’s
foreign exchange reserves? (MTP Oct 2019) (b) Business Incubator
(a) Central Government of India (c) Bank
(b) President of India (d) Insurance company

Q35) If Current Bank Rate is 9% and RBI (d) FBI

decreases it by 10 basis points, the New Rate
will be– Q37) Who from the following helps a budding
business to quickly launch a product and put it
(a) 8% in the first lane of commercial success?
(MTP NOV 2021)
(b) 8.10%
(a) Business incubator
(c) 9.10%
(b) Freight forward
(d) 8.90%
(c) Business accelerator
Q36) Which of the following is not a method of
credit control (d) Merchandiser
(a) CRR
(b) SLR
(c) Moral Session

(1) (2) (3) (4) (5) (6) (7) (8) (9) (10)
D D D C A C B A B C
(11) (12) (13) (14) (15) (16) (17) (18) (19) (20)
B A C C D D B A B C
(21) (22) (23) (24) (25) (26) (27) (28) (29) (30)
C D B C A A C D C C
(31) (32) (33) (34) (35) (36) (37)
A B D B D D C

CA INTERMEDIATE
CA SAHIL GROVER
CHAPTER - 6 COMMON BUSINESS TERMNOLOGIES
Q1) A security which has a solid record of (a) Lowest value the which the seller is willing
dividend payments and offer the dividend to sell
higher than the common stock is ________
(Dec 2020) (b) Highest value which the buyer is willing to
pay
(a) Hedge
(c) Highest value which the seller is willing to
(b) Holding period sell
(c) Index (d) Lowest value which the buyer is willing to

pay
(d) Income stock
Q6) It is loan where the time and cash flow
Q2) The effect of change in price will have on between a short loan and a long term loan is
customers is ________ (Dec 2020) filled up. (Nov 2019)
(a) Price Discrimination (a) Debt financing
(b) Price Skimming (b) Bridge financing
(c) Price sensitivity (c) Closure Time
(d) Pre-emptive Pricing (d) None of these
Q3) A strongly motivated and long standing Q7) The lowest price at which an owner is
decision of the customer to purchase a willing to sell his securities. (Nov 2019)
particular product or service is referred as
_________ (Dec 2020) (a) Sale
(a) Buying behaviour (b) Ask
(b) Brand Recognition (c) Auction
(c) Brand Loyalty (d) None
(d) Customer satisfaction Q8) Carrying forward of transaction form one

settlement period to the next payment is called
Q4) ________ is a measurement of relationship ___________. (Nov 2019)
between stock price of any particular stock and
the movement of whole market. (Dec 2020) (a) Badla
(a) Call Option (b) Beta
(b) Bids and Offer (c) Blue chips
(c) Beta (d) None
(d) Break – even Point Q9) A series of payments of an equal amount

at fixed intervals for a specified periods is
Q5) Bid is the……………. (Dec 2020) called (Nov 2019,MTP May 2020)

CHAPTER - 6 : COMMON BUSINESS TERMNOLOGIES
(a) Amortize Q13) _____________is a combination of several
companies working together for a particular
(b) Annuity due purpose for example in order to buy something
(c) Annuity or build something. (Nov 2019)
(d) Arbitrage (a) Consortium
Q10) In a Bull market (b) Joints Venture
(Nov 2019,MTP May 2020) (c) Co-opting
(a) Stock prices are decreasing consistently (d) All of above
(b) Stock Prices are increasing consistently Q14) It is the amount of revenue from sales
which exactly equals the amount of expense.
(c) Stock Prices are stable
(Nov 2019)
(d) Stock Prices are wildly fluctuating
(a) Shut down point
Q11) What is consolidation?
(b) Break –even Point
(Nov 2019, MTP OCT 2021, MTP March 2019,
MTP April 2019,MTP April 2021) (c) Profit point
(a) It is expense that is supposed to reflect the (d) None

loss in value of a fixed asset. Q15) The ............ is something that makes trade
(b) Combination of two or more entities that between two countries difficult and expensive
occurs when the entities transfer all their net (Nov 2018)
assets to a new entity created for that purpose.
(a) Benchmarking
(c) Costs that can be attributed clearly to the
activity you are considering. (b) Barriers to trade
(d) None (c) Barriers to entry
Q12) _________________________ is the (d) Cross selling

simultaneous purchase and sale of two
identical commodities or instruments. This Q16) The share of large, well established and
simultaneous sale and purchase is done in financially sound companies with an
order to take advantage of the price variations impressive record of earnings and dividends
in two different markets. (Nov 2019) are called: (Nov 2018)
(a) Cap (a) Bonds
(b) Term insurance (b) Debentures
(c) Arbitrage (c) Blue chips
(d) Hedge (d) Commercial paper
Q17) What is initial public offering?

