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Business Economics Mock Test - 1


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100 Questions MCQ Test Mock Tests & Past Year Papers for CA Foundation | Business Economics Mock Test - 1

Business Economics Mock Test - 1 for CA Foundation 2023 is part of Mock Tests & Past Year Papers for CA Foundation preparation. The Business Economics Mock Test - 1 questions and answers have been prepared according to the CA Foundation exam syllabus.The Business Economics Mock Test - 1 MCQs are made for CA Foundation 2023 Exam. Find important definitions, questions, notes, meanings, examples, exercises, MCQs and online tests for Business Economics Mock Test - 1 below.
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Business Economics Mock Test - 1 - Question 1

Average income increases from INR 20,000 p.m. to INR 22,000 p.m. Quantity demanded per month increases from 5000 to 6000 units. Which of the following is correct?

Detailed Solution for Business Economics Mock Test - 1 - Question 1

The percentage change in demand is +20%; the percentage change in income is +10%. This means the product is normal because demand rises with more income and has an income elasticity of +2.

Business Economics Mock Test - 1 - Question 2

If the marginal product of labor is 2, the marginal product of capital is 4, the wage rate is INR 3, the rental price of capital is INR 6, and the price of output is INR 1.50, then the firm should

Detailed Solution for Business Economics Mock Test - 1 - Question 2

Cost of hiring one additional unit of labour = Rs 3
Revenue from hiring an additional unit of labour = MP of labour x price = Rs 3
Cost of renting one additional unit of capital = Rs 6
Revenue from renting an additional unit of capital = MP of capital x price = Rs 6
Hence, there is no benefit in increasing labour or capital.

Business Economics Mock Test - 1 - Question 3

The supply curve of a firm is given by the equation q=250p−250. If the price decreases by 2 units, ______

Detailed Solution for Business Economics Mock Test - 1 - Question 3

Business Economics Mock Test - 1 - Question 4

Vysakh is selling samosas. He already sold 250 samosas. His decision on whether or not to sell the 251st samosa is based on the ___

Detailed Solution for Business Economics Mock Test - 1 - Question 4

On taking any economic decisions, only the marginal quantities are important. In this case, the relevant decision variable is the marginal quantity of the 251st samosa.

Business Economics Mock Test - 1 - Question 5

When the no.of uses of the purchase goods is less price elasticity of demand is

Detailed Solution for Business Economics Mock Test - 1 - Question 5

When goods whose uses less will have less price elastic because the products can be used for a specific purpose i.e it has no substitutes. The products which have more substitutes will have high elastic demand.

Business Economics Mock Test - 1 - Question 6

For an inferior good with a downward sloping demand curve:

Detailed Solution for Business Economics Mock Test - 1 - Question 6

For an inferior good demand falls as income increases. The quantity demanded falls as price increases; this means the income elasticity and the price elasticity will both be negative.

Business Economics Mock Test - 1 - Question 7

For a firm operating in a perfectly competitive market, the slope of the TR curve is

Detailed Solution for Business Economics Mock Test - 1 - Question 7

For a firm operating in a perfectly competitive market, the slope of the TR curve is equal to the price and is constant.

Business Economics Mock Test - 1 - Question 8

Which of the following is an alternate measure of well-being currently used that incorporates GDP, but does not rely exclusively on income as a measure of well-being?

Detailed Solution for Business Economics Mock Test - 1 - Question 8

HDI is a measure of well-being that includes health (measured with life expectancy), wealth (measured with GDP per capita), and education (measured with an education index), that can be used to compare countries' social and economic development, as well as track this development over time.

Business Economics Mock Test - 1 - Question 9

When the money value of money exceeds the commodity value of money, it is called:

Detailed Solution for Business Economics Mock Test - 1 - Question 9

Credit money has a face value which is much higher than the commodity value. Credit money consists of credit cards, demand deposits, among others. 

Business Economics Mock Test - 1 - Question 10

Reeta buys only compact discs and tapes and spends all her income. The marginal utility from a compact disc is 30 and the marginal utility from a tape is 20. The price of a compact disc is INR 15 and the price of a tape is INR 10. To maximize her utility, Reeta should

Detailed Solution for Business Economics Mock Test - 1 - Question 10

MCCDs/PCDs=MUtape/Ptape. Reeta is already maximizing her utility.

Business Economics Mock Test - 1 - Question 11

If the demand is price inelastic:

Detailed Solution for Business Economics Mock Test - 1 - Question 11

This means that the percentage change in quantity demanded is less than the percentage change in price; this means a price increase will increase revenue.

Business Economics Mock Test - 1 - Question 12

The direct tax is collected directly from

Detailed Solution for Business Economics Mock Test - 1 - Question 12

The direct tax is collected directly from the income earners.

Business Economics Mock Test - 1 - Question 13

Convex indifferent curve is explained by

Detailed Solution for Business Economics Mock Test - 1 - Question 13

Convexity means slope is decreasing as the marginal rate of substitution goes on diminishing.

Business Economics Mock Test - 1 - Question 14

If the marginal propensity to save decreases, the value of the multiplier will

Detailed Solution for Business Economics Mock Test - 1 - Question 14

If the marginal propensity to save decreases, the value of the multiplier will increase.

Business Economics Mock Test - 1 - Question 15

Service tax is an example of

Detailed Solution for Business Economics Mock Test - 1 - Question 15

Service tax which is applied to the sales of services is an indirect tax.

