MCQ Questions for Class 11 Business Studies

Chapter 1 Nature and Purpose of Business with

Answers
Nature and Purpose of Business Class 11 MCQs Questions with
Answers
Question 1.
Business risk is not likely to arise due to
(a) Changes in government policy
(b) Good management
(c) Employee dishonesty
(d) Power failure

Answer
Answer: (b) Good management

Question 2.
The industries which provide support services to other industries are known as
(a) Primary industries
(b) Secondary industries
(c) Commercial industries
(d) Tertiary industries

Answer
Answer: (d) Tertiary industries

Question 3.
The occupation in which people work for others and get remunerated in return is known as
(a) Business
(b) Profession
(c) Employment
(d) None of these

Answer
Answer: (c) Employment
Question 4.
Which of the following does not characterize business activity?
(a) Production of goods & services
(b) Presence of risk
(c) Sale or exchange of goods and services
(d) Salary and wages

Answer
Answer: (d) Salary and wages

Question 5.
Economic activities may be classified into business, ___________ and employment
(a) Profession
(b) occupation
(c) vocation
(d) work

Answer
Answer: (a) Profession

Question 6.
Human activities are of ____________ types
(a) One
(b) two
(c) three
(d) four

Answer
Answer: (b) two

Question 7.
Following are the characteristics of business risks. One of then is not correct. Please identify it.
(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

Answer
Answer: (a) Loss is the reward for risk bearing
Question 8.
Commerce includes activities relating to trade and _________________ to trade.
(a) Supporting
(b) subsidiaries
(c) auxiliaries
(d) none of these

Answer
Answer: (c) auxiliaries

Question 9.
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

Answer
Answer: (a) Routine workload

Question 10.
Which of the following cannot be classified as an objective of business?
(a) Investment
(b) Productivity
(c) Innovation
(d) Profit earning

Answer
Answer: (a) Investment

Question 11.
Which of the following cannot be classified as an auxiliary to trade?
(a) Mining
(b) Insurance
(c) Warehousing
(d) Transport

Answer
Answer: (a) Mining
Question 12.
Which of the broad categories of industries covers oil refinery and sugar mills?
(a) Primary
(b) Secondary
(c) Tertiary
(d) None of these

Answer
Answer: (b) Secondary

Question 13.
Which of the following is not an example of non-economic activity?
(a) Patriotism
(b) teaching
(c) sentiment
(d) sympathy

Answer
Answer: (b) teaching

Question 14.
Transfer of interest exists in the case of
(a) Profession
(b) employment
(c) business
(d) none of these

Answer
Answer: (c) business

Question 15.
‘Earning of profit is considered to be the subsidiary objective of the business.’ The given statement is
(a) True
(b) false
(c) cannot say
(d) None

Answer
Answer: (b) false
Question 16.
Name the two broad categories of business activities.
(a) Trade and commerce
(b) trade and industry
(c) industry and commerce
(d) none of these

Answer
Answer: (c) industry and commerce

Question 17.
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

Answer
Answer: (b) Business risks

One Mark Questions

1. What is Economic activity?

Answer
Answer: Human activities which are performed in exchange for money or money’s worth are called
economic activities

2. Name any one type of economic activity.

Answer
Answer: Business

3. What is business?

Answer
Answer: Business refers to an occupation in which people regularly engage in activities related to
purchase, production and/or sale of goods and services with a view to earning profits.

4. Write any one characteristics of business activity.

Answer
Answer: Economic activity

5. Mention the two broad categories of business activity.

Answer
Answer: Industry and Commerce

6. Name any one type of Primary industry.

Answer
Answer: Extractive industry

7. Name any one type of Secondary industry.

Answer
Answer: Manufacturing

8. Give an example for Extractive Industries.

Answer
Answer: Mining

9. Give an example for Genetic Industries.

Answer
Answer: Poultry farming

10. Give an example for Manufacturing Industries.

Answer
Answer: Sugar Industry

11. Give an example for Construction Industries.

Answer
Answer: Construction of dams

12. What is trade?

Answer
Answer: Buying and selling of goods is termed as trade.

13. What do mean by Auxiliary to trade?

Answer
Answer: Activities which are meant for assisting trade are known as auxiliaries to trade.

14. Mention any one objective of business.

Answer
Answer: It is a source of income for business person.

15. Give an example for Service industry.

Answer
Answer: Transport

16. What do you mean by hindrance of trade?

Answer
Answer: All those obstacles that business man faces for conducting business activities or trade
activities termed as hindrance of trade.

17. State any one type of hindrance of trade?

Answer
Answer: Hindrance of Place

18. State any one type of business risk.

Answer
Answer: Operational risk

19. What is meant by non economic activity?

Answer
Answer: Non-economic activities are those performed out of love, sympathy, sentiments, patriotism
etc.

20. Give an example for non-economic activity?

Answer
Answer: A Worker working in factory
21. Give an example for profession.

Answer
Answer: Lawyer

22. Give an example for analytical industry.

Answer
Answer: Crude oil processed and separated into petrol, diesel, kerosene etc.

23. Give an example for synthetic industry.

Answer
Answer: Cement is produced by mixing concrete, gypsum, coal etc.

24. Give an example for processing industry.

Answer
Answer: Textile industry

25. Give an example for assembly line industry.

Answer
Answer: Manufacturing vehicles

MCQ Questions for Class 11 Business Studies

Chapter 2 Forms of Business Organisation with
Answers
Forms of Business Organisation Class 11 MCQs Questions with
Answers
Question 1.
At least 10 adults, no maximum limit in case of ________
(a) Cooperative Society
(b) Joint Hindu Family
(c) Partnership
(d) Company

Answer
Answer: (a) Cooperative Society

Question 2.
What is the limit of members in case of a Private Company?
(a) 2
(b) 7
(c) 10
(d) 50

Answer
Answer: (d) 50

Question 3.
The life of sole proprietorship business is ___________
(a) Unstable
(b) Stable
(c) Very short life
(d) Long life

Answer
Answer: (a) Unstable

Question 4.
Provision of residential accommodation to the members at reasonable rates is the objective of
(a) Consumers cooperative
(b) Credit cooperative
(c) Housing cooperative
(d) Producers cooperative

Answer
Answer: (c) Housing cooperative

Question 5.
The capital of a company is divided into number of parts each one of which are called
(a) Share
(b) Dividend
(c) Profit
(d) Interest

Answer
Answer: (a) Share

Question 6.
The maximum number of partners allowed in the banking business are
(a) Two
(b) Twenty
(c) No limit
(d) Ten

Answer
Answer: (d) Ten

Question 7.
In a cooperative society the principle followed is
(a) One share one vote
(b) One man one vote
(c) No vote
(d) Multiple votes

Answer
Answer: (a) One man one vote

Question 8.
The structure in which there is separation of ownership and management as per law is called
(a) Company
(b) All business organisations
(c) Partnership
(d) Sole proprietorship
Answer
Answer: (a) Company

Question 9.
Co-operatives play an important role in:
(a) aerospace.
(b) agriculture.
(c) manufacturing.
(d) all of the above.

Answer
Answer: (b) agriculture.

Question 10.
Which of the following is a characteristic of a co-operative?
(a) profits are not subject to income tax.
(b) one vote per share.
(c) dividends are paid on a per share basis.
(d) all of the above.

Answer
Answer: (a) profits are not subject to income tax.

Question 11.
A__________ provides for the greatest degree of continuity:
(a)general partnership.
(b) joint venture.
(c) corporation.
(d) sole proprietorship.

Answer
Answer: (c) corporation.

Question 12.
Which of the following is probably the most important reason for incorporating?
(a)limited liability of shareholders.
(b) more money for investment.
(c) increased flexibility.
(d)shared management.

Answer
Answer: (a) limited liability of shareholders.

Question 13.
A_____________partner is an owner who has unlimited liability and is active in managing the firm:
(a) senior partner.
(b) general partner.
(c) silent partner.
(d) limited partner.

Answer
Answer: (b) general partner.

Question 14.
A ___________ is a business with two or more owners:
(a) corporation.
(b) conglomerate.
(c) partnership.
(d) public corporation.

Answer
Answer: (c) partnership.

Question 15.
Which of the following is an advantage of a sole proprietorship?
(a) ease of starting a business.
(b) being your own boss.
(c) pride of ownership.
(d) all of the above.

Answer
Answer: (d) all of the above.

Question 16.
The form of business organization that has the largest sales volume is the:
(a) partnership.
(b) corporation.
(c) cooperative.
(d) multinational.

Answer
Answer: (b) corporation.

Question 17.
In case of ___________ Registration is compulsory
(a) Sole Proprietorship
(b) Partnership
(c) None of these
(d) Company

Answer
Answer: (d) Company

Question 18.
Hindu Succession Act was passed in _____________
(a) 1952
(b) 1960
(c) 1932
(d) 1956

Answer
Answer: (d) 1956

Question 19.
A partner whose association with the firm is unknown to the general public is called
(a) Active partner
(b) Sleeping partner
(c) Nominal partner
(d) Secret partner

Answer
Answer: (d) Secret partner
Question 20.
The Head of the joint Hindu family business is called
(a) Manager
(b) Proprietor
(c) Karta
(d) Director

Answer
Answer: (c) Karta

Question 21.
Profits do not have to be shared. This statement refers to
(a) Company
(b) Sole proprietorship
(c) Joint Hindu family business
(d) Partnership

Answer
Answer: (b) Sole proprietorship

Question 22.
The board of directors of a joint stock company is elected by
(a) General public
(b) Government bodies
(c) Shareholders
(d) Employees

Answer
Answer: (c) Shareholders

Question 23.
The karta in Joint Hindu family business has
(a) No liability for debts
(b) Unlimited liability
(c) Joint liability
(d) Limited liability

Answer
Answer: (b) Unlimited liability
Question 24.
The most effective form of business organization for raising capital is the:
(a) joint venture.
(b) partnership.
(c) corporation.
(d) proprietorship.

Answer
Answer: (c) corporation.

Question 25.
The major advantage of a franchise is:
(a) training and management assistance.
(b) personal ownership.
(c) nationally recognized name.
(d) all of the above.

Answer
Answer: (d) all of the above.

Question 26.
Which of the following is an example of a non profit organization?
(a) Royal Bank.
(b) YMCA.
(c) BCE.
(d) Air Canada.

Answer
Answer: (b) YMCA.