(Nov 2018)
(a) A company first issue of shares to general (d) None of the above
public
Q22) Personal selling is done through
(b) Right issue of shares by company
(May 2019, MTP March 2018, MTP April
(c) Both (a) & (b) 2019,MTP March 2021)
(d) None of the above (a) Oral communication
Q18) Charging a relatively high price for a (b) Written communication

short time where a new, innovative, or much
improved product is launched onto a market is (c) Social media
called: (Nov 2018) (d) Sign language
(a) Sales Promotion Q23) A stock market where the number of
(b) Price sensitivity transactions are very low and thus, the volatility
in the market is huge, is called?
(c) Price Skimming
(MTP Oct 2020,MTP March 2021)
(d) Unique selling price
(a) Thin Market
Q19) What is brokerage: (Nov 2018)
(b) Slow Market
(a) Commission charge by the broker for his
(c) Lazy Market
services
(d) Weak Market
(b) Commission charge by SEBI
Q24) A company is said to undergo ______
(c) Commission given by the broker for his
when its assets are sold off piecemeal rather
services
than one single operating entity? (MTP Oct
(d) None of the above 2020,MTP March 2021,MTP March 2022)
Q20) Which of the following is Return on (a) Acquisition

investment (May 2019,MTP Oct 2019)
(b) Merger
(a) Dividend
(c) Liquidation
(b) Interest
(d) Sale off
(c) Yield
Q25) Data which is useful in decision making
(d) None of the above is called? (MTP Oct 2020)
Q21) The opposite of bid is________ (a) Database

(May 2019,MTP Oct 2019)
(b) Information
(a) Ask/Offer
(c) Resource
(b) Call
(d) Law
(c) Purchase

Q26) The marketing department of Go Now Pvt. (c) Payoff
Ltd. divided the consumers into different
groups based on their characteristics, like (d) Insolvency
buying frequency, actuals spend, age and Q30) Highest Price the buyer is willing to pay is
preferences. Which of the following has the called?
marketing department focused on?
(MTP Oct 2020) (MTP OCT 2021,MTP April 2021,MTP March
2022)
(a) Market Segmentation
(a) Bid
(b) Market Division
(b) Ask
(c) Market Analysis
(c) Badla
(d) Market Grouping
(d) Beta
Q27) Token money paid in the early stages of
Negotiation is called? Q31) Security whose price is derived from
another underlying asset is called?
(MTP Oct 2020,MTP March 2021,MTP March
2022) (MTP OCT 2021,MTP April 2021
(a) Early Money Deposit (a) Derivative
(b) Earning Money Deposit (b) Options
(c) Token E-Cash (c) Forwards
(d) Earnest Money Deposit (d) Futures
Q28) Five private banks and two nationalised Q32) ADR stands for:
banks together issued a loan of INR 2,000
crores to Zhakthee Limited for opening a rice (MTP OCT 2021,MTP April 2021,MTP March
mill in ten rural areas of India. What are these 2022,MTP Aug 2018)
kinds of loans with multiple banks involved (a) American Deficit Record
called? (MTP Oct 2020)
(b) American Depository Receipt
(a) Large Bank Loans
(c) Asset Depreciation Record
(b) Syndicate Loans
(d) Asset Depository Receipt
(c) Overdraft Loans
Q33) ______ is a strategy that is used to
(d) Industrial Loans minimize the risk of a particular investment
Q29) A position when a person’s assets are not and maximize the returns of an investment.
enough to pay off the liabilities due, is called?
March 2019,MTP April 2021,MTP Aug
(MTP Oct 2020,MTP March 2021) 2018,MTP Oct 2018)
(a) Poverty (a) Cap
(b) Risk Adjustment (b) Encryption

