Test: Business Organisation - 2 - CA Foundation MCQ

Natural resources, labour, capital

What to produce, how to produce, who will receive the goods and services

Free enterprise, centrally planned economy, mixed economy

Government, business, consumers

Competition, profit, and private property

Freedom, efficient use of resources, and profit

Profit, efficient use of resources, and risk

Natural resources, profit, and private property

No one is allowed access to a particular place

Equipment and buildings can be owned by individuals or businesses

One must ask permission before entering someone's yard

Things and buildings can be owned by individuals and governments

Provides a strong reason to reduce investment

Reduces the need for efficient use of resources

Provides a reward for the risk and effort involved

Provides the incentive to increase expenses

Two or more businesses try to sell the same type of goods or services to the same customer

Government agencies are the only producers of goods or services

One business has the approval to sell the total production of one type of good or service

One large business owns all the natural resources needed to produce some particular product

A business enterprise begins to lower its costs

A producer uses the firm's resources more efficiently

The cost of raw materials has increased

Ambitious salespeople have increased the sales volume without reducing prices

Producers can produce whatever they wish

Businesses can act independently without government interference

Government is involved in regulating and owning some businesses

Government owns all businesses

Private property, profit, and competition

Government ownership, no competition, and no profit

Government ownership, competition, and no profit

Government ownership, profit, and no competition

A large planning agency, many government employees, and many social benefits

A large planning agency, many personal freedoms, and many social benefits

Large military spending, incentive to work to benefit individuals, and a large bureaucracy

Large military spending, a large bureaucracy, and many personal freedoms

What to produce?

How to produce it?

For whom to produce?

All of the above.

The problem of meeting every one's needs.

Not enough population.

Too much pollution.

Not enough resources. 

Population

Power

Resources

Water

The consumer and businesses

The government

Pets

Voters

Discouraged

Limited

Encouraged

Non-existent

To gain private property

To ensure fairness in business

To get rid of high taxation

To promote individual and social rights 

When to produce, where to produce, and why we should produce. 

Wealth, greed, and power. 

Money, markets, and the business cycle.

What to produce, how to produce, and for whom to produce. 

The production and consumption choices made by sellers and buyers in decentralized markets.

A cartel of major transnational corporations, government agencies, and consumer advocates.

A trilateral commission of major corporations, the military, and elite university professors.

A central authority such as a people's committee, a government agency, or a dictator. 

Production decisions are made by profit-maximizing firms.

There is a central planning board at the top, which transmits economic decisions down to the various producing and consuming units below.

Consumers are allowed to determine what is produced based on their demand for goods and services.

Regulatory agencies constrain the most egregious forms of market power in a market system of allocation. 

It is possible for goods to be allocated based on need rather than based on willingness and ability to pay

Producers have strong incentives to innovate because successful innovators are rewarded with higher profit

Consumers can transmit their preference for product quality and variety by way of their "dollar votes" cast in the marketplace

Since price is freely set based on supply and demand, there are few shortages or surpluses

A cartel of powerful transnational firms demands that it be that way.

The market system of allocation is always best.

The command system of allocation is always best.

Government intervention in an overall market system is needed at times because markets fail when there is market power, a great deal of inequality, pollution externalities, or public goods. 

A religion based on amassing capital.

An economic system characterized by private ownership of resources, and decentralized market allocation.

An economic system characterized by government ownership of resources and centralized allocation.

None of the abov

A religion centered on community interaction.

An economic system characterized by private ownership of resources, and decentralized market allocation.

An economic system characterized by government ownership of resources and centralized allocation.

None of the abov

To create specific environment in work place

To maximise profits

To protect and improve society's welfare

All of the above

Social responsibility goes beyond making profits to include protecting and improving society's welfare

Encourage business  

Financial return

None of the above 

Wieck and Adams

Jacques and Patchen

Milton Friedman

None of the above 

Financial return

Make profits

Encourage business to take up social responsibility

None of the above 

Possession of resources

Ethical obligation

Public image

Violation of profit maximisation 

Social obligation

Social responsibility

Social responsiveness

None of the above 

Social responsiveness

Ethical obligation

Social screening

Financial return 

Global environment

Greening of management

Social actions

None of the above