Business English: Finance & Economics

(Multiple Choice Questions) (15x1=15 Marks)

Note: Take a printout of this sheet, tick the right option of each question and submit the hard copy.
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1. The Concept of Choice is:

A. A Human Right;
B. A Democratic Right;
C. A Free Good;
D. A Problem that is Due to the Scarcity of Resources
2. When Society is choosing whether to apply Labour-Intensive or Capital-Intensive Method of
Production, it addresses the Basic Economic Problem of:
A. What Commodities to Produce and in What Quantities
B. How to Produce
C. Where to Produce
D. For Whom to Produce

3. The Main Features of a Market Economy Include:

A. Private Property;
B. Freedom of Choice and Enterprise;
C. A Price System;
D. A, B and C Are Correct
4. Select The Group that Best Represents the Basic Factors of Production.
A. Land, Labour, Capital, Entrepreneurship
B. Land, Labour, Money, Management Skills
C. Land, Natural Resources, Labour, Capital
D. Land, Labour, Capital, Technology
5. Which of The Following Indicates That There is a Shortage in the Market?
A. Demand is Rising
B. Demand is Falling
C. Price is Rising
D. Price is Falling

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6. Which of the following Form of Business Organization is Least Regulated?
A. Sole-Proprietorship
B. General Partnership
C. Limited Partnership
D. Corporation

7. In Which Form of Business, Owners Have Limited Liability.

A. Sole Proprietorship
B. Partnership
C. Joint Stock Company
D. None of The Above

8. Finance is Vital for Which of the Following Business Activity (Activities)?

A. Marketing Research
B. Product Pricing
C. Design Of Marketing And Distribution Channels
D. All of The Given Options

9. An Investigation of Financial Statements Designed to Determine their Fairness in Relation to

Generally Accepted Accounting Principles is Called Which of the Following?
A. Internal Control Structure
B. External Control Structure
C. Bookkeeping
D. Audit
E. Management Accounting

10. The Principle of Financial Markets is to:

A. Allocate Savings Efficiently.

B. Lower The Yield On Bonds.
C. Manage Inflation.
D. Boost The Price of Common Stocks.

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11. Which of The Following Would be included in a Cash Budget?

A. Depreciation Charges.
B. Patent Amortization.
C. Goodwill.
D. Dividends.

12. Which of the following is Not a Cash Outflow for the firm?

A. Interest Payments.
B. Dividends.
C. Depreciation.
D. Taxes.

13. Budget is prepared for a…

A. Indefinite Period
B. Definite Period
C. Period of One Year
D. Six Months

14. Usually The Production Budget is Stated in Terms of…

A. Money
B. Quantity
C. Both
D. None

15. What is a flexible budget?

A. A budget that does not change through the budget period
B. A budget that shows a detailed schedule of expected sales for the budget period
C. A budget that does not change as volume changes
D. A budget that adjusts for changes in the volume of activity

Note: Do write your Name, SAP ID, Class and Roll No. on the TOP of the Answer Sheet.