(c) Hedge (d) Market targeting
(d) Term insurance Q38) The price of security at the beginning of

the trading days is called- (MTP NOV 2021)
Q34) Setting low prices in order to discourage
or deter potential new entrants to the suppliers (a) Basket trading
market: (MTP OCT 2021, MTP March
2019,MTP April 2021,MTP Oct 2018) (b) Base price
(a) Pre-Emptive Pricing (c) Bid
(b) Price Sensitivity (d) Book value
(c) Price Discrimination Q39) What is Hedge? (MTP NOV 2021)
(d) Price Elasticity (a) It is a statistical measurement of change in

the economy.
Q35) Dividing consumer into groups based on
different consumer characteristics, to deliver (b) It is strategy that is used to minimize the
specially designed advertisements that meet risk of a particular investment and maximize
these characteristics as closely as possible, is the returns
known as- (MTP NOV 2021) of an investment.
(a) Mass marketing (c) It is trading platform.
(b) Market targeting (d) It is a security which has a solid record of
(c) Market segmentation dividend payments
(d) Marketing plan Q40) Amount which are owned to a company

that need not to be paid back is called-
Q36) Rates of interest that can be changed
contractually by the lender are called- (MTP NOV 2021)
(MTP NOV 2021) (a) Assets
(a) Spot rates (b) Bad debts
(b) Administered rates (c) Bears
(c) Swap rates (d) Current assets
(d) Repo rates Q41) A portion of the after‐tax profits paid out
Q37) Process of evaluating each market to the owners of a business as a return on their
segment and selective the most attractive one investment is:
to enter into is called? (MTP NOV 2021) (MTP March 2018, MTP March 2019,MTP
(a) Marketing Aug 2018)
(b) Marketing mix (a) Dividend
(c) Mass marketing (b) Expense
(c) Expenditure

(d) Deferred income (a) Sharks
Q42) What is meant by B2B? (b) Bears

(MTP March 2018)
(c) Bulls
(a) Buying behaviour that concerns the process
that buyers go through when deciding whether (d) Elephants
or not to purchase goods or services. Q46) X-Mart stocks goods from various sellers
(b) A company’s business model is in its huge store and charges money to
management’s storyline for how the strategy advertise/sell specific products. What can X-
will be a money maker. Mart be termed as? (MTP March 2022)
(c) Marketing activity directed from one (a) Market Share

business to another. (b) Aids to Trade
(d) None of the above (c) Suppliers
Q43) Which of the following is incorrect? (d) Intermediary
(MTP March 2019,MTP Aug 2018) Q47) The Profit and Loss account of Ganpati
(a) Arbitrage is simultaneous purchase and Agarbattis showed that the revenue was exactly
sale of a commodity. equal to the expenditures during the year. This
position is termed as? (MTP March 2022)
(b) Current assets are those which can be
turned into cash within a year. (a) Equilibrium
(c) Intangible assets are those which do not (b) Breakeven Point
have physical form. They are in the form of (c) Double Entry Accounting Balance
rights.
(d) Elastic Losses
(d) Break-even point is also called an optimum
point of a firm Q48) Bears are the stock market players that
have --------------expectations. (MTP March
Q44) A combination of several companies 2022)
working together for a particular purpose is
called as which of the following? (a) Realistic
(MTP May 2020)
(b) Positive
(a) Competitive advantage
(c) Optimistic
(b) Cross-selling
(d) Pessimistic
(c) Consortium
Q49) The number of units of given currency
(d) Conglomerate Diversification that can be purchased for one unit of another
currency is called _______.
Q45) People in the stock market who anticipate
lower returns are called? (MTP Oct 2019,MTP Oct 2018)
(MTP March 2021) (a) Current ratio

(b) Exchange rate (c) IFSC
(c) Equity (d) NEFT
(d) Dividend Q54) The exploitation of comparatively small

market segments by businesses that decide to
Q50) What is price sensitivity? concentrate their efforts is called:
(MTP Oct 2019)
(a) Niche marketing
(a) the effect a change in price will have on
customers. (b) Mass marketing
(b) charging a relatively high price for a short (c) Market segmentation
time where a new, innovative, or much-
improved product is launched onto a market. (d) Market positioning
(c) a strategy involves setting low prices in Q55) ________is a road map of company’s
order to discourage or deter potential new future.
entrants to the suppliers market. (a) Objective
(d) It measures the responsiveness of a change (b) Goal
in demand for a product following a change in
its own price (c) Vision
Q51) Risk is a probable chance that (d) Aim

investments’ actual returns will be _____ than
as calculated. (MTP Aug 2018) Q56) A customer benefit that no other product
can claim is called –
(a) Increased
(a) Unique selling proposition
(b) Reduced
(b) Unique selling point
(c) Equal
(c) Unified selling point
Q52) Four P’s of Marketing doesn’t include:
(MTP Aug 2018) Q57) It is the rate of interest offered by RBI,
when banks deposit their surplus funds with
(a) Product the RBI for short periods is called–
(b) Price (a) Repo Rate
(c) Place (b) Reverse repo rate
(d) Procedure (c) interest rate
Q53) Which one of the following is NOT related (d) None of the above
to funds transfer in banks? (MTP Oct 2018)
Q58) Nifty consists of how many scrips
(a) RTGS
(a) 20
(b) CRR

