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Business and Commerce Multiple Choice Questions

Total questions: 80

Worksheet time: 43mins

Name
Class
Date
1.

As an external stakeholder, what interest would a company's supplier have in a company?

a)

The supplier would want to be paid for the purchases made by the company on a timely basis

b)

The supplier would want to know that employees will continue to have jobs

c)

The supplier would want to know how much it will receive in dividends

d)

The supplier would want to know how much it will make from its investment

2.

In marketing, _____ is the focal point.

a)

Profit

b)

Sales

c)

Customer

d)

All of the above

3.

Which one of the following is a key to build lasting relationships with consumers?

a)

Price of the product

b)

Need recognition

c)

Customer satisfaction

d)

Quality of product

4.

_____ are generally secured by assets or guarantees.

a)

Cash credit

b)

Overdraft

c)

Discounting of bills

d)

Loans

5.

The _____ selection tests seek to measure a candidate’s capacity to learn particular skills and test his potential abilities.

a)

Personality

b)

Dexterity

c)

Trade

d)

Aptitude

6.

_____ is a positive process which creates a pool of candidates.

a)

Recruitment

b)

Selection

c)

Training

d)

Development

7.

Which of the following describes E-Commerce?

a)

Doing business electronically

b)

Doing business physically

c)

Sale of goods

d)

None of the above

8.

MYNTRA is an example of:

a)

E-Advertising

b)

E-Tailing

c)

E-Marketing

d)

E-Security

9.

ERP stands for:

a)

Enterprise Resource Planning

b)

Enterprise Relationship Platform

c)

Finance and Accounting Module

d)

Purchase Module

10.

Which type of exploitation is this? (Fair & Handsome advertisement)

a)

Misleading

b)

False packaging

c)

Overcharging

d)

Under-weighing

11.

The valve of this cooker, which if defective can cause a serious accident, is related to which Right of the Consumer?

a)

Right to Consumer Education

b)

Right to Safety

c)

Right to be Heard

d)

Right to Knowledge

12.

What is advertising?

a)

Publicity

b)

Sales Promotion

c)

Paid Information

d)

All of the above

13.

The following is not a function of advertising:

a)

Information

b)

Brand Image Building

c)

Persuasion

d)

Pricing

14.

Training within the industry scheme imparts training in:

a)

Job Instructions

b)

Job Rotation

c)

Job Method

d)

All of the above

15.

The fixed costs are those costs which turn out to be ______ at any volume of production output.

a)

Constant

b)

Proportional

c)

Fluctuating

d)

Increasing

16.

Debenture holders are:

a)

Debtors of the company

b)

Creditors of the company

c)

External users

d)

Owners of the company

17.

The primary motive of any business is to earn profit with ____ welfare.

a)

Customer

b)

Social

c)

Exchange

d)

Money

18.

______ is directed towards consumers and traders with the intention to increase immediate or short-term sales.

a)

Advertising

b)

Direct Selling

c)

Sales Promotion

d)

Publicity

19.

Rights of consumers are protected under ______.

4 lines
20.

Electronic Retailing represents ______ side of e-commerce.

a)

B2B

b)

B2C

c)

C2C

d)

C2G

21.

It is an account prepared to know the net profit / loss. It is a nominal account and represents the second stage.

a)

Trading Account

b)

Profit and Loss Account

c)

Balance Sheet

d)

Manufacturing Account

22.

Total variable cost per unit increases ______.

a)

When production grows

b)

When demand decreases

c)

Change in government rules

d)

Change in availability of raw materials

23.

Which budget is also known as Summary Budget?

a)

Cash Budget

b)

Purchase Budget

c)

Master Budget

d)

Sales Budget

24.

______ is a kind of temporary financial accommodation extended by a bank to its regular customers.

a)

Term Loans

b)

Overdraft

c)

Permanent Capital

d)

Discounting of Bills of Exchange

25.

Equity shareholders are called ______.

a)

Owners of the company

b)

Partners of the company

c)

Executives of the company

d)

Guardian of the company

26.

______ is a positive process.

a)

Recruitment

b)

Selection

c)

Staffing

d)

Training

27.

______ refers to individual and collective relationships between employers and employees in industry.

a)

Industrial Relations

b)

Employer Relations

c)

Employee Relations

d)

Personnel Relations

28.

The insurer is liable for insured perils only and not for unexpected ones. This is the principle of ______.

a)

Indemnity

b)

Utmost Good Faith

29.

Which stakeholder group is most likely to view higher profits as a key objective?

a)

Employees

b)

Suppliers

c)

Shareholders

d)

Customers

30.

The main objective of marketing is ______.

a)

Increase profit

b)

Decrease sales

c)

Increase price

d)

Decrease profit

31.

The content and context of a message contained in an advertisement is called ______.

a)

Ad copy

b)

Script

c)

Body

d)

Advertising appeal

32.

It is popularly known as free form of promotion ______.

a)

Advertisement

b)

Publicity

c)

Personal Selling

d)

Marketing

33.