Question 27.
Which of the following is an example of a public corporation?
(a) Imperial Oil.
(b) Hospital for Sick Children.
(c) Mouvement Caisse Desjardin.
(d) YMCA.

Answer
Answer: (a) Imperial Oil.
Question 28.
A partner who is not actually involved in the partnership but lends his name for public relations
purposes is a:
(a) silent partner.
(b) general partner.
(c) nominal partner.
(d) dominant partner.

Answer
Answer: (c) nominal partner.

Question 29.
The main disadvantage of a general partnership is:
(a) the unlimited liability of the partners.
(b) disagreement amongst partners.
(c) shared management.
(d) difficulty of termination.

Answer
Answer: (a) the unlimited liability of the partners.

Question 30.
The simplest form of business ownership is a:
(a) proprietorship.
(b) partnership.
(c) corporation.
(d) cooperative.

Answer
Answer: (a) proprietorship.

One Mark Questions

1. Write any one type of forms of business organisations.

Answer
Answer: Partnership firm
2. Give the meaning of sole trading concern.

Answer
Answer: Sole trading concern refers to a form of business organisation which is owned, managed and
controlled by an individual who is the recipient of ail profit bearer of all risks.

3. Give any one example to sole trading concern.

Answer
Answer: Home Healthcare

4. Who is Karta?

Answer
Answer: The head of the Hindu Joint Family also called the Karta

5. State the minimum & maximum members in partnership.

Answer
Answer: Minimum Number of members is 2 and maximum is 10 in case, of banking and 20 in case of
business.

6. Write any one effect of non-registration of a partnership

Answer
Answer: No suit by a partner against other partners or firm.

7. Write any one type of partnership firm.

Answer
Answer: Limited Partnerships
8. Give the meaning of co-operative society.

Answer
Answer: The co-operative society is a voluntary association of persons, who join together with the
motive of welfare.

9. State the minimum and maximum members required for the formation of a co-operative society.

Answer
Answer: Minimum of 5 and maximum is unlimited.

10. Name any one type of co-operative society.

Answer
Answer: Consumer co-operative society

11. State the liability of a sole trader.

Answer
Answer: Unlimited liability

12. State the liability of Karta.

Answer
Answer: Unlimited liability

13. Which act governs the partnership firms in India?

Answer
Answer: Indian Partnership Act 1932

14. Which act governs the co-operative societies in India?

Answer
Answer: Co-operative Societies Act, 1912

15. State the liability of members of co-operative societies.

Answer
Answer: Limited liability

16. State the voting principles in co-operative societies.

Answer
Answer: One man one vote

17. State the main objectives of co-operative societies.

Answer
Answer: Enhanced cooperation

18. State the liability of co-parceners.

Answer
Answer: The liability o f coparceners is always limited in nature.

19. Who is minor partner?

Answer
Answer: A partner one who have not attained the age of 18 years is called as minor partner.

20. Is registration of partnership compulsory?

Answer
Answer: As per Indian partnership Act 1932, it is not compulsory for registration of partnership.

MCQ Questions for Class 11 Business Studies

Chapter 3 Private, Public and Global Enterprises
with Answers
Private, Public and Global Enterprises Class 11 MCQs Questions
with Answers
Question 1.
Disinvestments of PSE’s implies
(a) Sale of equity shares to private sector/public
(b) Closing down operations
(c) Investing in new areas
(d) Buying shares of PSE’s

Answer
Answer: (a) Sale of equity shares to private sector/public

Question 2.
PSE’s are organisations owned by
(a) Joint Hindu family
(b) Government
(c) Foreign Companies
(d) Private entrepreneurs

Answer
Answer: (b) Government

Question 3.
A government company is any company in which the paid up capital held by the government is not
less than
(a) 49 percent
(b) 51 percent
(c) 50 percent
(d) 25 percent
Answer
Answer: (b) 51 per cent

Question 4.
Indian economy is a
(a) socialist economy
(b) pure market economy
(c) mixed economy
(d) traditional economy

Answer
Answer: (c) mixed economy
Expalnation:
India is a mixed economy.

Question 5.
Which of the following enterprises may benefit the most by an established brand name at the time of
incorporation?
(a) Departmental Undertaking
(b) Government Company
(c) Statutory corporations
(d) Joint Venture

Answer
Answer: (d) Joint Venture
Expalnation:
This is the correct answer. When two parties enter a joint venture one of the parties benefits from the
other’s goodwill, which has already been established in the market. With an established brand name
there is a ready market waiting for the product to be launched. A lot of investment is saved in the
process.

Question 6.
Which of the following types of organisations has the capability of expansion of market territory and
operates through a network of subsidiaries, branches and affiliates?
(a) MOFA
(b) MNC
(c) Public Sector enterprises
(d) Private sector enterprises

Answer
Answer: (b) MNC
Explanation:
Multi National Corporations are global enterprises that undertake expansion of market territories
extending beyond the physical boundaries of their own country. They operate through a network of
subsidiaries, branches and affiliates in their host countries.

Question 7.
Which of the following statements regarding recent Government policy measures towards the public
sector is/are true?
a. Restructuring and reviving potentially viable PSU’s.
b. Closing down of those PSU’s that can not be revived.
c. Bringing down government equity in all non strategic PSU’s to 50 percent or lower.
d. Fully protecting the interest of workers.
(a) Only a, b and c
(b) Only a, c and d
(c) Only a, b and d
(d) Only b, c and d

Answer
Answer: (c) Only a, b and d
Explanation:
This is the correct option. These are the true statements regarding recent Government Policy
measures towards the public sector.

Question 8.
In the 2001 resolution on industrial policy the number of industries exclusively reserved for the public
sector was brought down. This meant that the private sector can now enter all areas, except these and
the public sector would have to compete with them. Which of the following areas are now exclusive for
the public sector?
a. Atomic energy
b. Arms
c. Communication
d. Railways
(a) Only a, b and c
(b) Only a, c and d
(c) Only a, b and d
(d) Only b, c and d

Answer
Answer: (c) Only a, b and d
Expalnation:
This the correct option because atomic energy, arms and railways are exclusive to the public sector
only.
Question 9.
The public sector enterprises are to invest and operate in certain spheres. Which of the following is not
one of these core sectors?
(a) Civil aviation
(b) Power generation plants
(c) Pharmaceuticals
(d) Project management consultancies

Answer
Answer: (c) Pharmaceuticals
Explanation:
This is a core sector where the government invested through public sector enterprises.

Question 10.
The shares of a Government Company are purchased in the name of which of the following?
(a) The Indian Government.
(b) The President of India.
(c) The Chief Minister of the state, where the head office of the company lies.
(d) The Managing Director of the company.

Answer
Answer: (b) The President of India.
Explanation:
This is correct. The shares of a Government Company are purchased in the name of the President of
India.

Question 11.
The funding of which of the following enterprise comes directly from the government treasury, is under
an annual appropriation from the budget of the government and the revenue earned by it is also paid
into the treasury?
(a) Departmental undertaking
(b) Statutory corporation
(c) Government company
(d) Cooperatives

Answer
Answer: (a) Departmental undertaking
Explanation:
This is the correct answer. The funding for a departmental undertaking comes directly from the
government treasury, is under an annual appropriation from the budget of the government and the
revenue earned by it is also paid into the treasury.
Question 12.
Which of the following is true about statutory corporations?
(a) Statutory corporations are public enterprises that come into existence by a special act of the
parliament.
(b) Statutory corporations are subject to the same accounting and audit procedures as are applicable
to government departments.
(c) Statutory enterprises are funded directly by the government treasury.
(d) The employees of statutory enterprises are civil servants.

Answer
Answer: (a) Statutory corporations are public enterprises that come into existence by a special act of
the parliament.
Explanation:
This is the correct answer. Statutory corporations come into existence by a special act of the
parliament.

Question 13.
Reconstruction of sick public sector units is taken up by
(a) MOFA
(b) MoU
(c) BIFR
(d) NRF

Answer
Answer: (c) BIFR

Question 14.
Centralised control in MNC’s implies control exercised by
(a) Branches
(b) Subsidiaries
(c) Headquarters
(d) Parliament

Answer
Answer: (c) Headquarters

Question 15.
Which of the following is/are the correct way(s) of forming a joint venture company?
a. Two parties can incorporate a company in India and the business of both parties can be transferred
directly to the new company.
b. The above two parties can subscribe to the shares of the joint venture company in agreed
proportion, in cash, and start a new business.
c. Promoter shareholder of an existing Indian company and another party may jointly collaborate to
jointly carry on the business of that company.
(a) Only a
(b) Only b
(c) Only c
(d) Only a and b
(e) Only b and c

Answer
Answer: (e) Only b and c
Explanation:
This is the correct answer as both these statements are correct.

Question 16.
All joint ventures in India require government approvals if a foreign partner or a Non Resident Indian is
involved. The approval can be obtained from which of the following?
(a) RBI
(b) FIPB
(c) BIFR
(d) All of these
(e) Either RBI or FIPB

Answer
Answer: (e) Either RBI or FIPB
Explantion:
This is the correct answer. Reserve Bank of India gives approval if the joint venture is covered under
the automatic route. Foreign Investment Promotion Board has to approve a joint venture specially, if it
is not covered under the automatic route and it is a special case.

Question 17.
Which of the following roles are played by the public sector in the economy?
a. Regional balance
b. Economies of scale
c. Check over concentration of economic power
d. Import substitution
e. Development of infrastructure
(a) Only a, b and d
(b) Only a, c, d and e
(c) Only a, b, c and e
(d) Only b, c, d and e
(e) All of these

Answer
Answer: (e) All of these
Explanation:
This is the correct answer, as all these factors are important roles played by the public sector in the
development of the nation.

Question 18.
All public sector units were referred to _______________, to decide whether a sick unit was to be
restructured or closed down.
(a) PSU
(b) MOFA
(c) MoU
(d) BIFR

Answer
Answer: (d) BIFR
Explanation:
This is the correct option the Board of Industrial and Financial Reconstruction decides, whether a sick
unit is to be restructured or closed down.

Question 19.
Which of the following was the first successful privatisation of a Central Public Sector Undertaking,
carried out by the Government?
(a) BBUNL
(b) LJMC
(c) MMTC
(d) MoU

Answer
Answer: (b) LJMC
Explanation:
This was the first successful privatisation of a Central Public Sector Undertaking, carried out by the
Government. Lagan Jute Machinery Company was a Calcutta based company that was in decline, In
the initial stages of dis investment LJMC was approved for privatisation through sale of 74 % stake to
a strategic partner.

