Business and Commerce MCQs

Question 1

A public corporation is:

Accepted Answer

Created by a special act of Parliament

Answer

Not as separate legal entity

Answer

Not managed by a government nominated board of directors

Answer

Set up under the Companies Act, 1956

Question 2

"One man control is the best in the world" is a statement of:

Accepted Answer

William R. Bassett

Answer

Haney

Answer

Kimball and Kimball

Answer

F. W. Taylor

Question 3

A company is said to have been registered when

Accepted Answer

It gets incorporation certificate

Answer

It files with the Registrar of Companies its Memorandum of Association and Articles of Association

Answer

It gets certificate for commencement of business

Answer

It actually starts its business

Question 4

Staff function refers to:

Accepted Answer

All of the above

Answer

Those elements in the organisation which provide advice and service

Answer

That part of managerial work which an executive assigns to someone outside the chain of command

Answer

That counsel which is different from the function of authority

Question 5

Quantitative import restrictions that limit the quantity of a product being imported is called

Accepted Answer

quota

Answer

embargo

Answer

trade restraint

Answer

import tariff

Question 6

Nominal partner in a partnership firm is one who:

Accepted Answer

Does not invest capital and only sells his goodwill

Answer

Contributes in the management

Answer

Invests capital in the firm

Answer

Is not known to outsiders as partner

Question 7

Clearing agent is appointed by whom?

Accepted Answer

Importer

Answer

By the shipping company

Answer

By the customs officer

Answer

Exporter

Question 8

Which of the following statements are true? 1. Transaction exposure is inherent in all foreign currencies denominated contractual transactions 2. Translation exposure relates to the change in accounting income and balance sheet statements caused by change in exchange rate 3. Economic exposure has an impact on the valuation of a firm 4. Operating exposure does not have any impact on the firm's future operating revenues or future operating costs Choose the correct option from those below:

Accepted Answer

1, 2 and 3 only

Answer

1 and 2 only

Answer

2 and 3 only

Answer

2 and 4 only

Question 9

The organisation structure where there is direct vertical relationship is called:

Accepted Answer

All of the above

Answer

Line organisation

Answer

Chain organisation

Answer

Command organisation