Lecturer Commerce Part 03 (Introduction to Business)

 

Which of the following is not an economic activity?

A.      A doctor practicing

B.      A lawyer practicing law

C.      A professional cricketer playing cricket

D.      A student playing cricket

Which of the following is an extracting industry?

A.      Cattle breeding

B.      Forest cultivation

C.      Hunting

D.      Flour mills

Which of the following is not a manufacturing industry?

A.      Iron and steel works

B.      Flour mills

C.      Fruit canning

D.      Mining

A valid definition of a business purpose is to:

A.      Create a customer

B.      Maximize profit

C.      Serve the society

D.      Increase the wealth of the firm

Sole proprietorship is also called as:

A.      Individual proprietorship

B.      Partner

C.      Joint stock company

D.      Co-operative society

 

Who is dormant partner?

A.      One who takes no active part in business

B.      A working partner

C.      Partner for profits

D.      Minor partner

In case of minor acting as a partner, his personal properties are:

A.      Liable for the debt of the firm

B.      Not liable for the debts of the firm

C.      Partly liable for the debts of the firm

D.      Only debt of the firm

When a partnership is dissolved?

A.      In any case of death of any of the partner

B.      By mutual consent

C.      By insolvency of any of the partner

D.      All of above

The maximum number of partners in firm carrying on banking business is:

A.      7

B.      10

C.      50

D.      20

The agreement of partnership:

A.      Must be oral

B.      Must be in writing

C.      Can be either oral or in writing

D.      Must be in writing on a stamp paper

 

Liability of partners in respect of the firm’s debts is:

A.      Limited up to the amount of his capital in the business

B.      Unlimited

C.      Limited up to the amount of guarantee given by the partner

D.      Limited up to the amount of his capita; and load to the firm if any

A partner in a firm:

A.      Cannot transfer his share to an outsider

B.      Can transfer his share to an outsider with the consent of majority partners

C.      Can transfer his share to an outsider without the consent of any other partner

D.      Can transfer his share to an outsider with the consent of all other partners

A manager with a share in the profit:

A.      Is only a servant of the firm

B.      Becomes a partner by the operation of law

C.      Become a partner by implied agreement

D.      Becomes a partner from status

A nominal partner is:

A.      Not entitles to share the profits of the concern

B.      Entitled to equal share in the profits unless there is an agreement to any other profit sharing ratio

C.      Not liable for the acts of other partners

D.      Not able to third parties

The minimum member of members in a private limited company is:

A.      2

B.      3

C.      7

D.      10

 

A joint stock company is governed by:

A.      Companies act 2006

B.      Companies act 1936

C.      Companies act 2012

D.      Companies act 2013

Memorandum of association of a firm contains:

A.      Rules regarding the internal management of the company

B.      Rules regarding the constitution and activities of the company

C.      Rules regarding the external management

D.      Rules regarding the constitution

The liability of shareholders of a public company is limited to the:

A.      Nominal value of shares

B.      Extent of their private shares

C.      Accounts called up

D.      Paid up value of shares

A government company is one in which:

A.      The entire share capital is held by the central and / or state government

B.      50% of capital is held by central government and the remaining 50% by one or more state governments

C.      At least 51% of the capital is held by central and / or state governments

D.      All of above

A company is called an artificial person because:

A.      It does not have the shape of natural person

B.      It cannot be used in the court of laws

C.      It is invisible and intangible

D.      It exists only in contemplation of law

 

 

The liability of members of a co-operative society is:

A.      Limited to the amount of nominal value of capital held

B.      Limited to the amount of paid up value of the capital held

C.      Unlimited

D.      Limited or unlimited depending upon what the society has opted for it

Membership of a co-operative society is:

A.      Compulsory

B.      Voluntary

C.      Not essential

D.      Not compulsory

The minimum number of members required for registration of a co-operative society is:

A.      2

B.      7

C.      10

D.      20

A member of the co-operative society can leave the society by:

A.      Transferring his share to another person without anybodys consent

B.      Transferring his share to another person with the consent of the managing committee

C.      Transferring his share to a fellow member

D.      Withdrawing his capital from the society

Dividend on preference capital will be paid:

A.      Only when there are profits

B.      Even if there are no profits

C.      Only when directors recommend

D.      Only when share holders recommend

 

A public corporation means:

A.      Public company

B.      Government Company

C.      Statutory Corporation

D.      Department of union government

The partnership entity is:

A.      Legal entity

B.      Legal entity and accountable entity

C.      Neither entity nor accountable entity

D.      Group of individuals without legal status

Promoter is person who:

A.      Takes part in the incorporation of a company

B.      Is a director

C.      Is a relative of the managing director

D.      Works to publicity to the company

The charter of a company is its:

A.      Prospectus

B.      Statement in lieu of prospectus

C.      Memorandum of association

D.      Articles of association

A partnership firm cannot raise funds by:

A.      Bank loan

B.      Partner loan

C.      Debentures

D.      Partner capital

 

The term Capitalization is used in relation to:

A.      Sole-proprietorship

B.      Partnership

C.      Joint stock companies

D.      Co-operative societies

Over-capitalization results from:

A.      Payment of excessive amount for goodwill

B.      Underestimating the rate of capitalization

C.      Raising more money than can be profitably used

D.      Raising only the money

Which of the following securities is not redeemable?