Question 20.
Which of the following has the power of the Government and the considerable amount of operating
flexibility of private enterprises?
(a) Departmental Undertakings
(b) Statutory Corporations
(c) Government companies
(d) All of the above

Answer
Answer: (b) Statutory Corporations
Explanation:
This is the correct answer. These are public corporations brought into existence by a Special Act of
Parliament. It is a corporate body created by legislature and is a corporate person. Thus, these have
the power of the Government and the considerable amount of operating flexibility of private
enterprises.

Question 21.
According to the Indian Companies Act 1956, a government company means, any company in which
not less than _______________ of the paid up capital is held by the central government or partly by
central government, and partly by one or more state governments.
(a) 100 percent
(b) 91 percent
(c) 75 percent
(d) 51 percent

Answer
Answer: (d) 51 percent
Explanation:
This is the correct answer. The paid up capital by the government is not less than 51 percent.

Question 22.
The forms of organisation which a public enterprise may take are?
a. Departmental undertaking
b. Cooperative
c. Statutory corporation
d. Government company
(a) Only a, b, and c
(b) Only a, c and d
(c) Only b, c and d
(d) Only a, b and d

Answer
Answer: (b) Only a, c and d
Explanation:
This is the correct answer because departmental undertaking, statutory corporation and government
companies are all forms of public enterprise.

ONE MARK QUESTIONS

1. Mention any two types of Public enterprises.

Answer
Answer: (a) Departmental Undertakings
(b) Government Companies

2. Give an example for departmental undertaking.

Answer
Answer: Railway department

3. Give an example for statutory corporations.

Answer
Answer: Karnataka state road transportation corporation (KSR.TC)

4. Mention any one feature of statutory corporations.

Answer
Answer: Government Control

5. Mention any one feature of Government companies.

Answer
Answer: Ownership

6. Mention any one feature of MNC’s.

Answer
Answer: Large Scale operations

7. Give an example for MNCs.

Answer
Answer: Sony

8. Give an example for Joint venture.

Answer
Answer: Maruthi Suzuki

9. State any one feature of Joint venture.

Answer
Answer: Single Business

10. State the minimum amount of capital held by the government in government companies.

Answer
Answer: The minimum amount of capital held by the government is not less than 51% of paid up
capital by state or central government.

MCQ Questions for Class 11 Business Studies

Chapter 4 Business Services with Answers
Business Services Class 11 MCQs Questions with Answers
Question 1.
CWC stands for_______.
(a) Central Water Commission
(b) Central Warehousing Commission
(c) Central Warehousing Corporation
(d) Central Water Corporation

Answer
Answer: (c) Central Warehousing Corporation
Question 2.
Which of the following is not a function of insurance?
(a) Risk sharing
(b) Assist in capital formation
(c) Lending of funds
(d) None of the above

Answer
Answer: (b) Assist in capital formation

Question 3.
DTH services are provided by________.
(a) Transport companies
(b) Banks
(c) Cellular companies
(d) None of the above

Answer
Answer: (c) Cellular companies

Question 4.
The validity period of a demand draft is
(a) One month
(b) Two Months
(c) Three months
(d) Six Months

Answer
Answer: (c) Three months

Question 5.
DTH services are provided by
(a) Transport Company
(b) Banks
(c) Cellular Company
(d) None of these

Answer
Answer: (c) Cellular Company
Question 6.
Which of the following is an allied postal service-
(a) Greeting post
(b) Media post
(c) Speed post
(d) Passport Application

Answer
Answer: (c) Speed post

Question 7.
The functions of a commerce include
(a) acceptance of deposits
(b) granting of loans
(c) Locker facility
(d) all the above

Answer
Answer: (d) all the above

Question 8.
Time utility is created by
(a) Transportation
(b) Banking
(c) Warehousing
(d) Communication

Answer
Answer: (a) Transportation

Question 9.
Which of the following is not applicable in life insurance contract?
(a) Conditional contract
(b) Unilateral contract
(c) Indemnity contract
(d) None of the above

Answer
Answer: (c) Indemnity contract
Question 10.
The benefits of public warehousing includes_______.
(a) Control
(b) Flexibility
(c) Dealer relationship
(d) None of the above

Answer
Answer: (b) Flexibility

Question 11.
It is not a type of general insurance
(a) Marine Insurance
(b) Fidelity Insurance
(c) Fire Insurance
(d) Life Insurance

Answer
Answer: (d) Life Insurance

Question 12.
What is the full form of WWW
(a) world wide width
(b) world wide work
(c) world wild web
(d) world wide web

Answer
Answer: (d) world wide web

Question 13.
Which is considered as the cheapest means of transportation
(a) Air
(b) Road
(c) Water
(d) Railway

Answer
Answer: (c) Water
Question 14.
Which of the following is a contract of Indemnity
(a) Marine Insurance
(b)Fire Insurance
(c) Life Insurance
(d) all the above

Answer
Answer: (b) Fire Insurance

Question 15.
Which is the central Bank of India
(a) Central Bank
(b)State Bank of India
(c) Bank of India
(d) Reserve Bank of India

Answer
Answer: (d) Reserve Bank of India

One Mark Questions

1. Give the meaning of‘Service’.

Answer
Answer: Anything which is done by a person to another person for consideration is called service.

2. State any two types of services.

Answer
Answer: (a) Business Services
(b) Social Services

3. What do you mean by e-banking?

Answer
Answer: Electronic banking refers to banking where the transaction or the activities of banking is
carried out through internet.

4. Define Bank.

Answer
Answer: A bank is a financial institution licensed to receive deposits and make loans.

5. Expand MICR.

Answer
Answer: Magnetic ink character recognition

6. What is meant by EFT?

Answer
Answer: Electronic Funds Transfer (EFT) is a system of transferring money from one bank account
directly to another without any paper money changing hands.

7. State any one marine risk.

Answer
Answer: Sinking in ship

8. Who is an Insured?

Answer
Answer: The person who obtains or is otherwise covered by insurance on his or her health, life, or
property.
9. Name the act regulating banking business in India.

Answer
Answer: Banking regulatory Act 1949

10. Name any one type of Bank account.

Answer
Answer: Saving Bank Account

11. Name any one Banking service.

Answer
Answer: Bank Overdraft

12. Who is Insurer?

Answer
Answer: The person who undertakes to indemnify is called the insurer.

13. What is Insurance Policy?

Answer
Answer: The written document which contains the terms and conditions of the contract of insurance is
called insurance policy.

14. State one type of Insurance.

Answer
Answer: Life insurance
15. Mention one type of Postal service.

Answer
Answer: Mail Facilities

16. Expand MODA.

Answer
Answer: Multiple Option Deposit Accounts

17. Expand NEFT.

Answer
Answer: National Electronic Funds Transfer

18. Expand MIS.

Answer
Answer: Monthly Income Scheme

19. Expand SCSS.

Answer
Answer: Senior Citizen Savings Scheme

20. Expand ATM.

Answer
Answer: Automated Teller Machine
21. Expand IMO.

Answer
Answer: Instant Money Order

22. Expand EPS.

Answer
Answer: Electronic Payment & Service

23. Expand EMO.

Answer
Answer: Electronic Money Order

24. Expand VAST

Answer
Answer: Very Small Aperture Terminal

MCQ Questions for Class 11 Business Studies

Chapter 5 Emerging Modes of Business with
Answers
Emerging Modes of Business Class 11 MCQs Questions with
Answers
Question 1.
Here, parties involved in the electronic transactions are from within a given business firm, hence, the
name is ________
(a) Intra-C Commerce
(b) Intra-D Commerce
(c) Intra-B Commerce
(d) Intra-A Commerce

Answer
Answer: c) Intra-B Commerce
Question 2.
Both Sellers and buyers are business firms, under ___type of e-commere transaction
(a) B2B Commerce
(b) C2B Commerce
(c) B2C Commerce
(d) C2C Commerce

Answer
Answer: (a) B2B Commerce

Question 3.
Which method is very popular for making online transactions?
(a) Credit Card
(b) All of these
(c) Net banking
(d) Debit Card

Answer
Answer: (d) All of these

Question 4.
____________ refers to contracting out some of its activities to a third party which were earlier
performed by the organisation.
(a) BPO
(b) E-Commerce
(c) Outsourcing
(d) E-Banking

Answer
Answer: (c) Outsourcing

Question 5.
Under what method payment is made at the time of physical delivery of goods
(a) Cash on delivery
(b) Debit card payment
(c) Credit card payment
(d) Prepaid amount
Answer
Answer: (a) Cash on delivery

Question 6.
It is not an application of e-business
(a) Contract R&D
(b) Online trading
(c) Online procurement
(d) Online bidding

Answer
Answer: (a) Contract R&D

Question 7.
The payment mechanism typical to e-business
(a) Credit and Debit Cards
(b) Cash on Delivery (CoD)
(c) Cheques
(d) e-Cash

Answer
Answer: (a) Credit and Debit Cards

Question 8.
e-commerce does not include
(a) A business?s interactions with its customers
(b) Interactions among the various departments within the business
(c) A business?s interactions with its suppliers
(d) Interactions among the geographically dispersed units of the business

Answer
Answer: (b) Interactions among the various departments within the business

Question 9.
____transactions have business firms at one end and its customers on the other end.
(a) C2B Commerce
(b) B2C Commerce
(c) B2B Commerce
(d) C2C Commerce

Answer
Answer: (b) B2C Commerce

Question 10.
Complaint lodged by a customer at the company?s call centre is _______ type of e-business
transaction.
(a) C2C Commerce
(b) C2B Commerce
(c) B2C Commerce
(d) B2B Commerce

Answer
Answer: (b) C2B Commerce

Question 11.
Both buyers and sellers are customers under_______ type of e-business transaction
(a) C2C Commerce
(b) B2C Commerce
(c) C2B Commerce
(c) B2B Commerce

Answer
Answer: (a) C2C Commerce

Question 12.
India is the preferred destination for BPO because of ____________
(a) Tax Free Zone for BPOs
(b) Cheap People
(c) Cheap Manpower
(d) Poor conditions

Answer
Answer: (c) Cheap Manpower
Question 13.
Out of e-commerce and e-business, which is a broader term?
(a) None of these
(b) both e-business and e-commerce are same thing
(c) e-commerce
(d) e-business

Answer
Answer: (d) e-business

Question 14.
A Call Centre handles
(a) Both customer facing and back-end business
(b) Both voice based and non-voice based business
(c) Only out-bound voice based business
(d) Only in bound voice based business

Answer
Answer: (a) Both customer facing and back-end business

Question 15.
Outsourcing
(a) Includes off shoring
(b) Restricts only to the contracting out of Information Technology Enabled Services (ITES)
(c) Restricts only to the contracting out of non-core business processes
(d) Includes contracting out of manufacturing and R&D as well as service processes ? both core and
non-core ? but restricts only to domestic territory

Answer
Answer: (a) Includes off shoring

One Mark Questions

1. What is e-business?

Answer
Answer: Electronic Commerce is sharing business information, maintaining business relationships and
conducting business transactions by means of telecommunications networks.
2. Expand B2B

Answer
Answer: Business to Business.

