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SAMPLE QUESTIONS BUSINESS ECONOMICS MODULE 01 : INTRODUCTION TO MACROECONOMICS SR.NO. Questions Q.1. Macroeconomics is the study of _____________. a. Individual Households b. Total Income earned by an economy c. Average Income earned by an economy d.Totals and average income earned by the economy Q.2. Which of the following is not covered under the scope of Macroeconomics? a. Study of policymaking b. Behaviour of the economy c. To understand the development of individual sectors d. To control business cycles Q.3. Which of the following approaches is the best for the calculation of National Income? a. Income Approach b. Expenditure Approach c. Value of Output Approach d. Income, Expenditure and Value of output Approach Q.4. Why is Green GDP necessary? a. Helps in understanding value of environment b. It is inflation adjusted and therefore appropriate c. It is recommended by various organisations d. Helps in understanding cost to the environment due to production activities Q. 5. Which of the following is not a part of GNP calculations? a. Private Consumption b. Exports of goods and services c. Depreciation d. Income earned from abroad Q.6. What is the role of firms in the circular flow of income in a closed economy? a. To purchase goods b. To earn income through wages c. To produce goods d. To provide capital Q.7. Which of the following is not an injection into the circular flow of national income?

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Page 1: SAMPLE QUESTIONS BUSINESS ECONOMICS

SAMPLE QUESTIONS – BUSINESS ECONOMICS

MODULE 01 : INTRODUCTION TO MACROECONOMICS

SR.NO. Questions Q.1. Macroeconomics is the study of _____________.

a. Individual Households

b. Total Income earned by an economy

c. Average Income earned by an economy

d.Totals and average income earned by the economy

Q.2. Which of the following is not covered under the scope of Macroeconomics?

a. Study of policymaking

b. Behaviour of the economy

c. To understand the development of individual sectors

d. To control business cycles

Q.3. Which of the following approaches is the best for the calculation of National Income?

a. Income Approach

b. Expenditure Approach

c. Value of Output Approach

d. Income, Expenditure and Value of output Approach

Q.4. Why is Green GDP necessary?

a. Helps in understanding value of environment

b. It is inflation adjusted and therefore appropriate

c. It is recommended by various organisations

d. Helps in understanding cost to the environment due to production activities

Q. 5. Which of the following is not a part of GNP calculations?

a. Private Consumption

b. Exports of goods and services

c. Depreciation

d. Income earned from abroad

Q.6. What is the role of firms in the circular flow of income in a closed economy?

a. To purchase goods

b. To earn income through wages

c. To produce goods

d. To provide capital

Q.7. Which of the following is not an injection into the circular flow of national income?

Page 2: SAMPLE QUESTIONS BUSINESS ECONOMICS

a. Government expenditure

b. Government salaries paid to civil servants

c. Government taxation

d. The purchase of a domestically produced good by a foreign company

Q.8. Which one of the following items constitutes a leakage from the circular flow of income of an economy?

a. The purchase of a domestically produced good by a domestic company

b. The purchase of a domestically produced good by a foreign company

c. The payment of value added tax on goods sold in the domestic market

d. Government aid to companies in financial difficulties

Q.9. Which one of the following is an injection into the circular flow of income?

a. Personal income tax

b. Government purchases of factor services

c. Imports

d. Business tax

Q.10. In GNP calculation which of the following should be excluded?

a. Rental incomes

b. Interest payments

c. Dividends

d. Government transfer payment

Q.11. Which of the following is an example of macroeconomics?

a. Price determination

b. Consumer’s equilibrium

c. Producer’s equilibrium

d. Inflation determination

Q.12. Which out of the following is included in National Income estimation?

a. Old-age pension

b.. Scholarship

c. Unemployment Fund

d. Subsidized Lunch at Office

Q.13. In which case Net Indirect taxes are equal to zero?

a. Indirect taxes < subsidies

b. Indirect taxes > subsidies

c. Indirect taxes = subsidies

d. Indirect taxes and Subsidies have no relationship

Page 3: SAMPLE QUESTIONS BUSINESS ECONOMICS

MODULE-II : BASIC CONCEPTS OF KEYNESIAN

ECONOMICS

1) According to Keynes, as income increases, both MPC and APC -----------

a) Rise

b) Fall

c) Remain constant

d) Zero

2) MEC refers to what type of return from an investment -------------

a) Expected rate of profit

b) Actual profit

c) Expected rate of interest

d) Actual savings

3) The theory of employment multiplier was developed by

a) J.M. Keynes

b) R.F. Khan

c) Marshal

d) Robinson

4) The quantity of money supply is determined by

a) Demand and supply of money

b) Capital market

c) Money market

d) Monetary authority

5) When LP curve shifts downward with no change in MS curve

a) Rate of interest will fall

b) Rate of interest will rise

c) Rate of interest will remain constant

d) Rate of interest will become zero

6) The point where the aggregate demand and aggregate supply curve intersect is called

Page 4: SAMPLE QUESTIONS BUSINESS ECONOMICS

a) Total demand

b) Effective demand

c) Equilibrium demand

d) Non-equilibrium demand

7) Keynes consumption function helps to invalidate

a) Keynes theory

b) Fisher’s equation

c) Say’s law

d) Employment theory

8) MEC curve

a) Slopes upwards

b) Slopes downwards

c) Remains constant

d) Does not change

9) The value of multiplier is inversely related to

a) MPC

b) MPS

c) APC

d) APS

10) In what way multiplier is related to MPS?

a) Directly related

b) Reciprocal of

c) Not related to

d) Equal to

11) The transaction motive of liquidity preference is

Page 5: SAMPLE QUESTIONS BUSINESS ECONOMICS

a) Interest elastic

b) Income inelastic

c) Interest inelastic

d) Income elastic

12) Precautionary demand for liquidity is determined by

a) Rate of interest

b) Rate of inflation

c) Bond prices

d) Income

13) The rise in interest rate can take place due to

a) A downward shift in LP curve, with no change in MS curve

b) An upward shift in LP curve, with no change in MS curve

c) An increase in MS with no change in LP

d) A decrease in MS with no change in LP

MODULE 03 : POST KEYNESIAN DEVELOPMENTS IN

MACROECONOMICS

Page 6: SAMPLE QUESTIONS BUSINESS ECONOMICS

1. Which of the following curve shows the goods market equilibrium?

a) LM curve

b) IS curve

c) AD demand curve

d) Equilibrium sum

2. On which side of the following curve there is excess supply in the goods market?

a) Right side of IS curve

b) left side of ls curve

c) Right side of LM curve

d) left side of LMcurve

3. Which of the following is the slope of IS curve?

a) Negative slope

b) positive slope

c) Direct slope

d) demand curve

4. Which of the following will shift the IS curve to the left?

a) Increase in government expenditure.

b) Decrease in government expenditure

c) increase in autonomous spending

d) direct slope

5. Which of the following will cause the LM curve to shift to the right?

a) Increase in money supply.

b) Decrease in money supply

c) An increase in the rate of interest

d) Decrease in the government expenditure

6. At the point where curve and LM curve IS intersect which of the following markets are in

equilibrium?

a) Goods market and capital market.

b) Money market and goods market

c) Money market and foreign exchange market

d) capital market and foreign exchange market

7. In which of the following case LM curve is horizontal?

a) classical case

b) Crowding out

c) Liquidity trap

d) capital good

8. Phillips curve brings out trade-off between?

a) Wages and employment.

b) inflation and unemployment

Page 7: SAMPLE QUESTIONS BUSINESS ECONOMICS

c) Inflation and value of money

d) ladder curve

9. In the long -run Phillips curve is?

a) Horizontal.

b) slopes upward from left to right

c) vertical

d) stagflation

10. Stagflation results in?

a) increase in Price level unemployment

b) increase in supply of good and service

c) increase in employment

d) employment

11. Stagflation brings down?

a) price

b) Employment.

c) both (a) and (b)

12. Supply side economics aims at increasing income by?

a) reducing taxes

b) reducing prices

c) increasing government's expenditure

d) income

13. A tax cut according to Milton Friedman?

a) increase price

b) increases budgetary deficit

c) increases budgetary surplus

d) Reducing

MODULE-4 MONEY, PRICES AND INFLATION

1. The term supply of money’ is _____.

Page 8: SAMPLE QUESTIONS BUSINESS ECONOMICS

A) Stock Concept ’

B) Stock of money

C) Flow and stock concepts

D) Stable concepts

2. Money Supply M1 includes _____.

A) Ml = C + DD + OD

B) Ml = C + DD + Time Deposits with the banks.

