Business Environment and International Business MCQs

Question 1

Official reserves are comprised of gold, SDRs and . . . . . . . . foreign exchange.

Accepted Answer

convertible

Answer

non-convertible

Answer

semi-convertible

Answer

All of these

Question 2

From the following, identify the tools of fiscal policy. (i) Public expenditure (ii) Open market operations (iii) Deficit financing (iv) Taxation (v) Reserve requirements

Accepted Answer

(i), (iii) and (iv)

Answer

(i), (iii), (iv) and (v)

Answer

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

Answer

(ii) and (v)

Question 3

Which of the following statement is not true?

Accepted Answer

Financial institutions are main elements of internal business environment

Answer

Economic system affects economic environment of business

Answer

If illegal buying and selling of goods does not comes under business

Answer

Legal environment of business is the part of political environment

Question 4

Relation between economic environment and policy is

Accepted Answer

analog and factor

Answer

work and reason

Answer

ractor and analog

Answer

None of these

Question 5

PEST is an acronym which stands for

Accepted Answer

Political, Economic, Social, Technological

Answer

Product, Economy, Society, Technology

Answer

Political, Economic, Societal, Technological

Answer

People, Economy, Standards, Transport

Question 6

In respect of international business, a project is called a turnkey project because:

Accepted Answer

The licensor starts the operation and hands over the key of the operating plant to the licensee

Answer

The licensee agrees to construct an entire plant in his home county and hands over the key

Answer

The licensor starts the operation and then invites the licensee and hands over the key to complete the remaining work

Answer

The licensor and the licensee jointly carry out the project and agree to share profit equally

Question 7

Laissez faire policy is adopted in

Accepted Answer

Socialistic economic system

Answer

Capitalistic economic system

Answer

Mixed economic system

Answer

Communist economic system

Question 8

Consider the following statements. Assertion (A): Economic integration abolishes cross-national economic discrimination. Reason (R): Geographical proximity is an important reason for economic integration.

Accepted Answer

Both (A) and (R) are correct

Answer

(R) does explain (A)

Answer

Both (A) and (R) are not correct

Answer

(A) is correct, but (R) is not correct

Question 9

Which of the following is/are the assumptions of the Law of One Price? (i) Restriction on the movement of goods between countries (ii) No transportation costs (iii) No tariffs

Accepted Answer

Both (ii) and (iii)

Answer

Both (i) and (ii)

Answer

Only (i)

Answer

(i), (ii) and (iii)