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01 Introduction to Business Mcqs Chapter 01 02 Introduction to Business Mcqs Chapter 02
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05 Introduction to Business Chapter 05 06 Introduction to Business Chapter 06
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Encircle the most appropriate answer from the following options


1 Which of the following business types has the longest life time?

  1. Sole proprietorship
  2. Partnership
  3. Joint stock company
  4. All of the given options

2 Election of the Board of Directors is done by Shareholders.

  1. Through special resolution
  2. In annual general meeting
  3. In Special meeting 
  4. In statutory meeting

3. Which of the following business types has to pay double taxes to the government?

  1. Sole proprietorship 
  2. Partnership
  3. Joint stock company         
  4. Cooperative Societies

includes the rules and regulations, necessary to manage the internal affairs of the company.

  1. Memorandum of Association
  2. Article of Association
  3. Prospectus                                
  4. All of the given option’

 5 General information like Appointment, election and powers of directors, voting rights and transfer of shares mention in                                                          .

  1. Charter of Company 
  2. Article of Association
  3. Prospectus                 
  4. None of the given option

6 To call the extraordinary meeting, how many days’ notice is required?

  1. 21 days   
  2. 15 days    
  3. 07 days    
  4. 30 days

7 According to Section 305 of Companies Ordinance, a company may wound up by court under which of the following circumstances:

  1. Statutory Declaration          
  2. Fails to submit statutory report
  3. Expiry of Period                   
  4. Appointment of Liquidators

8 Which of the following is the source of acquiring redeemable capital?

  1. Modaraba Certificate                    
  2. Debentures
  3. Participation term finance
  4. All of the given option

9 Normally some part of Capital is kept for the payment of debts at the time of winding up, is called as:

  1. Reserve capital
  2. Un-Issued Capital
  3. Uncalled up Capital 
  4. All of the given option

10 The following person cannot make a petition to the court to get an order for winding up of a company.

  1. Petition by debtor      
  2. Petition by creditor
  3. Petition by contributory     
  4. All of the above

11 Which of the following is the disadvantage of modified schedules and alternative workplace?

  1. Freedom in professional and personal life         
  2. More Job satisfaction
  3. Complicated coordination
  4. Suitable for self starter who require little direct supervision

12 Among different managerial styles, which of the following allows most rapid decision making?

  1. Autocratic styles    
  2. Democratic styles
  3. Free rein style     
  4. None of the given option

13                                                is the process of motivating others to work to meet specific objectives.

  1. Leadership     
  2. Motivation      
  3. Free rein style
  4. Democratic style

14 Which of the following represents the set of procedures involving both managers and subordinates in setting goals and evaluating progress?

  1. Participative Management and Empowerment

2.      Management by Objectives (MBO)

  • Reinforcement/Behavior Modification Theory     
  • None of the given option

15 The internal environment consists of the insides forces that influence marketing strategy and decision making is/are as follows:

  1. Organization Policies        
  2. Product Policies
  3. Management Structure      
  4. All of the given option

16 A specific communication task to be accomplished with a specific target audience during a specific period of time is called as:

  1. Marketing Mix                
  2. Advertising objective
  3. Market segmentation     
  4. Marketing process

17 Dividing a market into distance groups of buyers who have distinct needs, characteristics, or behavior and who might require separate products or marketing mixes.

  1. Market segmentation   
  2. Marketing Mix Marketing
  3. Penetration                       
  4. Marketing control

18 The actors and forces outside marketing that affect marketing management’s ability to build and maintain successful relationship with target customers are called as:

  1. Marketing Environment    
  2. Market segmentation
  3. Marketing Mix                        
  4. Marketing Penetration

19 The set of controllable tactical marketing tools-product, price, place and promotion that the firm blends to produce the response it wants in the target market.

  1. Market segmentation     
  2. Marketing Mix
  3. Marketing Penetration   
  4. Marketing Environment

20 Motorcycle and car are very different from one another, but both fulfill the need for transport is an example of:

  1. Substitute product competition
  2. Brand competition
  3. International competition:               
  4. Market competition

21 Physical distribution is a channel to make availability of                                     from producer to consumer.

  1. Finished goods                                 
  2. Work in process
  3. Raw material                                     
  4. All of the given option

22 Advertising strategies often depend on the product life cycle stage. Example in case of introductory stage, which of the following advertising strategy is used:

  1. Persuasive advertising    Comparative advertising
  2. Informative advertising
  3. Reminder advertising
  4. None of the given options

23  is a promotional approach that encourages consumer demand, which then exerts pressure on wholesalers and retailers to carry a product.

  1. Pull strategy                               
  2. Push strategy                               
  3. Persuasive advertising               
  4. Sales Promotion

24  includes rental or mortgage payments, insurance, and wages. Other costs include material handling and inventory control.

  1. Warehousing cost       
  2. Transportation cost
  3. Distribution cost          
  4. Manufacturing cost

25 Personal selling task in which salespeople try to persuade buyers to purchase products by providing information about their benefits is:

  1. Order Processing      
  2. Creative Selling
  3. Missionary Selling   
  4. None of the given option

26 Consumer promotion aimed at the                                            and Trade promotion aimed at wholesalers and retailers.