C) Ml = C + DD + Deposits with post offices

D) M=C+D

3. According to liquidity preference theory rate of interest is determined by

A) Supply of money

B) Saving and investment

C) Loanable fund

D) Demand for money and supply of money

4. _____ is transferred from one person to another in a given period of time is known as “the

velocity of circulation of money.”

A) The maximum number of times money

B) The average number of times money

C) The minimum number of times money

D) The minimum number of times income

5. According to Fisher’s Equation of quantity theory of money _____.

A) MV = PT

B) MP = PV

C) MT = PV

D) MT=MP

6. According to cash balance equation of quantity theory of money _____.

A) MP = kdY

B) Md = kPY

Page 9: SAMPLE QUESTIONS BUSINESS ECONOMICS

C) Mk = dPY

D) MD= dpk

7. Inflation is found –

A) All over the world

B) Only in developed countries

C) Only in less developed countries

D) Only limited country

8. For a common man inflation is-

A)Rise in price

B) Fall in price

C) Rice in income

D) Fall in value of money

9. “A rise in the general level of price is definition of inflation given by-

A) Crowther

B) Coulbourn

C) Samuelson

D) J. M. Keynes

10 Demand pull inflation is an inflation which results from an initial -

A) Increase in wage rate

B) Increase in aggregate demand

C) Increase in natural resource

D) Decrease in aggregate demand

11. Inhyperinflation there will be-

A) 10% increase in price per annum

B).05% increase in price per annum

Page 10: SAMPLE QUESTIONS BUSINESS ECONOMICS

C)15% increase in price per annum

D) No upper limit of price rise

12. During Inflation gainers are-

A) Common man

B) Debtors

C) Creditors

C) Business people

13. Which of the following is a determinant of money supply

A) High power money

B) Income

C) Price

D) GDP

SYBCOM FA

SAMPLE QUESTION

1 The merger of two or more existing partnership firms into a new partnership firm

is called _________

a) Amalgamation of firms

b) Conversion of firms

c) Dissolution of firms

d) Reconstruction of firms

Page 11: SAMPLE QUESTIONS BUSINESS ECONOMICS

2 In case of Amalgamation of partnership firms, the revised value of assets taken

over was Rs. 1,35,000 and the revised value of liabilities taken over was Rs.

85,000. What is the amount of purchase consideration?

a) Rs. 13,100

b) Rs. 17,350

c) Rs. 50,000

d) Rs. 21,600

3 In case of Amalgamation of partnership firms purchase consideration is

_____________

a) Payable by the New firm to the old firms

b) Payable by the Old firms to the new firm

c) Payable by Creditors to the new firm

d) Payable by the old firms to each other

4 In case of Amalgamation of partnership firms, calculation of purchase

consideration, if the value of a Vehicle is Rs. 80,000 and it is taken over after

20% depreciation, what is the revised value of the Vehicle?

a) Rs. 80,000

b) Rs. 46,000

c) Rs. 64,000

a) Rs. 96,000

Page 12: SAMPLE QUESTIONS BUSINESS ECONOMICS

5 In case of Amalgamation of partnership firms, if the value of a Bank loan is Rs.

96,000 and it is taken over by the partners of the old firm, what is the revised

value of the Bank Loan taken over in the statement of Purchase Consideration?

a) Rs. 40,000

b) Rs. 56,000

c) Rs. NIL

d) Rs. 96,000

6 In case of conversion of partnership firm into a limited company the Purchase

consideration is Rs. 5,80,000 payables as follows: - In Cash Rs. 80,000 and the

balance in Equity shares of Rs. 10 each at par. How many Equity shares are

issued as Purchase consideration?

a) 50,000 Equity Shares

b) 60,000 Equity Shares

c) 80,000 Equity Shares

d) 1,00,000 Equity Shares

7 In case of conversion of partnership firm into a limited company the amount of

General reserves is shown under ____________ head in the Balance sheet.

a) Share Capital

b) Long term loan

c) Trade Payables

d) Reserves & Surplus

Page 13: SAMPLE QUESTIONS BUSINESS ECONOMICS

8 In case of conversion of partnership firm into a limited company Debtors is

shown under ____________ head in the Balance sheet.

a) Non-Current Investments

b) Trade Receivables

c) Trade Payables

d) Reserves & Surplus

9 In case of conversion of partnership firm into a limited company, the challenges

face by an entity do not include_________

a) The liability of the shareholders is limited

b) Valuation of assets and liabilities

c) Compliance requirements as per Indian Companies Act, 1956 are

relatively complex than the compliance under the Indian Partnership Act,

1932

d) Settlement of Purchase Consideration

10 In case of conversion of partnership firm into a limited company, the methods of

determining purchase consideration do not include _________

a) Net Assets method

b) Net Payments method

c) Lump sum method

d) Excess Capital method

Page 14: SAMPLE QUESTIONS BUSINESS ECONOMICS

12 In case of conversion of partnership firm into a limited company, the shares

issued by the limited company as part of purchase consideration to the

partnership firm are disclosed under the head__________ in the balance sheet of

the Limited company.

a) Investments

b) Share Capital

c) Secured loans

d) Partners’ Capital account

13 In case of conversion of partnership firm into a limited company, the newly

formed company has to register under _____________ for incorporation.

a) Indian Partnership Act, 1932

b) Indian Business Conversion Act, 1975

c) Indian Companies Act, 1956

d) Limited Liability Partnership Act, 2008

11 In case of conversion of partnership firm into a limited company, in the Net

payments methods purchase consideration 1,000 Equity shares of Rs. 10 each are

issued at par, 500 12% Preference Shares of Rs. 100 are issued at par along with

Cash Rs. 1,50,000. What is the total value of Purchase Consideration?

a) Rs. 2,10,000

b) Rs. 4,50,000

c) Rs. 3,00,000

d) Rs. 1,50,000

Page 15: SAMPLE QUESTIONS BUSINESS ECONOMICS

14 In case of conversion of partnership firm into a limited company, if a liability is

taken over by the partner and not assumed by the limited company________

account is debited and Partners Capital

account is credited.

a) Bank Loan

b) Realization

c) Partners’ Capital

d) Limited Company

14 In case of conversion of partnership firm into a limited company, the revised

value of assets taken over was Rs. 27,35,000 and the revised value of liabilities

taken over was Rs. 14,25,000. The amount of purchase consideration is settled in

Equity shares of Rs. 10 issued at par, how many equity shares are issued?

a) 1.50,000 Equity shares

b) 2,73,500 Equity shares

c) 1,31,000 Equity shares

d) 1,42,500 Equity shares

15 In case of conversion of partnership firm into a limited company, the profit on

sale of asset not taken over by the limited company is transferred to _________

a) Realization account

b) Limited company’s account

c) Bank a/c

d) Profit / Loss account

Page 16: SAMPLE QUESTIONS BUSINESS ECONOMICS

16 In case of conversion of partnership firm into a limited company, the

accumulated reserves are distributed to the partners in the ________

a) Partners Current Account ratio

b) Partners’ Capital Account ratio

c) Partners Loan Account ratio

d) Profit sharing ratio

17. The amount invested in business is-

a) Capital

b) drawings

c) contribution

d) profits

18. All direct expenses are debited to __________ A/c.

a) Trading A/c

b) P & L A/c

c) capital

d) sales

19. All indirect expenses are debited to __________ A/c.

a) Trading A/c

b) P & L A/c

c) capital

d) sales

Page 17: SAMPLE QUESTIONS BUSINESS ECONOMICS

22. If fixed capital method is adopted, net profit is transferred to ______ account.

a) Capital

b) Current

c) Trading

d) Balance sheet

23. A, B & C were in partnership. Sharing profits in the ratio of 4:2:1 respectively. A

guaranteed that in no case, C’s share in profit should be less than Rs. 7,500.

