BUSINESS STUDIES: CLASS XI

Unit 1: NATURE & PURPOSE OF BUSINESS

Q1. Identify the activity which is not an auxiliary to trade?

(a)  Banking       (b) Warehousing
(c) Insurance         (d) Mining

Q2. Industries like sugar mill or oil refinery are put under which category-
(a) Primary        (b) Secondary
(c) Tertiary       (d) None of the above

Q3. Which of the following is not a characteristic of business?

(a) Production           (b) Exchange or sale
(c) Wages or salaries (d) Risk element

Q4. Which of the following is not a business activity?

(a) Production of goods         (b) Work in a factory for wages
(c) Exchange of goods          (d) Transportation

Q5. Which of the following is not an economic activity?

(a) Production               (b) Trading in goods
(c) Professional            (d) Social service

Q6. Name the occupation in which people work for others in return for wages or salaries?
(a) Employment       (b) Business
(c) Profession          (d) None of the above

Q7. Support services to industrial \business activities are clubbed under?

(a) Commercial industries    (b) Primary industries
(c) Secondary industries           (d) Tertiary industries

Q8. Which of the following is not a cause of business risk?

(a) Breakdown of machinery    (b) Efficient management
(c) Riot                           (d) Changing government policy

Q9. Why should a business earn profit?

(a) To provide return to investors.
(b) To provide funds for future growth.
(c) To increase the reputation of business.   
(d) All the above

Q10. Which of the following in not a true statement?

(a)The scope of commerce is narrower than business.

(b)Commerce includes trade and auxiliaries to trade.
(c)Foreign trade is purchase and sale by the traders of the same country.
(d)Traders serve as a link between producers and consumers.

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Q11. The possibilities of inadequate profits or even losses due to uncertainties are known as ______
(a) Business contingencies
(b) Business risks
(c) Business ventures 
(d) None of these

Q 12. Which one of the following may not be a factor behind starting a business?
(a) Routine workload 
(b) size of the firm 
(c) finance 
(d) location of the business

Q13. Name the two broad categories of business activities.

(a) Trade and Commerce 
(b) Trade and Industry 
(c) Industry and Commerce
(d) None of these

Q14.Commerce includes activities relating to trade and_________________ to trade.

(a) Supporting 
(b) Subsidiaries 
(c) Auxiliaries 
(d) None of these

Q15.'Earning of profit is considered to be the subsidiary objective of the business.' The given
statement is-
(a) True
(b) False
(c) Cannot says
(d) None of these

Q16. Following are the characteristics of business risks. Identify the incorrect one
(a) Loss is the reward for risk bearing 
(b) Business risks are due to uncertainties 
(c) Risk is an essential component of every business 
(d) Degree of risk depends mainly upon the nature and size of business

Q17. Transfer of interest exists in the case of 

(a) Profession
(b) Employment 
(c) Business 
(d) None of these
Q18. Human activities are of ____________ types.
(a) One 
(b) Two 
(c) Three
(d) Four
Q19.Which of the following is not an example of non-economic activity?
(a) Patriotism 
(b) Teaching 
(c) Sentiment 
(d) Sympathy

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Q20. Economic activities may be classified into business, ___________ and employment
(a) Profession 
(b) Occupation 
(c) Vocation
(d) Work

Q21.Mr X started business of buying and selling of refrigerators. The term for this type of business
activity is-
(a) Commerce
(b) Trade
(c) Selling
(d) Transaction

Q22.The occupation in which people work for others and get remunerated in return is –
(a) Business 
(b) Employment
(c) Profession
(d) None of these

Q23. Recognise the assembling industry out of these-

(a) Poultry, cattle farms
(b) Cement, brick
(c) Sugar, cotton
(d) Television, computer

Q24. The industry concerned with using the material which have already been extracted at the
primary stage is-
(a) Primary
(b) Tertiary
(c) secondary
(d) None of these

Q25.The best example of analytical industry is-

(a) Cement
(b) Computer
(c) Sugar mill
(d) Oil refinery

Q26.In which form of economic activity code of conduct is prescribed-

(a) Business
(b) Employment
(c) Profession
(d) None of these

Q27.Activites which are meant for assisting trade are known as

(a) Trade
(b) Trade assistance
(c) Auxiliaries to trade
(d) None of these

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Q28.Which one is considered with production or processing of goods and materials-
(a) Trade
(b) Industry
(c) Commerce
(d) None of these

Q29.Which of the following cannot be classified as an objective of business-

(a) Investment (c) Discovery
(b) Productivity (d) Profit earning

Q30.Which of the following comes under economic causes of risk-?

(a) Flood, famine
(b) Negligence of workers, stoppage of work
(c) Demand for goods, competition
(d) None of these

Q31. Mechanical failures, political disturbances and other unforeseen events are-
(a) Natural causes
(b) Economic causes
(c) Human causes
(d) Other causes

Q32.The production of goods takes place in particular locations but they are used at different places.
So, the obstacle of place is removed by-
(a) Banking
(b) Advertising
(c) Insurance
(d) Transport

Q33. The process of exchanging ideas, information by speaking, writing or etc. is termed as
(a) Sender
(b) Medium
(c) Communication
(d) None of these

Q34.Which auxiliary to trade bridges the time gap between production and consumption?
(a) Advertising
(b) Banking
(c) Insurance
(d) Ware housing

Q35. The amount of loss or damage and compensation for injury can be recovered by using which
auxiliary to trade
(a) Advertising
(b) Premium
(c) Insurance
(d) Policy

Q36. The obligation of business firms to contribute for society and work for it refers to
(a) Social responsibility (b) Human responsibility
(c) Company responsibility (d) None of these

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Q37. Mr. Y told Mr. T that for business we need physical resources. Identify the physical resources
given below-
(a) Bank (b) Warehouse
(c) Plant & machinery (d) None of these

Q38.The lack of knowledge about what is going to happen in the future is

(a) Risk (b) Uncertainty
(c) Both of the above (d) None of these

Q39. “Greater the risk involved in a business, higher is the chance of profit”. This statement is true
or false.
(a) True (b) False
(c) Can’t Say (d) None of these

Q40. The position of an enterprise in relation to its competitors termed as

(a) Market survival (b) Growth
(c) Market Standing (d) None of these

Answers………1(d); 2(b); 3(c); 4(b); 5(d); 6(a); 7(d); 8(b); 9(d); 10(c); 11(b); 12(a); 13(c); 14(c);
15(b); 16(a); 17(c); 18(b); 19(b); 20(a); 21(b); 22(b); 23(d); 24(c); 25(d); 26(c); 27(c) 28(b); 29(c);
30(c); 31(d); 32(d); 33(c); 34(d); 35(c); 36(a); 37(c); 38(b); 39(a); 40(c).

