Business Concepts Quiz

Which of the following is not a characteristic of business activity?

• Production of goods and services

• Sale or exchange of goods

• Employment of people

• Uncertainty of returns

Which form of business has unlimited liability, limited capital, and is not a separate legal entity?

• Joint Stock Company

• Partnership

• Cooperative Society

• Sole Proprietorship

Aman runs a factory where raw cotton is converted into fabric, which is then sold to garment manufacturers. Which type of manufacturing industry is he engaged in?

• Analytical industry

• Processing industry

• Assembling industry

• Synthetic industry

Which feature is not associated with e-banking?

• 24/7 Availability

• Manual Cash Deposit

• Fund Transfer

• Online Bill Payment

Identify the INCORRECT statement about the objectives of business:

• Business aims to earn profit, but it must be done ethically and responsibly.

• Long-term success of a business depends on satisfying consumers and caring for employees.

• The primary objective of business is to earn maximum profit by exploiting employees and consumers.

• Social responsibility is an important objective of modern business.

Assertion (A): Sole proprietorship is the most suitable form of business for small-scale operations.

Reason (R): The liability of sole proprietor is unlimited. Options:

• Both A and R are true, and R is the correct explanation of A

• Both A and R are true, but R is not the correct explanation of A

• A is true, R is false

• A is false, R is true

Match the form of business organisations with their features:

• A-2, B-1, C-3, D-4

• A-1, B-2, C-4, D-3

• A-3, B-4, C-2, D-1

• A-4, B-3, C-1, D-2

Arrange the following steps in the correct sequence in the formation of a company (up to incorporation):

8. 
   i) Issue of Certificate of Incorporation
   ii) Filing of documents with Registrar of Companies (ROC)
   iii) Name approval from Registrar
   iv) Payment of registration fees
   v) Drafting of Memorandum and Articles of Association

• iii → v → ii → iv → i

• v → iii → ii → iv → i

• iii → ii → v → iv → i

• ii → iii → v → iv → i

Despite technological advancements, why do banks still maintain physical branches?

• To reduce operational costs and increase profits.
• To provide automated services that can only be accessed in person.
• Banks maintain physical branches for personalized service and community engagement.

Rahul maintains a savings account with a bank. Whenever his balance exceeds ₹25,000, the excess amount is automatically transferred to a fixed deposit to earn higher interest. Identify the type of account he is using.

• Current Account

• Fixed Deposit Account

• Multi Option Deposit Account

• Recurring Deposit Account