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Second Year Theory Subject

Drug Store and Business Management

Corrected
Sr. No. Question Option 2 Option 3 Option 4
answer
1. Trade and Industry
Business means Industry and Trade and Buying and Commerce
1 Commerce Commerce selling of goods

Business is concerned with Economic event Non-economic Social service Financial

event service
2

3 Transport removes the hindrance of Place Persons Time Money

Banking remove the hindrance of Finance Time Place Risk
4

Warehousing removes the hindrance of Time Risk Finance Place

5

Insurance remove the hindrance of Risk Spoilage Place Persons

6

Trade between the countries is known as Foreign trade Import Export Regional trade
7

To bring goods from another country is Import Export Transport Entreport

8 one’s own country is known as

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Buying and selling of goods so as to make True False

9 profit is known as trade is true or false

Characteristic of business activity which Commerce Business Economics Trade

is deals with distribution of goods &
10 services produced by industry called
as........................
2. Forms of business organization
Sole proprietorship also known as One man Partnership Joint stock Private
11 Business business Company company
Karta in Joint Hindu Family Business Senior most Senior most Junior most Capable
12 male member of female member of male member of member
the family the family the family Of the family
The business organization run as Firm Company Joint stock Private
13 partnership is called as company company
Minor partner is the partner below the age 18 16 20 21
14 of
Joint stock company act is govern by Company act Government act Private company Public company
15 1956 1956 act 1956 act 1956
Co-operative organization is --------of Voluntary Involuntary Members Specific
16 persons who are financial
Sleeping partner is also known as Inactive partner Active partner Nominal partner Working
17
partner

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Government company held at least ---- 51 50 90 40

18 percent of its capital held by government
3. Channels of distribution
Wholesaler Manufacturer Producer
19 Retailer is and a direct link with Consumer

Wholesaler acts as a link between Retailer and Retailer And Retailer,

Producer and
20 manufacture retailer producer and
manufacturer
manufacture
Merchant
Heavy machinery is sold to the consumer Functional
21 Direct selling Indirect selling middlemen
by middlemen
On instalment Both cash and
22 In mail order goods are sold on On cash basis On credit basis
basis credit basis
Moving from Street corner
23 Itinerant retailers sell the goods from Fix premises Street walls
place to place
Different types
Specified same
Same types of of goods All types of
24 Multiple shops deals with type of goods
good according to goods
their own choice
Are the agent who obtain neither the Commission
25 Broker Retailer Auctioneers
position nor the ownership agent
Commission
26 Agent sale the goods on behalf of seller Broker Auctioneers Wholesaler
agent
Agent sale goods on behalf of their Broker Commission Carry forward
27 Auctioneers
principals by auction agent agent

4. Drug house management

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Significant Insignificant Immaterial Insignificant

28 Selection of site for a drug store is a--
decision decision factor factor
Retailed drug store can be started with a
29 90-100sq.ft 150sq.ft 200sqft. 70-80sqft
minimum area of-----------
Obstructs the Creates parking
A drugs store opened near traffic light or As a health Leads to
30 customers to problem for the
road circle………….. hazard accident
visit the shop customers
With limited
If a large
financial
Opening a drug store in a big city is With only a number of
31
possible huge investment employees are
available
Resources
The minimum area are required to open
32 10sqmetre 15sq.Metre 20sq.metre 30sq.metre
wholsale drug store is-------------
Which application form is required for sell
33 stock or exhibi t schedule C & C1 Retaile Form no21 Form no22 Form no 20 Form no 23
drugs
Which application form is required for
34 sellstockorexhibitschedulec&C1 Wholsale Form no21b Form no 22a Formno20a Form no 23b
drugs
35 Contracts are also called as Purchase order Buyer order Supplier order Material order
First incidence
36 FIFO means First in First out
first out
The qualification for starting a retail sale
drug store should be D. Pharmacy
Registered from
37 Matriculate 10+2
pharmacist unrecognised
institute

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It also called as Invoice book and is used Purchase day Purchase return Sale return book Sale journal
38 for recording purchase of goods on book book
credit--------------
5. Inventory ontrol
ABC technique in inventory control Always Better Always best Always big Always better
39 means ontrol control concern concern