Unit-2 Forms of Business Organisation

Q1.The liability of all the co-parceners except the...........is limited to their share in the business, and
consequently their risk is well-defined and precise.
(a) Karta (b) Partners
(c) Members (d) Shareholders

Q2................ is a type of business unit where a person is solely responsible for providing the capital.
(a) Sole proprietorship (b) Joint Hindu family business
(c) Partnership (d) Cooperative societies

Q3. Partnership is the relation which subsists between persons who have agreed to combine their
property, labour or skill in some business and to share the profits there from between them.
(a) True (b) False
(c) Partly True (d) None of these

Q4. The relation between persons who have agreed to share the profit of the business carried on by
all or any one of them acting for all.
(a) Sole proprietorship (b) Joint Hindu family business
(c) Partnership (d) Cooperative societies

Q5.A ...........partner is one whose association with the firm is unknown to the general public.
(a) Secret (b) Active
(c) Sleeping (d) Nominal

Q6. It can continue as long as the partners want and is terminated when any partner gives a notice of
withdrawal from partnership to the firm.
(a) Partnership at will (b) Particular partnership
(c) General Partnership (d) Limited Partnership
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Q7. It is optional for a partnership firm to get registered.
(a) True (b) False
(c) Partly True (d) None of these

Q8.A............ which has its objectives for the promotion of economic interests of its members in
accordance with cooperative principles.
(a) Sole proprietorship (b) Joint Hindu family business
(c) Partnership (d) Cooperative societies

Q9. The cooperative society is compulsorily required to be registered under the Cooperative
Societies Act.........
(a) 1912 (b) 1956
(c) 1932 (d) 1965

Q10. The principle of ‘one man one vote’ governs the cooperative society.
(a) True (b) False
(c) Partly True (d) None of these

Q11. The liability of members of a cooperative society is ......... to the extent of their capital
contribution.
(a)Born (b) Shared
(c) Unlimited (d) Limited

Q12. The society aims to fight against the big capitalists and enhance the bargaining power of the
small producers.
(a) Consumer’s cooperative societies (b) Producer’s cooperative societies
(c) Marketing cooperative societies (d) Farmer’s cooperative societies

Q13. The aim is to gain the benefits of large scale farming and increase the productivity.
(a) Consumer’s cooperative societies (b) Producer’s cooperative societies
(c) Marketing cooperative societies (d) Farmer’s cooperative societies

Q14. The society aims to eliminate middlemen and improve competitive position of its members by
securing a favourable market for the products.
(a) Consumer’s cooperative societies (b) Producer’s cooperative societies
(c) Marketing cooperative societies (d) Farmer’s cooperative societies

Q15. The members comprise of consumers desirous of obtaining good quality products at reasonable
prices.
(a) Consumer’s cooperative societies (b) Producer’s cooperative societies
(c) Marketing cooperative societies (d) Farmer’s cooperative societies

Q16. The aim of such societies is to protect the members from the exploitation of lenders who charge
high rates of interest on loans
(a) Consumer’s cooperative societies (b) Producer’s cooperative societies
(c) Credit cooperative societies (d) Farmer’s cooperative societies

Q17. The members of these societies consist of people who are desirous of procuring residential
accommodation at lower costs.
(a) Consumer’s cooperative societies (b) Producer’s cooperative societies
(c) Marketing cooperative societies (d) Cooperative housing societies

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Q18. The company form of organisation is governed by The Companies Act, ......
(a) 1912 (b) 2013
(c) 1932 (d) 1965

Q19. A company is a creation of law and exists independent of its members.

(a) Formation (b) Separate legal entity
(c) Perpetual succession (d) Artificial person

Q20. Contracts signed after incorporation but before commencement of business are Provisional
Contracts.
(a) True (b) False
(c) Partly True (d) None of these

Q21. The law does not recognise the business and owners to be one and the same.
(a) Perpetual succession, (b) Formation
(c) Separate legal entity (d) Artificial person

Q22. Members may come and members may go, but the company continues to exist.
(a) Perpetual succession, (b) Formation
(c) Separate legal entity (d) Artificial person

Q23. The shareholders do not have the right to be involved in the day-to-day running of the business.
(a) Risk bearing (b) Common seal
(c) Liability (d) Control

Q24. The members can be asked to contribute to the loss only to the extent of the unpaid amount of
share held by them.
(a) Risk bearing (b) Common seal
(c) Liability (d) Control

Q25. The Board of Directors enters into an agreement with others by indicating the company’s
approval through a ……….
(a) Risk bearing (b) Common seal
(c) Liability (d) Control

Q26. The risk of loss thus gets spread over a large number of shareholders.
(a) Risk bearing (b) Common seal
(c) Liability (d) Control

Q27. These partners take actual part in carrying out business of the firm on behalf of other partners.
(a) Active partner (b) Sleeping or dormant partner
(c) Secret partner (d) Nominal partner

Q28. Partners who do not take part in the day to day activities of the business are called
……………... partners.
(a) Active partner (b) Sleeping or dormant partner
(c) Secret partner (d) Nominal partner

Q29. A ……… partner is one whose association with the firm is unknown to the general public.
(a) Active partner (b) Sleeping or dormant partner
(c) Secret partner (d) Nominal partner
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Q30. A ………… is one who allows the use of his/her name by a firm, but does not contribute to its
capital.
(a) Active partner (b) Sleeping or dormant partner
(c) Secret partner (d) Nominal partner

Q31. A person is considered a partner ……… if, through his/her own initiative, conduct or
behaviour, he/she gives an impression to others that he/she is a partner of the firm.
(a) Active partner (b) Sleeping or dormant partner
(c) Secret partner (d) Partner by estoppel

Q32. A partner by …………. is a person who though is not a partner in a firm but knowingly allows
himself/herself to be represented as a partner in a firm.
(a) Active partner (b) Sleeping or dormant partner
(c) Secret partner (d) Partner by holding out

Q33. .......................is the most important document as it defines the objectives of the company.
(a) Articles of Association (b) Partnership deed
(c) Memorandum of Association (d) Incorporation certificate

Q34. ……… clause contains the name of the company with which the company will be known,
which has already been approved by the Registrar of Companies.
(a) Name Clause (b) Registered Office Clause
(c) Objects Clause (d) Liability Clause

Q35. …………clause contains the name of the state, in which the registered office of the company is
proposed to be situated
(a) Name Clause (b) Registered Office Clause
(c) Objects Clause (d) Liability Clause

Q36. ………. clause defines the purpose for which the company is formed.
(a) Name Clause (b) Registered Office Clause
(c) Objects Clause (d) Liability Clause

Q37. …………..clause limits the liability of the members to the amount unpaid on the shares owned
by them.
(a) Name Clause (b) Registered Office Clause
(c) Objects Clause (d) Liability Clause

Q38.…………clause specifies the maximum capital which the company will be authorised to raise
through the issue of shares.
(a) Name Clause (b) Capital Clause
(c) Objects Clause (d) Liability Clause

Q39. ………..defines the rules regarding internal management of a company.

(a) Articles of Association (b) Partnership deed
(c) Memorandum of Association (d) Certificate of Incorporation

Q40. The ……………… is a conclusive evidence of the regularity of the incorporation of a

company.
(a) Articles of Association (b) Partnership deed
(c) Memorandum of Association (d) Certificate of Incorporation

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Q41. SEBI stands for
(a) Securities and Exchange Board of India (b) Shares and Exchange Board of India
(c) Securities and Export Board of India (d) Services Exchange Board of India

Answers:
Q1 (a) Q15 (a) Q29 (c)
Q2 (a) Q16 (c) Q30 (d)
Q3 (a) Q17 (d) Q31 (d)
Q4 (c) Q18 (b) Q32 (d)
Q5 (a) Q19 (b) Q33 (c)
Q6 (a) Q20 (a) Q34 (a)
Q7 (a) Q21 (c) Q35 (b)
Q8 (d) Q22 (a) Q36 (c)
Q9 (a) Q23 (d) Q37 (d)
Q10 (a) Q24 (c) Q38 (b)
Q11 (d) Q25 (b) Q39 (a)
Q12 (b) Q26 (a) Q40 (d)
Q13 (d) Q27 (a) Q41(a)
Q14 (b) Q28 (b)

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 UNIT-3 Private, Public and Global Enterprises
Q1.A Public Sector Company is incurring heavy losses and govt. proposes for closing the same.
Which term is related to this statement?
(a) Disinvestment (b) Privatisation
(c) Demonetisation (d) Socialisation.

Q2. In your neighbourhood market, there are shops owned by sole proprietors or big retail
organisations run by a company. They belong to which sector?
(a)Public (b) Private
(c) Social (d) Mixed

Q3. In India, Railways is an organisation wholly owned and managed by the ___________.
(a) Reliance (b) Tata
(c) Government (d) Railway department.

Q4.A business which operates in more than one country know as _________organisations.
(a) Private (b) Public
(c) Functional (d) Global.

Q5.Indian economy is a ____________ kind of economy.

