Business Environment and International Business MCQs

Question 1

Indicate the correct answer of the following statements being correct or incorrect. The statements relate to the type of transactions recorded in the current/capital accounts of the Balance of Payments. Statement (I): The capital account consists of long-term capital transactions only. Statement (II): The current account includes all transactions which give rise to or use up national income.

Accepted Answer

Statement (I) is incorrect while Statement (II) is correct

Answer

Both the statements are correct

Answer

Both the statements are incorrect

Answer

Statement (I) is correct while Statement (II) is incorrect

Question 2

Which of the following statements is not correct relating to consumerism?

Accepted Answer

The government does not have any role in consumer protection as it is the part of business organizations alone

Answer

Consumerism is a manifestation of the failure of the business to guarantee and ensure consumer legitimate rights

Answer

The consumers should accept consumerism as a means of asserting and enjoying their rights

Answer

Consumerism evolution is not a set-back for marketing but rather points to the next stage in the evolution of enlightened marketing

Question 3

Match the following. List-I (Types of Intellectual Property Rights) List-II (Features) a. Trademarks 1. It may refer to the creation of a shape colour, pattern or a combination of all these things. b. Patents 2. It is a symbol generally used to identify a particular product, which indicates its source. c. Industrial Design Rights 3. These are the designs, practices, formulas etc. d. Trade Secrets 4. The invention must new and should be useful or can be applied in industries.

Accepted Answer

a-2, b-4, c-1, d-3

Answer

a-4, b-3, c-2, d-1

Answer

a-2, b-3, c-4, d-1

Answer

a-3, b-1, c-4, d-2

Question 4

Which one is not an element of legal environment?

Accepted Answer

Act of Parliamentarians in Lok Sabha

Answer

Indian Contract Act, 1872

Answer

Indian Partnership Act, 1932

Answer

Negotiable instruments Act, 1881

Question 5

Where the foreign offer curve has an elasticity of one, the optimum tariff will be

Accepted Answer

infinity

Answer

unity

Answer

less than unity

Answer

all the above

Question 6

Indicate the right sequence of the stages of internationalization. (i) Multinational Company (ii) Global Company (iii) Transnational Company (iv) International Company

Accepted Answer

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

Answer

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

Answer

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

Answer

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

Question 7

The central bank can significantly influence the savings, investments and consumer spending in the economy through which of the following policy?

Accepted Answer

Monetary Policy

Answer

Fiscal Policy

Answer

Industrial Policy

Answer

Foreign Exchange Policy

Question 8

Who has demonstrated how prosperity of one country brings prosperity to other countries participating in international trade?

Accepted Answer

Keynes

Answer

Adam Smith

Answer

Ohlin

Answer

None of these

Question 9

Foreign trade helps each country to make . . . . . . . . use of its natural resources.

Accepted Answer

optimal

Answer

loss

Answer

better

Answer

None of these