Lecturer Commerce Part 01 (Mixed Questions)

 

Business can be defined as:
A. Selling of goods B. Buying of goods C. A market place D. Trade, commerce and industry
Which form of business organisation would be most suitable for a capital intensive business?
A. Sole proprietorship B. Partnership C. Co-operative society D. Joint-stock company
According to the systems approach, a system is the:
A. Sum total of all its components B. Orderly arrangement of its components in a coordinated manner C. A combination of some of the components D. A systemic view of the organisation
A business organization has constant and invisible interaction with its:
A. Employees B. Suppliers and customers C. External environment D. Government
Which one of the following refers to 'factoring services'?
A. Guaranteeing realisation from debtors B. Financing working capital C. Providing project consultancy D. None of the above
Vertical combination implies:
A. Formation of pools and cartels B. Integration of enterprises engaged in different stages of production of a particular product C. A group 01 organisations having common sales set-up D. Integration of enterprises engaged in manufacturing similar products
An indirect tax is one where:
A. Tax is levied on wealth B. Tax is levied always on products C. Points of impact and incidence are the same D. Points of impact and incidence are different
Which one of the following is an example of indirect tax?
A. Corporation tax B. Wealth tax C. Income tax D. Sales tax
The incidence of tax refers to:
A. The effect produced by the tax B. The rate of taxation C. One who bears the ultimate money burden of the tax D. One who is immediately responsible to pay the tax
Who is generally regarded as the father of modern management?
A. F.W.Taylor B. Henry Fayol C. James D.Mooney D. Alan C. Reiley
The term Managerial Revolution refers to the prediction that with the expansion in size of business units, world affairs will eventually be in the hands of a few powerful managers. Who made use of this term?
A. J.Burnham B. F.W.Taylor C. Alfred Marshall D. J.K.Galbraith
The principle of scientific management implies:
A. Replacement of rules of thumb by scientific principles of management B. Managing business in a scientific way C. Use of science in business D. Human approach to management
Objectives in the context of management may be defined as:
A. Laying down targets to be achieved over a period of time B. The end result, which an organisation tries to attain C. The purpose for the organization's survival D. Parameters for unified planning
The two key factors in 'management by objectives' are:
A. Performance evaluation and objectives B. Democratic goal-setting and verifiable objectives C. Systems approach and long-range planning D. Short-run goods and flexibility
An informal organisation is one where:
A. There is no division of work B. Jobs of individuals are not precisely defined C. The structure is not prescribed by formal authority D. There are no fixed hours of work
The first level of needs in Maslow's 'need hierarchy is:
A. Social needs B. Security needs C. Physiological needs D. Esteem needs
Planning and control are related in such a way that:
A. Planning precedes control B. Control precedes planning C. Both are concurrent D. Both go hand-in-hand with each other in a cyclical manner
Communication is complete when the:
A. Message is sent by the sender B. Message is received by the receiver C. Message is received and understood by the receiver D. Message is further transmitted by the receiver
A private company must have at least:
A. 2 members B. 5 members C. 7 members D. 10 members
Unless the Articles of Association otherwise provide, the quorum for a general meeting of a public company is:
A. One-third of the total members B. Five members personally present C. Seven members personally present D. Twenty members personally present
A Special resolution is one, which is passed in a general meeting by:
A. A simple majority of votes B. Two-third majority of votes C. Three-fourth majority of votes D. Three-fifth majority of votes
A share warrant can be issued by:
A. Private companies only B. Public companies only C. Both public and private companies D. Government companies only
What is the minimum number of shareholders necessary for a public company?
A. 5 B. 7 C. 11 D. 20
The share capital of a company refers to:
A. Equity share capital B. Preference share capital C. Equity and preference share capital D. Equity and preference share capital and debentures
Within how many days of the declaration of divident must divident warrants be posted to shareholders?
A. 21 days B. 30 days C. 42 days D. 60 days
Any agreement by a minor which is beneficial to him is a:
A. Void agreement B. Illegal agreement C. Valid contract D. Void contract
The liability of partners in a partnership firm is:
A. Joint and several B. Joint and alternative C. Alternative D. Joint
What is the maximum number of partners necessary in a partnership firm carrying on banking business?
A. 5 B. 10 C. 15 D. 20
The suit for specific performance in case of breach of contract may be filed only where the subject matter relates to:
A. Movable goods B. Immovable property C. Perishable goods D. Personal skill and qualifications
Which one of the following is a void agreement?
A. Agreement in restraint of trade B. Agreement whose object is illegal C. Agreement in respect of sale of goodwill D. Service agreements containing negative stipulations during the tenure of service
Crossing a cheque 'Not Negotiable' affords security against:
A. Negotiation of cheque B. The ft of cheque C. Payment to wrong banker or account D. None of the above
Non-registration of a partnership does not affect the:
A. Suit by a partner against the firm or other co-partners B. Suit by the firm against third parties C. Suit by third parties against the firm D. Claim of set-off or other proceedings on a contract by the firm
Organisation Theory is concerned with the:
A. Development of an organisation as an economic unit B. Study to explain the nature and composition of organisations as a social or human group C. Rules governing an organisation D. Human behaviour at work
With which of following is Behavioural Science in management related?