(a)Global (b) Mixed
(c)Capitalist (d) Socialist.

Q6.Which of the following is not a type of public sector enterprise?

(a)Joint Hindu Family business (b) Departmental undertaking
(c)Statutory Corporation (d) Government Company.

Q7. Public sector organisations may either be partly or wholly owned by the___________
government.
(a) State (b) Central
(c) Foreign (d) Central or state.

Q8.When was the first Industrial Policy Resolution passed by the Govt. of India?
(a) 1947 (b) 1948
(c) 1991 (d) 2001.

Q9.Entry of MNCs into Indian market is an example of:

(a) Privatisation (b) Liberalisation
(c) Disinvestment (d) Globalisation.

Q10. Which policy was launched by Govt. of India in 1991?

(a) JPG (b) GST
(c) LPG (d) MPG.

Q11. Public sector enterprises are accountable to public through_________.

(a) Parliament (b) Government
(c) Public (d) Media

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Q12.Which is the oldest and most traditional form of organising public enterprises?
(a) Statutory Corporation (b) Public company
(c) Government company (d) Departmental Undertaking.

Q13. An organisation is working for the purpose of public welfare as a ministry of government.
It is financed by govt. and all its income is deposited in govt. treasury. Identify which kind of
public sector enterprise is it.
(a)Partnership (b) Departmental undertaking
(c) Sole proprietorship (d) Company

Q14.If a public sector enterprise is making losses continuously, it was referred to

the______________.
(a) GIFR (b) CIFR
(c) TIFR (d) BIFR

Q15. Govt. of India establishes its enterprises in backward areas. By doing this which objective
is fulfilled?
(a) Economies of scale (b) Regional balance
(c) Development of Infrastructure (d) Import substitution.

Q16. Which government enterprise is registered under Indian Companies Act, 1956?
(a) Departmental undertaking (b) Public corporation
(c) Government company (d) Partnership companies

Q17. Conversion of a PSU into a private sector enterprise is termed as____-.

(a) Globalisation (b) Deurbanisation
(c) Privatisation (d) Liberalisation.

Q18. Producing goods in our own country rather than purchasing it from other countries is
known as___________-.
(a) Export (b) Import
(c) Entrepot (d) Import Substitution

Q19. How many industries are now reserved for public sector?
(a) 2 (b)3
(c) 4 (d) 17

Q20. Which of these industries is not reserved for public sector?

(a) Atomic energy (b) Air transport
(c) Arms (d) Rail transport.

Q21. Which PSU was the first to be privatised successfully in India?

(a) LJMC (b) GAIL
(c) ONGC (d) BHEL

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Q22. Govt. has given autonomy to a PSU to improve its performance but held it accountable for
specified results under an agreement. What is this agreement called?
(a) MoA (b) AoA
(c) MoU (d) GoU

Q23. An enterprise having huge capital, huge turnover and its branches are spread all over the
country. What do we call such kind of enterprises?
(a) Joint venture (b) Global enterprise
(c) Large corporation (d) Huge company.

Q24. Global enterprises usually enter into agreements with Indian companies pertaining to sale
of technology, production of goods; use of brand names for the final products, etc. What is the
technical term used for such kind of partnerships?
(a) Foreign collaboration (b) Global enterprise
(c) Combined corporation (d) Partnership Company

Q25. What do we call a company formed as the result of an agreement between two businesses
in different countries?
(a) Partnership (b) Joint venture
(c) Mixed company (d) MNC

Q26. An enterprise comes into existence after an act is passed in Parliament is known
as__________.
(a) Govt. company (b) Parliament company
(c) Public corporation (d) Government Corporation

Q27. Which of the following is not an objective of PSUs?

(a) Development of infrastructure (b) Import substitution
(c) Profit maximisation (d) Regional balance

Q28. _____________ form of PSU has the greatest autonomy.

(a) Departmental Undertakings (b) Public Corporation
(c) Government Company (d) None of these

Q29. Airtel and ................................. enter into the joint venture in 2005 to provide telecom
services in India.
(a) Idea (b) Bharti
(c) Telenor (d) None of these

Q30. A ............................ was setup by the government to retain or redeploy retrenched labour
and to provide compensation to PSU employees seeking voluntary retirement.
(a) National Renewal Fund (b) National Retrieval Fund
(c) National Retirement Fund (d) None of these
Q31. ................................... bank has the most no. of ATM in India.
(a) SBI (b) PNB
(c) ICICI (d) IDBI
Q32. .................................... type of PSU’s has the highest degree of political interference.
(a) Public Corporation (b) Departmental Undertaking

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(c) Government Company (d) None of these

Q33. Where national security is concerned............................... is the best form of the

organisation.
(a) Private Company (b) Public Company
(c) Departmental Undertaking (d) None of these

Q34. New economic policy was passed in the year...........................

(a) 1985 (b) 1993
(c) 1991 (d) 1980

Q35. Which form of PSU has its own MoA and AoA?
(a) Private Company (b) Public Company
(c) Departmental Undertaking (d) None of these

Q36. Private sector has always come forward to take up developmental projects. T/F.
Q37. PSUs do not follow the objective of regional balance. T/F.
Q38. Number of industries resrved for PSUs is 17. T/F.
Q39. In 'LPG', 'L' stands for latest. T/F.
Q40. PSUs are the first to adopt the latest technology. T/F.

Answers- 1.a 2.b 3.c 4.d 5.b 6.a 7.d 8.b 9.d 10.c 11.a 12.d 13.b 14.d 15.c 16.c 17.c 18.d 19.b
20.b 21.a 22.c 23.b 24.a 25.b 26.c 27.c 28.Government company 29. b 30.a 31.a
32. b 33.c 34.c 35.d 36.F 37.F 38.F 39.F 40.F.

Unit-4 Business Services

Q1. A person takes the insurance policy of his property of Rs. 20,000 for Rs.10,000. The
property gets damaged to the extent of Rs. 15,000. The loss of Rs.7,500 is compensated without
considering the average basis. What is the name of this insurance policy?
(a) Average Policy (b) Valued Policy
(c) Specified Policy (d) Comprehensive Policy

Q2. Maximum period limit of a General Insurance is-

(a) 1 year (b) 2 years
(c) 3 Years (d) No limit

Q3. The state finance corporation is-

(a) A commercial Bank (b) An Industrial Development Bank
(c) Central Bank (d) None of these

Q4. UPI stands for-

(a) Unique Payment Introduction (b) Union Payment Interface
(c) Upper Payment Interface (d) Unified Payment Interface

Q5. Which of the following is the subject matter of Marine Insurance?

(a) Hull (b) Wages

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(c) Ship Captain (d) Strom

Q6. A person gets his stock with Rs.25,000 insured for Rs.35,000. A fire occurs and the whole
stock gets damaged. The insurance company will pay him only Rs.25,000, the actual value of his
stock and not Rs.35,000. Which principle of insurance is applied in this case?
(a) Principle of Contribution (b) Principle of Subrogation
(c) Principle of Indemnity (d) Principle of Insurable Interest

Q7. HDFC Bank is-

(a) Public Sector Bank (b) Private Sector Bank
(c) Cooperative Sector Bank (d) None of these

Q8. Which of the following is not related to Life Insurance Contract?