  1. Final consumer                     
  2. Retailer           
  3. Wholesalers   
  4. All of the given options

27 In which of the following, Companies rent booths to display and demonstrate products to customers who have a special interest or are ready to buy.

  1. Trade Shows                        
  2. Contests        
  3. Cross-promotion                  
  4. Special-event sponsorship

28  is the planning, organizing, directing, and controlling of all the activities needed to get high-quality goods and services into the marketplace.

  1. Total quality management (TQM)
  2. Promotion strategy
  3. Sales promotion
  4. Management by objective (MBO)

29 A promotional tool in which information about a company or product is transmitted by general mass media, which is free, but you have little or no control of the content and delivery.

  1. Public relation     
  2. Trade Promotion                                  
  3. Publicity
  4. Consumer Promotion

30 Advertising strategy that tries to keep a product’s name in the consumer’s mind.

  1. Persuasive advertising
  2. Comparative advertising
  3. Informative advertising
  4. Reminder advertising

31 Pizza delivery service company generated after tax earnings of

Rs. 800,000. With total stockholder investments equaling Rs. 20,00,000. What was the company’s return on equity?

  1. 10%            
  2. 15%            
  3. 40%            
  4. 80%

32 Components of Business Plan include all of the following except:

  1. Marketing Component
  2. Administrative Component
  3. External Component                
  4. Financial Component

33 An agreement between two parties in which one party possess the rights to the other party is:

  1. Partnership                                      
  2. Strategic Alliance                          
  3. Joint venture                                   
  4. Franchising

34 The shareholders elect the Board of Directors in the Through….

  1.  special resolution                         
  2. In annual general meeting
  3. In Special meeting                          
  4. In statutory meeting

35 Portion of the undistributed profit transferred to which of the following?

  1. General Reserve                       
  2. Retained Earning
  3. Appropriation account            
  4. All of the given options

36 Brief history, Auditor’s report, shareholders’ equity and liabilities, share capital, etc are mentioned in which of the documents?

  1. Charter of Company     
  2. Article of Association
  3. Prospectus                       
  4. None of the given option

37 A joint stock company may be wound up voluntarily in which of the following way:

  1. Expiry of Period     
  2. Fails to submit statutory report
  3. Fails to start its business within one year from the date of incorporation
  4. All of the following

38 Capital is required for the purchase of land, machines, wages and raw materials. A businessman can generate its capital from:

  1. Debt Equity                       
  2. None of the above            
  3. All of the given option

39 Cooperative Societies are not formed for:

  1. The serving of the orphans and widows          
  2. The help of poor people
  3. For the earning of profit                     
  4.                   Social welfare

40 Which one of the following statements about marketing is inaccurate?

  1. (The growing number of products in all categories has made it easier for marketers to capture the attention of customers. )

2.      (Marketing has to do with persuading customers a product meets their needs. )

  • (The mass market has fragmented into many different groups of customers.)
  • (Marketing is an organizational function and a set of processes for creating, communicating, and delivering value to customers. )

41 The process of tracking the demand and satisfaction of customers in an effort to develop products they will want to buy on an ongoing basis is called             .

  1. Marketing            
  2. Business vision   
  3. Product development
  4. Customer relationship  

42 sequence of changes in demand for a product that occurs over time.

  1. The business vision statement      
  2. The product life cycle
  3. Marketing research                         
  4. A customer-oriented approach

43 All of the following except                                                 are considered to be correct statements about marketing research.

  1. (It is a systematic search for information about customers’ needs and how those needs differ)
  2. (Marketing research is geared to uncover unmet consumer needs )
  3. (With market research, the chance product development will be able to create a product consumers want to buy increases )
  4. (Marketing research provides an inexpensive method for tracking consumer behavior )

44 When a company targets a particular group of customers because of their need for its product, it can be stated the company has identified its

                   .

  1. Market differentiation          
  2. Market mission
  3. Market segment                      
  4. Marketing plan

45                                        is the combination of a product’s qualities and features, its price, the way it is promoted and sold, and the places at which it is sold.

  1. Marketing mix                      
  2. Product mix
  3. Product differentiation       
  4. Product positioning

46 Which type of product promotion is identified as being direct, face-to-face communication by salespeople with existing and potential customers to promote a company’s products?

  1. Sales promotion    
  2. Public relations
  3. Personal selling    
  4. Advertising

 47 The specific method a company uses to sell and deliver its products to customers is known as its                              .

  1. Retail intermediaries 
  2. Direct distribution
  3. Distribution mix        
  4. Distribution channel

48 Of the following distribution methods, which one is best identified as being that which occurs when a company delivers and sells products straight to the final customer?

  1. Independent wholesalers
  2. Direct distribution
  3. Company-owned distributors         
  4. Retail distributors

49 The combination of channels a company selects to place, promote, sell, and deliver its products to customers is best identified by which one of the following?

  1. Missionary selling
  2. Licensed distribution
  3. Distribution mix       
  4. Distribution channel

50 All of the following choices represent one of the four types of utility except:

  1. Time   
  2. Form  
  3. Loyalty                         
  4. Ownership