A doctor's negligence leading to a patient's injury violates which consumer right?

a)

Right to Safety

b)

Right to be Informed

c)

Right to be Assured

d)

Right to be Heard

34.

Amount spent on increasing seating capacity in a cinema hall is ______.

a)

Capital Expenditure

b)

Revenue Expenditure

c)

Deferred Revenue Expenditure

d)

Capital Receipt

35.

Which module helps to boost sales performance through customer service and healthy relationship with customers?

a)

Inventory Module

b)

Purchase Module

c)

Customer Relationship Management

d)

Sales Module

36.

Gita bought a face cream that caused burns due to chemical adulteration. Can she file a case?

a)

Yes, she can file against the general store

b)

No, she can't

c)

She can file against manufacturer

d)

Neither (a) nor (b)

37.

It is advantageous to coordinate budgets with:

a)

Suppliers

b)

Customers

c)

Marketing and Production Departments

d)

All of the above

38.

Opening stock ₹40,000, purchase ₹260,000, closing stock ₹20,000. Cost of goods = ?

a)

₹320,000

b)

₹260,000

c)

₹300,000

d)

₹280,000

39.

Machinery worth ₹60,000 installed — accounting treatment?

a)

Credit side of P&L Account

b)

Credit side of Trading Account

c)

Liability side of Balance Sheet

d)

Asset side of Balance Sheet

40.

Arun’s house insured with 3 companies (ratio 1:2:3). Principle being applied:

a)

Contribution

b)

Mitigation of Loss

c)

Subrogation

d)

Insurable Interest

41.

Shivam pays by debit card using a machine — this machine is called:

a)

Point of Sale Machine

b)

ATM

c)

Computerized Machine

d)

None

42.

According to this principle, the insured must minimize loss in case of mishap.

a)

Causa Proxima

b)

Insurable Interest

c)

Contribution

d)

Mitigation of Loss

43.

“Return of loans on expiry of specified period” is the expectation of ______.

a)

Suppliers

b)

Competitors

c)

Creditors

d)

Employees

44.

Amount of ______ is paid once in lump sum whereas ______ is paid monthly.

a)

Provident Fund, Pension

b)

Pension, Provident Fund

c)

Gratuity, Provident Fund

d)

Provident Fund, Gratuity

45.

Identify the type of financial fraud when assets are overstated or liabilities understated:

a)

Insurance Fraud

b)

False Accounting Fraud

c)

Intellectual Property Fraud

d)

Internet/Cyber Fraud

46.

Sai Enterprises sells goods on credit ₹3,50,000; can get payment from bank after discount — identify method:

a)

Term Loans

b)

Cash Credit

c)

Overdraft

d)

Discounting of Bills of Exchange

47.

Arrange job instruction training steps:

a)

(i) (iii) (ii) (iv)

b)

(i) (iv) (ii) (iii)

48.

Which is NOT correct w.r.t selection tests?

a)

Used to judge physical and mental qualities

b)

Helpful in measuring suitability

c)

Based on assumption that human traits can be predicted

d)

Fully reliable and don’t involve time and money

49.

Cookies, web banners and pop-ups are examples of ______.

a)

E-Security Threats

b)

E-Security Remedies

c)

E-Advertising

d)

E-Marketing

50.

This budget forms the fundamental basis on which others are built.

a)

Sales Budget

b)

Master Budget

c)

Purchase Budget

d)

Cash Budget

51.

The Right to Seek Redressal means ______.

a)

Assured access to goods at competitive prices

b)

Right to register complaint at forums

c)

Right to get claims settled against unfair trade practices

d)

Right to be informed about quality and price

52.

NEFT stands for ______.

a)

National Electronic Funds Transaction

b)

National Electronic Funds Transfer

c)

National Electric Funds Transfer

d)

National Electric Funds Transaction

53.

The rate of dividend generally fluctuates for ______ holders.

a)

Bank Loan

b)

Debenture

c)

Equity Share

d)

Preference Share

54.

______ means the expenditure whose benefit extends beyond the current year but doesn’t result in acquisition of permanent asset.

a)

Capital Receipts

b)

Deferred Revenue Expenditure

c)

Revenue Expenditure

d)

Capital Expenditure

55.

55. Assertion (A): Sales at reduced prices may be organised at festivals. Reason (R): Such sales attract customers and help clear stocks.

a)

a) Both true, and reason correctly explains assertion

b)

b) Both true, but reason not correct explanation

c)

c) Assertion true, reason false

d)

d) Both false

56.

The fixed costs are those costs which turn out to be ______ at any volume of production output.

a)

Constant

b)

Proportional

57.

Which stakeholder provides employment opportunities to individuals in exchange for labour, services, or skills?

a)

Employee

b)

Employer

c)

Shareholder

d)

Consumer

58.

Price structure affects the _______ of the firm.

a)

Competitive position and market share

b)

Revenue and profitability

c)

Cost and revenue

d)

Profitability and risk

59.