(a) Conditional Contract (b) Unilateral Contract
(c) Indemnity Contract (d) None of these

Q9.Ankur saves Rs.3,000 every month. Which type of Bank Account he should open with the
bank?
(a) Current Account (b) PPF Account
(c) Recurring Deposit Account (d) Saving Account

Q10.Geeta has Rs.20,000 in her account. He doesn’t have any use of these for two years. To
earn more interest which type of bank account she would be opened with the bank?
(a) Recurring Deposit (b) Fixed Deposit
(c) Current Account (d) Saving Account

Q11. The insured is expected to disclose all the important facts related to property insured.
Which principle is discussed here?
(a) Mitigation (b) Insurable Interest
(c) Indemnity (d) Utmost Good Faith

Q12. Mohan mortgages his factory to Shyam and get loan from him. Shyam get it insured for
fire. Which principle of insurance applicable here?
(a) Principle of Insurable Interest (b) Principle of Utmost Good Faith
(c) Principle of Indemnity (d) None of these

Q13. A plant manager gets his stock of goods insured but he hide the fact that the electricity
board has issued him statutory warning letter to get his factory wiring changed. Later on, the
factory catches fire due to short circuit. Which principle is violated in the case?
(a) Principle of Subrogation (b) Principle of Utmost Good Faith
(c) Principle of Indemnity (d) Principle of Insurable Interest

Q14. Which one of these is a Public Corporation?

(a) HDFC (b) Life Insurance Corporation
(c) SIDBI (d) None of these

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Q15.A is a KVS employee and posted in Gujarat, 1600kms away from his hometown his friend
need Rs. 20,000 and requested A for the amount. A sends the amount by Paytm App, Which
mode of payment used by A-
(a) Digital Payment (b) Cheque Payment
(c) Cash Payment (d) None of these

Q16. How many hours do the ATM works in a day?

(a) 24 Hours (b) 12 Hours
(c) 48 Hours (d) 15 Hours

Q17. Debit Card and Credit Card also called as-

(a) Bank Balance (b) Plastic Money
(c) Debit Money (d) Smart Money

Q18. A bank, which occupies a central position in the monetary and banking system of the
country and has a superior financial authority is called?
(a) Central Bank (b) Co-operative Bank
(c) Commercial Bank (d) Exchange Bank

Q19. Banks are necessary for the effective implementation of ......................policy.

(a) Tax Policy (b) Current Account Policy
(c) Demat Account (d) Monetary Policy

Q20. .......................... cheque is payable to the person named in the cheque or his order.
(a) Discounted (b) Order
(c) Self (d) Dishonoured

Q21. An insurance policy support after the death of the holder is called-
(a) Monetary Policy (b) Health Insurance Policy
(c) Life Insurance Policy (d) Wealth Insurance Policy

Q22. Motor Insurance had its beginning in the.........................

(a) United Kingdom (b) USA
(c) Japan (d) Pakistan

Q23. Which of the following is an allied postal service?

(a) Greeting Post (b) Passport Application
(c) Media Post (d) Speed Post

Q24. DTH services are provided by-

(a) Transport Company (b) Banks
(c) Advertising Company (d) None of these

Q25. Identify the service related with the accepting and lending of funds-
(a) Transport Services (b) Social Services
(c) Banking Services (d) None of these

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Q26. “A non-government organisation organise blood donation camp and provides collected
blood free of cost to the needy”
(a) Transport Service (b) Social Service
(c) Banking Service (d) None of these

Q27. AEPS stands for-

(a) Aadhar Enabled Payment System (b) All time Even Payment System
(c) All Elite Payment System (d) None of these

Q28.Arun gets the information about the rate of interest on fixed deposit account by telephonic
conversation with an agent of bank, Name this type of banking-
(a) Mobile Banking (b) E-Banking
(c) Tele Banking (d) None of these

Q29. Give the name of the facilities generally given by the banks to the firms for meeting their
short-term requirements of funds in excess amount in their account-
(a) Credit (b) Bank Overdraft
(c) Loan (d) None of these

Q30. Which one of these is a private sector bank-

(a) PNB (b) OBC
(c) SBI (d) ICICI

Q31. E-Banking provides service to the customers-

(a) 24 Hours in a day (b) 8 Hours in a day
(c) 10 Hours in a day (d) None of these

Q32. Assurance is associated with-

(a) Fire Insurance (b) Life Insurance
(c) Motor Insurance (d) Hull Insurance

Q33. Ram and Shyam are brothers, Ram transfer Rs.5,000 from his bank account to Shyam’s
bank account, With which mode Ram transferred the money from his account to his brother’s
account?
(a) E-mail (b) Postal Order
(c) Money Order (d) Electronic Fund Transfer

Q34. Give the name of an instrument which is identical to bank draft and is payable within the
town.
(a) Money Order (b) Pay-in-slip
(c) Pay Order (d) None of these

Q35. CWC stands for-

(a) Central Water Commission (b) Central Warehousing Corporation
(c) Central Warehousing Commission (d) None of these

16
Q36. Under which policy, policy money is payable after the assured attains a certain age in
monthly, quarterly, half yearly or annually instalment-
(a) Whole Life Policy (b) 10 Years Policy
(c) Fire Policy (d) Annuity Policy

Q37.A went to a shop for purchasing 50kg rice. He did not have cash but he has a debit card. He
asked shopkeeper for payment by debit card. Shopkeeper takes his debit card and inserts it in a
machine. By entering the pin code A paid money to shopkeeper. What does this machine called?
(a) Point of Sale Machine (b) ATM
(c) Computerised Machine (d) None of these

Q.38 “Hull” and “Cargo” words relates to which type of insurance?

(a) Marine Insurance (b) Life Insurance
(c) Fire Insurance (d) Motor Insurance

Q39. Which type of bank account offers multiple options to the account holder?
(a) Saving Account (b) Multipurpose Account
(c) Fixed Deposit Account (d) Current Account

Q40. Which one of these is a agency function of banks?

(a) Providing Loans (b) Accept Deposits
(c) Purchase sale of securities (d) None of these

Answers:
1. c 2. a 3. b 4. d 5. a 6. c 7. b 8. c 9. c 10. b 11. d 12. a 13. a

14. b 15. a 16. a 17. b 18. a 19. d 20. b 21. c 22. a 23. d 24. c 25. d 26. b

27. a 28. c 29. b 30. d 31. a 32. b 33. d 34. c 35. b 36. d 37. a 38. a 39. b

40. c

Unit 5 Emerging Modes of Business

Q1. Which one of the following cannot be considered as a trend shaping the business?
(a) Digitisation (b) Outsourcing
(c) Demonetisation (d) Globalisation

Q2. Your friend has joined as a manager in a company where conduct of Industry, trade and
commerce is done using the computer network. Out of the following options which is the right
term to explain the aforesaid company?
(a) E-business (b) E-commerce
(c) E-trade (d) E-industry

17
Q3. A firm’s electronic transactions and networks can be visualised as extending into all these
directions except
(a) B2B (b) B2C
(c) C2C (d) Intra-B

Q4. The term B2B commerce stands for

(a) Business to Buyer (b) Buyer to Buyer
(c) Buyer to Business (d) Business to Business
Q5. B2B commerce helps in all these except
(a) Customised production (b) Improved distribution system
(c) Reduce dependence on single supplier (d) Online customer surveys

Q6. A firm uses internet to send and receive commercial documents like purchase orders or
invoice to another firm which technology is it using
(a) EDI (b) NEFT
(c) RTGS (d) RTI

Q7. You use ATM to withdraw money which type of e-commerce is this?
(a) B2B (b) B2C
(c) Both of them (d) None of these

Q8. What is true about B2C commerce?