3. What is Intra-B?

Answer
Answer: This refers to transactions between the parties or persons who are the part of one firm only.

4. Expand C2C.

Answer
Answer: Consumer to consumer

5. Write one benefit of the e-business.

Answer
Answer: Global reach

6. Expand COD.

Answer
Answer: Cash on Delivery.

7. Mention-one limitation of e-business.

Answer
Answer: Low Personal touch
8. What are cookies?

Answer
Answer: Cookies is a small piece of data sent from a website and stored on the user’s computer by the
user’s web browser while the user is browsing.

9. Expand BPO.

Answer
Answer: Business Process outsourcing

10. What is plastic money?

Answer
Answer: Credit Card, Debit card, ATM card etc are, used as alternative to money such as cash or
cheque, and are made of plastic, th% are also called as Plastic money.

MCQ Questions for Class 11 Business Studies

Chapter 6 Social Responsibilities of Business and
Business Ethics with Answers
Social Responsibilities of Business and Business Ethics Class 11
MCQs Questions with Answers
Question 1.
Which of the following alone can ensure effective ethics programme in a business enterprise?
(a) Publication of a code
(b) Involvement of employees
(c) Establishment of compliance mechanisms
(d) None of them

Answer
Answer: (b) Involvement of employees
Question 2.
Which of the following is capable of doing maximum good to society?
(a) Business success
(b) Laws and regulations
(c) Ethics
(d) Professional management

Answer
Answer: (c) Ethics

Question 3.
Carbon monoxide emitted by automobiles directly contributes to
(a) Water pollution
(b) Noise pollution
(c) Land pollution
(d) Air pollution

Answer
Answer: (d) Air pollution

Question 4.
That an enterprise must behave as a good citizen is an example of its responsibility towards
(a) Owners
(b) Workers
(c) Consumers
(d) Community

Answer
Answer: (d) Community

Question 5.
If business is to operate in a society which is full of diverse and complicated problems, it may have
(a) Little chance of success
(b) Great chance of success
(c) Little chance of failure
(d) No relation with success or failure

Answer
Answer: (a) Little chance of success
Question 6.
“Ethics deals with the right actions of individuals.” Who said?
(a) Peter F. Drucker
(b) C. S. Rao
(c) J. R. Betty
(d) C. Zahe

Answer
Answer: (a) Peter F. Drucker

Question 7.
Which of the following statements about ethical standards are TRUE?
(a) The upper limits of ethical standards are set by individual standards
(b) The laws of economically developed countries generally define the lowest common denominator of
acceptable behaviour
(c) The actual degree of enforcement of the law in an underdeveloped country would determine the
lower limit of permissible behaviour
(d) All of the above

Answer
Answer: (d) All of the above

Question 8.
Which statement is true?
(a) Human values system plays a vital role in total quality management
(b) Values give the real meaning to total quality management effort
(c) Total quality management is a corporate management strategy
(d) All of the above

Answer
Answer: (d) All of the above

Question 9.
The national Society of Professional Engineers had a code, which requires professionals to
(a) Dissociate themselves from organizations that are of a questionable character
(b) Further the cause of public good
(c) Advise clarity, the consequences, if a technical opinion is overruled by a non-technical person
(d) All of the above

Answer
Answer: (d) All of the above
Question 10.
Which one of the following is not principle business ethics?
(a) Principle of universality
(b) Principle of humanity
(c) Principle of autonomy
(d) Principle of dissatisfaction

Answer
Answer: (d) Principle of dissatisfaction

Question 11.
Which of the following does not contribute to the development of a manager’s standard of ethics?
(a) competitor behaviours
(b) society’s norms and values
(c) individual life experiences
(d) environmental situations

Answer
Answer: (a) competitor behaviours

Question 12.
The hand-of-government refers to the
(a) ability of the government to interfere in business negotiations
(b) role of corporations to be profitable within the law
(c) effect of national politics on business decisions
(d) impact of changing government regulations

Answer
Answer: (d) the consequences of the act are substantial

Question 13.
According to the concept of moral intensity, a worker is most likely to behave ethically and legally
when
(a) a manager observes his or her behavior closely
(b) the worker has intense morals
(c) the consequences of the act are minor
(d) the consequences of the act are substantial
Answer
Answer: (d) the consequences of the act are substantial

Question 14.
Corporate social responsibility that extends beyond legal mandates can help meet societal
expectations in the absence of
(a) Statutory devices
(b) Social tool
(c) Cost tool and Techniques
(d) Science tool

Answer
Answer: (a) Statutory devices

Question 15.
If you believe in making decisions for the good of most people, you can be described as following
which school of thought?
(a) utilitarianism
(b) teleology
(c) deontology
(d) egoism

Answer
Answer: (a) utilitarianism

Question 16.
Ethics is important for
(a) Top management
(b) Middle-level managers
(c) Non-managerial employees
(d) All of them

Answer
Answer: (d) All of them

Question 17.
Which of the following can explain the need for pollution control?
(a) Cost savings
(b) Reduced risk of liability
(c) Reduction of health hazards
(d) All of them

Answer
Answer: (d) All of them

Question 18.
Environmental protection can best be done by the efforts of
(a) Business people
(b) Government
(c) Scientists
(d) All the people

Answer
Answer: (d) All the people

Question 19.
Business people have the skills to solve
(a) All social problems
(b) Some social problems
(c) No social problems
(d) All economic problems

Answer
Answer: (c) No social problems

Question 20.
Social responsibility is
(a) Same as legal responsibility
(b) Broader than legal responsibility
(c) Narrower than legal responsibility
(d) None of them

Answer
Answer: (b) Broader than legal responsibility
Question 21.
Unethical behaviour is often triggered by
(a) pressure from higher management to achieve goals
(b) an organizational atmosphere that condones such behaviour
(c) both (a) & (b)
(d) a system of checks and balances

Answer
Answer: (c) both (a) & (b)

Question 22.
The business community’s aversion to binding international legal standards governing corporate
operations contrasts with its strong advocacy of international law commitments applied to the
obligation of governments towards
(a) Banks
(b) Business and Shareholder itself
(c) Suppliers
(d) Foreign investors

Answer
Answer: (d) Foreign investors

Question 23.
Milton Friedman stated his belief that ‘there is only one social responsibility’ for a company to use its
resources to
(a) give as much to charitable causes as possible
(b) ensure employment
(c) provide good facilities for workers
(d) increase profits so long as it stays within the rules of the game

Answer
Answer: (d) increase profits so long as it stays within the rules of the game

Question 24.
Which is the approach to corporate planning?
(a) Customers and workers satisfaction
(b) Planning skills
(c) Optimising
(d) All of the above

Answer
Answer: (d) All of the above

Question 25.
Which is the aspects of TQM efforts?
(a) Problem solving tools
(b) Internal service quality
(c) Total involvement of all personnel
(d) None of the above

Answer
Answer: (d) None of the above

Question 26.
The ethical dilemma of choosing between two rights refers to
(a) choosing between the lesser of two evils
(b) deciding which of two employee rights is the most important
(c) deciding to offer a bribe or lose out on an important opportunity
(d) choosing between the two types of sexual harassment

Answer
Answer: (a) choosing between the lesser of two evils

Question 27.
Which statement is true?
(a) Skills are not enduring due to fatigue
(b) The final proof of sincerity and seriousness is uncompromising emphasis on integrity of character
in a job
(c) The mental contents of the good person are called moral and ethical values
(d) All of the above

Answer
Answer: (d) All of the above

Question 28.
Which statement is/are true?
(a) Ethics is not synonymous to religious morality or moral theology
(b) Ethics is the principle that guide the human behaviour
(c) The terms ‘ethics’ and ‘morality’ are not synonymous terms
(d) All of the above

Answer
Answer: (d) All of the above

Question 29.
The elements of management system in quality environment of TQM is
(a) Method and procedure
(b) Process
(c) Focus
(d) All of the above

Answer
Answer: (d) All of the above

Question 30.
The environmental analysis includes
(a) Political conditions
(b) Social factors
(c) Economic conditions
(d) All of the above

Answer
Answer: (d) All of the above

One Mark Questions

1. State any one argument for social responsibility of business.

Answer
Answer: Favourable environment of business

2. State any one argument against social responsibility of business.

Answer
Answer: Lack of social skills
3. State any one of the social responsibility of business towards investors.

Answer
Answer: Chairman and directors of the company should be easily accessible to the investors.

4. Stateany one ofthe social responsibility of business towards consumers.

Answer
Answer: Right Information about product

5. State any of the causes for pollution.

Answer
Answer: Population growth

6. Mention any one of the type of pollution.

Answer
Answer: Air Pollution

7. State any one need for pollution control.

Answer
Answer: Reduced risks of liability

8. What is business ethics?

Answer
Answer: Business ethics is the set of values, principles and standards governing the moral conduct of
the business.
9. State any of the elements of business ethics.