Profits for the year 2013 amounted to Rs. 31,500. A will get-

a) 15,000

b) 18,000

c) 16,000

20. The Indian Partnership Act is in force since ______.

a) 2008

b) 1957

c) 2010

d) 1932

21. The liability of a partner in a firm is –

a) Limited

b) unlimited

c) partly limited

d) zero

Page 18: SAMPLE QUESTIONS BUSINESS ECONOMICS

d) 22,000

24. Is rent paid to a partner is appropriation of profit?

a) Only if partnership deed provides

b) if partner’s contribution as capital is maximum

c) if partner is a working partner

d) not paid at all

25. Interest on partner’s capital is-

a) an expenditure

b) an appropriation

c) a gain

d) a liability

Page 19: SAMPLE QUESTIONS BUSINESS ECONOMICS

26. Seeta & Geeta are partners sharing profits & losses in the ratio of 4:1. Meena was

manager who received salary of Rs. 4,000 p.m. in addition to a commission of

5% on net profits after charging such commission. Profits for the year is Rs.

6,78,000 before charging salary. Find the total remuneration of Meena.

a) 78,000

b) 88,000

c) 87,000

d) 76,000

27. Sales is shown under _______ A/c.

a) P & L A/c

b) trading A/c

c) capital

d) none of these

28. A, B & C are partners sharing profits in the ratio of 9:4:3. They took joint life

policy of Rs. 25,000 for A, Rs. 20,000 for B & Rs. 51,000 for C. what is the

share of C in the JLP amount?

a) Rs. 18,000

b) Rs. 25,000

c) Rs. 51,000

d) Rs. 20,000

Page 20: SAMPLE QUESTIONS BUSINESS ECONOMICS

29. A & B are partners. During the year 2013, A withdrew Rs. 1,000 p.m. & B

withdrew Rs. 500 p.m. on the first day of each month for personal use. Interest

on drawings is to be charged @10% p.a. The interest on drawings will be-

a) Rs. 650

b) Rs. 975

c) Rs. 900

d) Rs. 1,800

30 A, B & C are partners sharing profits in the ratio of 3:2:1. They had a joint life

policy of Rs. 3,00,000. Surrender value of JLP in balance sheet Is Rs. 90,000. C

dies. What is the share of each partner in JLP?

a) Rs, 1,05,000, 70,000, 35,000

b) Rs. 45,000, 30,000, 15,000

c) Rs. 1,50,000, 1,00,000, 50,000

d) Rs. 1,95,000, 1,30,000, 65,000

31. Payment made in advance is shown on ________ side of balance sheet.

a) Asset

b) Liability

c) Debit

d) Credit

Page 21: SAMPLE QUESTIONS BUSINESS ECONOMICS

32. Which of the following is not a part of partnership final accounts?

a) Realization A/c

b) Trading A/c

c) Profit & loss A/c

d) Balance sheet

33 Shares or debenture received from company on sale of firm are distributed

among the partners

a) Partner’s capital ratio

b) Sale ratio

c) sacrifice ratio

d) Gain ratio

34 Dissolution expenses paid by the company to the firm on conversion are

a) Credit to capital receiver account

b) Debited to goodwill’s account

c) Debited to deferred revenue expenditure account

d) Credited to deferred revenue expenditure account

35 In Equitable approach equity share are divided in

a) Profit sharing ratio

b) Gain ratio

c) Sacrifice ratio

Page 22: SAMPLE QUESTIONS BUSINESS ECONOMICS

d) Sales ratio

36 On sale of firm to a company the purchase consideration is calculated by

a) Net payment method

b) Profitability method

c) Index method

d) Capital method

37 In conversion, if purchase consideration is more than the net asset taken over in

the books of the company taking over the firm the difference is _______

a) Debited to securities premium

b) Debited to goodwill A/c

c) Credited to capital reserve

d) Credited to deferred revenue

38 In case of conversion profit or loss on the sale of firm is ascertained through

a) Profit and loss A/c

b) Realisation A/c

c) Profit & Loss adjustment

d) Profit & Loss appropriation

39 On Conversion of firm into limited company, fictitious asset are transferred to

____

a) Partner’s capital A/c

b) Realisation A/c

Page 23: SAMPLE QUESTIONS BUSINESS ECONOMICS

c) Purchasing firm A/c

d) Profit and loss adjustment

40 On Conversion of firm into limited company, realisation account is opened in the

books of

a) Purchasing firm

b) Vendor firm

c) Amalgamated firm

d) New firm

41 Liabilities not taken over by the purchasing firm at the time of conversion will be

transferred to _________.

a) New firm A/c

b) Profit and loss adjustment A/c

c) Capital A/c

d) Profit and loss appropriation A/c

42 On conversion of firm accumulated profit/ reserves of old firm get distributed

over

a) Old partner in New PSR

b) Old Partner in Old PSR

c) New Partner in New PsR

d) New Partner in Old PSR

Page 24: SAMPLE QUESTIONS BUSINESS ECONOMICS

43 Purchase consideration of vendor partnership firm can be discharged in form of

_____

a) Cash only

b) Shares only

c) Shares debentures and cash

d) Debentures only

44 Conversion of partnership into a limited company is referred to as _____ of

partnership business to a joint stock company

a) Exchange

b) Transfer

c) Sale

d) Acquisition

45 In conversion, partner’s loan taken over by new firm is transferred to ____ A/c

a) Partner’s capital

b) Partner’s loan

c) New firm

d) Realisation

46 On Conversion of partnership firm into limited company, Agreed value refer the

value specified in the ______.

a) Balance sheet

b) Profit and loss A/c

c) Adjustment

Page 25: SAMPLE QUESTIONS BUSINESS ECONOMICS

d) Cash A/c

47 On Conversion of partnership firm into limited company, the debentures not

taken over by new firm is to be

a) Ignored

b) Paid in cash

c) Debited to partner’s capital A/c

d) Credited to realisation A/c

48 Upon conversion of partnership firm into company, the legal action of the

company is governed by _____.

a) Article of association

b) Partnership deed

c) Companies Act, 2013

d) Memorandum of Association

49 In conversion of firm to Limited Co. ________ is discharged by Limited Co.

a) Goodwill

b) Reserves

c) Purchase Consideration

d) Investment

50 At the time of conversion, if the realisation expense the vendor firm is paid by

the new company it will be debited to ______ A/c in the books of the new

company

a) Goodwill

b) Cash

Page 26: SAMPLE QUESTIONS BUSINESS ECONOMICS

c) Share capital

d) Realisation

Management Accounting

Sample Question

1. Carriage outward in recorded under _________ expenses

a. Non operating expenses

b. Selling expenses

c. Revenue expenses

d. Capital expenses

2. Bank charges is an example of ________

a. COGS

b. Selling expenses

c. Finance expenses

d. Administrative expenses

3. Salary to salesman is recorded under ________

a. COGS

b. Selling expenses

c. Finance expenses

d. Administrative expenses

4. Vertical Income statement is also known as

a. Vertical balance sheet

b. Horizontal balance sheet

c. Vertical revenue statement

d. Horizontal revenue statement

5. Rent of warehouse is recorded under

a. COGS

Page 27: SAMPLE QUESTIONS BUSINESS ECONOMICS

b. Selling expenses

c. Finance expenses

d. Administrative expenses

6. Loss on sale of fixed asset is an example of

a. Non Operating income

b. Non Operating expenses

c. Operating expenses

d. Operating profit

7. Management accounting information is generally prepared for

a. Shareholders

b. Consumers

c. Managers

d. Government

8. Vertical analysis involves

a. Finding out the relationship between an item in respect of two concerns in different

years

b. Finding out the relationship between two items in respect of the same concern and in

the same year

c. Finding out the relationship between two items in respect of the same concern and in

the same year

d. Finding out the relationship between two items in respect of the same concern over

two years

9. Capital Employed is equal to

a. Fixed Assets + Investment + Current Assets

b. Fixed Assets + Investment + Working Capital

c. Fixed Assets + Investment + Current Liabilities

d. Fixed Assets + Investment - Current Liabilities

1.

