mock-test paper for CS Foundation

CS FOUNDATION – UNIT TEST – SECTION I –BEE & BMEC– MOCK TEST 1

NAME: ____________________________________ ROLL NO.:_________________Time Allowed: 1 hour 30 minutes Maximum Marks : 200Total Number of Questions: 100 (50 Questions in each Paper) Total No. of Printed Pages : 9

All questions are compulsory and carry TWO marks each. There will be no negative marking for wrong answers.

CODE: SFMT12-COM01A

PAPER–1 (Q. No. 1 to 50)BUSINESS ENVIRONMENT AND ENTREPRENEURSHIP

PART–ABUSINESS ENVIRONMENT

(1) Every business enterprise must undertake such business which is_____________.(a) Unlawful (b) Lawful(c) Illegal (d) All of the above

(2) The affairs of business are managed by the head of the family, who is known as the _______.(a) KARMA (b) KARTA(c) KARMAVIR (d) KARVIR

(3) Which of the following can be treated as disadvantage of HUF form of business?(a) HUF business has generally limited financial

and managerial resource.(b) There is always a lack of motivation among the

members to work hard.(c) Since the karta has absolute freedom to

manage the business, there is scope for him to misuse it for his personal gains.

(d) All of above

(4) Registration of partnership is ____________.(a) Compulsory (b) Not compulsory(c) Both (a) and (b) (d) (a) or (b)

(5) Which of the following is/are disadvantage of a company form of organization?(a) The window dressing of the prospectus often

misleads the investors who are later on ex-ploited by the promoters:

(b) Lack of secrecy

(c) Stock exchange speculation (d) All of above(6) The small-scale industries sector plays a vital role in the growth of the country.

(a) True (b) False (c) Partly true (d) None of above

(7) Which of the following is/are advantage of MNC's?(a) MNC bring inward investment to countries

that are not their home base.(b) MNCs bring with them new ideas and new

techniques that can help to improve the quality of production and help boost the quality of human capital in the host country.

(c) MNCs pay large sums in taxes to the host government.

(d) All of above

(8) What is the reason for MNCs Growth?(a) Reduce transport and distribution costs (b) Reduce transport and distribution costs

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(c) Avoid trade barriers (d) All the above(9) Which of the following statement is not correct in relation to 'Franchise'?

(a) Franchising is the practice of using another firm's successful business model

(b) It is the business relationship between two organizations where a franchiser, who is the owner of a brand name, product, or system of a business, permits a franchisee to use its brand, product, or business process for a fee.

(c) The franchisor provides training and continuous assistance to the franchisee

(d) Franchiser shares all business and trade secrete with franchisee

(10) B2C commerce ___________________.(a) Includes services such as legal advice (b) Means only shopping for physical goods(c) Means only customers should approach

customers to sell(d) Means only customers should approach

business to buy(11) By Electronic Commerce, we mean: _______________________.

(a) Commerce of electronic goods (b) Commerce which depends on electronics(c) Commerce which is based on the use of

internet(d) Commerce which is based on transactions

using computers connected by telecommunication network

(12) ____________ is concerned with how each part of the business is organized to deliver the corporate and business-unit level strategic direction and is concerned with strategic decisions about choice of products, meeting needs of customers etc.

(a) Operational strategy (b) Corporate strategy(c) Business unit strategy (d) All of above

(13) ______________ specifies at different levels of sales, expected profit level.(a) R & D budget (b) Profitability budget(c) Working capital budget (d) Production budget

(14) ____________ is regarded as the mental processes resulting in the selection of action among alternative scenarios.

(a) Planning (b) Decision-Making(c) Controlling (d) Organizing

(15) Supply chain management is essential to _____.(a) Company Success (b) Customer satisfaction(c) Either (a) or (b) (d) Both (a) and (b)

PART–BBUSINESS LAWS

(16) A ___________ is one which neither requires nor for-bids action, but allows certain conduct on the part of an individual if he desires to act.

(a) Mandatory Law (b) Permissive Law(c) Prohibitive Law (d) None of above

(17) Which of the following maxim is application of principle of equity?(a) He who seeks equity must do equity (b) He who comes to equity must come with clean

hands(c) Both (a) & (b) (d) None of above

(18) bona fide means___________.(a) Hear the other side (b) In good faith

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(c) In fact (d) In law(19) A company may be __________________.

(a) An incorporated company (b) A corporation(c) An unincorporated company (d) Any of above

(20) Which of the following is a distinct legal person?(a) Sole proprietor (b) Partnership(c) Company (d) All of above

(21) The corporate veil can be lifted: _______________________.(a) For determining the true status of the

company(b) In order to determine whether it was an

enemy company(c) Where the company fails to pay taxes and

duties(d) All of above

(22) A private company must have at least _______________.(a) 5 directors (b) 3 directors(c) 2 directors (d) 12 directors

(23) Consent in writing to act as director of the company should be filed in ______________.(a) e-Form No. 18 (b) e-Form No. 32(c) e-Form No. 23 (d) e-Form No. 1

(24) If the Registrar is satisfied that all requirements, as discussed above, have been complied with, he will register the company and issue the______________.