Answer
Answer: Involving employees at all levels

MCQ Questions for Class 11 Business Studies

Chapter 7 Formation of a Company with Answers
Formation of a Company Class 11 MCQs Questions with Answers
Question 1.
Preliminary Contracts are
(a) binding on the Company
(b) binding on the Company, if ratified after incorporation
(c) binding on the Company, after incorporation
(d) not binding on the Company

Answer
Answer: (d) Not binding on the Company

Question 2.
Stages in the formation of a public company are in the following order
(a) Promotion, Commencement of Business, Incorporation, Capital Subscription
(b) Incorporation, Capital Subscription. Commencement of Business, Promotion
(c) Promotion, Incorporation, Capital Subscription, Commencement of Business
(d) Capital Subscription, Promotion, Incorporation, Commencement of Business

Answer
Answer: (c) Promotion, Incorporation, Capital Subscription, Commencement of Business

Question 3.
A proposed name of Company is considered undesirable if
(a) It is identical with the name of an existing company
(b) It resembles closely with the name of an existing company
(c) It is an emblem of Government of India, United Nations etc.
(d) In case of any of the above

Answer
Answer: (d) In case of any of the above
Question 4.
Minimum number of members to form a public company is
(a) 5
(b) 7
(c) 12
(d) 21

Answer
Answer: (b) 7

Question 5.
The company needs to obtain prior permision from central government when it changes the address of
its registered office from
(a) one city to another city
(b) with in the same city
(c) one state to another
(d) one country to another country

Answer
Answer: (c) one state to another

Question 6.
A person cannot hold directorship in more than ____ public companies
(a) 3
(b) 10
(c) 20
(d) 7

Answer
Answer: (c) 20

Question 7.
Powers, rights, remuneration, qualification and duties of directors are discussed clearly in
(a) Memorandum of Association
(b) Articles of Association
(c) Prospectus
(d) none of the above
Answer
Answer: (b) Articles of Association

Question 8.
__________ means the total amount of called up capital on the shares issued and subscribed by the
shareholders on capital account.
(a) Called-up capital
(b) subscribed capital
(c) nominal capital
(d) Paid-up capital

Answer
Answer: (a) Called-up capital

Question 9.
_____________ share capital has priority both in repayment of dividend as well as capital.
(a) Equity
(b) non preference
(c) Preference
(d) all of the above

Answer
Answer: (c) Preference

Question 10.
Par value of shares means the __________ value of the shares
(a) Actual
(b) face
(c) Market
(d) dividend

Answer
Answer: (b) face

Question 11.
The Prospectus must be issued to the public within ______________ days of its date
(a) 30
(b) 60
(c) 90
(d) 100

Answer
Answer: (c) 90

Question 12.
A copy of the ________________ must accompany each from of application for shares offered to the
public.
(a) Memorandum of association
(b) Prospectus
(c) Articles of association
(d) None of the above

Answer
Answer: (b) Prospectus

Question 13.
___________ cannot give invitation to the public to subscribe for any shares in or debentures of the
company
(a) Subsidiary company
(b) Statutory Company
(c) Private company
(d) Registered company

Answer
Answer: (c) Private company

Question 14.
A private company means a company which has a minimum paid up capital of Rs.————-
(a) 1,00,000
(b) 5,00,000
(c) 50,00,000
(d) none of the above

Answer
Answer: (a) 1,00,000
Question 15.
The shares of a _______________ company can be freely transferable
(a) Private ltd
(b) Public ltd
(c) Partnership
(d) all of the above

Answer
Answer: (b) Public ltd

Question 16.
“Men may come and men may go but the company exist”- this explains which characteristics of the
company as per companies Act 1956
(a) Separate legal entity
(b) Perpetual Succession
(c) Capacity to sue
(d) None of the above

Answer
Answer: (b) Perpetual Succession

Question 17.
Which of the following clause of Memorandum of Association cannot be altered
(a) Name
(b) Object
(c) situation
(d) liability

Answer
Answer: (d) liability

Question 18.
Which of the following is not a clause of memorandum of association
(a) situation
(b) capital
(c) subscription
(d) directors

Answer
Answer: (d) directors
Question 19.
The company will be considered as separate person and different from its members from the date
(when the) _____________
(a) start of business
(b) Apply for registration
(c) receive incorporation certificate
(d) mentioned in certificate

Answer
Answer: (d) mentioned in certificate

Question 20.
The certificate of capital will be issued by
(a) Registrar of companies Act
(b) Controller of companies Act.
(c) Registrar of capital issues
(d) controller of capital issues

Answer
Answer: (d) controller of capital issues

Question 21.
A statement of nominal capital must be given at the time of incorporation by the company when the
share capital is less than
(a) 50 Lakh
(b) 1 crore
(c) 10 Lakh
(d) 25 Lakh

Answer
Answer: (d) 25 Lakh

Question 22.
The address of the registered office of the company must be notified to the registrar within _________
days of registration, if it is not done at the time of incorporation
(a) 15
(b) 30
(c) 60
(d) 45
Answer
Answer: (b) 30

Question 23.
The application for registration of a company should be presented to the _______________ of the
state appointed under Companies Act 1956
(a) Controller
(b) registrar
(c) Governor
(d) registration officer

Answer
Answer: (b) registrar

Question 24.
Minimum number of members required to apply for incorporation certificate in a public ltd company is
(a) 3
(b) 2
(c) 7
(d) 50

Answer
Answer: (c) 7

Question 25.
Preliminary Contracts are signed
(a) Before the incorporation
(b) After incorporation but before capital subscription
(c) After incorporation but before commencement of business
(d) After commencement of business

Answer
Answer: (a) Before the incorporation

Question 26.
A prospectus is issued by
(a) A private company
(b) A public company seeking investment from public
(c) A public enterprise
(d) A public company

Answer
Answer: (b) A public company seeking investment from public

Question 27.
Application for approval of name of a company is to be made to
(a) SEBI
(b) Registrar of Companies
(c) Government of India
(d) Government of the State in which Company is to be registered

Answer
Answer: (b) Registrar of Companies

Question 28.
Minimum number of members to form a private company is
(a) 2
(b) 3
(c) 5
(d) 7

Answer
Answer: (a) 2

Question 29.
Private company prohibits any invitation or acceptance of deposits from persons other than its
___________
(a) Members
(b) directors
(c) Partners
(d) banks

Answer
Answer: (a) Members
Question 30.
A company is known as the _______company of another company if it has control over that other
company.
(a) subsidiary
(b) holding
(c) controlling
(d) statutory

Answer
Answer: (b) holding

Question 31.
For example Par value is Rs10 and it is issued at Rs15 then Rs5 is the ___________ amount
(a) Profit
(b) Market value
(c) dividend
(d) premium

Answer
Answer: (d) premium

Question 32.
__________ means the total amount of called up share capital which is actually paid to the company
by the members
(a) nominal capital
(b) reserve capital
(c) called up capital
(d) Paid-up capital

Answer
Answer: (d) Paid-up capital

Question 33.
The dividend payable to ___________ share holders is payable on fixed figure or percent
(a) Equity
(b) non preference
(c) Preference
(d) all of the above

Answer
Answer: (c) Preference
Question 34.
_______________ capital means the sum mentioned in the capital clause of Memorandum of
Association
(a) Full capital
(b) Maximum capital
(c) share capital
(d) Nominal Capital

Answer
Answer: (d) Nominal Capital

Question 35.
If the company can make arrangements for raising the capital privately so that pubic appeal is
unnecessary, the company is required to prepare a _________________
(a) Prospectus
(b) statement in lieu of Prospectus
(c) certificate of Prospectus
(d) none of the above

Answer
Answer: (b) statement in lieu of Prospectus

Question 36.
A Government Company means any company in which not less than 51% of the paid-up share capital
is held by
(a) Central Government
(b) State government
(c) Both a & b
(d) Neither a nor b

Answer
Answer: (c) Both a & b

Question 37.
A private company means a company which has a minimum paid up capital of Rs.————-
(a) 1,00,000
(b) 5,00,000
(c) 50,00,000
(d) none of the above
Answer
Answer: (b) 5,00,000

Question 38.
_________ are the company created by special act of the legislature
(a) Registered company
(b) Public Ltd Company
(c) Private ltd company
(d) Statutory company

Answer
Answer: (d) Statutory company

Question 39.
The liability of the members of the company can be limited by
(a) Share
(b) Guarantee
(c) Both a & b
(d) Neither a nor b

Answer
Answer: (c) Both a & b

Question 40.
When the registered office of a company is changed within a city then it has to be intimated to the
registrar within ________ days of such change
(a) 60
(b) 45
(c) 30
(d) 7

Answer
Answer: (c) 30

Question 41.
If a company is instructed to change its name which resembles the name of an existing company then
the company can change the name by
(a) Passing a special resolution
(b) obtaining permission from central government
(c) Passing an ordinary resolution
(d) Both a & b

Answer
Answer: (c) Passing an ordinary resolution

Question 42.
Number of clauses in Memorandum of Association is
(a) 5
(b) 6
(c) 7
(d) 8

Answer
Answer: (b) 6

Question 43.
The articles of association needs to be signed by
(a) all proposed directors
(b) registrar
(c) subscribers of memorandum
(d) none of the above

Answer
Answer: (c) subscribers of memorandum

Question 44.
If the proposed nominal capital is more than 25 lakh at the time of incorporation then the company
needs to submit ________________ along with the application
(a) statement of capital
(b) certificate of incorporation
(c) certificate of capital
(d) certificate of incorporation

Answer
Answer: (c) certificate of capital
Question 45.
Among the following which documents are not mandatory to be submitted to the registrar along with
incorporation application by a private company.
(a) Address of Registered office & undertaking
(b) Undertaking and statement of capital
(c) statement of capital & list of directors
(d) list of directors and statement of capital

Answer
Answer: (a) Address of Registered office & undertaking

Question 46.
Number of documents to be submitted, by a public ltd company, to the registrar while applying for
incorporation of the company is
(a) 3
(b) 2
(c) 7
(d) 50

Answer
Answer: (c) 7

Question 47.
The application for registration of a company should be presented to the registrar of the state in which
the _______________ of the company is to be situated
(a) Manufacturing plant
(b) first branch
(c) business office
(d) any of the above.

Answer
Answer: (c) business office

Question 48.
Section 12 of Companies Act 1956, deals with
(a) Incorporation
(b) Share capital
(c) Number of Directors
(d) Share holders

Answer
Answer: (a) Incorporation

True/False Questions

1. It is necessary to get every company incorporated, whether private or public.

Answer
Answer: True

2. Statement in lieu of prospectus can be filed by a public company going for a public issue.

Answer
Answer: True

3. A private company can commence business after incorporation.

Answer
Answer: True

4. Experts who help promoters in the promotion of a company are also called promoters.

Answer
Answer: False

5. A company can ratify preliminary contracts after incorporation.

Answer
Answer: False

6. If a company is registered on the basis of fictitious names, its incorporation is invalid.

Answer
Answer: False

7. ‘Articles of Association’ is the main document of a company.