Page 28: SAMPLE QUESTIONS BUSINESS ECONOMICS

10. Total cash outflow is ₹ 85,000 and present value of total cash inflow is ₹ 75,000. The net

present value is _______.

a. ₹ 10,000

b. ₹ (-) 10,000

c. ₹ 2,000

d. ₹ 20,000

11. Return on investment is known as ________.

a. Return on Net Worth

b. Return on Capital Employed

c. Return on Fixed Assets

d. Return on Equity Share Capital

12. The number of years taken by a project to recover the initial investment is called_______.

a. Payback period

b. Investment period

c. Profit period

d. Loss period

13. An engineering project involves an initial investment of ₹ 2,00,000 and will give an

annual cash inflow of ₹ 40,000 for 8 years. Payback period is = _______.

a. 5 years

b. 6 years

c. 8 years

d. 4 years

14. In payback period method, the annual cash inflow means ________.

a. Net income after tax

b. Net income before tax

c. Net income before depreciation but after tax

d. Net income after tax and depreciation

Page 29: SAMPLE QUESTIONS BUSINESS ECONOMICS

15. In _________the project which yield the highest rate of return is selected.

a. Net present value method

b. Payback period

c. Accounting rate of return method

d. Average rate of return

16. Under accounting rate of return method ________is taken into account.

a. Profit after depreciation and tax

b. Profit after tax but before depreciation

c. Profit before tax but after depreciation

d. Cash inflow

17. Under _______if the present value of future cash is higher than the initial cash outlay, the

project is selected otherwise rejected.

a. Net present value method

b. Accounting rate of return method

c. Payback period method

d. Profit index method

18. The IRR is the same as _________.

a. ARR

b. Hurdle rate

c. Interest rate at which NPV is zero

d. Cash inflow

19

.

Cash inflow for capital budgeting decisions means________.

a. Accounting profit – Depreciation + Tax

b. Accounting profit + Tax – Depreciation

c. Accounting profit – Tax + Depreciation

d. Accounting profit – Depreciation - Tax

Page 30: SAMPLE QUESTIONS BUSINESS ECONOMICS

20

.

The payback period is the period ________.

a. A project takes to recover its initial cash outflow

b. A project takes to pay back the loan taken to purchase the capital assets

c. Equal to the useful life of the machine

d. Over which the project will be getting cash inflows

21. Bank charges is an example of ________

a) COGS

b) Selling expenses

c) Finance expenses

d) Administrative expenses

22. Which type of analysis is a comparison of a company’s financial condition and performance across time?

a. Horizontal analysis

b. Vertical analysis

c. Upward analysis

d. Downward analysis

23. Balance in Forfeited Shares Account

a. Will increases the owners Funds

b. Will have No effect on the owners Funds

c. Will reduce the owners Funds

d. Will increase the current assets

24. Another term for short term investment is

a. Inventories

b. Accounts Receivable

c. Contributed Capital

d. Marketable Securities

Page 31: SAMPLE QUESTIONS BUSINESS ECONOMICS

25. Owner’s Fund

a. Capital – Reserve and surplus – P& L A/c Dr. Balance – Misc. Expenditure not written off

b. Capital + Reserve and surplus + P& L A/c Dr. Balance – Misc. Expenditure not written off

c. Capital + Reserve and surplus - P& L A/c Dr. Balance – Misc. Expenditure not written off

d. Capital + Reserve and surplus - P& L A/c Dr. Balance + Misc. Expenditure not written off

26. Own Funds + Loan Funds equal to

a. Capital employed

b. Retained earning

c. Operating profit

d. Net profit after tax

27. A company’s return on net worth is 14%.If 10% Debentures are converted into Equity share capital at par

a. The ratio will decrease

b. The ratio will increase

c. There will be no effect

d. There will be no ratio

28. A high GP ratio indicates__________

a. Low cost of production

b. High cost of production

c. High sales

d. High net sales

29. Which of the Following is classified as liquidity ratio?

a. Return on equity

b. Return on investment

c. Acid-test ratio

d. Debt-equity ratio

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30. If a concern has a very high stock turnover ratio, which of the following statements are false?

a. Stock velocity ratio is low

b. Stock has many Slow moving items

c. There is under-trading

d. Funds blocked in working capital are less

31. Depreciation on Plant and machinery is shown under _______

a) Admin expenses

b) Cost of goods sold

c) Selling expenses

d) Financial expenses

32. The Short-term creditors are interested in

a. Liquidity ratios

b. Dividend ratio

c. Valuation ratios

d. Capital structure ratio

33. A concern has a net profit ratio lower than the industry’s standard ratio. This shows –

a. Unusual gains e.g. recovery of bad debts written off

b. Great efficiency in managing all its activities

c. Low increase in the proprietor’s funds

d. Very good control over all costs

34. The bank overdraft is equal to _________

a. Current liabilities + liquid liabilities

b. Current liabilities – liquid liabilities

c. Current assets – stock

d. Current assets – stock and prepaid expenses

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35. A high proprietary ratio indicates___________

a. High risk

b. Low risk

c. Low risk to creditors

d. Low risk to shareholder

36.

The minimum amount of working capital required to enable the concern to operate at the lowest level of activity is ________

a. Net working capital

b. Permanent Working Capital

c. Temporary Working capital

d. Gross Working Capital

37.

Which of the below is not a factor in deciding the working capital of a company?

a. Size of the company

b. Name of the company

c. Seasonal Demand

d. Operating Cycle

38. If Working Capital is Rs. 1,00,000, Current Liabilities are Rs. 50,000, then Current Assets will be _______

a. ₹1,00,000

b. ₹1,50,000

c. ₹50,000

d. ₹2,00,000

39. If Pre-paid expenses increase, then Working Capital _________

a. Increases

b. Decreases

c. No effect

d. Either increase or decrease

.

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40 Which of the below generally have longer operating cycle?

a. Manufacturing sector

b. Trading sector

c. Service sector

d. Banking sector

41.The time required to convert cash into cash is known as _______

a. Operating cycle

b. Working cycle

c. Fixed cycle

d. Current cycle

42. The capital required to finance the day to day activities of the business is known as _______

a. Fixed capital

b. Working Capital

c. Proprietor’s Capital

d. Share Capital

43. ___________ refers to idle funds which earns no return

a. Shortage of working capital

b. Excess working capital

c. Fixed working capital

d. Variable working capital

44. Shortage of working capital may result in _____

a. Poor credit standing

b. More cash discount

c. More trade discounts

d. More demand for the product

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45.____________ will ensure high return on investment

a. Adequate working capital

b. Surplus working capital

c. Shortage of working capital

d. Negative working capital

46. If wage rate per unit is ₹15, number of units manufactured 2,00,000 and if wages are outstanding for 2 months, then, the amount of outstanding wages = _________

a. ₹2,00,000

b. ₹5,00,000

c. ₹4,00,000

d. ₹60,00,000

47. If the Working capital of the company is ₹10,00,000, Stock is ₹15,00,000, Debtors is ₹25,00,000 and Cash balance is ₹15,00,000, then Current Liabilities = __________

a. ₹55,00,000

b. ₹40,00,000

c. ₹45,00,000

d. ₹35,00,000

48. If the present working capital of the company is ₹1,50,000 and if the company wants to maintain a safety margin of 10% on working capital, then final networking capital = _______

a. ₹1,50,000

b. ₹1,35,000

c. ₹1,65,000

d. ₹1,55,000

49. The number of units’ company is selling is 5,00,000 units, if selling price is ₹50 per unit and credit allowed to customers is 3 months, then total Debtors = ________

a. ₹52,50,000

b. ₹62,00,000

c. ₹62,50,000

d. ₹2,50,00,000

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.