In ABC inventory control techniques A Costly, 10 % Less costly ,10 % Cheap ,70% Cheap ,10%
40 items are ------- and covers ------ of total
inventories.
VED analysis in inventory control involes Vital items, Vital items Only Essential items Desirable
Essential item only Items only
41 and Desirable
items
V.E.D analysis useful for? Spare parts Raw material Finished goods Food items
42

In V.E.D analysis 'D' stands for? Dessirable items Data of receipt of Deviation of Daily desired
items stock items
43 Answer

EOQ means Economic Effective order Emergency E-order

44 order quantity quantity order quantity quantity
Legitimate scrap is a scarp which is Anticipated in Administrative Defective scrap Advance srcap
45 advance

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According to perpetual inventory system

Data card
the record is following types except: Physical stock
46 Bin card Stores ledger
verification

The level which is below the Minimum

Danger level
Stock Level is called---. Maximum
47 Safety level Re-order Level
stock level

6. Sale promation
------Helps to improve management Marketing Advertisements Salesmanship Newspapers
decision making by providing research
48 relevant,accurate and timely information.

Which techniques are used for sales Coupons Fair and Trading stamp Cash
promotion: except Exhibition
49

Given the following are the media of Trade Television Radio Newspaper
advertisements except associations
50

_____________________ Is irregular in Sale promotion Trade promotion Discount Media planning

51
nature. coupon
A small amount of product is offered to the Sample Coupon Rebate Gift
52 customer for trial is called

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A certificate that gives buyer a kind of Coupon Price pack Premium Rebate/cash
53 saving when they purchase any specified refund offer
item is called
Which concept supplements the work of Sales promotion Cooperative Trade promotion Dealer
54 middlemen? advertising promotion

55 --------- Are the life blood of business Sales Promotipn Finance Capital
A person who is engaged in selling goods Salesman Pharmacist Retailer Wholesaler
56
to the customers is known as
News paper is the example of Press Literature External Miscellaneous
57 advertisement advertisement advertisement advertisement
Sky writing is the example of Outdoor Indoor Oral Miscellaneous
58 advertisement advertisement Advertisement advertisement
Wmdow display plays an important role Sale promotion Customer Easy Time saving
59
in satisfaction identification
7. Recruitment ,Training,Evaluation and ompensation to Pharmacist
Board of Directors which frame the Top Level Middle Level Lower level Bottom level
qualities of enterprise involved in which management management management management
level of managent?
60

Given the following statements are related Selections T involves the Calling large Selections is a
to the selection are true except: includes sorting series of steps by pool of negative
61
of the which the candidates. process

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application and candidates are

final selection. screened

After which step of selection process Reference check Employment test Final interview Preliminary
physical and medical examinations are interview
62 taken.

______First step in selection process. Scrutiny Employment test Application Preliminary

63 applications blank interview

Given the following are the off_the_job Coaching & Conferences Role playing Case studies
ttraning method except: counseling
64

Given the following are the sure of Newspapers Publications International

secondary data except: agencies
International
65
Agencies

---------server as a link between the Board Ceo Deputy manger Branch manger Hod
of Directors and the remaining parts of the
66 organisation.

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Given the following are the function of Eliminating Planning Staffing Controlling
management except:
67

Given the following included in low level

Asst.manger
management except:
68 Clerk Superintendent Supervisor

Given the following are included in top

level management except: Managing
69 Directors Hod Vice chanceller
director

8 . Banking and Finance

It is the systematic classification, Financial Financial Trial balance Transaction
comparison and examination of the facts analysis statement
and figures as disclosed in the statements
61 to have full knowledge regarding
profitability and financial position of
company called as ---------------
The Year That begins from Ist of january Calendar year--- Financial year Leap year Accounting
and ends on 31st of December,is -- year
62

Following are tangible assets except: Goodwill Goods Building Machinery

63

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Amount spent in order to produce and sell Expence Sale Revenue Income
the goods and services is called------.
64

Overdraft facility means Draw a cheque Credit facility Withdrawal of Drafting of

even if no cash cash
65 balance in
account
Idbi means Industrial Indian Identity India
66 development development development development
bank of india bank of india bank of india bank of india

67 Medium term finance valid upto 3to 10 years 3 to 5 years Above 10 years Below 3 years
Land development bank is also known as Land Mortgage Land Purchase Land selling Land service
68 bank bank Bank bank