(b) 30 (b) Market Positioning
(c) 40 (c) Market Development
(d) 50 (d) None of the above
Q59) The process of comparing the products Q61) Selecting the most attractive market
and services with those of best in the industry segment for a particular product or product line
to improve quality and performance is known is known as
as
(a) Market Positioning
(a) Advertising
(b) Market Entry
(b) After-sale-Device
(c) Target Marketing
(c) Benchmarking
Q60) Offering existing products or their new

version to a new customer group is called
(a) Market entity


(1) (2) (3) (4) (5) (6) (7) (8) (9) (10)
D C C C B B B A C B
(11) (12) (13) (14) (15) (16) (17) 1(8) (19) (20)
B D A B B C A C A C
(21) (22) (23) (24) (25) (26) (27) (28) (29) (30)
A A A C B A D B D A
(31) (32) (33) (34) (35) (36) (37) (38) (39) (40)
A B C A C B D B B B
(41) (42) (43) (44) (45) (46) (47) (48) (49) (50)
A C D C B D B D B A
(51) (52) (53) (54) (55) (56) (57) (58) (59) (60)
B D B A C A B D C C
(61)
C

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CA-FOUNDATION

MCQs Compiler for

By:- CA Sanchit Grover

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CA KNOWLEDGE PORTAL TO THE NEW YEAR

CHAPTER - 1 INTRODUCTION TO BCK

Q1) Which of the following means an (a) Non mutual agency

Prepared by : CA Sanchit Grover 1

(a) Social Q15) Which of the following is not a merit of

(c) Political (a) LLP is a separate legal entity

(d) Any Combination of natural and artificial (a) 10

Q12) A partnership may be formed to carry on (b) 15

(d) Social Enterprise (a) Self Interest

Q13) Which of the following is not (b) Social Interest

2 Prepared by : CA Sanchit Grover

(c) Both (c) Capital is needed to start a business

(d) None of the above (d) It is better to be aware of Legal

(b) Parsi Family (a)For Future Projects

(c) Both a & b (b) Holding Intellectual Property

(d) None of the above (c) Both A or B

(c) HUF enjoys a separate entity status under (c) Coparcener

Prepared by : CA Sanchit Grover 3

(c) Buddhist family (a) There are no restrictions on transfer of

(d) Conservation of natural resources (a) Economic activities

Q37) Mark incorrect: Partnership implies (b) Non-economic activities

(c) The contract is an agreement enforceable at (a) Non-economic activity

Prepared by : CA Sanchit Grover 5

(c) Business (d) Both Company and LLP

(d) Agriculture Q56) Which of the following is a not a part of

(MTP May 2020) (b) B2B

(a) Non-economic activities do not require any (c) B2C

(b) Company (a) Logistics

(c) LLP (b) Bulls

Prepared by : CA Sanchit Grover 7

(b) Companies Act, 2013 (a) Livelihood Motive

(c) Income Tax Act, 1961 (b) Self – Interest

(d) All of the above (c) Rationality – what do I get in return

Q63) Dormant company is — (d) All of the above

(c) LLP (a) Freedom of working

(d) Company (b) Quick decision making

Q65) Find correct objectives in case of organic (c) More Capital

(b) Return on investment, conservation & (a) Profession

8 Prepared by : CA Sanchit Grover

(c) Employment (d) None of the above

Prepared by : CA Sanchit Grover 9

10 Prepared by : CA Sanchit Grover

“CA INTER KNOWLEDGE PORTAL”

MOB. NO. 9310824912/9310824712 CA SANCHIT GROVER

“CA INTER KNOWLEDGE PORTAL”

Mob. no. 9310824912/9310824712 CA DEEPAK KAPOOR

“CA INTER KNOWLEDGE PORTAL”

MOB. NO. 9310824912/9310824712 CA SAHIL GROVER

CHAPTER - 2 BUSINESS ENVIRONMENT

(a) Social (c) Family structure

(b) Technological (d) Educational levels

(c) Economic Q6) Factors like Trends, Events of different

Q2) According to Peter Drucker aim of the (a) Environment analysis