Answer
Answer: False

8. Every company must file Articles of Association.

Answer
Answer: Flase

9. A provisional contract is signed by promoters before the incorporation of the company.

Answer
Answer: False

10. If a company suffers heavy issues and its assets are not enough to pay off its liabilities, the
balance can be recovered from the private assets of its members.

Answer
Answer: False

One Mark Questions

1. Mention minimum and maximum number if members in private company. Minimum of two members
and maximum is

Answer
Answer: fifty
2. Mention minimum and maximum number of members in public company.

Answer
Answer: Minimum of seven members and maximum is unlimited.

3. Which type of company issue prospectus?

Answer
Answer: Public Company issue prospectus.

4. Is it necessary to get company incorporated?

Answer
Answer: Yes.

5. At what stage private company a can commence its business.

Answer
Answer: A private company can commence its business after getting incorporation certificate.

6. ‘ Which is the main document of Joint Stock Company?

Answer
Answer: Memorandum of Association and Article of Association are the main documents of Joint Stock
Company.

7. Name two stages in formation of company.

Answer
Answer: (a) Promotion
(b) Incorporation
8. Mention two certificates required for Joint Stock Company.

Answer
Answer: (a) Incorporation certificate
(b) Commencement of Business Certificate.

9. What is Article of association?

Answer
Answer: Article of association are the rules regarding internal management of a company.

10. Mention any one type of Joint Stock Company.

Answer
Answer: Public company is one of the type of Joint Stock Company

11. Name the company in which shares are freely transferable.

Answer
Answer: Public company shares are freely transferable.

12. State the minimum capital required in public companies.

Answer
Answer: Public companies should have a minimum Paid up capital of Rs.5,00,000.

13 State the minimum capital required in private companies.

Answer
Answer: Private companies should have a minimum Paid up capital of Rs. 1,00,000.
14. Mention any one function of promoters.

Answer
Answer: Identification of Business Opportunity

15. What are qualification shares?

Answer
Answer: It refers to the requirement that a member of the board must hold a vested interest in the
operation of the enterprise in the form of company stock.

16. At what stage public company can start its business?

Answer
Answer: After getting commencement of business certificate a public company can start its business

17. Name the act which governs Joint Stock Companies in India.

Answer
Answer: Company act of 1956.

18. How many members have to sign the Memorandum of Association in public limited companies?

Answer
Answer: At least 7 members have to sign the Memorandum of Association in public limited companies

19. How many members have to sign the Memorandum of Association in private limited companies?

Answer
Answer: At least 2 members have to sign the Memorandum of Association in public limited companies
MCQ Questions for Class 11 Business Studies
Chapter 8 Sources of Business Finance with
Answers
Formation of a Company Class 11 MCQs Questions with Answers
Question 1.
Internal sources of capital are those that are
(a) generated through outsiders such as suppliers
(b) generated through loans from commercial banks
(c) generated through issue of shares
(d) generated within the business

Answer
Answer: (d) generated within the business

Question 2.
Under the factoring arrangement, the factor
(a) Produces and distributes the goods or services
(b) Makes the payment on behalf of the client
(c) Collects the client’s debt or account receivables
(d) Transfer the goods from one place to another

Answer
Answer: (c) Collects the client’s debt or account receivables

Question 3.
Under the lease agreement, the lessee gets the right to
(a) Share profits earned by the lessor
(b) Participate in the management of the organization
(c) Use the asset for a specified period
(d) Sell the assets

Answer
Answer: (c) Use the asset for a specified period
Question 4.
ADRs are issued in
(a) Canada
(b) China
(c) India
(d) USA

Answer
Answer: (d) USA

Question 5.
The term ‘redeemable’ is used for
(a) Preference shares
(b) Commercial paper
(c) Equity shares
(d) Public deposits

Answer
Answer: (b) Commercial paper

Question 6.
When one party grants the other party the right to use the asset in return for a periodic payment, it is
known as __________
(a) Lease Financing
(b) Factoring
(c) Public Deposits
(d) Debts

Answer
Answer: (a) Lease Financing

Question 7.
Money obtained by issue of shares is known as ___________
(a) Debts
(b) Share Capital
(c) Loans
(d) Reserve Funds

Answer
Answer: (b) Share Capital
Question 8.
_____________ was the first company in India to issue convertible zero interest debentures in
January 1990
(a) Mahindra and Mahindra
(b) Adani Enterprise
(c) Tata Motors
(d) Reliance Limited

Answer
Answer: (a) Mahindra and Mahindra

Question 9.
Which of the following is a commercial bank?
(a) All of these
(b) Canara bank
(d) Punjab National Bank
(d) State Bank of India

Answer
Answer: (a) All of these

Question 10.
The ordinary shares of a company are delivered to the depository bank, which in turn issues the
depository receipts, known as _______
(a) Commercial banks
(b) ADR
(c) None of these
(d) GDR

Answer
Answer: (d) GDR

Question 11.
Unit Trust of India was established by ___________
(a) ICICI
(b) State Bank Group
(c) Indian Government
(d) HDFC Bank
Answer
Answer: (c) Indian Government

Question 12.
ICICI was established in _________________
(a) 1975
(b) 1955
(c) 1985
(d) 1965

Answer
Answer: (b) 1955

Question 13.
Expand ICICI
(a) None of these
(b) International Credit and Investment Corporation of India
(c) Indian Credit and Investment Corporation of India
(d) Industrial Credit and Investment Corporation of India

Answer
Answer: (c) Industrial Credit and Investment Corporation of India

Question 14.
The maturity period of a commercial paper usually ranges from
(a) 20 to 40 days
(b) 60 to 90 days
(c) 120 to 365 days
(d) 90 to 364 days

Answer
Answer: (d) 90 to 364 days

Question 15.
Debentures represent
(a) Fixed capital of the company
(b) Permanent capital of the company
(c) Fluctuating capital of the company
(d) Loan capital of the company

Answer
Answer: (d) Loan capital of the company

Question 16.
Public deposits are the deposits that are raised directly from
(a) The public
(b) The directors
(c) The auditors
(d) The owners

Answer
Answer: (a) The public

Question 17.
Funds required for purchasing current assets is an example of
(a) Fixed capital requirement
(b) Ploughing back of profits
(c) Working capital requirement
(d) Lease financing

Answer
Answer: (c) Working capital requirement

Question 18.
Equity shareholders are called
(a) Owners of the company
(b) Partners of the company
(c) Executives of the company
(d) Guardian of the company

Answer
Answer: (a) Owners of the company

Question 19.
Investors who want steady income may not prefer ____________
(a) None of these
(b) Debentures
(c) Equity Shares
(d) Bonds

Answer
Answer: (c) Equity Shares

Question 20.
Dividend is paid only on ___________
(a) Loans
(b) Debentures
(c) Bonds
(d) Shares

Answer
Answer: (d) Shares

Question 21.
Funds raised through loans or borrowings are ________
(a) Borrowed funds
(b) Owners Equity
(c) None of these
(d) Share Capital

Answer
Answer: (a) Borrowed funds

Question 22.
GDRs can be converted into shares _____________
(a) At any time
(b) After 5 years
(c) After 10 years
(d) After one year

Answer
Answer: (a) At any time
Question 23.
State Industrial Development Corporations were established by _______
(a) Ministry of Finance
(b) None of these
(c) Central Government
(d) Different States

Answer
Answer: (d) Different States

Question 24.
Life insurance corporation was set up in ________
(a) 1965
(b) 1956
(c) 1975
(d) 1985

Answer
Answer: (b) 1956

Question 25.
Industrial Finance Corporation of India (IFCI) was established in _______
(a) July, 1948
(b) July, 2001
(c) July, 1956
(d) July, 1991

Answer
Answer: (a) July, 1948

One Mark Questions

1. Mention any one source of Business Finance.

Answer
Answer: Owners fund
2. Mention any one type of shares.

Answer
Answer: Equity Share

3. Give one merits of Equity shares.

Answer
Answer: Equity shares holders enjoy the limited liability.

4. State any one type of preference shares.

Answer
Answer: Cumulative preference shares

5. State any one type of Debentures.

Answer
Answer: Secured debentures

6. Mention any one sources of owner’s fund.

Answer
Answer: Equity Share

7. Mention any one type of Financial Institutions.

Answer
Answer: Industrial Finance Corporation of India.
8. Expand ADR.

Answer
Answer: American Depository Receipts

9. Expand GDR.

Answer
Answer: Global Depository Receipts

10. Expand IDR.

Answer
Answer: Indian Depository Receipts

11. Expand ICD.

Answer
Answer: Inter Corporate Deposit

12. Expand EXIM Bank.

Answer
Answer: Export Import bank

MCQ Questions for Class 11 Business Studies

Chapter 9 Small Business with Answers
Small Business Class 11 MCQs Questions with Answers
Question 1.
Expand EOUs
(a) Essential Operating units
(b) Export Order Units
(c) Export Oriented units
(d) Essential order units

Answer
Answer: (c) Export Oriented units

Question 2.
Which of the following is organised by individuals?
(a) Cottage Industries
(b) Railway industry
(c) None of these
(d) Chemical industry

Answer
Answer: (a) Cottage Industries

Question 3.
Any industry located in a rural area which produces any goods, renders any service with or without the
use of power is known as ________
(a) City Industry
(b) Town Industry
(c) Village Industry
(d) District Industry

Answer
Answer: (c) Village Industry

Question 4.
A small scale serivce and business enterprise is one whose investment in fixed assets of plant and
machinery excluding land and building does not exceed ______
(a) Rs.25 Lakhs
(b) Rs.30 Lakhs
(c) Rs.10 Lakhs
(d) Rs.15 Lakhs

Answer
Answer: (c) Rs.10 Lakhs
Question 5.
The small scale industry can enjoy the status of _______ unit if it exports more than 50% of its
production.
(a) Domestic unit
(b) Export Oriented units
(c) Small scale unit
(d) Import oriented units

Answer
Answer: (b) Export Oriented units

Question 6.
_____ is defined as one in which the investment in fixed assets of plant and machinery does not
exceed rupees one crore.
(a) Limited Companies
(b) None of these
(c) Small Scale Industry
(d) Large Scale industry

Answer
Answer: (c) Small Scale Industry

Question 7.
Which of the following is part of ?Village and Small Industries Sector??
(a) Handicrafts
(b) Sericulture
(c) Handlooms
(d) All of these