(a) It moves from Business to commerce
(b) It is moves customers to Business
(c) It is corollary i.e. both ways
(d) None of these

Q9. Employees of ABC Ltd. Are connected through VPN, which helps them to all of the
following things, except
(a) To work from where they are
(b) To work at their own speed and time
(c) To be in touch with its customers
(d) To conduct video conferencing

Q10. VPN stands for

(a) Vital Personal Network
(b) Virtual Personal Network
(c) Virtual Private Network
(d) Vital Private Network

Q11. Your father has an old scooter and you want to replace it with a new scooter. Your father is
not ready to sell old scooter because he thinks he will not get good price for his old scooter and
he cannot afford a new scooter. You found a buyer for your scooter at OLX who was ready to
buy your scooter at a good price so you finally sold your old scooter. Which type of e-commerce
did you use?
(a) B2B (b) B2C
(c) B2E (d) C2C

18
Q12. C2C commerce is best suited for dealing in goods
(a) For which there is no established market
(b) Which cannot be sold through stores
(c) Which are considered harmful for the society
(d) Which are of low standards

Q13. ‘Networked individuals and firms are more efficient thannetworthed individuals’
highlights the importance of
(a) Money (b) Knowledge
(c) Assets (d) Internet

Q14. Find the odd one out

(a) Amazon (b) Snapdeal
(c) Flipcart (d) Snapchat

Q15. Which benefit of e-business is highlighted in the statement ‘accessing anything, anywhere,
anytime?
(a) Speed (b) Global reach
(c) Convenience (d) Low personal touch

Q16. What is known as electronic pulse of e-business?

(a) Man (b) Machine
(c) Money (d) Material

Q17. What is wrong about internet (e-business?)

(a) Internet is without boundary
(b) The benefit of internet technology accrue to big business only
(c) Internet offers convenience
(d) Internet permits to do fabulous business even if one does not have much of the investment
Q18. Information Technology Act 2000 has made it possible to have paperless dealings by
(a) Giving recognition of electronic records
(b) Using electronic records and digital signatures in government agencies
(c) Retaining electronic record
(d) All of the above

Q19. Which of the following is not a limitation of e-business?

(a) Need for technology capability and competence
(b) People resistance
(c) Paperless society
(d) Low personal touch

Q20. Opportunity for inter-personal touch is

(a) More in traditional business than e-business
(b) More in e-business than traditional business

19
 (c) Same in both
(d) None of the above

Q21. Which one of the following cannot be used as payment mechanism in online shopping?
(a) Digital cash
(b) Credit card
(c) Bill of exchange
(d) RTGS

Q22. Rita told Rekha about shopping over internet. Rekha wants to do online shopping. How
many steps she willhave to perform?
(a) 2
(b) 3
(c) 4
(d) 5

Q23. Which is not a security risk while doing online transaction?

(a) Transaction risk
(b) Data storage risk
(c) Threat to intellectual property
(d) Speculative risk

Q24. One day Anuj finds some problem in his computer system. He consults his friend and he
tells that because of VIRUS there is disruption of functioning. What level of VIRUS is it?
(a) Level 1 VIRUS
(b) Level 2 VIRUS
(c) Level 3 VIRUS
(d) Level 4 VIRUS
Q25. Match the following
Technology Function
(i) Cookies a. encodes the message
(ii) Encryption b. verifies customers’ identity
(iii) Cryptography c. protects credit card details
(i) (ii) (iii)
(a) a b c
(b) b a c
(c) b c a
(d) c a b

20
Q26. You ordered a book online. After waiting for few days you enquired at the customer care
service. You were annoyed to listen that the goods were delivered but you never received. If the
goods are delivered at wrong address this is regarded as
(a) default on order taking
(b) default on order giving
(c) default on delivery
(d) none of these

Q27. Your school decided to outsource its non-core activities. What non-core business activities
means
(a) activities outside the scope of business
(b) activities which are incidental to fulfil the basic purpose
(c) activities which are illegal
(d) none of these
Q28. Which activities can be outsourced?
(a) core
(b) non core
(c) both
(d) none of these

Q29. The most important reason underlying the use of outsourcing is

(a) To benefit from the expertise and experience of others
(b) Limit investment
(c) Focus attention to core processes
(d) All of these

Q30. Which of the following is not a segment of outsourcing?

(a) Contract manufacturing
(b) Contract management
(c) Contract research
(d) Contract informatics

Q31. Which of the following is not true about BPO?

(a) It enables the firms to pursue excellence
(b) It enables firms to focus their attention on selected activities
(c) It increases the cost
(d) It helps in growth

Q32. Handling customer queries and grievances by call centre is a

(a) In-bound
(b) Out-bound
(c) Backend
(d) Non-IT based

21
Q33. Offshore outsourcing stimulates all but
(a) Entrepreneurship
(b) Employment
(c) Export
(d) Exploitation

Q34. VIRUS and Hacking are threat to

(a) Data storage
(b) Goods in transit
(c) innovation
(d) use of technology

Q35. E-commerce covers a firms interaction with its ……………. Over the internet.
(a) Customers
(b) Suppliers
(c) Both
(d) None of these

Q36. Which resource is the most important to establish e-business

(a) Favourable location
(b) Websites
(c) Huge funds
(d) Latest machines

Q37. Division of society on the basis of familiarity and non-familiarity with digital technology is
called
(a) Digital divide
(b) Digital India
(c) Tech savvy
(d) Technology competent

Q38. Response time for meeting customer’s requirement in e-business

(a) Long
(b) Instantaneous
(c) Very long
(d) Not fixed

22
 Answer key
1.d 2.a 3.c 4.d 5.d 6.a 7.b 8.c 9.c 10.c
11.d 12.a 13.d 14.d 15.c 16.c 17.b 18.d 19.c 20.a
21.c 22.b 23.d 24.b 25.c 26.c 27.b 28.c 29.d 30.b
31.c 32.a 33.d 34.a 35.c 36.b 37.a 38.b

Unit-6 SOCIAL RESPONSIBILITIES OF BUSINESS

Q1. Which of the following activities are against social responsibility of business?
(a) selling goods at lower prices (b) selling goods of good quality
(c) selling goods of low quality (d) charging faor prices.

Q2. Which of these activities is socially desirable?

a) Black marketing b) hoarding c) adulteration d) none of these.

Q3. Social responsibility is larger than legal responsibility. T/F.

Q4. CSR is a term related to which form of organisation?

a) Sole proprietorship. b) partnership. c) company d) Departmental undertakings.

Q5. Mixing of undesired things with food products is known as

a) Malnutrition b) adulteration c) misconception d) mixture.

Q6. Social responsibility is to be performed by both public and private sector enterprises. T/F.

Q7. Adulteration of food prodicts is permitted by law. T/F

Q8. Social responsibility is enforceable by law. T/F

Q9. Business has nothing to do with social responsibility. T/F.

Q10. In India, social responsibility is being followed since old times by businessman. T/F.

Answers-1.c 2.d. 3.T 4.c 5.b 6.T 7.F 8.F 9.F 10.F.

KINDS OF SOCIAL RESPONSIBILITY AND ENVIRONMENT

1. Which kind of social responsibility is purely voluntary obligation that an enterprise
assumes
a. Economic
b. Discretionary
c. Legal
d. Ethical
2. What is the primary social responsibility of a business

23
 a. Economic
b. Discretionary
c. Legal
d. Ethical
3. What is correct about ethical responsibility
a. It is codified by law
b. It is the behaviour of the firm that is expected by society
c. It arises due to economic benefit of business
d. None of the above

4. …………. Is a major generator of waste in terms of both its quantity and toxicity
a. Vehicles
b. Industry
c. Agricultural waste
d. Deforestation

5. …………. Gas emitted by automobiles contribute to air pollution.

a. Carbon di oxide
b. Nitrogen
c. Carbon monoxide
d. Oxygen

6. Which type of pollution does not contain toxicity pollutant

a. Air pollution
b. Water pollution
c. Land pollution
d. Noise pollution

7. A business should take lead in protecting environment because

a. They are leading creators of wealth
b. They command huge human resources
c. They can not remain unaffected by environmental destruction
d. All of these

8. Match the following

Stakeholders responsibility
(i) Shareholders a.good quality products
(ii) Workers b.obey laws
(iii) Customers c.fair return
(iv) Government d.competitive salary
(i) (ii) (iii) (iv)
a. a b c d
b. c d a b
c. a d c b
d. c b a d
24
 Answer key
1.b 2.a 3.b 4.b 5.c 6.d 7.d 8.b