Which of the following sales promotion techniques is best for introducing new products and increasing the sales of established products?

a)

Prize contests

b)

Coupons

c)

Distribution of free samples

d)

Bonus offer

60.

Which of the following best describes an organization that provides all advertising-related services for a fee or commission?

a)

Public Relations Firm

b)

Advertising Agency

c)

Media Buying Agency

d)

Market Research Firm

61.

Kiran purchased a new mobile phone from an electronics store. After a week, the phone’s screen started malfunctioning. She contacted the store for a refund as the phone was still under warranty. The store manager refused to help, claiming that Kiran had misused the device. The Consumer Forum ruled in her favour and ordered the store to replace the phone and compensate Kiran because she had the—

a)

Right to choose

b)

Right to safety

c)

Right to be heard

d)

Right to information

62.

Which of the following refers to a cross-functional software that provides support to all the processes within an organization?

a)

Customer Relationship Management (CRM)

b)

Enterprise Resource Planning (ERP)

c)

Supply Chain Management (SCM)

d)

Business Intelligence (BI)

63.

Cleaning and greasing office fans is an example of which type of expenditure?

a)

Capital Expenditure

b)

Capital Receipt

c)

Revenue Expenditure

d)

Revenue Receipt

64.

The ______ provides information about the net profit earned or the net loss suffered by a business during a given accounting period.

a)

Profit and Loss Account (or Income Statement)

b)

Balance Sheet

c)

Cash Flow Statement

d)

Trial Balance

65.

The ______ helps a business plan the quantity of goods to be produced in a specific period, based on the estimated sales and inventory levels.

a)

Production Budget

b)

Cash Budget

c)

Master Budget

d)

Sales Budget

66.

Opening stock ₹32,000; purchases ₹1,60,000; direct expenses ₹5,000; closing stock ₹10,000. Calculate the cost of goods sold.

a)

₹1,82,000

b)

₹1,80,000

c)

₹2,20,000

d)

₹1,87,000

67.

Investors can sell their securities at any time and convert them into cash as and when necessary. Which function of the capital market does this refer to?

a)

Promotion of thrift

b)

Investment avenue

c)

Liquidity

d)

Availability of capital

68.

Under this source of recruitment, a notice is placed on the notice board of an educational institution specifying details of available jobs.

a)

Advertisements

b)

Campus Interview

c)

Recommendations

d)

Direct Recruitment

69.

A shipping company insured its valuable cargo being transported from Japan to Australia. The ship encountered heavy storms, causing damage to the cargo. The insurance policy helped the company recover most of its losses, ensuring minimal financial impact. Why did the shipping company insure its cargo?

a)

To increase profit

b)

To protect the cargo from risks like storms

c)

To reduce shipping costs

d)

To ensure faster delivery

70.

Assertion (A): The central bank is known as the lender of last resort for commercial banks. Reason (R): The central bank provides loans to commercial banks during times of financial crisis to ensure the stability of the banking system.

a)

Both Assertion (A) and Reason (R) are true, and Reason (R) is the correct explanation of Assertion (A).

b)

Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A).

c)

Assertion (A) is true, but Reason (R) is false.

d)

Assertion (A) is false, but Reason (R) is true.

71.

What does IMPS stand for?

a)

Instant Money Payment Service

b)

Immediate Mobile Payment System

72.

The Environment Protection Act, 1986, was enacted in India primarily as a response to which major industrial disaster?

a)

Chernobyl Disaster

b)

Bhopal Gas Tragedy

c)

Fukushima Nuclear Disaster

d)

Gulf Oil Spill

73.

Shivam paid by debit card, inserting it in a machine and entering the PIN code to transfer money to the shopkeeper. What is this machine called?

a)

Point of Sale machine

b)

ATM

c)

Computerized machine

d)

None of these

74.

The Environment Protection Act, 1986, was enacted in India primarily as a response to which major industrial disaster?

a)

Chernobyl Disaster

b)

Bhopal Gas Tragedy

c)

Fukushima Nuclear Disaster

d)

Gulf Oil Spill

75.

Two popular mobile wallets are:

a)

Swiggy and Zomato

b)

Instagram and Snapchat

c)

Google Pay and Paytm

d)

RTGS and NEFT

76.

Which of the following is a function of the CPCB with regard to industrial pollution control?

a)

To grant exemption to certain industries from environmental regulations

b)

To monitor the discharge of pollutants into the environment

c)

To promote the unrestricted growth of industries

d)

To provide subsidies to industries for non-compliance with environmental regulations

77.

What is advertising?

a)

Publicity

b)

Sales Promotion

c)

Paid Information

d)

All of the above

78.

The following is not a function of advertising:

a)

Information

b)

Brand Image Building

c)

Persuasion

d)

Pricing

79.

Debenture holders are:

a)

Debtors of the Company

b)

Creditors of the Company

c)

External Users

d)

Owners of the Company

80.

Training within the industry scheme imparts training in:

a)

Job Instructions

b)

Job Rotation

c)

Job Method

d)

All of the above