9 . Introduction to Accounting
Make
What is the important object of accounting?
Depict the information
Exept To maintain the To maintain
69 financial available to
record of service records
position various group
& user
Prepared
Profit and loss
70 Financial accounting is required to financial Budget Balance sheet
account
statements
71 Management accounting helps to Management Worker Employees Government
------- Depicts the financial position of Profit and loss
72 Balance sheet Budget Ledger
enterprises account

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10 . Accounting Concepts and Conventions

Recording -----
Recording-----
Given the following which one is the >classifying ---- Recording ----- Recording-------
>interpeting----
correct step of accounting: ->summarizing-- >summarizing---- ->interpreting---
73 ->classiflying--
-->interpreting >interpreting--- -->classifying---
--
>classifying -->summarizing
:>summarizing
Following are the internal user of
Goverment
accounting except:
74 Management Employees Owners

11 . Recording of the Transaction

Three column One column Two column Multiple
Triple / Three column cash book contain- column
----------------
75

For every debit, there must be a Double entry Single entry Balance sheet Ledger
corresponding credit of equal amount system stystem
76 and for every credit, there must be a
corresponding debit of equal amount is
the principle of ----
Real account
"Debit what comes in & credit " what goes Personal
77 Nominal account Joint account
out is the rule of which account. account
The journal is the book of ----- First entry
78 Second entry Original entry External entry

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Following are the other day books except:

Simple cash Sales return
79 Purchase book Sales book
book book
A cash book which maintained generally in
large business concerns to reduce the
Single column
80 burden of the main cash book is called-----. Petty cash book Purchase book Pass book
cash Book

The column of ledger which links the entry

J.F column
with journal is -------. Particulars Specific
81 L.f column
column column

Posting on the credit side of an account is

written as
82 By To Being For

Impersonal A/c
83 Nominal Account is classified under Personal A/c Real account Capital account

Capital account is classified under Personal A/c

Nominal
84 Real A/c Nominal A/c
account
12. Trail balance
It is the statement prepared to check the Trial balance. Financial Budget Ledger
arithmetical accuracy of the book- statement
85 keeping entries up to the date started at
the head of ------------

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Method of preparation of Trial Balance Balance Analysis method Trial method Plus method
86 is----- method .

After the preparation of ledgers, the next

Trial balance
step is the preparation of Profit and Loss
87 Cash book Loss account
Account

Trial Balance is prepared on:

End of the year For the period Starting of the
88 A particular date
ending year
Account
Trial balance is a:
89 Ledger Summary Statement

13. Financial statements

It helps the management to detect the Ratio analysis Financial analysis Solvency ratio Financial
90 weakness and strength of the firm--------- statement
-------
Objectives of financial statements is to The nature and The nature and The nature and Neither The
know----- extent of the extent of the extent of the nature and
91 assets.and liabilities. assets extent of the
liabilities assets nor
liability
The two statements prepared at the end Financial Final account Transaction Trial balance
of the accounting period of the enterprise statement
92 viz. The balance sheet and profit and loss
account calle as---------------

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Statement
93 Balance sheet is a Account Ledger Journal

Capital is a Liability
94 Liability Income Profit

A written document in support of a

Voucher
transaction is called-----
95 Receipt Credit note Journal

-------Indicates the state of affairs of the

organization in terms of its assets and Balance sheet
96 liabilities. Journal Ledger Account

14.Introduction to budgeting
It is written plan covering projected Budget Financial Trial balance Transaction
activities of the firm for definite period of statement.
97 time which include planning,
coordinating and controlling the
operation known as --------------
Following are the types of budget according Production
98 Current budget Sale budget Master budget
to the function except budget
---Budget prepared for a short period Short term
99 Current budget Sale budget Fixed budget
,generally a month or a quarter. bugdet
Budgets which are preparation for a long
Long term
100 period, generally for 5 to 10 years is called Short term bugdet Fixed budget Current budget
budget
-

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Gross profit or
Net profit or loss
loss Financial
101 Trading account is prepared to find out Loss account
position

102 Net profit is added to Capital Gross profit Drawings Assets

Indirect
Wages is an example of
expenses
103 Direct expenses Capital expenses Extra expenses

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