BUSINESS ETHICS

Q1-The word ‘ethics’ has its origin in the Greek word ‘ethics’ which means-
(a) Law,rules
(b) Policy, law
(c) Norms, ideals
(d) Rules, policy

Q. 2- Ethics are based on

(a) political values
(b) moral values
(c) social values
(d) none of these

Q. 3- The ethics may be written or unwritten codes governing a

professional or human activity. True / false

Q.4- The relationship between business objectives, practices and the

good of society comprises-
(a) business law
(b) business ethics
(c) business economics
(d) none of these

Q. 5- which of the following is not an example of business ethics-

(a) royalty
(b) honesty
(c) integrity
(d) law abiding

Answers: 1(c); 2(b); 3(true); 4(b); 5(a)

BST UNIT-7 SOURCES OF BUSINESS FINANCE

Q1. What is a source of internal financing or self-financing?

a) Trade Credit b) Factoring
c) Retained Earnings d) Lease Financing

25
Q2. Which one of the following is a short term source of finance?
a) Debentures b) Commercial Paper
c) Equity Shares d) Loans from financial Institutions
Q3. __________ is an unsecured promissory note issued by a firm to raise funds for a short
period, varying from 90 days to 364 days.
a) Bill of Exchange b) Bond
C) Debenture d) Commercial Paper
Q4. Funds required to purchase fixed assets like Land and Building, Plant and Machinery and
Furniture and Fixtures are called
a) Business Finance b) Working Capital
C) Fixed Capital d) Commercial Paper
Q5. Which one of the following is included in the category of Owner’s Funds
a) Debentures b) Loans from Banks
c) Equity Shares d) Public Deposits
Q6. Long term sources fulfill the financial requirements of an enterprise for a period exceeding
a) 5 yrs b) 4 yrs
c) 3 yrs d) 2 yrs
Q7. Where the funds are required for a period of more than one year but less than five years,
which sources are used
a) Long term sources b) Medium term sources
c) Short term sources d) Very short term sources
Q8. What are the important sources from where owner’s funds can be obtained
a) Preference Shares b) Equity Shares
c) Retained Earnings d) Both b and c
Q9. Funds that are provided by the owners of an enterprise are known as
a) Debentures b) Deposits
c) Owner’s Funds d) Borrowed Funds
Q10. Short term funds are those which are required for a period not exceeding
a) 1 year b) 6 months
c) 9 months d) 1 yr 6 months
Q11. Which of the following is/are the sources for raising borrowed funds?
a) Retained Earnings b) Issue of Debentures
c) Public Deposits d) Both b and c
Q12. A fixed rate of interest is paid by the borrowers on such funds……
a) Owner’s Funds b) Borrowed Funds
c) Both a and b d) None of These
Q13. A business can generate funds internally by
a) Accelerating collection of receivables b) ploughing back its profits
c) Disposing of surplus inventories d) All of the above
Q14. External funds may be ___________ as compared to those raised through internal sources
a) Cheap b) Costly
c) Large d) Small
Q15. A portion of the net earnings may be retained in the business for use in the future. This is
known as

26
 a) Interest b) Dividend
c) Retained Earnings d) None of these
Q16. Retained Earnings is a ____________ source of funds available to an organization
a) Temporary b Short-term
c) External d) Permanent
Q17. ADRs are issued in
a) Canada b) China
c) India d) USA
Q18. Which funds put a lot of burden on the business as payment of interest is to be made even
when the earnings are low or when loss is incurred
a) Borrowed Funds b) Equity Shares
c) Retained Earnings d) Owner’s Funds
Q19. Excessive ploughing back may cause dissatisfaction amongst the ______________ as they
would get lower dividends
a) Debenture holders b) Shareholders
c) Lenders d) Suppliers
Q20. If the credit is extended by one trader to another for the purchase of goods and services it is
called
a) Trade Credit b) Loan
c) Debt d) Asset
Q21. A merit of retained earnings as a source of finance is that it may lead to ____________ in
the market price of equity shares of a company
a) Increase b) Decrease
c) Fall d) None of these
Q22.Trade Credit is commonly used by business organizations as a source of ___________
financing
a) Long-term b) Short-term
c) Medium-term d) None of these
Q23. A financial service under which the ‘factor’ renders various services is called
a) Trade credit b) Factoring
c) Bills of Exchange d) Public deposit
Q24. In lease financing, the owner of the assets is called the
a) Lessee b) Lessor
c) Lender d) Buyer
Q25. The redeemable is used for
a) Preference shares b) Commercial Paper
c) Equity Shares d) Public Deposits
Q26. Public deposits are the deposits that are raised directly from
a) The public b) The directors
c) The auditors d) The owners
Q27. Rates of interest offered on public deposits are usually _________ than that offered on
bank deposits
a) Lower b) higher
c) Equal d) none of these
Q28. Companies generally invite public deposits for a period upto

27
 a) 2 yrs b) 3 yrs
c) 1 yr d) 4 yrs
Q29. The acceptance of Public Deposits is regulated by
a) RBI b) SBI
c) UBI d) PNB
Q30. Which companies can raise funds through Public Deposits?
a) Public Companies b) Old Companies
c) New Companies d) Both b and c
Q31. Regulation of Commercial Papers comes under the purview of
a) Central Govt. b) State Govt.
c) RBI d) SBI
Q32. Which companies can raise money through Commercial Papers?
a) Public Companies b) Pvt Companies
c) Highly rated firms d) None of these
Q33. Who enjoys the preferential position over equity shareholders are
a) Preference shareholders b) Debenture holders
c) Both a and b d) None of these
Q34. If an investor wants steady income, he/she will prefer
a) Equity shares b) Trade credit
c) Preference shares d) All of these
Q35. The cost of equity shares is generally ____________ as compared to the cost of raising
fund through other sources
a) More b) Less
c) Equal d) None of these
Q36. Which source of finance doesn’t affect the control of equity shareholders over the
management of company?
a) Public deposits b) Preference shares
c) Trade credit d) Commercial Papers
Q37. Who are termed as creditors of the company?
a) Equity shareholders b) Preference shareholders
c) Debenture holders d) All of these
Q38. What is the full form of GDRs?
a) Global Depository Receipts b) Grand Depository Receipts
c) Global Deposit Reserve d) Grand Deposit Reserve
Q39. International Agencies that have emerged over the years to finance international trade
a) International Finance Corporation b) EXIM Bank
c) Asian Development Bank d) All of the above
Q40. Life Insurance Corporation of India (LIC) was set up in
a) 1955 b) 1956
c) 1957 d) 1958

ANSWER KEY
1. C 9. B 17. D 25. A 33. A

28
 2. B 10. A 18. A 26. A 34. C
3. D 11. D 19. B 27. B 35. A
4. C 12. B 20. A 28. B 36. B
5. C 13. D 21. A 29. A 37. C
6. A 14. B 22. B 30. D 38. A
7. B 15. C 23. B 31. C 39. D
8. D 16. D 24. B 32. C 40. B

UNIT-8 SMALL BUSINESS

1. The limit of capital investment in small business is restricted to ............

a)1crore
b)5 crore
c)25 lakhs
d)3 crore
2. In India small scale industries are defined by measuring ......
a) investment in assets
b) investment in building
c) investment in plant and machinery
d) either a and b
3.small business is classified as small scale industry, tiny enterprise, micro business enterprise
based on..........
a) sharecapital
b) capital investment
c) share capital
d) all of these
4. industrial units were in investment in fixed assets of plant and machinery does not
exceed............is Categorized as small scale industry.
a)1 crore
b)5 crore
c) 2 crore
d) none of these
5. The investment ceilings for those small scale industries which are concerned with export
promotion
and modernization is rupees..........
a)5crore
b)2crore.
c)1 crore
d) none of these
6. Whose investment in plant and machinery does not exceed rupees......... Is known as tiny
Enterprise
a)75lakh.