50. The number of units’ company is selling is 2,00,000 units, if selling price is ₹50 per unit and credit allowed by suppliers is 2 months, cost of Raw material is ₹30 then total Creditors = ________

a. ₹10,00,000

b. ₹25,00,000

c. ₹4,00,000

d. ₹15,00,000

Subject : Business Law

Sem III

Answer the following MCQ by choosing the most appropriate options from the given

questions.

1. The Sale of Goods Act, was enacted on

A. 15th, February, 1930

B. 15th, March, 1930

C. 15th, April, 1930

D. 11th Jan 1985

2. Sale of Goods Act, was enforced on

A. 1st day of May, 1930

B. 1st day of June, 1930

C. 1st day of July, 1930

D. 1st September 1930

3. The sale of Goods Act, 1930 contains

A. 66 Sections

B. 68 Sections

Page 37: SAMPLE QUESTIONS BUSINESS ECONOMICS

C. 70 Sections

D. 75 Section

4 The Sale of Goods Act, 1930 is based on

A. US Sale of Goods Act

B. English Sale of Goods Act

C. Indian Sale of Goods Act

D. University of Mumbai

5 Section 2, of The Sale of Goods Act is about

A. Principles

B. Definitions

C. Exceptions

D. Rules

6 As per-section 2(1), a person who buys or agrees to buy goods is called

A. Buyer

B. Seller

C. Promisor

D. Promisee

7 The voluntary transfer of possession from one person to another is called

A. Transfer

B. Change of possession

C. Delivery

D. Sale

Page 38: SAMPLE QUESTIONS BUSINESS ECONOMICS

8 Section 2, sub-section______, of the Sale of Goods Act, 1930 defines "Goods"

A. 5

B. 6

C. 7

D. 10

9 As per section 2, sub section 7 every kind of moveable property other than actionable

claim and money is called

A. Goods

B. Future goods

C. Sale

D. Buy

10 Future goods means goods to be manufactured or produced or acquired by the seller

A. In future prescribed time

B. After making of contract

C. Before making of contract

D. agreement to sell

11 As per section 2 sub-section 8, of the Sales of Goods Act, insolvent means a person

A. Who has ceased to pay his debts in the ordinary course of business.

B. Or cannot pay his debts as they become due

C. Cannot pay his debts as they become due and who has ceased to pay his debts in the

Ordinary course of business.

D. Sale and agreement to sell

Page 39: SAMPLE QUESTIONS BUSINESS ECONOMICS

12 The agent having in customary course of business as such agent authority either to sell

goods or to consign goods for the purpose of sale or to buy goods or to raise money on the

security of goods is called

A. Agent

B. Mercantile agent

C. Partner

D. None of above

13 As per section 2(12), of the Sale of Goods Act, quality of goods include

A. State of goods

B. Conditions of goods

C. State of goods and Conditions of goods

D. Movable goods

14 Where the seller wrongfully neglects or refuses to deliver the goods to the buyer, the

buyer may sue for:

A. Damages for non-delivery

B. Damages for non-acceptance

C. Specific performance

D. Compensation

15 Person named in the instrument to whom money is directed to be paid is known as

_______________.

a) Drawer

b) Acceptor

c) Maker

d) Payee

Page 40: SAMPLE QUESTIONS BUSINESS ECONOMICS

16 Maker of a bill of exchange is called as ______

a) Drawer

b) Drawee

c) Acceptor

d) Payee

17 Days of grace provided to the Instruments at maturity is _______________

a) 1 day

b) 2 days

c) 3 days

d) 5 days

18 Parties to a negotiable instrument can not be discharged from liability by

______________

a) Cancellation

b) Payment

c) Release

d) Dishouor

19 Validity period for the presentment of cheque in bank is _______________

a) 3 months

b) 6 months

c) 1 year

d) 2 years

20 Offences committed under the Negotiable Instruments Act can be _______________

Page 41: SAMPLE QUESTIONS BUSINESS ECONOMICS

a) Compoundable

b) Non-compoundable

c) Non-compoundable and non-bailable

d) Bailable

21 A negotiable instrument that is payable to order can be transferred by:

a) Simple delivery

b) endorsement and delivery

c) Cash

d) registered post

22 A negotiable instrument drawn in favour of minor is

a) Void

b) Void but enforceable

c) Valid

d) Voidable

23 Which of the following is not applicable to negotiable instruments?

a) It must be in writing

b) It must be transferable

c) It must be registered

d) It must be signed

24 ‘A’ signs the instrument in the following manner. State the instrument which cannot be

considered as promissory note.

a) I promise to pay B or order INR 500.

Page 42: SAMPLE QUESTIONS BUSINESS ECONOMICS

b) I acknowledge myself to be indebted to B for INR 1,000 to be paid on demand for value

received.

c) I promise to pay B INR 10,000 after three months.

d) I promise to pay B INR 500 seven days after my marriage with C.

25 A promissory note drawn jointly by X, a minor and Y, a major is:

a) Void

b) Valid but not negotiable

c) Valid but can be enforced only against Y

d) Voidable

26. Consideration in a contract

a. Only future

b. Only past

c. Only present

d. May be past, present or future

27. When contract depends upon condition then it is known as _____.

a. Privity of Contract

b. Contingent Contract

c. E Contract

d. Quasi Contract

28. Out of the following which contract is helping in nature?

Page 43: SAMPLE QUESTIONS BUSINESS ECONOMICS

a. Privity of Contract

b. Contingent Contract

c. E Contract

d. Quasi Contract

29. A Quasi Contract?

a. Is a written contract

b. Is an agreement

c. Is Invalid

d. creates only legal obligation

30. What is breach of contract?

a. To break contract

b. To compromise in contract

c. To make new contract

d. To change terms and conditions

31. What is the meaning of discharge of contract?

a. To settle contract

b. To bargain in contract

c. To put an end on contract

d. To start contract

32. Where the contracting parties agree in advance the amount payable in the event of

breach, the sum payable is called ______ damages.

a. Unliquidated

b. Liquidated

Page 44: SAMPLE QUESTIONS BUSINESS ECONOMICS

c. Special

d. Nominal

33. Injunction is one type of _____.

a. Remedy

b. Settlement

c. Consideration

d. Act

34. Which damage is calculated by the Court?

a. Unliquidated

b. Liquidated

c. Special

d. Nominal

35. Section 68 deals with which type of contract?

a. Privity of Contract

b. Contingent Contract

c. E Contract

d. Quasi Contract

36. Section 71 covers-

a. Manslaughter

b. Finder of the lost goods

c. Theft

d. Murder

Page 45: SAMPLE QUESTIONS BUSINESS ECONOMICS

37. ____ is actual loss incurred for breach.

a. General loss

b. Gain

c. Profit

d. Turnover

38. E contract does not include.

a. Myntra

b. Amazon

c. Rent Contract

d. Flipkart

39. Lalman v/s Gauri dutt was a case of ___________________

A. Cross offer

B. Counter offer

C. Specific offer

D. general offer or invitation to offer.

40.Find out the void agreement among the following

A. A for natural love and affection, promises to give his son, B. Rs.10,00,000. A puts his

promise to pay B in writing and register it.

B. A owes B Rs.1,00,000, but the debt is barred by the Limitation Act. A signs a written

promise to pay B Rs.50,000 on account of debt.

C. A promises, for no consideration, to give to B Rs.1,000

D. A promises to sell his car to Mr. B for Rs. 5,000/-

Page 46: SAMPLE QUESTIONS BUSINESS ECONOMICS

41. A lunatic person means

A. Alien enemy

B. Person disqualified by law

C. Person of unsound mind

D. Insolvent person

42. A contract with or by a minor is a

A. valid contract

B. void contract

C. voidable contract

D. voidable at the option of either party

43. Consumer can file case against ________________practices.

A. Fair

B. Legal

C. Illegal

D. Unfair

44. Meaning of word “Negotiable” under N.I.Act 1881 is ____________

A. Bearable

B. Transferrable

C. Readable

D. Executable

Page 47: SAMPLE QUESTIONS BUSINESS ECONOMICS

45._______ does not affect the free consent of the parties.

