Business Environment and International Business MCQs

Question 1

Which one of the following is not the characteristic of capitalism?

Accepted Answer

The country's major means of production are either owned by the government or their use is controlled by the government

Answer

Individuals and associations behave with economic motive of maximizing their profit with least sacrifice or cost

Answer

Producers, consumers and employees compete among themselves, as the resources and opportunities are limited

Answer

Price, the invisible hand, plays a predominant role in the flow of the factors of production and consumption

Question 2

Which combination of the following factors has driven globalisation in the recent past? 1. Growth of multinational corporations. 2. Internationalisation of finance. 3. Increased international trade. Select the correct answer using the options given below

Accepted Answer

Both 1 and 3

Answer

Both 1 and 2

Answer

Both 2 and 3

Answer

All of these

Question 3

Consider the following statements. Statement (I): WTO is only international organization which deals with the rules of trade between organizations. Statement (II): The limit of holding by individual foreign institutional investors in a company has been raised from 5 to 10% of company's share while the aggregate limit has been increased from 24 to 34%.

Accepted Answer

Statements (I) and (II) both are correct

Answer

Statement (I) is correct but Statement (II) is false

Answer

Statement (II) is correct but Statement (I) is false

Answer

Statements (I) and (II) both are false

Question 4

Which one of the following is not covered in the approach adopted by NITI Aayog?

Accepted Answer

Five-year planning approach

Answer

Three-year action agenda

Answer

Seven-year strategy

Answer

Fifteen-year vision

Question 5

The balance of payment of a country on current account is equal to

Accepted Answer

Balance of trade + Short-term capital flows

Answer

Balance of trade + Net invisible exports

Answer

Balance of payment - Capital flows

Answer

Balance of invisible trade + Imports

Question 6

Internal environment of a business includes: (i) Business ethics and moral standards (ii) Business and managerial policies (iii) Prospects of business development (iv) Government rules and regulations (v) Industrial relations

Accepted Answer

(i), (ii), (iii) and (v)

Answer

(i), (ii), (iv) and (v)

Answer

(ii), (iii), (iv) and (v)

Answer

(i), (ii), (iii) and (iv)

Question 7

Which of the following is not an way to implement CSR by organisation?

Accepted Answer

Community involvement

Answer

Environmental sustainability

Answer

Energy conservation

Answer

Ethical marketing process

Question 8

Consider the following statements. Assertion (A): International Finance Corporation (IFC) contributes to increase sustainable agriculture opportunities, improve health and education and increase access to financing for micro finance and business client. Reason (R): The IFC has focused on a set of development goals to ensure that its projects are expected to achieve the target.

Accepted Answer

Both (A) and (R) are correct and (R) is the correct explanation of (A)

Answer

Both (A) and (R) are correct, but (R) is not the correct explanation of (A)

Answer

(A) is correct but (R) is incorrect

Answer

Both (A) and (R) are incorrect

Question 9

Match the following. List-I (Levels of Integration) List-II (Features) a. Customs union 1. It allows for the free mobility of capital and labour across countries b. Common market 2. Its example is NAFTA c. Free trade area 3. It occurs when a group of countries agree to eliminate a set of common external tariffs on imports

Accepted Answer

a-3, b-1, c-2

Answer

a-3, b-2, c-1

Answer

a-2, b-3, c-1

Answer

a-1, b-2, c-3