29
 b)50lakh
c) 25lakh
d) none of these
7. Which among the following banks provides financial assistance particularly to small business
a)IDBI
b)ICICI
c)SIDBI
d)IFCI
8............. Is the nodal agency which is responsible for the coordination and development of
village and khadi industries tiny and micro enterprises in rural and urban areas.
a) ministry of small scale industry
b) ministry of agriculture and rural industries
c) both of these
d) none of these
9.NABARD was set up in ...........
a)1988
b)1999
c) 1982
d)1983
10..RSBDC is sponsored by ................
a)SIDBI
b)IDBI
c)NABARD
d) none of these
11.NSIC was set up in ...........
a)1989
b)1956
c)1955
d)1960
12...........is the apex bank set up to meet the credit requirements of small scale sector.
a)IDBl
b)SIDBI
c)NABARD
d) none of these
13.SIDBI commenced its operation on ...........
a)2 April 1992
b)1 April 1992
c)2 April 1990
d) 3 April 1990
14.. Head office of SIDBI is located at ...........
a) New Delhi
b) Lucknow
c) Hyderabad
30
 d) none of these
15. The number of regional offices of SIDBI is........
a) 2
b) 3
c) 5
d) 4
16.NCEUS is constituted in ...............
a) October 2004
b) November 2004
c) September 2004
d) none of these
17.SFCs established under SFC Act of ..........
a)1952
b) 1953
c) 1951
d)1950
18. Handlooms and handicrafts are ............. Industries.
a) modern
b) traditional
c) large scale
d) multinational
19. A single lump sum given by government as a help to an entrepreneur is .............
a) concession
b) subsidy
c)bounty
d) none of these
20. National Small industries corporation was set up in the year........
a)1978
b)1985
c)1990
d)1955
21.RWED stand for ...............
22.WASME stands for ............
23.IRDP stands for.............
24.PMRY stands for .............
25.NCEUS stands for ..........
26.TRYSEM stands for ...............
27.SFURTI stands for ..............
28.SIDO stands for ..............
29.SIDCO stands for..............
30.NSIC stands for ...........
31.RSBDC stands for .............

31
32.DIC stands for ...............
33.WTO stands for.................
34.MSME stands for ..............
35.SISI stands for ............
36.NSIC stands for ..............
37.SIDO stands for ...... .....
38EDII stands for ...............
39.TCO stand for ................
40.NABARD stands for .........
41.SFC stands for ..............
42.RWED stands for .............
43.EOU stands for .........
Answers
1.a
2. c
3.b
4.a
5.a
6.c
7.c
8. b
9.c
10.c
11.c
12.b
13.c
14.b
15.c
16.c
17.c
18.b
19.c
20.d
21.Rural and women entrepreneurship development
22. World association for small and medium enterprises
23. Integrated rural development programme
24. Prime Minister rozgar yojana
25.. National commission for enterprises in the unorganised sector
26. Training of rural youth for self employment
27. Scheme of fund for regeneration of traditional industries
28. Small industries development organisation
29. Small industries development corporation

32
30.National Small industries corporation limited
31. Rural small business development centre
32. District industries centre
33. World trade organization
34. Micro small and medium enterprises
35.Small industries service institute
36. National Small industries corporation
37. Small industries development organisation
38.Entrepreneurship development institute of India
39. Technical consultancy organisation
40.. National bank for agricultural and rural development
41. state financial corporation
42. Rural and women entrepreneurship development
43. Export oriented unit

UNIT-9 INTERNAL TRADE

Q1Large scale retail organization does not includes

1 Departmental Store
2 Speciality shops
3 Multiple shops
4 Cooperative stores
Q2They do business in rental shops or sheds shifting from one location to another are
1 Cheap jacks
2 Hawkers peddlers
3 Street vendors
Q3 They display their good in busy Street corners _________
Q4 Small scale fixed shop traders are
1Mail order houses
2 Departmental stores
3 Street stall holders
Q5A warehousekeeper accepts goods for the purpose of
1Selling
2Packaging
3Export
4Storage
Q6 It helps disabled and elderly people
1 Teleshopping
2 E-commerce
3 Multiple shop
4 Installment system.
Q7 Aim is to economics by buying in common and to retain their profit by selling in common

33
 1Teleshopping
2Web marketing
3Multiple shop
4 Consumer cooperative store.
Q8The risk of bad debts in their business is eliminated particularly when payment is received
through vpp
1Teleshopping
2Mail order trade house
3Departmental Store
4Cooperative store
Q9 It is a network of number of branches situated at different localities in the city or in the
different parts of the country
1Multiple shops
2Consumer cooperative store
3Hire purchase system
4Internet marketing
Q10 __________ are agents who really bring the buyer and seller into contact
1Broker
2Stockist
3Commission agent
4Selling agent
Q11 Wholesalers deal in large quantity of goods
1Medium
2 Large
3Limited
4Small
Q12 A warehouse keeper accept good for the purpose of
1Storage
2Export
3Packaging
4Selling
Q13 When goods are imported for the purpose of export are called as
1Trade
2Home trade
3Entreport
4Foreign trade
Q14 Multiple shops are organised by manufacturer to to eliminate
1Retailer
2Customer
3Middleman
Q15 Features of Departmental Store does not include
1No credit
2Variety of goods

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 3Central location
4Organised as joint stock company
Q16 Large scale retail organisation does not include
1Departmental stores
2Speciality shops
3Multiple shops
4 Cooperative stores
Q17 They do business in rental shops or sheds shifting from one locality to another are
1Cheap jacks
2Hawkers peddlers
3 Street vendors
Q18 They display their goods in busy Street corners __________

Q19 Small scale fixed shop retailers are

1Mail order houses
2Departmental stores
3Street stall holders
Q20 We divide itinerant traded on how many category
1 one
2 two
3 three
4 four
Q21 find the odd one out
1Street traders ,
2Multiple shops,
3Cheap jacks ,
4Hawkers
Q22 Term which is used in trade document to say that mistakes and things that have been
forgotten should be taken into account are_________________

Q23 Service provided by retailer to consumer are

1After sale service
2Help in promotion
3Enabling large scale operation

Q24 find the odd one out

1Departmental Store ,
2Market traders ,
3Mail order business ,
4Supermarket
Q25 One among the following is not large scale fixed retail shop
1Supermarket
2General shop
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 3Departmental Store
4Multiple shop
Q26 Different services provided to manufacturer by retailer
1Convenience in buying
2 New product information
3 Help in promotion
Q27 Write the full form of F ICC l ______________________
Q28 One who bears the risk, grade the product and collect market information
1Retailer
2 Wholesaler
3Consumer
Q29 Small producers for petty traders who carry a product on a bicycle rickshaw on their head
are known as
1Market traders
2Street traders
3Peddlers and hawkers
Q30 Shops selling children garments, men’s wears, ladies shoes and school uniform are known
as
1Second hand shops
2 Street stall holders
3 Speciality shops
Q31 Number of shops with similar appearance are established in localities spread in different
parts of the country are
1 Departmental Store
2 Second hand shops
3 Multiple shops
Q32Goods that are perishable in nature or bulky cannot be easily handle not recommended for
1 Multiple shops
2Mail order houses
3Departmental Store
4Second hand shop
Q33 Identify the type of middlemen who serve as a link between manufacturer and retailer
1Fixed shop retailer
2Wholesaler
3Consumer
4Itinerant retailers
Q34 Wholesaler advisor manufacturer about the aspect related to
1Customers taste and preferences
2Competitive activities
3 Market conditions
4All of the above
Q35 Which of the following is borne by the retailer
1 Risk of obsolescence