A. Undue-influence

B. Incompetency of parties

C. Coercion

D. Fraud

46. Wagering agreement is ___________ in nature

A. Void

B. Voidable

C. Valid

D. Illegal

47. Contingent contract is also known as ______________

A. Conditional

B. Quasi

C. Implied

D. Express

48. Injunction may be express or _____________

A. movable

B. Implied

C. Executory

D. executed

49. Section 138 of the Negotiable Instrument Act speaks about__

A. Accepting a cheque

B. Dishonouring of cheque

C. Procedure of Contract

Page 48: SAMPLE QUESTIONS BUSINESS ECONOMICS

D. Acceptance

50. A stipulation essential to main purpose of the contract is __________

A. Condition

B. Agency

C. Guarantee

D. Indemnity CP – III

SAMPLE QUESTION PAPER

1. ______ described 14 principles of management.

a. Henry Fayol

b. Frederick Taylor

c. Peter Drucker

d. William Stanton

2. Management is a systematic process under taken by the managers to attain _______

a. Profit

b. Efficiency

c. Productivity

d. Objectives

3. Management ______ is to get the work done effectively from the subordinates.

a. Art

b. Science

c. Economic

d. Biology

4. Motivated employees work with _____

a. Effortless

b. Application and dedication

c. Dedication

d. Expectations

5. ______ is to select the right person for the right job.

a. Planning

b. Controlling

c. Staffing

Page 49: SAMPLE QUESTIONS BUSINESS ECONOMICS

d. Monitoring

6. ____ skills enable managers to visualize, analyze and understand the various aspects of

the situation.

a. Design

b. Human

c. Conceptual

d. Administrative

7. ______ needs to flow from top level to lower level in the organization.

a. Suggestions

b. Discipline

c. Invitation

d. Responsibility

8. Human beings are not interested only in monetary gains but also need _____

a. Sympathy

b. Increment

c. Rewards and Recognition

d. Appreciation

9. Dharma in Sanskrit means _____

a. Progress

b. Success

c. Purpose

d. Passion

10. ______ is the team spirit that results in loyalty, dedication and commitment of the

employees.

a. Esprit de corps

b. Discipline

c. Unity of command

d. Unity of direction

11. Ethics in _______ functional area, indicates that the firm should obtain funds from right

sources and proper application of funds.

a. Production

b. Marketing

Page 50: SAMPLE QUESTIONS BUSINESS ECONOMICS

c. Finance

d. Human Resource Management

12. _________ is the process of establishing goals and a suitable course of action for

achieving those goals.

a. Organising

b. Planning

c. Directing

d. Controlling

13. Plans need to be _________.

a. flexible

b. rigid

c. complicated

d. compact

14. A _________ is a comprehensive plan designed to implement the policies and

accomplish objectives.

a. Programme

b. Budget

c. Scheduling

d. Procedures

15. __________ is an essence of management.

a. Decision making

b. Motivation

c. Co-ordination

d. Planning

Page 51: SAMPLE QUESTIONS BUSINESS ECONOMICS

16. ________ involves a systematic process of gathering, integrating, comparing and

analyzing information for effective decision making.

a. MIS

b. MBO

c. MBE

d. MIA

17. MBE enables top managers to focus on ______ areas that requires key attention.

a. routine

b. normal

c. unnecessary

d. core

18. _________ use information system or the information it produces.

a. End-users

b. Support-Staff

c. Network administrator

d. System specialist

19. Which among the following is not an advantage of MBO.

a. Aids in Planning

b. Corporate Image

c. Lacks Motivation

d. Competitive Advantage

20. _________ are the ends toward which actions are directed.

a. Objectives

Page 52: SAMPLE QUESTIONS BUSINESS ECONOMICS

b. Strategies

c. Programme

d. Policies

21. ___________ technique is used in case of complex projects with several activities are

required to be completed.

a. Simulation

b. Network

c. Linear

d. Queueing

22. Non programmed decisions require ___________ judgement.

a. Objective

b. Subjective

c. Rational

d. Ideal

23. ___________ is the first step in the decision making process.

a. Collection of data

b. Alternative solutions

c. Define the problem

d. Evaluating alternatives

24. Small organisations, generally believe in ___________ management philosophy.

a. Traditional

b. Contemporary

c. Complex

d. Simple

25. ________________ organisation structure violates the principle of unity of command.

a. Line

b. Line and staff

c. Functional

d. Matrix

26. In a __________ organisation, two or more persons are consciously coordinated towards

a common objective.

a. Line

b. Line and staff

Page 53: SAMPLE QUESTIONS BUSINESS ECONOMICS

c. Formal

d. Informal

27. Departmentation by _________ generates intra competition.

a. Departmentation by area

b. Departmentation by customer

c. Departmentation by product

d. Departmentation by process

28. An advertising agency generally follows departmentation on the bases of

______________.

a. Area

b. Customer

c. Task Force

d. Time

29. ___________ organisation lacks stability and can come to an end at any time.

a. Informal

b. Formal

c. Line

d. Permanent

30. __________ organisation is useful to serve personal and social ties.

a. Formal

b. Line

c. Informal

d. Line and staff

31. Span of control has ___________ application

a. Limited

b. Narrow

c. Universal

d. Wide

32. __________ is a process by which a manager assigns tasks and authority to subordinates

who accept responsibility for those jobs.

a. Decentralization

b. Centralization

c. Delegation

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d. Departmentation

33. The process of delegation continues if the delegatee ___________ the delegated authority.

a. Rejects

b. Ignores

c. Accepts

d. Partially accepts

34. _____________ states that once the authority has been delegated to the subordinates there

should not be unnecessary interference on party of the superior.

a. Principal of Functional Clarity

b. Principle of Authority and Responsibility

c. Principles of Exception

d. Principle of Scalar Chain

35. Unity of command states that the subordinates must receive instruction from __________

a. Four superiors

b. One superior

c. Two superiors

d. Three superiors

36. Absence of proper __________ techniques may prevent decentralization

a. Production

b. Control

c. Sales

d. Purchase

37. Motivating forces operating within the organization include

a. employees’ values

b. employees’ needs

Page 55: SAMPLE QUESTIONS BUSINESS ECONOMICS

c. superior-subordinate relation

d. value of society

38. Motivation results in ____________

a. Higher wastages and breakages

b. Higher Absenteeism

c. Reduction in wastages and breakages

d. Lower efficiency

39. Lack of motivation causes ____________

a. Labour turnover

b. Lower Absenteeism

c. Improved morale

d. Higher efficiency

40. _________ is the act of stimulating someone or oneself to get a desired course of action,

to push the right button to get a desired reaction.

a. Motivation

b. Communication

c. Leadership

d. Controlling

41. Which of these statements is false?

a. Following factors should be taken into consideration while fixing of salaries: cost of living,

companies ability to pay, capability of employee

b. Employees must be given adequate rate of bonus

c. Employees must be appreciated for their services

d. Job Security refers to vertical expansion of the job

42. Which of these is an important aspect of written communication?

a. It provides instant feedback

b. Less expensive than oral communication

c. it is more persuasive in nature than oral communication

d. Helps in wider circulation of information

43. _______ style of leadership aims at creating a family atmosphere within the organisation

a. Neurocratic

b. Situational

Page 56: SAMPLE QUESTIONS BUSINESS ECONOMICS

c. Paternalistic

d. Laissez-faire

44. Which of these statements is false?

a. good leadership helps in effective goal setting

b. leadership does not help in attaining willing participation of employees

c. leadership develops confidence and morale

d. leadership encourages initiative and provides direction

45. Which of these statements is false?

a. Non-verbal communication attracts attention of the listeners

b. Non-verbal communication aids in retention and recall of the message or instructions

c. Non-verbal communication does not develop any good relations between the speaker and

listener

d. Visual signs in non-verbal communication at times have an educational value

46. Which of these statements is correct/true?

a. PERT is applicable to tasks which are repetitive in nature

b. CPM is used in projects that have unpredictable activities

c. CPM is based on single time estimate, which is required for projects such as construction

d. PERT gives importance to cost optimisation

47. ________ is the first step in the controlling process

a. Setting of targets

b. Measurement of performance

c. Comparison of performance with plan

d. Selecting and implementing corrective measures

48. __________ technique helps to expedite highly complex projects

a. SWOT

b. MBO

c. PERT

d. Management Audit

49. Which of these statements is true?

a. Control system must be rigid.

b. Budgetary control technique is qualitative in nature.

c. PERT and CPM are project management techniques.

d. Management audit is compulsory in India.