(a) Certificate of commencement of business (b) Certificate of incorporation(c) Certificate to act as director (d) None of above

(25) In board meetings if there is situation of equal number of votes for and against any resolution, the Chairman has the power to exercise his for deciding the matter.

(a) Extra vote (b) Casting vote(c) Extraordinary vote (d) None of above

(26) Company Law Board/National Company Law Tri-bunal can remove the directors for prevention of(a) Oppression (b) Competition(c) Mismanagement (d) (a) and (c)

(27) As per Section 292, which of the following power of the company can be exercised only by means of resolutions passed at meetings of the Board?

(a) Power to borrow money otherwise than on debentures

(b) Power to invest the funds of the company

(c) Power to make loans (d) All of above(28) Which of the following is ordinary business?

(a) The consideration of the accounts, balance sheet and the reports of the directors and auditors

(b) The declaration of a dividend

(c) The appointment of directors in the place of those retiring

(d) All of above

(29) Company secretary is appointed by passing resolution at _______. (a) Shareholders meeting (b) Board meeting(c) Debenture holders meeting (d) All of above

(30) Co- ownership is not always the result of an agreement: it may arise _____________(a) By the operation of law (b) From the status(c) By the operation of law or from status (d) None of above

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(31) A partner _____________the accounts of the firm.(a) Can demand (b) Cannot demand(c) Both (a) & (b) (d) (a) or (b)

(32) The term "Proposal" used in the Indian Contract Act, 1872 is synonymous with the term _______.(a) Contract (b) Offer(c) Agreement (d) None of above

(33) An agreement without consideration is valid if it is ______between parties standing in a near relation to each other.

(a) Expressed in writing (b) Registered(c) Is made out of natural love and affection (d) All of above

(34) Goods includes________________.(a) Movable property (b) Growing crops(c) Grass (d) All of above

(35) A promissory note is a three-party instrument_______________.(a) True (b) False(c) Partly true (d) Partly false

PART–CENTREPRENEURSHIP

(36) Research indicates that most successful entrepreneurs share certain personal attributes, including:

(a) Leadership (b) Passion(c) Self- confidence (d) All of above

(37) "What a man can be, he must be. This need we call self actualization." This said by _______.(a) Maslow (b) Hilaire Belloc(c) Schumpeter (d) Peter Drucker

(38) ______________ are the ones who predominantly are focused to start a business to improve the world. Their motto is to work in a manner which is morally and ethically correct so as to contribute to a noble cause.

(a) The hard workers entrepreneur (b) The idealist entrepreneur(c) The improver types of entrepreneur (d) The optimizer entrepreneur

(39) An entrepreneur and a manager differ in their standing, an entrepreneur is the _________of the organization and he bears all the risk and uncertainties involved in running an organization where as a manager is an __________ and does not undertake responsibilities for any risk,

(a) Owner, owner (b) Owner, employee(c) Employee, employee (d) Employee, Owner

(40) All innovation begins with creative ideas.(a) True (b) False(c) Partly true (d) None of above

(41) Steve Jobs5th principal of innovation is(a) Master the message (b) Create insanely great experiences(c) Say no to 1,000 things (d) Kick start your brain

(42) Environment scanning is careful monitoring of an organization's __________ environments for detecting early signs of opportunities and threats that may influence its current and future plans.

(a) Internal (b) External(c) Both (a) and (b) (d) Outside

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(43) Which of the following technique can be used in environment scanning?(a) SWOT Analysis (b) PEST/PESTEL Analysis(c) Industry Analysis (d) All of above

(44) As per Porter's Forces Analysis, ___________ evaluates how easy it is for buyers to drive prices down.(a) Buyer power Buyer power (b) Supplier power(c) Threat of new entry (d) Threat of substitution

(45) Which of the following does not include in marketing assessment process?(a) Defining the problem (b) Fostering ideas(c) Feedback (d) Designing a plan

(46) ________________ defines how to operate in practice to implement action and monitoring plans what are capacity needs, how resources are to be used, how risks are to be dealt with and how sustainability of the project's achievement is ensured.