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 2 Pilferage disk
3 Storage risk
Q36 This type of retailers do not have any fixed business establishment to operate from
1Market traders
2Cheap jacks
3Peddlers and hawkers
Q37 Which of the following function not performed by retailer
1Grading of product
2 Risk bearing
3 Selling goods in large quantities
Q38 Which of the following is not a type of small scale retailers
1 Grocery shop
2Speciality shop
3Departmental retailer
4Secondary shop
Q39 COD refer to type of transaction in which payment is made of goods
1On delivery
2After delivery
3 Before delivery
ANSWERS KEY:
1 2
2 1
3 street vendors
4 3
5 4
6 1
7 4
8 2
9 1
10 4
11 2
12 1
13 3
14 3
15 4
16 2
17 1
18 street vendors
19 3
20 4
21 2
22 error and omission
23 1
24 2
25 2

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26 3
Federation of Indian Chamber of Commerce and
27 industry
28 2
29 3
30 3
31 3
32 2
33 2
34 4
35 1
36 3
37 3
38 3
39 1

UNIT-10 INTERNATIONAL TRADE

1. Business transactions taking place within the domestic Territory of a country is known as
A. Wholesale trade
B.International trade
C. Small business
D.Home trade
2. Iinternational business includes movement of
A. goods and services
B. Capital and personnel
C.technology and intellectual property rights
D. all of the above
3. ......................is a type of international business where a firm enters into a contract with
one or a few local manufacturers in foreign countries to get certain components or goods
produced as per its specification
A.contract manufacturing
B exporting
C licensing and franchising
D. Joint Ventures
4. At the international level which of the following organisation work for accelerating the
pace of development and trade amongst the nations
A. IMF
B.WTO
C.Both of the above
D. None of the above
5. Contract manufacturing is also known as
A. franchising

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 B. licensing
C Outsourcing
D exporting
6. A contractual arrangement in which one firm grants access to its patents, trade secrets or
technology to another firm in a foreign country in return of certain fee is known as
A. Ooutsourcing
B.licensing
C contract manufacturing.
D. Joint ventures
7. Full form of GATT
A .General arrangement on terms and trade
B. General agreement on trade and terms
C.General agreement on tariffs and trade
D.general agreement on treaty and trade
8. A business arrangement in which two or more companies or individuals agreed to pool
their resources for the purpose of accomplishing a specific task
A. Partnership.
B. B joint ventures.
C. C both of the above.
D. D none of the above
9. Merchandise exports and imports is also known as
A trade in services.
B trade in goods.
C both of the above.
D none of the above
10. The mutual exchange of knowledge, technology and/or patents between the firms of two
different countries is called
A franchising.
B.copyrights
C. Cross licensing.
D Merchandising
11. Which of the following statements are true
A. there is no difference between franchising and licensing
B.franchising applies to services business.
C licensing contains more strict rules then franchising.
D none of the above
12. In which of the following modes of entry into international business, a firm is able to
exercise full control over its operations in foreign countries
A licensing
B franchising
C .contract manufacturing.
D.wholly owned subsidiaries

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13. Foreign investment includes
A.Foreign direct investment.
B.portfolio investment.
C.Foreign intellectual property investments.
D. A and B only
14. IMF stands for
A.Internal Monetary Finance.
B International Money Fund.
C International Monetary finance.
D. International Monetary Fund
15. A document which an exporter sends in reply to the enquiry of prospective buyer in the
form of quotation is known as
A letter of credit
B. shipment bill
C. proforma invoice
D. Mate's Receipt
16. WTO is established on
A 1st July 1995.
B 1st Jan 1996.
C 1st Jan 1995.
D. 1st June 1995
17. Uruguay round results in the establishment of
A. WTO
B. GATT
C. IMF.
D. WHO.
18. IFC stands for
A international fund corporation
B Indian financial corporation
C. International Finance Corporation
D. Indian fund Corporation
19. Which of the following are affiliates of the world bank
A. IDA
B. IFC
C.Both of the above
D. none of the above
20. To provide Development Finance on easy terms to the less developed member countries
is an objective of
A.IFC
B. MIGA.
C. IDA
D. WTO

40
21. To provide finance to private sector of developing countries is an objective of
A.MIGA.
B.IDA.
C. IFC.
D. IMF
22. MIGA was established in
A.April 1989.
B. August 1999.
C. Jan1989.
D. April 1988
23. .................... is an order placed by an importer with an exporter for the supply of certain
goods. A. Shipment bill.
B. bill of lading.
C. Indent.
D letter of credit
24. ECGC stands for
A.Export Custom and Guarantee company
B.Export Credit and Guarantee Corporation.
C. Excise credit and guarantee Corporation.
D. Excise Custom and Guarantee Corporation
25. Persons importing or exporting goods and services are required to have
A. Import Export Code Number
B. Export Import Contact Number
C. Import Export Chat Number
D.the Import Export Clearance Number
26. The receipt is given by commanding officer of the ship to the exporter after the cargo is
loaded on the ship is known as
A. Mate's Receipt
B. Shipment receipt
C. Shipping Bill.
D. Packing receipt.
27. The main document on the basis of which custom office grants permission for the export
A. Bill of lading.
B. Shipping bill
C.Shipment receipt.
D. Mate''s Receipt
28. C&F Agent stands for
A. Clearing and Freight Agent
B. Cargo and Freight Agent.
C. Cargo and Forwarding ,
D. Clearing and Forwarding Agent
29. The refund of excise duty is known as

41
 A.Duty Withdrawn
B. Duty Drawback
C. Duty Refund.
D. Duty Reimbursement
30. A document prepared and signed by the master of the ship acknowledging receipt of
goods on board is known
A.Shipment Receipt.
B. Bill of lading
C.Packing Receipt.
D.Mate's Receipt
31. .................. is a form supplied by custom office to the importer and it is to be fillled in by
the importer at the time of receiving the goods
A.Bill of lading.
B.Bill of entry.
C.Bill of exchange.
D.Proforma Invoice
32. ............... is a type of bill of exchange wherein the the drawer of the bill of exchange
instructs the bank to handover the relevant documents to the importer only against
payment
A. Bill of entry
B. Bill of lading
C.Sight draft.
D. None of the above
33. ................. is a document that exporter sends to the importer informing him that the
shipment of goods has been made.
A.Shipment Bill.
B. Bill Receipt.
C. Shipment Advice.
D.Shipment Challan
34. AoA stands for
A.Arrangement on Association.
B.Arrangement on agriculture.
C.Association of agriculture.
D.Agreement on agriculture
35. Which of the following is not included in WTO Agreement
A. Agreement forming part of GATT.
B. Agreement on Textile and Clothing.
C. General Agreement on Trade in Services.
D. General Agreement on Textile and Trade
36. TRIPS stands for
A. Trade related agreement of individual property rights
B. Trade related aspects of intellectual property rights

42
 C.Trade related agreement of independent property rights.
D.Trade Related Aspects of Intellectual Property Rights
37. MFN stands for
A. Most Favoured Nations.
B. Marine favourable Nation.
C. Multinational Favourable Number.
D. Multinational freight Number
38. For obtaining Import Export Credit Number a firm has to apply
A.Directorate General of Foreign Trade
B. Director Council of Foreign Trade
C.Deputy commissioner of Foreign Trade
D. Director Council of Foreign Treaty
39. Soft Loan is a loan offered at
A. Lower rate than Market Rate of Interest.
B. Higher rate than Market Rate of Interest.
C. A and B both.
D. None of the above
40. GATS Stands for
A. General arrangement tariff and services
B.general agreement on trade in services.
C general arrangement on tariff and subsidies.
D General Agreement on Trade and subsidies

ANSWERS
1. D. 2. D. 3.A. 4 C. 5 C. 6.B. 7.C. 8. B. 9. B.
10.C. 11. B. 12.D. 13 .D. 14. D
15.C. 16. C. 17.A. 18.C. 19. C. 20.C. 21. C
22. C. 23. C. 24.B. 25.A. 26.A. 27. B. 28.D
29.B. 30.B. 31. B. 32.C. 33.C. 34. D. 35.D. 36. D. 37.A. 38. A.
39.A. 40.B

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