Introduction to Business Top 500 + MCQS Download Pdf Page No 3


101  The formation of………… does not require any legal formality like registration.

  1. Company                                        
  2. Cooperative society                      
  3. Partnership                                     
  4. Sole proprietorship

102 Which of the following is a disadvantage of partnership?

  1. Distribution of work  
  2. Sufficient capital
  3. Prime credit standing
  4. Profit sharing

103 In partnership deed, profit and loss is distributed among the partners:

  1. In equal percentage              
  2. As per percentage of capital invested
  3. As per agreed ratio in partnership deed       
  4. None of the given options

104 The powers of the Board of Directors to borrow from the bank are mentioned in:

  1. Ans Article of Association
  2. Memorandum of Association
  3. Special Resolution                     
  4. None of the given options

105 Which of the following should be considered when designing a business plan?

  1. Objectives of the business                
  2. Marketing components of the business
  3. Financial components of the business
  4. All of the given options

106 A firm that acquires another firm as part of its overall business strategy is engaging in                                         .

  1. A strategic acquisition                         
  2. A financial acquisition
  3. A two-tier tender offer                           
  4. A shark repellent

107 The record of a country’s imports and exports of goods and services is called its:

  1. Visible trade balance.                               
  2. Balance of payments
  3. Balance of payments on current account.
  4. Balance of trade.

108 which of the following is the treaty designed to remove barriers to the free flow of goods, services, and capital between nations?

  1. GATT     
  2. EU           
  3.  WTO     
  4. NAFTA

109 Export subsidies are:

  1. Maximum limits on the quantity of specific products imported to a nation.
  2. Taxes placed on imported products.
  3. Licensing requirements or unreasonable quality standards designed to reduce imports.
  4. Government payments to domestic producers to reduce the price on exported goods .

110 If a very successful fast food restaurant has been ignoring customers’ concerns about the small war toys and toy guns included in their Kids Meals, then managers should begin focusing on improving the firm’s:

  1. Ethics        
  2. Profitability.                                 
  3. Productivity.                                 
  4. Game plan

111 ….dimension of social responsibility that includes hiring minority workers, making safe products, minimizing pollution, using energy wisely, and providing a safe work environment

  1. Corporate philanthropy   
  2. Corporate policy              
  3. Corporate governance

4.      Corporate responsibility


112 The MBTI is a personality test that has been used to select candidates who will more likely engage in organizational citizenship behaviors at work. However, critics of this test suggest that the results can change over time as a person’s personality develops. Therefore the MBTI personality test may be:

  1. Legal but not valid                
  2. Valid but not reliable
  3. Reliable but not valid           
  4. Reliable but not legal

113 Selection devices that are based upon physical condition of the candidates are known as:

  1. Medical tests                    
  2. Background investigations.
  3. Aptitude tests                    
  4. Application forms.

114 Which of the following charts shows turnover in an organization?

  1. GANNT chart
  2. Replacement chart                            
  3. PERT chart                                           
  4. Bar chart

115 The Hawthorne Studies found:

1.      That social and psychological factors could significantly affect productivity

  • That economic factors affect productivity
  • Money to be the primary motivator of female employees.
  • That workers were motivated to produce more when managers left them alone.

116  In            of marketing, unsatisfied needs of the customers are satisfied.

  1. Social oriented stage
  2. Product oriented stage
  3. Marketing oriented stage          
  4. None of the given options

117Which of the following would generally have unlimited liability?

  1. A limited partner in a partnership
  2. A shareholder in a corporation

3.      The owner of a sole proprietorship

  • A member in a limited liability company (LLC)

118 What is potentially the biggest advantage of a small partnership over a sole proprietorship?

  1. Unlimited liability               
  2. Single tax filing
  3. Difficult ownership resale 
  4. Raising capital

119 Which of the following enjoys limited liability?

  1.  A general partnership  
  2. A Corporation
  3. A sole proprietorship    
  4. None of the given options

120 In which type of business entity the entire ownership interest is transferable most freely ?

  1. General partnership
  2. Limited partnership
  3. Corporation                          
  4. Limited liability company

121 A 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%.

123 All of the following are considered crucial ingredients that are needed in order for a business to be able to make a profit except                                                      –.

  1. Land
  2. Capital   
  3. Labor             
  4. FinancialCounselors

124 ————- comprise partners whose liability is limited to the cash or property they contributed to the partnership.

  1. Limited partnerships      
  2. Limited Liability Companies
  3. Sole Corporations           
  4. General Partnership

125      is considered a primary advantage to forming a business partnership.

  1. Shared Profit    
  2. Increase Specialization                        
  3. Shared Control
  4. UnlimitedLiability

126 Disadvantages associated with being an entrepreneur include all of the following except     –.

  1. Ensuring the business functions properly                       
  2. Possibly incurring large losses Possibly losing source of income      
  3. Having an increased amount of control

127 All of the following except……….. are considered to be barriers to

  1. free trade
  2. Tariffs                     Quotas                          
  3. Subsidies               
  4. Taxes

128  A……… is an economic system in which the production of goods and services is left in the hands of private enterprise.

  1. Totalitarian government
  2. Representative democracy
  3. Mixed Economy                  
  4. Free Market Economy

129………… are those persons who guarantee the company, to buy the remaining shares if minimum requirement is not met.

  1. Promoters         
  2. Brokers             
  3. Underwriters    
  4. Directors