(a) Private planning (b) Operational planning(c) Environmental planning (d) All of above

(47) In his famous treatise Principles of Economics, Marshall asserts important factors of production I. Land II. Furniture III. Labour IV. Capital V. Building VI. Organization VII. Plant and Machinery

(a) I, V, III, IV (b) IV, III, II, VII(c) I, III, IV, VI (d) IV, II, I, V

(48) Entrepreneurship should always ready to accept the __________.(a) Diversification (b) Expansion(c) Modernization (d) All of above

(49) Entrepreneurship maybe classified as:_____________.(a) Opportunity-Based Entrepreneurship (b) Necessity-Based Entrepreneurship(c) (a) or (b) (d) None of above

(50) What is the logical order for stages of development in entrepreneurial firm?(i) Corporate; (ii) Start up; (iii) Established; (iv) Seed stage; (v) Early growth

(a) (i) (ii) (iii) (iv) (v) (b) (v) (iii) (iv) (ii) (i)(c) (iv) (ii) (v) (iii) (i) (d) (v) (iv) (iii) (ii) (i)

PAPER–2 (Q. No. 51 to 100)BUSINESS MANAGEMENT, ETHICS AND COMMUNICATION(This Question Paper is supplied in English Medium only)

PART–ABUSINESS MANAGEMENT

(51) Which of the following is social science?(a) Economics (b) Sociology(c) Psychology (d) All of above

(52) Management is an art because of:(a) The process of management involves the use

of know-how and skills.(b) The process of management is directed to-

wards the accomplishment of concrete results.(c) Management is personalized in the sense that

every manager has his own approach to prob-lems.

(d) All of above

(53) Planning is deciding in advance ____________

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(a) What is to be done (b) How is to be done(c) When it is to be done (d) All of above

(54) The fourth step involved in planning process is the(a) Evaluation of alternatives (b) Determining alternative courses(c) Formulating derivative plans (d) Establishment of planning premises

(55) If you are planning a trip to 'Place X', have never been there before, and have not heard about the weather in 'Place X' during winter, you may be in a predicament as to what clothes to carry and what precautions to take. What kind of a decision-making condition is this?

(a) Certainty (b) Probabilistic(c) Risk (d) Uncertainty

(56) Which of the following is not example of group decision making?(a) Decision of Board Meetings (b) Decision of Staff meetings(c) Decision of managing director (d) Decision of Committees

(57) Policies are the guide to thinking in_________________.(a) Organizing (b) Decision making(c) Forecasting (d) Planning

(58) Due to which function of management authority- responsibility relationships among the organizational members are established?

(a) Leadership (b) Directing(c) Controlling (d) Organizing

(59) Which of the following is /are advantage of func¬tional system?(a) Because of high degree of specialization,

functional organization is difficult to establish.

(b) Changes in personnel often lead to instability since performance also shifts with these changes.

(c) It represents a very natural and logical way of grouping different activities of the enterprise.

(d) All of above line and staff organization the staff refers to

(60) Delegation of authority entails_________________.(a) Division of work load (b) Sharing responsibility(c) Neither (a) nor (b) (d) Both (a) and (b)

(61) Which of the following is a barrier to effective delegation(a) Fear of loss of power (b) Personal attitudes(c) Lack of ability to direct well (d) All the above

(62) The process of identification of different sources of personnel is known as____________(a) Selection (b) Placement(c) Recruitment (d) Induction

(63) __________ implies a systematic procedure whereby employees are imparted technical knowledge and skill for specific jobs.

(a) Performance education (b) Development(c) Training (d) None of above

(64) Essential of the directing function ____________(a) Formulating derivative plans (b) Guiding, counselling & teaching the subordi-

nates(c) Determining alternative courses (d) Numberizing plans by budgeting

(65) When two or more people encounter each other, sooner or later one of them will speak or give some indication of acknowledging the presence of others. This is called the

(a) Transactional reply (b) Transactional response

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(c) Transactional stimulus (d) Transactional response(66) Informal leadership is ________.

(a) Spontaneous (b) Part of informal organization(c) Neither (a) nor (b) (d) Both (a) and (b)

(67) Which of the following is/are non-traditional con¬trol device(s) of control system?(a) CPM (b) PERT(c) BEP (d) Both (a) & (b)

(68) A budget is frequently prepared to combine all other budgets in a summary form. It is known as _____.(a) Sales Budget (b) Purchase Budget(c) Cash Budget (d) Master Budget

(69) While resistance to change is not always dysfunctional, rather at times it can contribute to better decision-making and can be a source of functional conflict, it often obstructs beneficial changes.

(a) True (b) False(c) Partly false (d) None of above

(70) Which of the following cannot be called as natural disaster?(a) Volcanic eruptions (b) Tornadoes(c) Tsunamis (d) Chernobyl disaster

PART–BBUSINESS ETHICS

(71) Business ethics has a ___________ application.(a) Natural (b) Practical(c) Universal (d) None of all above

(72) Scope of ethics in business is in which area(s)(a) Compliance (b) Finance & HR(c) Marketing and Production (d) All of the above

(73) The issues of ethics faced by HRM include:(a) Anti-competitive practices like manipulation of

supply(b) Sexual harassment

(c) Misleading advertisements (d) All of above(74) Which of the following reason is / are applicable for unethical business practices?