Answer
Answer: (d) All of these

Question 8.
In India, the ?Village and Small Industries? Sector consists of both traditional and modern small
industries. This sector has ___________subgroups.
(a) Eleven
(b) Five
(c) Ten
(d) Eight

Answer
Answer: (d) Eight

Question 9.
Limit of investment in small scale industry is _________
(a) one crore
(b) two crore
(c) five crore
(d) Ten crore

Answer
Answer: (a) one crore

Question 10.
________ are also known as Rural industries or Traditional industries
(a) Food industry
(b) Cottage Industries
(c) None of these
(d) Agricultural industry

Answer
Answer: (b) Cottage Industries

Question 11.
Micro enterprises are those whose investment in plant and machinery does not exceed rupees___
(a) 5 Lakh
(b) 3 Lakh
(c) 1 Lakh
(d) 2 Lakh

Answer
Answer: (c) 1 Lakh

Question 12.
Small scale industries owned and managed by women entrepreneurs have share capital of not less
than __________
(a) 25 percent
(b) 50 percent
(c) 51 percent
(d) 20 percent

Answer
Answer: (c) 51 percent

Question 13.
The small scale industry can enjoy the status of ________ if it supplies not less than 50% of its
production to another industry, referred to as the parent unit.
(a) Village industries
(b) Micro Business industry
(c) Export oriented unit
(d) Ancillary small industry

Answer
Answer: (d) Ancillary small industry

Question 14.
Which of the following comes under the Modern Small Industries?
(a) Coir
(b) Handicrafts
(c) Khadi
(d) Powerlooms

Answer
Answer: (d) Powerlooms

Question 15.
A tiny unit is defined as an industrial or business enterprise whose investment in plant and machinery
is not more than ___________
(a) Rs. 25 Lakhs
(b) Rs.30 Lakhs
(c) Rs.35 Lakhs
(d) Rs.50 Lakhs

Answer
Answer: (a) Rs. 25 Lakhs
One Mark Questions

1. What do you mean by small business?

Answer
Answer: A business which operates on a small scale and required less capital, less labour and less
machines is called small business.

2. Give full form of NSIC.

Answer
Answer: National small Industries Corporation (NSIC)

3. Give full form of DIC.

Answer
Answer: District Industries Centre (DIC)

4. What is mining?

Answer
Answer: The process or business of extracting ore or minerals from the ground.

MCQ Questions for Class 11 Business Studies

Chapter 10 Internal Trade with Answers
Internal Trade Class 11 MCQs Questions with Answers
Question 1.
It helps disabled and elderly people.
(a) Tele-shopping
(b) E-commerce
(c) multiple shop
(d) installment system
Answer
Answer: (a) Tele-shopping

Question 2.
The aim is to economies by buying in common and to retain their profits by selling in common.
(a) multiple shop
(b) web marketing
(c) teleshopping
(d) consumer?s co-operative store

Answer
Answer: (d) consumer?s co-operative store

Question 3.
This retail business acts as a universal supplier of a wide variety of products.
(a) Departmental store
(b) Multiple shop
(c) Mail order Business.
(d) Tele-shopping

Answer
Answer: (a) Departmental store

Question 4.
____ are mobile traders who deal in low priced articles with no fixed place of business.
(a) Street stalls
(b) Retailers
(c) Itinerant traders
(d) Agents

Answer
Answer: (c) Itinerant traders

Question 5.
____________ can check the price fluctuations in the market by holding back the goods when prices
fall and releasing the goods when prices raise.
(a) Wholesaler
(b) Agent
(c) Retailer
(d) Mercantile agent

Answer
Answer: (a) Wholesaler

Question 6.
A warehouse keeper accepts goods for the purpose of ____________
(a) Selling
(b) Packaging
(c) Export
(d) Storage

Answer
Answer: (d) Storage

Question 7.
When goods are imported for the purpose of export is called as _________
(a) Foreign trade
(b) Entrepot
(c) Home trade
(d) Trade

Answer
Answer: (b) Entrepot

Question 8.
The purchase of goods from a foreign country is called ____________
(a) Entreport
(b) Import
(c) Re-Export
(d) Export

Answer
Answer: (b) Import

Question 9.
The risk of bad debts in this business is eliminated particularly when payment is received through
V.P.P.
(a) Tele-shopping
(b) mail order trading house
(c) Departmental store
(d) co-operative store

Answer
Answer: (b) mail order trading house

Question 10.
It is a network of a number of branches situated at different localities in the city or in the different parts
of the country.
(a) Multiple shop
(b) Consumers? co-operative store
(c) Hire purchase system
(d) Internet marketing

Answer
Answer: (a) Multiple shop

Question 11.
Small scale Fixed retailers includes ____________
(a) Hawkers
(b) Pedlars
(c) Cheap Jacks
(d) General stores

Answer
Answer: (d) General stores

Question 12.
____________ are agents who merely bring the buyer and the seller into contact.
(a) Selling agent
(b) Commission agent
(c) Stockist
(d) Broker

Answer
Answer: (d) Broker
Question 13.
Wholesaler?s deals in ____________ quantity of goods
(a) Small
(b) Limited
(c) Large
(d) Medium

Answer
Answer: (c) Large

Question 14.
An agent is appointed by the ____________
(a) Principal
(b) Manufacturer
(c) Wholesaler
(d) Retailer

Answer
Answer: (a) Principal

Question 15.
The persons who come in between the primary producer and the final consumer to promote trade is
called as ____________
(a) Trader
(b) Middleman
(c) Auctioneer
(d) Agent

Answer
Answer: (b) Middleman

One Mark Questions

1. What is internal trade?

Answer
Answer: Buying and selling of goods and services within the boundaries of a nation is referred as
internal trade.
2. What is wholesale trade?

Answer
Answer: Wholesale trade refers to buying and selling of goods and services in large quantities for the
purpose of resale or intermediate use.

3. Who is a wholesaler?

Answer
Answer: Wholesaler is a person who buys goods from the producers in bulk quantities and sells them
in small quantities to a retailer.

4. What is retail trade?

Answer
Answer: Retail trade refers to sale of goods in small quantities for the final consumptions.

5. Who is a retailer?

Answer
Answer: Retailer is a person who buys the goods in large quantities from the wholesalers and sells
‘them in small quantities to the ultimate consumers.

6. Expand AVM.

Answer
Answer: Automatic Vending Machine

7. Expand FOB

Answer
Answer: Free on Board
8. Expand CIF

Answer
Answer: Cost, Insurance and Freight Price

9. Expand E&OE

Answer
Answer: Errors and Omissions excepted

10. Expand COD

Answer
Answer: Cash on Delivery

11. Name any one type of internal trade.

Answer
Answer: Wholesale Trade

12. State one type of Itinerant retailers.

Answer
Answer: Street Traders

13. Give an example for small scale fixed retail shop.

Answer
Answer: Soaps, Hair oil and Tooth Paste
14. Give an example for large scale fixed retail shop.

Answer
Answer: Spencer, Food world and reliance fresh

15. Give an example for departmental stores.

Answer
Answer: Spencer

16. Give an example for multiple shops.

Answer
Answer: Pizza Hut and Me. Donald

17. Give an example for Super markets.

Answer
Answer: Reliance Fresh and Food world

18. Give an example for malls.

Answer
Answer: Garuda Mall and Orion Mall

19. Who are peddlers?

Answer
Answer: Peddlers are those who carry their goods on their heads and backs from one door to another
in the streets for selling the goods.
20. Who are Hawkers?

Answer
Answer: Hawkers are those who carry their goods on back of animals or by using wheeled carts from
one door to another for selling the articles.

21. Who are cheap jacks?

Answer
Answer: Cheap jacks are petty retailers who have independent shops of a temporary nature in the
business locality.

MCQ Questions for Class 11 Business Studies

Chapter 11 International Business 1 with Answers
International Business 1 Class 11 MCQs Questions with Answers
Question 1.
Which one of the following is not amongst India’s major trading partners?
(a) USA
(b) UK
(c) Germany
(d) New Zealand

Answer
Answer: (d) New Zealand

Question 2.
Which one of the following is not amongst India’s major export items?
(a) Textiles and garments
(b) Gems and jewellery
(c) Oil and petroleum products
(d) Basmati rice

Answer
Answer: (c) Oil and petroleum products
Question 3.
Which one of the following modes of entry permits greatest degree of control over overseas
operations?
(a) Licensing/franchising
(b) Wholly owned subsidiary
(c) Contract manufacturing
(d) Joint venture

Answer
Answer: (b) Wholly owned subsidiary

Question 4.
Which of the following is not an advantage of exporting?
(a) Easier way to enter into international markets
(b) Comparatively lower risks
(c) Limited presence in foreign markets
(d) Less investment requirements

Answer
Answer: (c) Limited presence in foreign markets

Question 5.
Outsourcing a part of or entire production and concentrating on marketing operations in international
business is known as
(a) Licensing
(b) Franchising
(c) Contract manufacturing
(d) Joint venture

Answer
Answer: (c) Contract manufacturing

Question 6.
The OECD stands for:
(a) Organization for Economic Co-operation and Development
(b) Organization for Economic Coordination and Development
(c) Organization for Environmental Cooperation and Development.
(d) Organization for Environmental Control and Development
Answer
Answer: (a) Organization for Economic Co-operation and Development

Question 7.
_______ is the first step in the internationalization process.
(a) License
(b) Foreign Investment
(c) Sales
(d) Export

Answer
Answer: (a) License

Question 8.
The main promoter of trade liberalization was
(a) GATT
(b) NAFTA
(c) CEPTA
(d) CISA

Answer
Answer: (a) GATT

Question 9.
NAFTA stands for
(a) North African trade association
(b) North American free trade agreement
(c) Northern Atlantic trade agreement
(d) Northern association for trade

Answer
Answer: (b) North American free trade agreement

Question 10.
The WTO was established to implement the final act of Uruguay Round agreement of ……
(a) MFA
(b) GATT
(c) TRIP’s
(d) UNO

Answer
Answer: (b) GATT

Question 11.
The —————- company produces, markets, invests and operates across the world
(a) Global
(b) International
(c) Transnational
(d) Multinational

Answer
Answer: (c) Transnational

Question 12.
Select example of Indian Multinational Company
(a) Hindusthan Unilever
(b) Videocon
(c) Cargill
(d) Tesco