50. _______ refers to the systematic evaluation of the functioning, performance and

effectiveness of management

a. MBO

b. HRA

c. Management Audit

d. PERT

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ADVERTISING I

SAMPLE QUESTION PAPER

1. Modern marketing calls for more than developing a good product, pricing it attractively,

and making it accessible. Companies must also________ with present and potential

stakeholders, and the general public.

A. attract.

B. reach.

C. advertise

D. communicate

2. Following are the Components of IMC Except :

A. The Corporate Culture

B. Brand Focus

C. Consumer Experience

D. No consumer Feedback

3. _______ enables organizations to communicate directly with the end-users.

A. Advertising

B. Personal Selling

C. Publicity

D. Direct Marketing

4. What is the next stage in the IMC planning process, once marketing and communication

objectives have been set?

A. Budget determination.

B. Implementation of those objectives.

C. Media selection scheduling.

D. Recruitment of marketing and promotion personnel

5. This form of marketing communications tool was once formally referred to as a 'non-

personal form of communication, where a clearly identifiable sponsor pays for a message

to be transmitted through media. This is referred to as:

A. Advertising

B. Personal Selling

C. Publicity

D. Public relations

6. Following are the features of an Advertising Except:

A. Tool for Market Promotion

B. Personal

C. Paid

D. One-way Communication

Page 58: SAMPLE QUESTIONS BUSINESS ECONOMICS

7. According to the macro model of communication, the four major communication

functions are decoding, response, feedback, and________.

A. message.

B. encoding.

C. response

D. noise

8. The motive to which an ad is directed, designed to stir a person toward goal the advertiser

has set is known as

A. appeal

B. need

C. demand.

D. Desire

9. Advertising is affected by ________ forces

A. Economic.

B. Social.

C. Technological.

D. Economic, Social ,Technological

10. Following are the Self-regulatory bodies of Advertising Except ,

A. ASCI

B. Indian Newspaper Society

C. Doordarshan

D. NABARD

11. ____________ advertising is undertaken by MNCs.

A. Regional

B. National

C. International

D. Consumer

12. _________ media of advertising is the fastest growing among the major media in India.

A. Broadcasting

B. Outdoor

C. Internet

D. Press

13. ___________ advertising is undertaken by marketers of branded products.

A. Primary

B. Selective

C. Product

D. Institutional

14. Creative pitch is prepared by a ________ to secure advertising account.

Page 59: SAMPLE QUESTIONS BUSINESS ECONOMICS

A. Advertiser

B. Salesforce

C. Modular

D. Ad agency

15. _________ is the official recognition given to an ad agency to conduct business on

professional basis.

A. Accreditation

B. Client relationship

C. Compensation

D. Supporters

16. After preparation of ad campaign _________ books time and space in the media

A. Advertisers

B. Ad agency

C. Specialist

D. Production house

17. Agency that undertake ethical advertising are granted ______ by concerned authorities.

A. Compensation

B. Commission

C. Fees

D. Agency Accreditation

18. The account executive may assist the media planning department in preparation of

_______ of the client

A. Advertising Budget

B. Creative Pitch

C. Copywrite

D. Story

19. __________ is a shop agency that provides only creative functions and not full services.

A. Full service Agency

B. Modular Agency

C. Creative Boutique

D. Specialist Agency

20. The _______ of the advertising agency is of prime importance. Preferably the office of

the agency should be located with in the same city where the head office of the client is

located

A. Service offered

B. Location

C. Size

D. Record and reputation

21. _____ Department is concerned with routing and scheduling of advertising departments.

A. Production

B. Traffic

C. Artwork

Page 60: SAMPLE QUESTIONS BUSINESS ECONOMICS

D. Reputation

22. The _________ gets the credit for designing innovative and effective ad campaign

A. Ad agency

B. Media

C. Advertiser

D. Target Audience

23. The _____- should be done before the final pitch.

A. Follow-up

B. Rehearsals

C. Application

D. Additional presentation

24. _________ skills enable people to visualise, analyse, and understand the various aspects

of problems or situations.

A. Human

B. Stress

C. Communication

D. Conceptual

25. Every professional requires effective _________ skills.

A. Problem solving

B. Leadership

C. Administrative

D. Time management

26. Candidates with good communication skills can be ____________.

A. Artists

B. Visualizers

C. Media planners

D. Copywriters

27. Advertising makes the product more ________ by the consumers.

A. hated

B. avoided

C. desirable

D. doubtable

28. ________are moral principles and values that govern the actions and decisions of an

individual or group.

A. Regulations

B. Guidelines

C. Policies

D. Ethics

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29. Private institutions stating the last date of enrollment is an example of ___________ used

in advertising.

A. exaggeration

B. misuse of testimonials

C. pressure tactics

d. Misrepresentation

30. _________ means doing what the advertiser and the advertisers peers believe is morally

right in a given situation.

A. Social advertising.

B. Ethical advertising.

C. Legal advertising.

D. Regulatory advertising.

31. Advertising may extend product life cycle i.e. the _________ stage may get extended.

A. introductory

B. growth

C. maturity

D. decline

32. ________ is a social effect of advertising.

A. reduced consumer price

B. promotes competition

C. expand business

D. higher standard of living

33. _________ is negative economic impact of advertising.

A. unproductive use of funds

B. reduced consumer price

C. promotes competition

D. expand business

34. Ads depicting males in a role of a good father or good husband is _____ impact of

advertising on cultural.

A. positive

B. negative

C. no effect

D. illegal

35. Customers develop a __________ perception or brand image of the brand that are

frequently advertised.

A. Negative

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B. Mixed

C. Favourable

D. Unfavourable

36. ASCI stands for ________.

A. Advertising Standards For Consumers Of India

B. Advertising Standards Council Of India

C. Advertising Self-Standards Council Of India

D. Advertising Summary Council Of India

37. The ________ of ASCI is its heart and soul and it can ban the ads which are unethical.

A. CCC

B. CAC

C. CBC

D. CCA

38. ASCI code is applicable to misleading ads on _____________.

A. Television

B. Print

C. Outdoor

D. All media

39. _____ refers to the value and strength of the brand that indicates its worth.

A. Brand image

B. Brand personality

C. Brand equity

D. Brand loyalty

40. _____ advertising focuses on the achievements of the organisation.

A. Product

B. Institutional

C. Political

D. Advocacy

41. The alphabet D in AIDA process stands for _____.

A. Direction

B. Degree

C. Desire

D. Difference

42. Brand ____ refers to customer’s ability to recall and recognize the brand under different

condition.

A. Personality

B. Fatigue

C. Loyalty

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D. Awareness

43. ____concept links brand to finance.

A. Brand Image

B. Brand Extension

C. Brand Name

D Brand Equity

44. ____ has made advertising executive interactive.

A. Newspaper

B.T V

C. Outdoor

D. Social Media

45. Communication comes from Latin word______.

A. Commonness

B. Communis

C. Components

D. Compound

46. Arousing Interest in AIDA model includes_____.

A. Colors

B. Love

C. Personalities

D. Contrast.

47. Attracting attention in AIDA model does not includes _____.

A. Beautiful illustration

B. Personalities

C. Colors

D. Pride

48. Political advertising highlighting achievements of______.

A. Past

B. Future

C. Present

D. Past, present and potential

49. In ____ more emphasis on words or written text is provided.

A. Advocacy Advertising

B. Green Advertising

C. Political Advertising

D. Corporate Image Advertising

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50. ____ should be so designed to create a distinct image of the brand.