A. Organizational response to its environment B. Scientific study of human behaviour C. Superior-subordinate behaviour within an organisation D. None of the above
Job-enrichment means:
A. More tasks of the same general nature B. More tasks providing greater challenge C. Change or variation of job after a time period D. None of the above
Finance is concerned with: A. Arrangement of funds B. Identification of sources of funds C. Recording utilisation of funds D. All of the above An organisation structure refers to the:
A. Nature of superior-subordinate relationship B. Relationships and dependencies within an organisation C. Extent of delegation of authority in the organisation D. Flow of authority and responsibility
Debt Equity Ratio refers to the ratio of:
A. Debtors to equity share capital B. Long term debt to shareholders' equity C. Total debt to equity share capital D. Long term debt to equity share capital
Trading on equity' means:
A. Use of equity share capital for trade financing B. Use of fixed-interest borrowed funds for getting a higher return on equity C. Having no borrowed funds D. Trading in equity share capital
Cost of goods sold refers to:
A. Sales minus gross profits B. Sales minus profits C. Cost of materials, labour and overheads D. None of the above
In the pay back period method of capital budgeting, investment is divided by:
A. Annual profits B. Return on investment C. Constant annual cash flow D. Cumulative cash flow
The relationship between EBIT and EPS gives:
A. Operating leverage B. Financial leverage C. Nornal leverage D. Composite leverage
Under-capitalisation refers to a situation where:
A. The capital base is larger for the earnings made B. The capital base does not justify the amount of earnings made and needs to be enhanced C. The capital base justifies the earnings made D. The earnings ratio of the company equals the industry's earnings ratio
A bank account is a:
A. Personal account B. Real account C. Liability account D. Nominal account
Prepaid expenses appearing in a trial balance will figure in the:
A. Balance sheet B. Profit and loss account C. Profit and loss account and balance sheet D. Prepaid expenses account
Sale of old furniture on credit will appear in the:
A. Sales day book B. Cash book C. Journal D. Debtors ledger
The excess of current assets over current liabilities is called:
A. Net worth B. Working capital C. Net tangible worth D. Turnover
Depreciation is the process of:
A. Allocation of costs B. Valuation of assets C. Use of assets D. None of the above
What is the objective of cost accounting?
A. Cost determination B. Cost analysis C. Cost control D. All of the above
What is Conversion Cost?
A. Cost of materials and labour B. Cost of transforming direct materials into finished products C. Cost of labour D. Total cost of running business
In an integrated costing system, most of the data relevant to cost accounting comes from the:
A. Cost accounting system B. Financial accounting system C. Stores accounting system D. Sales and distribution system V H-
Which method of costing is used by sugar mills?
A. Unit or output costing B. Job costing C. Process costing D. Batch costing
Premium on redemption of debentures is accounted for in the:
A. Personal account B. Real account C. Nominal account D. Assets account
After debentures are redeemed, the balance in the sinking fund account is transferred to:
A. Capital reserve B. General reserve C. Profit and loss account D. Secret reserve
To the extent redemption of preferece shares takes place out of profits, an equal amount has to be transferred to:
A. Development rebate reserve B. Capital redemption reserve C. General reserve D. Share premium account
When shares are forfeited, the share capital account is debited by:
A. Calls-in-arrears B. Called-up-amount C. Paid-up amount D. Face value of shares
The profit on re-issuing forfeited shares is transferred to:
A. Capital reserve B. Capital redumption reserve C. General reserve D. Revaluation reserve
The share application account is a:
A. Real account B. Personal account C. Nominal account D. Asset account
The excess of purchase price over net assets is:
A. Goodwill B. Capital reserve C. Preliminary expense D. Revenue reserve
In the balance sheet of a company, the items goodwill, patents and trade marks are shown under the heading:
A. Current assets B. Loans and advances C. Fixed assets D. Investments
A preliminary expense is a:
A. Current asset B. Fictitious asset C. Current liability D. Non-current liability
Divisible profits do not include:
A. Reserve fund B. Profit on revaluation of assets C. Post-incorporation profits D. None of the above
Advance payment of tax should be shown on the:
A. Assets side of a balance sheet B. Liabilities side of a balance sheet C. Debit side of a profit and loss account D. Credit side of a profit and loss account
Dividends are usually paid on the:
A. Called-up capital B. Paid-up capital C. Subscribed capital D. Nominal capital
	Which of the following is not concerned with the valuation of goodwill?
	A. Earning capacity method B. Super profits method C. Average profits method D. Net as sets method
When two or more companies dissolve to form a new company, the process is known as:
A. Amalgamation B. Absorption C. Reconstruction D. Combination
Absorption is said to take place when:
A. A company is formed to take over another company B. Two or more companies are dissolved to form a few company C. Two or more companies dissolve to be taken over by a existing company D. Two companies decide for virtual integration of their operations
For calculating market value using P/E ratios, it is necessary to know:
A. The rate of dividend B. Average profits C. Market price of the share D. Earnings per share and market price of the share
The relationship between normal rate of return and P/E ratio is:
A. Inverse B. Direct C. Irregular D. None of the above
For a company to carry out capital reduction, permission is required from the:
A. Controller of Capital Issues B. Competent Court C. Company Law Board D. Board of Directors
Any balance in the capital reduction account after writing off lost capital is tansferred to:
A. Capital reserve B. General reserve C. Debenture redemption reserve D. Capital redemption reserve
In a scheme of reorganization, the amount of shares surrendered by shareholders is transferred to the:
A. Shares surrendered account B. Capital reduction account C. Capital reorganization account D. Capital sacrificed account
Amounts sacrificed by shareholders are credited to the:
A. Capital reserve account B. General reserve account C. Capital reduction account D. Capital redemption reserve account
	At the commencement of winding up, a contributory is a:
	A. Creditor B. Debtor C. Shareholder D. Debenture holder
The shareholding of the government in a government company must be at least:
A. 33% B. 50% C. 51% D. 100%