Answer
Answer: (b) Videocon

Question 13.
…….is the payment method most often used in International Trade which offers the exporter best
assurance of being paid for the products sold internationally.
(a) Bill of Lading
(b) Letter of Credit
(c) Open Account
(d) Drafts

Answer
Answer: (b) Letter of Credit
Question 14.
Which of the following is not a force in the Porter Five Forces model?
(a) Buyers
(b) Suppliers
(c) Complementary products
(d) Industry rivalry

Answer
Answer: (c) Complementary products

Question 15.
Which is not an Indian Multinational Company?
(a) Unilever
(b) Asian Paints
(c) Piramal
(d) Wipro

Answer
Answer: (a) Unilever

Question 16.
……………is the application of knowledge which redefines the boundaries of global business
(a) Cultural Values
(b) Society
(c) Technology
(d) Economy

Answer
Answer: (c) Technology

Question 17.
The Theory of Relative Factor Endowments is given by
(a) David Ricardo
(b) Adam Smith
(c) F W Taussig
(d) Ohlin and Hecksher

Answer
Answer: (d) Ohlin and Hecksher
Question 18.
According to this theory, the holdings of a country’s treasure primarily in the form of gold constituted its
wealth.
(a) Gold Theory
(b) Ricardo Theory
(c) Mercantilism
(d) Hecksher Theory

Answer
Answer: (c) Mercantilism

Question 19.
Which is the right sequence of stages of Internationalization
(a) Domestic, Transnational, Global, International, Multinational
(b) Domestic, International, Multinational, Global, Transnational
(c) Domestic, Multinational, International, Transnational, Global
(d) Domestic, International, Transnational, Multinational, Global

Answer
Answer: (b) Domestic, International, Multinational, Global, Transnational

Question 20.
IBRD (International Bank for Reconstruction and Development) also known as
(a) Exim Bank
(b) World Bank
(c) International Monetary fund
(d) International Bank

Answer
Answer: (b) World Bank

Question 21.
Which one of the following is not amongst India’s major import items?
(a) Ayurvedic medicines
(b) Oil and petroleum products
(c) Pearls and precious stones
(d) Machinery

Answer
Answer: (b) Oil and petroleum products
Question 22.
Which one of the following modes of entry brings the firm closer to international markets?
(a) Licensing
(b) Franchising
(c) Contract manufacturing
(d) Joint venture

Answer
Answer: (d) Joint venture

Question 23.
Which one of the following modes of entry requires higher level of risks?
(a) Licensing
(b) Franchising
(c) Contract manufacturing
(d) Joint venture

Answer
Answer: (d) Joint venture

Question 24.
When two or more firms come together to create a new business entity that is legally separate and
distinct from its parents it is known as
(a) Contract manufacturing
(b) Franchising
(c) Joint ventures
(d) Licensing

Answer
Answer: (c) Joint ventures

Question 25.
In which of the following modes of entry, does the domestic manufacturer give the right to use
intellectual property such as patent and trademark to a manufacturer in a foreign country for a fee
(a) Licensing
(b) Contract manufacturing
(c) Joint venture
(d) None of these
Answer
Answer: (a) Licensing

One Mark Questions

1. What is International Business?

Answer
Answer: International Business is a business activities take place across the geographical boundaries.

2. State any one type of international business.

Answer
Answer: Direct Investment.

3. State any one mode of entry into international business.

Answer
Answer: Franchising.

4. State any one reason for international business.

Answer
Answer: Change in fashion and technology

5. What is Export business?

Answer
Answer: An export is a function of international trade whereby goods produced in one country are
shipped to another country for future sale or trade.
MCQ Questions for Class 11 Business Studies
Chapter 12 International Business 2 with Answers
International Business 2 Class 11 MCQs Questions with Answers
Question 1.
TRIP is one of the WTO agreements that deal with
(a) Trade in agriculture
(b) Trade in services
(c) Trade related investment measures
(d) None of these

Answer
Answer: (d) None of these

Question 2.
The document containing the guarantee of a bank to honour drafts drawn on it by an exporter is
(a) Letter of hypothetication
(b) Letter of credit
(c) Bill of lading
(d) Bill of exchange

Answer
Answer: (b) Letter of credit

Question 3.
A receipt issued by the commanding officer of the ship when the cargo is loaded on the ship is known
as
(a) Shipping receipt
(b) Mate receipt
(c) Cargo receipt
(d) Charter receipt

Answer
Answer: (b) Mate receipt

Question 4.
Which one of the following is not a document related to fulfill the customs formalities
(a) Shipping bill
(b) Export license
(c) Letter of insurance
(d) Proforma invoice

Answer
Answer: (d) Proforma invoice

Question 5.
Which of the following documents is not required in connection with an import transaction?
(a) Bill of lading
(b) Shipping bill
(c) Certificate of origin
(d) Shipment advice

Answer
Answer: (c) Certificate of origin

Question 6.
SMEs stands for:
(a) Small and Medium Entrepreneurs
(b) Small Management of Enterprises
(c) Small and Medium-sized Enterprises.
(d) Societies for Managing Exports

Answer
Answer: (c) Small and Medium-sized Enterprises.

Question 7.
MNC Stands for
(a) Multi-National Cooperation
(b) Multi-National Corporation
(c) Multi-National Company
(d) Multi-National Collaboration

Answer
Answer: (b) Multi-National Corporation

Question 8.
IPR stands for
(a) Intellectual property rights
(b) International property rights
(c) Internal promotion rights
(d) Interior promotional rights

Answer
Answer: (a) Intellectual property rights

Question 9.
WTO stands for
(a) World technology association
(b) World time organization
(c) World trade organization
(d) World tourism organization

Answer
Answer: (c) World trade organization

Question 10.
…..is only a legal agreement and it is not an institution, but ….. is a permanent institution.
(a) GATT, WTO
(b) WTO, GATT
(c)WTO, IMF
(d) IMF, GATT

Answer
Answer: (a) GATT, WTO

Question 11.
…………………corporation produces in the home country or in a single country and focuses on
marketing these products globally or vice a versa.
(a) Global
(b) International
(c) Transnational
(d) None of the above

Answer
Answer: (a) Global
Question 12.
Key controllable factors in global marketing are:
(a) Government policy and legislation
(b) social and technical changes
(c) marketing activities and plans
(d) all of the above.

Answer
Answer: (c) marketing activities and plans

Question 13.
Comparative Cost Trade Theory is given by
(a) Adam Smith
(b) David Ricardo
(c) Gottfried Haberler
(d) Heckscher Ohlin

Answer
Answer: (b) David Ricardo

Question 14.
Globalization refers to:
(a) Lower incomes worldwide
(b) Less foreign trade and investment
(c) Global warming and their effects
(d) A more integrated and interdependent world

Answer
Answer: (d) A more integrated and interdependent world

Question 15.
Capitalistic, communistic and Mixed are the types of
(a) Economic System
(b) Social System
(c) Cultural Attitudes
(d) Political System

Answer
Answer: (a) Economic System
Question 16.
The theory of comparative cost advantage is given by
(a) David Ricardo
(b) Adam Smith
(c) F W Taussig
(d) Ohlin and Hecksher

Answer
Answer: (a) David Ricardo

Question 17.
The Theory of Absolute Cost Advantage is given by
(a) David Ricardo
(b) Adam Smith
(c) F W Taylor
(d) Ohlin and Heckscher

Answer
Answer: (b) Adam Smith

Question 18.
Subsidiaries consider the regional environment for policy / Strategy formulation is known as
(a) Polycentric Approach
(b) Regiocentric Approach
(c) Ethnocentric Approach
(d) Geocentric Approach

Answer
Answer: (b) Regiocentric Approach

Question 19.
Ultimately ………………was replaced by the …………….on 1st Jan 1995
(a) GATS, WTO
(b) WTO, GATT
(c) GATT, WTO
(d) IMF, GATT

Answer
Answer: (c) GATT, WTO
Question 20.
The first phase of globalization started around 1870 and ended with …..
(a) World War I
(b) World War II
(c) The Establishment of GATT
(d) In 1913 when GDP was High

Answer
Answer: (a) World War I

Question 21.
Which of the following does not belong to the World Bank group?
(a) IBRD
(b) IDA
(c) MIGA
(d) IMF

Answer
Answer: (d) IMF

Question 22.
Which of the following document is prepared by the exporter and includes details of the cargo in terms
of the shipper’s name, the number of packages, the shipping bill, port of destination, name of the
vehicle carrying the cargo?
(a) Shipping bill
(b) Packaging list
(c) Mate’s receipt
(d) Bill of exchange

Answer
Answer: (d) Bill of exchange

Question 23.
Which one of the following is not a part of export documents?
(a) Commercial invoice
(b) Certificate of origin
(c) Bill of entry
(d) Mate’s receipt

Answer
Answer: (c) Bill of entry
Question 24.
Which of the following do not form part of duty drawback scheme?
(a) Refund of excise duties
(b) Refund of customs duties
(c) Refund of export duties
(d) Refund of income dock charges at the port of shipment

Answer
Answer: (d) Refund of income dock charges at the port of shipment

Question 25.
Which of the following documents are not required for obtaining an export license?
(a) IEC number
(b) Letter of credit
(c) Registration cum membership certificate
(d) Bank account number

Answer
Answer: (b) Letter of credit

One Marks Questions

1. Expand IEC.

Answer
Answer: Import Export Code.

2. Expand WTO

Answer
Answer: World Trade Organisation

3. Mention any one document of export trade.

Answer
Answer: Shipping Bill

4. Expand FTZ.

Answer
Answer: Free Trade Zones

5. Expand SEZ.

Answer
Answer: Special Economic Zones

6. Expand IIFT.

Answer
Answer: Indian Institute of Foreign Trade

7. Expand IMF.

Answer
Answer: International Monetary Fund

8. What is D.P bill?

Answer
Answer: DP inpayment term of imports and exports means Documents against Payments.

9. What is D.A bid?

Answer
Answer: DA in payment term of international trade means, Documents against Acceptance

10. Expand BOL.

Answer
Answer: Bill of Lading

11. Expand EIC.

Answer
Answer: Export Inspection council

12. Expand UNCTAD.

Answer
Answer: United Nations Conference on Trade and Development.

13. Expand EPZ.

Answer
Answer: Export Processing Zones.

14. Expand EOU.

Answer
Answer: Export Oriented Units

15. Name any one export processing zone.

Answer
Answer: Cochin export processing zone