A.      Equity shares

B.      Preference shares

C.      Cumulative preference shares

D.      Debentures

Preference shares are those which carry preferential right in respect of:

A.      Dividends

B.      Repayment of capital

C.      Both dividend and repayment of capital

D.      Right to vote on all important motions in AGM

Investment in which of the following is most risky?

A.      Equity shares

B.      Preference shares

C.      Debentures

D.      Land

Which of the following is not an ownership security?

A.      Equity shares

B.      Preference shares

C.      Debentures

D.      Both B and C

In which of the following, interest/dividend is payable even if the does not earn profit?

Equity capital

Preference capital

Debentures

All of above

Debentures cannot be:

A.      Irredeemable

B.      Participating

C.      Registered

D.      Bearer

Ploughing back of profits means:

A.      Earning of black money

B.      Dividends not claimed by shareholders

C.      Retaining the earnings

D.      Not paying dividends in a particular year

Deferred shares can be issued by:

A.      Public company

B.      Private company

C.      Private company which is deemed to be a public

D.      Government Company

Which of the following companies may issue share warrants?

A.      Companies limited by guarantee

B.      Private limited companies

C.      Public limited companies

D.      Trust

A bearer of a share warrant of a company is:

A.      A creditor of the company

B.      A member of the company

C.      A member subject to certain conditions

D.      Not a member of the company

Bank overdraft is a good source of finance for:

A.      Short term

B.      Medium term

C.      Long term

D.      Short and long term

The most important economic function of new issue market is to:

A.      Provide liquidity to securities

B.      Provide facilities for converting savings into investments

C.      Give proper direction to the flow of capital

D.      Give direction

Which of the following are components of organized sector of stock exchange?

A.      Commercial Banks

B.      Investors in securities

C.      Financial institutions

D.      Other financial institutions

Which of the following methods is not used for raising capital through the sale of new securities?

A.      By issue of prospectus

B.      Right issue

C.      Stock exchange placing

D.      Private placing

The most common method used for marketing of new securities is:

A.      Sale of existing shareholders

B.      Stock exchange placing

C.      Direct sale to public through prospectus

D.      Sale to biometers

A speculator who applies for new share is:

A.      A stag

B.      Middle man

C.      Jobber

D.      Lame duck

Dealings in stock exchanges can be done by public:

A.      Directly

B.      Directly or through brokers

C.      Only through brokers

D.      Only by corporate houses

Speculation in stock exchange means:

A.      Investment in securities

B.      Gambling in securities

C.      Buying and selling securities in the hope of making profile due to change in prices

D.      Creating secret profits

Which of the following speculators expects fall in the prices of securities in the near future?

A.      Bull

B.      Bear

C.      Stag

D.      Under inter

Which of the following speculative activities is based on disparity in quoted prices in different markets?

A.      Option dealing

B.      Arbitrage

C.      Margin trading

D.      Blank transfers

When the name of the transferee is not filled in the transfer deed, without filling in the name of the transferee it is called:

A.      Option dealing

B.      Forward dealing

C.      Blank transfers

D.      Carry over

When a right to sell a security is acquired, it is known as:

A.      Call option

B.      Put option

C.      Double option

D.      Single option

Stock exchange deals with the:

A.      Second hand securities

B.      Issued of equity shares

C.      Issue of preference shares

D.      Issue of debentures

Dividend and interest are:

A.      Synonymous terms

B.      Different from each other

C.      Debited to profit and loss account

D.      Divisible profits

The price of a share quoted in the stock exchange is cum, dividend when:

A.      It is inclusive of dividend declared

B.      It is exclusive of dividend declared

C.      It excludes interest

D.      In includes interest

Indexing is an important:

A.      Method of filling

B.      Method of maintaining account books

C.      Aid to filing

D.      Method of maintaining statistical books

A certain percentage of the sum assured is paid periodically according to the terms of policy is known as:

A.      Term policy

B.      Endowment policy

C.      Money-back policy

D.      Group insurance policy

What is called to buying of shares by taking money from brokers?

A.      Margin trading

B.      Curb dealing

C.      Badla

D.      Forward