Q#1: Which of the following is excluded from factors that can affect the business?
(A) Demographic factors
(B) Economic and social factors
(C) Natural factors
(D) None of the above
Answer: (D) None of the above
Q#2: The formation of ___________ does not require any legal formality like registration.
(A) Company
(B) Cooperative society
(C) Partnership
(D) Sole proprietorship
Answer: (D) Sole proprietorship
Q#3: 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#4: In partnership deed, profit and loss is distributed among the partners:
(A) In equal percentage
(B) As per percentage of capital invested
(C) As per agreed ratio in partnership deed
(D) None of the given options
Answer: (C) As per agreed ratio in partnership deed
Q#5: The powers of the Board of Directors to borrow from the bank are mentioned in:
(A) Articles of Association
(B) Memorandum of Association
(C) Special resolution
(D) None of the given options
Answer: (A) Articles of Association
Q#6: Which of the following should be considered when designing a business plan?
(A) Objectives of the business
(B) Marketing components of the business
(C) Financial components of the business
(D) All of the given options
Answer: (D) All of the given options
Q#7: A firm that acquires another firm as part of its overall business strategy is engaging in __________.
(A) A strategic acquisition
(B) A financial acquisition
(C) A two-tier tender offer
(D) A shark repellent
Answer: (A) A strategic acquisition
Q#8: The record of a country’s imports and exports of goods and services is called its:
(A) Visible trade balance
(B) Balance of payments
(C) Balance of payments on current account
(D) Balance of trade
Answer: (B) Balance of payments
Q#9: Which treaty is designed to remove barriers to free flow of goods and services?
(A) GATT
(B) EU
(C) WTO
(D) NAFTA
Answer: (A) GATT
Q#10: Export subsidies are:
(A) Import limits
(B) Taxes on imports
(C) Trade barriers
(D) Government payments to exporters
Answer: (D) Government payments to exporters
Q#11: Managers should focus on improving firm’s __________ if ignoring ethical concerns.
(A) Ethics
(B) Profitability
(C) Productivity
(D) Game plan
Answer: (A) Ethics
Q#12: __________ includes safe products, pollution control, and fair employment.
(A) Corporate philanthropy
(B) Corporate policy
(C) Corporate governance
(D) Corporate responsibility
Answer: (D) Corporate responsibility
Q#13: Human resource planning helps decide:
(A) Business type
(B) Employee quantity and quality
(C) Physical resources
(D) Competitors
Answer: (B) Employee quantity and quality
Q#14: 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: (B) Valid but not reliable
Q#15: Selection based on physical condition is:
(A) Medical tests
(B) Background investigation
(C) Aptitude tests
(D) Application forms
Answer: (A) Medical tests
Q#16: Which chart shows turnover in an organization?
(A) Gantt chart
(B) Replacement chart
(C) PERT chart
(D) Bar chart
Answer: (B) Replacement chart
Q#17: Hawthorne Studies found:
(A) Social factors affect productivity
(B) Economic factors affect productivity
(C) Money is main motivator
(D) Workers work better alone
Answer: (A) Social factors affect productivity
Q#18: Buying a burglar alarm satisfies which need?
(A) Esteem
(B) Security
(C) Social
(D) Self-actualization
Answer: (B) Security
Q#19: Salary, policy, supervision are:
(A) Growth factors
(B) Hygiene factors
(C) Esteem factors
(D) Motivating factors
Answer: (B) Hygiene factors
Q#20: Important step to improve expectancy:
(A) Deliver rewards as promised
(B) Recognize performance
(C) Link effort with performance
(D) Make rewards meaningful
Answer: (C) Link effort with performance
Q#21: Job Rotation means:
(A) Empowerment
(B) More similar tasks
(C) More responsibility
(D) Moving employees between tasks
Answer: (D) Moving employees between tasks
Q#22: Which is NOT part of marketing concept?
(A) Total company effort
(B) Profit
(C) Productivity
(D) Customer satisfaction
Answer: (C) Productivity
Q#23: In ______ stage, customer needs are satisfied.
(A) Social oriented
(B) Product oriented
(C) Marketing oriented
(D) None of the given options
Answer: (C) Marketing oriented
Q#24: Which is NOT true about services?
(A) Consumed
(B) Sold then consumed
(C) Perishable
(D) Tangible
Answer: (D) Tangible
Q#25: Measuring what a test is supposed to measure is:
(A) Validity
(B) Reliability
(C) Dependability
(D) Goodness of fit
Answer: (A) Validity
Q#26: Who has unlimited liability?
(A) Limited partner
(B) Shareholder
(C) Sole proprietor
(D) LLC member
Answer: (C) Sole proprietor
Q#27: Biggest advantage of partnership:
(A) Unlimited liability
(B) Single tax
(C) Difficult resale
(D) Raising capital
Answer: (D) Raising capital
Q#28: Which enjoys limited liability?
(A) General partnership
(B) Corporation
(C) Sole proprietorship
(D) None of the given options
Answer: (B) Corporation
Q#29: Ownership most freely transferable in:
(A) General partnership
(B) Limited partnership
(C) Corporation
(D) LLC
Answer: (C) Corporation
Q#30: Which are components of business?
(A) Industry
(B) Commerce
(C) Both industry and commerce
(D) None of the given options
Answer: (C) Both industry and commerce