A. Image

B. Idea

C. Symbols /Logo

D. Packaging

SYBCOM SEM III - FOUNDATION COURSE

1.________ Refers to lack of basic resources and facilities.

a. Discrimination

b. Deprivation

c. Exploitation

d. Violence

2. Which is not part of violation of human rights?

a. Fairly treatment

b. Neglect

c. Violence

d. Discrimination

3. The abbreviation of “D” standing under UDHR 1948.

a. Depend

b. Develop

c. Declaration

d. Declared

4. Right to vote related with _______ right.

a. Civil

b. Political

c. Fundamental

d. Economic

5. The basic needs of human are ___________

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a. Food, Education, Cash

b. Cloth, food, Bank balance

c. Shelter, Cloth, Family

d. Food, Clothes, Shelter

6. There are at least ___ vulnerable group of the society.

a. 12

b. 15

c. 18

d. 20

7. Behaviour involving physical force is called _____.

a. Neglect

b. Discrimination

c. Violence

d. Exploitation

8. Lack of care and attention toward weaker section of the society___.

a. Discrimination

b. Neglect

c. Violence

d. Exploitation

9. As per census 2011, SC’s comprise about _______ of India’s population.

a. 15.1%

b. 18.9%

c. 6.6%

d. 16.6%

10.Article 15 stated under schedule caste is_______

a. Social safeguard

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b. Service safeguard

c. Education safeguard

d. Economic safeguard

11.Article _____ of constitutional provision directs the state to protect the educational

interest of the weaker section of the society.

a. 35

b. 46

c. 49

d. 39

12.Article ________ states that seats shall be reserved for SC/ST in the lok sabha.

a. 332

b. 334

c. 336

d. 330

13.No child below the age of _______ years shall be employed to work in any factory or

mine or engaged in any other hazardous employment.

a. 12

b. 16

c. 18

d. 14

14. A disease that becomes unusually widespread and even global in its reach is referred

to as ______

a. Epidemic

b. Pandemic

c. Spanish flu

d. Hyper endemic

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15. Who is known as the father of modern seismology?

a. Charles Richter

b. R.D. Oldham

c. W.M. Davis

d. George Eliot

16. The National Disaster Management Authority (NDMA) is headed by _______.

a. Prime Minister of India

b. President of India

c. Governor of States

d. Chief Minister of States

17. Volcanoes are generally found where ______.

a. Intraplate pull apart or are coming together

b. Tectonic plates pull apart or are coming together

c. Earth's crust pulls apart or are coming together

d. Tectonic plates and earth’s crust are coming together

18. Volcanic erupted materials when inside the hill/earth/mountain it is called ______.

a. Lava

b. Magma

c. Lahars

d. Ash

19. International Tsunami Information Centre is located in ______.

a. Honolulu

b. Goa

c. Jakarta

d. Puducherry

20. Disaster Management includes _______.

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a. Mitigation

b. Reconstruction

c. Rehabilitation

d. Mitigation, Reconstruction and Rehabilitation

21. Tsunami’s can occur only during _______.

a. Evening

b. Afternoon

c. Any time of the day or night

d. Morning

22. Generally the number on Richter Scale ranges between ______.

a. 0 and 6

b. 0 and 9

c.1 to 5

d. 1 to 12

23. United Nations disaster management team are responsible for solving problems

resulting from disaster in _______.

a. Asia

b. Africa

c. Australia

d. Asia, Africa and Australia

24. In India National Institute of Disaster Management is located at ______.

a. Manipur

b. Punjab

c. Hyderabad

d. New Delhi

25. The Disaster Management Act was made in _______.

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a. 2006

b. 2003

c. 2005

d. 2009

26. Effective hazard management largely rely on _______.

a. Govt. agencies

b. Emergency responses

c. Pre-disaster planning

d. Volcanoes

27. The ancient period is the longest period of _________ civilisation.

a. cultivation

b. Human civilisation

c. Human migration

d. Human revolution

28. The idea of an alphabet (one symbol stands only for one sound) was first used in

_____ about 4000 years ago.

a. Egypt

b. Roman

c. India

d. China

29. Writing was first developed in _______ about 5000 years ago.

a. Spain

b. Egypt

c. India

d. Sumer

30. Paper was invented in ______ early in the second century A.D

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a. China

b. Germany

c. Roman

d. Spain

31.________ astronomy was the first and highly successful attempt at giving a refined

mathematical description of astronomical phenomena.

a. Pythagoras

b. Babylonian

c. Mesopotamian

d. Ancient Egypt

32. The ____________________ is one of the first and earliest medical documents that

attempts to describe and analyse the brain.

a. Mesopotamian

b. Sumer

c. Edwin Smith Papyrus

d. Leucippus

33. Classical Antiquity is also referred as _________ which states long period of cultural

history focusing Mediterranean Sea.

a. Classical history

b. Classical era

c. Classical beauty

d. Classical Mediterranean

34. The interlocking civilizations of ancient Greece and Rome, collectively known as

_____ world.

a. Roman civilization

b. Greek civilization

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c. Greco-Roman

d. Ancient Egypt civilization

35. _______ is regarded as the ‘father of science’ was the first to postulate

non-supernatural phenomena.

a. Thales

b. Pythagoras

c. Leucippus

d. Plato

36. _______ was the first to postulate that the ‘Earth is a Spherical in shape’.

a. Thales

b. Pythagoras

c. Leucippus

d. Plato

37. _______ introduced atomism, the theory that all matter is made of individual and

imperishable units called atoms.

a. Aristotle

b. Plato

c. Galen

d. Leucippus

38._______ produced the first systematic discussions of natural philosophy, which

shaped investigations of nature.

a. Galen

b. Aristotle

c. Plato

d. Thales

39._______ laid the foundation of the scientific method, being biological expert classified

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more than 540 animal species and dissected atleast 50.

a. Galen

b. Aristotle

c. Plato

d. Thales

40. __________ are character traits and interpersonal skills that characterize a person’s

relationships with other people.

a. Soft Skills

b. Hard Skills

c. Listening

d. Time Management

41. _________ can be learned and perfected over time, but __________ are more

difficult to acquire and change.

a. Hard Skills, Soft Skills

b. Listening, Time Management

c. Will power, Research skill

d. Research skill, Will power

42. ____________ is one of the important elements of communication.

a. Listening

b. Hearing

c. Laughing

d. Joking

43__________ means where the listener listens with interest and encourages the speaker

with continued speaking.

a. Active Listening

b. Appreciative Listening

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c. Informational Listening

d. Content Listening

44. In__________ the listener appreciates the views, opinions and ideas expressed by the

speaker through body language cues or otherwise.

a. Appreciative listening

b. Active Listening

c. Informational Listening

d. Content Listening

45. In___________ the listener listens to learn from the speaker.

a. Informational listening

b. Appreciative listening

c. Active listening

d. Content Listening

46.___________ means selectively listening to only those content relevant to the listener.

a. Content listening

b. Empathetic Listening

c. Evaluative Listening

d. Reflective Listening

47.__________ means active listening and empathizing with the speaker.

a. Empathetic Listening

b. Evaluative Listening

c. Reflective Listening

d. Active Listening

48.___________means the listener tries to understand the speaker’s idea, and then

reverting the idea back to the speaker so as to confirm that the idea has been

understood correctly.

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a. Reflective Listening

b. Evaluative Listening

c. Empathetic Listening

d. Content Listening

49. __________ signifies a negative meaning such as danger. It also signifies positive

meaning such as warmth, and youth.

a. Red

b. Pink

c. Blue

d. Yellow

50. __________ signifies health and excitement.

a. Pink

b. Red

c. Blue

d. Yellow