Q#1: Which of the following must hold a statutory meeting?
(A) Statutory companies
(B) Private limited companies
(C) Public limited companies
(D) Chartered companies
Answer: (C) Public limited companies
Q#2: Which of the following is NOT included in aids to trade?
(A) Insurance
(B) Warehousing
(C) Transportation
(D) Foreign trade
Answer: (D) Foreign trade
Q#3: The portion of capital kept at the winding up of a company for the payment of debts is known as:
(A) Reserve capital
(B) Issued capital
(C) Subscribed capital
(D) Authorized capital
Answer: (A) Reserve capital
Q#4: Which of the following business type can avail some concessions from the government?
(A) Sole proprietorship
(B) Partnership
(C) Joint Stock company
(D) Cooperative society
Answer: (D) Cooperative society
Q#5: While making financial projections in a business plan, which of these would NOT form part of the plan?
(A) Source of loan
(B) Audit
(C) Net income or profit
(D) Expected revenues
Answer: (B) Audit
Q#6: Which of the following are included in a business plan?
(A) Financial information, production plans, personal policies
(B) Goals of the business and how they will be achieved
(C) Market analysis
(D) All of the given options
Answer: (D) All of the given options
Q#7: Which of the following is not a reason for a business failure?
(A) Managerial experience or inexperience
(B) Effective control systems
(C) Insufficient control system
(D) None of the given options
Answer: (B) Effective control systems
Q#8: In which of the following two or more organizations collaborate on a project for mutual gain?
(A) Limited partnership
(B) Public corporation
(C) Strategic alliance
(D) None of the given options
Answer: (C) Strategic alliance
Q#9: The difference between a country’s merchandise exports and its merchandise imports is the:
(A) Current account
(B) Capital account
(C) Balance of trade
(D) Balance of payments
Answer: (C) Balance of trade
Q#10: One of the best solutions to get rid of non-biodegradable wastes is:
(A) Dumping
(B) Recycling
(C) Burning
(D) Landfilling
Answer: (B) Recycling
Q#11: The MBTI personality test may be:
(A) Legal but not valid
(B) Valid but not reliable
(C) Reliable but not valid
(D) Reliable but not legal
Answer: (C) Reliable but not valid
Q#12: __________ is a written statement which contains the duties and responsibilities of a job.
(A) Job analysis
(B) Job specification
(C) Job description
(D) Job inventory chart
Answer: (C) Job description
Q#13: According to Maslow’s hierarchy of needs, buying a burglar alarm fulfills which need?
(A) Esteem
(B) Security
(C) Social
(D) Self-actualization
Answer: (B) Security
Q#14: Douglas McGregor is associated with which of the following?
(A) Scientific management
(B) Motivational factors
(C) Theory X and Theory Y
(D) The Hawthorne studies
Answer: (C) Theory X and Theory Y
Q#15: Which step in Maslow’s Hierarchy deals with achieving one’s potential?
(A) Safety
(B) Self actualization
(C) Physiological
(D) Social
Answer: (B) Self actualization
Q#16: The term “Job Rotation”:
(A) Is another term for employee empowerment
(B) Involves allocating a wider range of similar tasks
(C) Involves giving more responsibility and autonomy
(D) Means moving staff periodically from task to task
Answer: (D) Means moving staff periodically from task to task
Q#17: Which of the following statements is NOT true about services?
(A) They are experienced or consumed
(B) They are often sold first, then consumed
(C) They are perishable
(D) They are tangible
Answer: (D) They are tangible
Q#18: Which of the following is not a management function?
(A) Leading
(B) Systemizing
(C) Planning
(D) Organizing
Answer: (B) Systemizing
Q#19: Increased responsibility in a job is referred to as:
(A) Empowerment
(B) Enlargement
(C) Enrichment
(D) Entitlement
Answer: (C) Enrichment
Q#20: Hiring employees from different countries reflects:
(A) Decentralization
(B) Downsizing
(C) Workforce diversity
(D) Retrenchment
Answer: (C) Workforce diversity
Q#21: Biggest advantage of a small partnership over sole proprietorship:
(A) Unlimited liability
(B) Single tax filing
(C) Difficult ownership resale
(D) Raising capital
Answer: (D) Raising capital
Q#22: Oldest form of business organization:
(A) Sole proprietorship
(B) Partnership
(C) Company
(D) Cooperative society
Answer: (A) Sole proprietorship
Q#23: Advantage of corporation not available to limited partner:
(A) Limited liability
(B) Easy transfer of ownership
(C) Double taxation
(D) All of the given options
Answer: (B) Easy transfer of ownership
Q#24: Examples of constructive industries include:
(A) Canals
(B) Fishery
(C) Sugar mills
(D) Plant nurseries
Answer: (A) Canals
Q#25: Trade deficit occurs when:
(A) Imports are higher than exports
(B) Exports equal imports
(C) Imports are less than exports
(D) All of the given options
Answer: (A) Imports are higher than exports
Q#26: Mr. Saleem invested but does not participate in management. He is:
(A) Secret partner
(B) Silent partner
(C) Sleeping partner
(D) All of the given options
Answer: (B) Silent partner
Q#27: Name of the business should:
(A) Be simple
(B) Indicate type of business
(C) Be familiar
(D) All of the given options
Answer: (D) All of the given options
Q#28: Hormel allowing Tulip to produce SPAM in UK is:
(A) Licensing
(B) Joint venturing
(C) Contracting
(D) Franchising
Answer: (A) Licensing
Spring 2009 (Session-2)
Q#29: Which of the following is excluded from factors affecting business?
(A) Demographic factors
(B) Economic and social factors
(C) Natural factors
(D) None of the above
Answer: (D) None of the above
Q#30: Formation without legal formalities is:
(A) Company
(B) Cooperative society
(C) Partnership
(D) Sole proprietorship
Answer: (D) Sole proprietorship
Q#31: Which of the following is a disadvantage of partnership?
(A) Distribution of work
(B) Sufficient capital
(C) Prime credit standing
(D) Profit sharing
Answer: (D) Profit sharing
Q#32: Profit and loss in partnership deed is distributed:
(A) Equally
(B) Based on capital
(C) As per agreed ratio
(D) None of the given options
Answer: (C) As per agreed ratio
Q#33: Borrowing powers of directors are in:
(A) Articles of Association
(B) Memorandum of Association
(C) Special resolution
(D) None of the given options
Answer: (A) Articles of Association
Q#34: What should be considered in business plan?
(A) Objectives
(B) Marketing components
(C) Financial components
(D) All of the given options
Answer: (D) All of the given options
Q#35: Acquiring another firm is:
(A) Strategic acquisition
(B) Financial acquisition
(C) Two-tier tender offer
(D) Shark repellent
Answer: (A) Strategic acquisition
Q#36: Record of imports and exports is:
(A) Visible trade balance
(B) Balance of payments
(C) Current account
(D) Balance of trade
Answer: (B) Balance of payments
Q#37: Treaty for free flow of goods and services:
(A) GATT
(B) EU
(C) WTO
(D) NAFTA
Answer: (A) GATT
Q#38: Export subsidies are:
(A) Import limits
(B) Taxes on imports
(C) Trade barriers
(D) Government payments to exporters
Answer: (D) Government payments to exporters