(a) Well organized consumer movement (b) Commitment to society(c) Greed for quick money (d) All of above

(75) The issues of ethics faced by production include(a) Product testing ethics (b) Defective, addictive and inherently dangerous

products(c) Ethical problems arising out of new technolo-

gies(d) All of above

(76) Measures to improve ethical behaviour of business are framed at which level -(a) Institutional level (b) Government level(c) Societal level (d) All of above

(77) State as to why a business should behave ethically?(a) To unprotect its own interest and of the busi-

ness community as a whole(b) To keep its commitment to society to act ethi-

cally(c) To not meet stakeholder expectations (d) To build distrust with key stakeholder groups.

(78) Companies which are responsive to employees' needs have _______________.

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(a) Profits (b) Lower turnover in staff(c) Staff satisfaction (d) Strikes

(79) Business Ethics is a code of conduct which business-men should follow while conducting their(a) Normal activities (b) Special activities(c) Specific activities (d) None of the above

(80) The process where a person informs on another or makes public disclosure of corruption or wrongdoing-

(a) Endeavour (b) Whistle blowing(c) Dilemmas (d) Veteran

PART–CCOMMUNICATION

(81) Plain Language Commission insisted that the USP (Unique Selling Proposition) of Business English

should be(a) Simplicity (b) Clarity(c) (a)or(b) (d) (a) and (b)

(82) Which of the following is verbal communication?(a) Facial expressions (b) Gestures(c) Audio-visual communication (d) All of above

(83) Arrange the process of communication in proper form.Encoding, Decoding, Message, Feedback, Sender, Re-ceiver"

(a) Message, Sender, Encoding, Decoding, Re-ceiver, Feedback

(b) Sender, Message, Encoding, Receiver, Decod-ing, Feedback

(c) Sender, Message, Receiver, Encoding, Feed-back, Decoding,

(d) Sender, Encoding, Decoding, Message, Re^ ceiver, Feedback

(84) There are several pairs or groups of words that are similar in sound but are different in spelling and meaning. These are called ____________

(a) Synonyms (b) Antonyms(c) Homonyms (d) Jargon

(85) Give single word for group of words: The study or collection of coins, bank notes and medals -(a) Philistine (b) Philanthropis(c) Numismatics (d) Malcontent

(86) Mine, ours, yours, theirs, its, hers are -(a) Possessive pronoun (b) Relative pronoun(c) Personal pronoun (d) None of above

(87) As a general rule, we should use ____________in our sentences.(a) Loud Voice (b) Good Voice(c) Passive Voice (d) Active Voice

(88) Co-partner, co-author, co-founder are examples of(a) Status Suffixes (b) Noun Suffixes(c) Time Prefixes (d) Class Changing Prefixes

(89) Responsibility, technicality, publicity, humility are examples of(a) Adverb Suffixes (b) Adjective Suffixes(c) Noun Suffixes (d) Verb Suffixes

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(90) Letter Orders must contain __________________.(a) An accurate description of goods. (b) Quantity or number required.(c) Delivery details such as time and place. (d) All of above

(91) Occasional buyers place orders through ____________.(a) Letters (b) Tender Notice(c) Press Release (d) All of above

(92) Which of the following method is best for taking interview for high post?(a) On telephone (b) Pre recorded video(c) Face to face (d) All of above

(93) "Enterprises are paid to create wealth, not to control costs. But first year accounting students are taught that the balance sheet portrays the liquidation value of the enterprise and provides creditors with the worst-case information".

(a) Peter Drucker (b) Koontz and O'Donnell(c) Henry Fayol (d) Hick & Haimann

(94) Public investment in a company is generally in the form of _________.(a) Shares (b) Debentures(c) Deposits (d) Any of the above

(95) The Government has progressively moved towards a uniform basic excise rate of but exemptions and surcharges still affect the actual rate.

(a) 4% (b) 16%(c) 10% (d) 20%

(96) VAT stands for___________(a) Value Added Tax (b) Value Addition Tax(c) Value Abstract Tax (d) Value Added Text

(97) HTML means______________.(a) High Text Markup Language (b) Hyper Telegraph Markup Language (c) Hyper Test Markup Language (d) Hyper Text Marker Language

(98) In fax messages, conventional salutations and complimentary close are added.(a) True (b) False(c) Partly true (d) None of above

(99) The abbreviation 'ESOP' stands for ____________(a) Employee Stock Option Plan (b) Employee Share Option Plan(c) Employee Share Option Programme (d) Employee Stock Option Programme

(100) Memos are used commonly for issuing instructions to the staff, change in the policy inviting suggestion, giving information, making requests etc.

(a) True (b) False(c) Partly true (d) None of above

Best of Luck

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mock-test paper for CS Foundation