CA Foundation BCK Chapter 1

TEST PAPER 2

1. Transfer of interest is possible in:

(a) Business
(b) Profession
(c) Employment
(d) All of the above

2. Professional codes are used as the ethnical guidance in case of:

(a) Business
(b) Profession
(c) Employment
(d) All of the above

3. Letter of appointment and service agreement are the mode of establishment in case of
(a) Business
(b) Profession
(c) Employment
(d) All of the above

4. Consider the following table showing columns for the nature of economic occupation and
the corresponding characterization of income. And, then, choose the right solution option from
the alternatives given below the table.
(a) i-c; ii-d; iii-e; iv-a; v-b
(b) i-b; ii-c; iii-d; iv-e; v-a
(c) i-b; ii-e; iii-a; iv-d; v-c
(d) i-c; ii-d; iii-e; iv-a; v-b

5. The attribute of a profession does not include.

(a) Certificate of service from government
(b) Self-imposed code of conduct
(c) Rendering of specialised nature of services
(d) All of the above

6. The periodic compensation, in case of employment, refers to:

(a) Wages
(b) Salaries
(c) Both (a) & (b)
(d) Lump Sum amount payable on retirement.

7. Business as a Institution is ________.

(a) Job creator
(b) Job seeker
(c) Both
(d) None of the above

CA VIJAY SARDA 8956651954

 CA Foundation BCK Chapter 1
TEST PAPER 2

8. The entire spectrum of market oriented activities coming under industry, trade and
commerce is ________.
(a) Business
(b) Profession
(c) Employment
(d) All of the above

9. Which of the following is organic objective of business?

(a) Fitness of Human Resources
(b) Community Service
(c) Effective waste handling and disposal
(d) Economic Value Added

10. The source of livelihood in case of business is:

(a) Professional fee
(b) Profit
(c) Wages
(d) Salaries.

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

12. Which of the following statements distinguishes business from entrepreneurship?

(a) Entrepreneurs are the business owners too
(b) All business owners are entrepreneurs too
(c) Entrepreneurs seek out new opportunities and pursue innovative business ideas
(d) (a) and (b)

13. Which are of the following does not require any investment?
(a) Small business
(b) Business
(c) Profession
(d) Employment.

14. The Logo of Institute of Chartered Accountants of India (ICAI) is suggestive of ________.
(a) Integrity
(b) Vigilance
(c) Profession
(d) None of these

CA VIJAY SARDA 8956651954

 CA Foundation BCK Chapter 1
TEST PAPER 2

15. The Micro, Small, Medium and Large Enterprises are defined with respect to the:
(a) Number of employees
(b) Number of Products
(c) Area Served
(d) Size of investment.

16. Which of the following occupations requires rendering of services based upon specialised
knowledge and membership of an accreditation and assessment body?
(a) Employment
(b) Profession
(c) Business
(d) Agriculture

17. In which of the following case, the qualifications are strictly prescribed?
(a) Business
(b) Profession
(c) Employment
(d) Trading

18. Which of the following statement is false as regards profession?

(a) It is rendering of services of a specialized nature.
(b) Prescribed qualifications.
(c) Works under a certificate of practice from an established certification.
(d) The Source of livelihood is profit.

19. Trading implies buying for the purposes of selling. Applying this criterion, tell which of
the following activities would not qualify as trading?
(a) Purchase of goods in bulk quantity from the manufacturer and sale in smaller quantities
to the retailers.
(b) Buying from the wholesaler and selling it to the consumers.
(c) Buying from the retailer for self - consumption.
(d) Purchase of raw materials from the suppliers for further processing in the factory.

20. Which one of following is true, in economics and finance?

(a) Risk and uncertainty are synonymous.
(b) Risk can be calculated in advance but not uncertainty.
(c) Uncertainty can be calculated but not rise.
(d) Under uncertainties, Risk must be zero.

21. Sustainable development/businesses imply:

(a) Consistent economic performance
(b) Attention to social problems
(c) Harmony with nature
(d) All of the above

CA VIJAY SARDA 8956651954

 CA Foundation BCK Chapter 1
TEST PAPER 2

22. ________ suggests that business must be assessed not only in terms of their economic
returns but also on the basis of their social and ecological returns.
(a) The objectives of business.
(b) The Plurality of Business.
(c) The vision of Business.
(d) The mission of Business.

23. The choice of an appropriate form of business organization depends upon:

(i) Ease of formation
(ii) Liability of aspects
(iii) Capital adequacy
(a) Only I
(b) Only m
(c) i&m
(d) I, n & m

24. On the basis of size and scale of the activity undertaken, business may be classified as:
(a) Micro, Small, medium & large.
(b) Public and Private.
(c) Big and Small.
(d) Small Scale and Large Scale.

25. Business ownership is a bundle of ________.

(a) Benefits.
(b) Rights.
(c) Obligations.
(d) Advantages.

26. The shared ownership is beneficial because.

(a) There is sharing of risks.
(b) There is sharing of Profits.
(c) There is sharing of Benefits.
(d) There is sharing of Expenses.

27. ________ form of business is/are appropriate for retail business.

(a) Sole proprietorship
(b) Partnership
(c) Company
(d) Both (a) and (b)

28. Which form of business organisation has a separate legal entity?

(a) Hindu Undivided Family (HUF)
(b) Co-operative society
(c) Partnership firm
(d) Sole proprietorship.

CA VIJAY SARDA 8956651954

 CA Foundation BCK Chapter 1
TEST PAPER 2

29. Which of the following Statement is incorrect?

(a) The Business ownership accrues because a person has invested money in it.
(b) A business may be owned single or jointly.
(c) Business may be organized as a Proprietary concern or a Corpo-rate concern.
(d) Joint family business is not a business.

30. In case of ________, there is a separation of ownership and management.

(a) Sole Proprietorship.
(b) Partnership.
(c) Co-ownership.
(d) Company.

1. (a) 2 (b) 3 (c) 4. (c) 5. (a) 6. (c)

7. (a) 8. (a) 9. (a) 10. (b) 11. (b) 12. (c)

13. (d) 14. (b) 15. (d) 16. (b) 17. (b) 18. (d)

19. (c) 20. (b) 21. (d) 22. (b) 23. (d) 24. (a)

25. (b) 26. (a) 27. (d) 28. (b) 29. (d) 30. (d)

CA VIJAY SARDA 8956651954