Business Economics Mock Test - 1 - Question 16

If there is no change in quantity demanded to any charge in price then elasticity of demand is & shape of demand curve is

Detailed Solution for Business Economics Mock Test - 1 - Question 16

When demand does not respond to the given change in price it is known as Perfectly Inelastic demand where elasticity of demand is zero & demand curve is parallel to Y axis i.e. it is vertical.

Business Economics Mock Test - 1 - Question 17

There are 20 identical firms in a market. At a price of Rs 20, firm 1 supplies 25 units of a good, What is the total supply at that price?

Detailed Solution for Business Economics Mock Test - 1 - Question 17

Since the firms are identical, we can assume that their supply curves are identical. Hence, each firm would supply 25 units.
∴Qs=20×25=500

Business Economics Mock Test - 1 - Question 18

The fact that rubies are more expensive than milk reflects the fact that for most consumers

Detailed Solution for Business Economics Mock Test - 1 - Question 18

Because more milk is consumed, the MU from milk is lower than the MU from rubies.

Business Economics Mock Test - 1 - Question 19

Study the supply curve given below and answer the following question.

Q. If the market price is $4, the producer surplus is ________.

Detailed Solution for Business Economics Mock Test - 1 - Question 19

Business Economics Mock Test - 1 - Question 20

The other names for capital formation is

Detailed Solution for Business Economics Mock Test - 1 - Question 20

The other names for capital formation is investments

Business Economics Mock Test - 1 - Question 21

MRS is determined by

Detailed Solution for Business Economics Mock Test - 1 - Question 21

MRS is always related to the choice and preferences of the consumer.

Business Economics Mock Test - 1 - Question 22

A firm should shut down temporarily if

Detailed Solution for Business Economics Mock Test - 1 - Question 22

In the short run, fixed costs are treated as sunk costs. Hence, a firm should shut down temporarily if P<AVC. If AVC<P<SAC, the firm should remain operational.

Business Economics Mock Test - 1 - Question 23

The supply curves of two firms 1 and 2 are given below.
q1=3p−5, p≥5
q2=6p−1, p≥2
​Q. Choose the correct option(s) about the market supply. All prices are in rupees.

Detailed Solution for Business Economics Mock Test - 1 - Question 23

Let q be the market supply.
p<2⇒q=0
2≤p<5⇒q=q1=6p−1
p≥5⇒q=q1+q2=9p−6
Hence, p=6⇒q=9×6−6=48
p=4⇒q=6×4−1=23

Business Economics Mock Test - 1 - Question 24

Commercial banks accept deposits from the public in the form of:

Detailed Solution for Business Economics Mock Test - 1 - Question 24

Banks accept deposits as chequeable deposits and non-chequeable deposits. 

Business Economics Mock Test - 1 - Question 25

Forward market is that market which:

Detailed Solution for Business Economics Mock Test - 1 - Question 25

Forward market deals with foreign exchange transactions that are meant for future delivery.

Business Economics Mock Test - 1 - Question 26

Given the following four possibilities ,which one results in an increase in total consumer expenditure?

Detailed Solution for Business Economics Mock Test - 1 - Question 26

Increase in total expenditure will have two effect on price. if the price rises than the demand is inelastic and if the price falls than the demand is elastic. Thus in the given example we observe that total expenditure increases then the demand will inelastic with rise in price because there is a direct relationship between the price and total expenditure.

Business Economics Mock Test - 1 - Question 27

Shalini sells lemonades at Rs 10 per glass. If she sells 300 glasses, what is her total revenue?

Detailed Solution for Business Economics Mock Test - 1 - Question 27

TR=P×Q=300×10
=Rs  3000

Business Economics Mock Test - 1 - Question 28

If people with higher incomes pay higher taxes, the system is called:

Detailed Solution for Business Economics Mock Test - 1 - Question 28

A progressive tax is a tax in which the average tax rate (taxes paid ÷ personal income) increases as the taxable amount increases. The term "progressive" refers to the way the tax rate progresses from low to high, with the result that a taxpayer's average tax rate is less than the person's marginal tax rate.

Business Economics Mock Test - 1 - Question 29

In which of the following systems was the rent fixed and a revenue collector was appointed by the government who was responsible for rent collection?

Detailed Solution for Business Economics Mock Test - 1 - Question 29

In the Zamindari system the rent was fixed and a revenue collector was appointed by the government who was responsible for rent collection.

Business Economics Mock Test - 1 - Question 30

What kind of goods has elastic demand

Detailed Solution for Business Economics Mock Test - 1 - Question 30

Luxary goods elastic demand as a small change in price of it can lead to large change in quantity demanded.

Business Economics Mock Test - 1 - Question 31

Use this information :- Hours of labour : 0 , Total Output : 0 , Marginal Product : 0 ;, Hours of labour : 1 , Total Output : 100 , Marginal Product : 100 ;,Hours of labour : 2 , Total Output : 0 , Marginal Product : 80 ;,Hours of labour : 3 , Total Output : 240 , Marginal Product : 0 ;, What is the marginal product of the 3rd hour of labour ?

Detailed Solution for Business Economics Mock Test - 1 - Question 31

240 - 180 = 60

Business Economics Mock Test - 1 - Question 32

Use this information :- Hours of labour : 0 , Total Output : 0 , Marginal Product : 0 ;, Hours of labour : 1 , Total Output : 100 , Marginal Product : 100 ;,Hours of labour : 2 , Total Output : 0 , Marginal Product : 80 ;,Hours of labour : 3 , Total Output : 240 , Marginal Product : 0 ;, What is the output when 2 hours of labour are employed ?

Detailed Solution for Business Economics Mock Test - 1 - Question 32

Business Economics Mock Test - 1 - Question 33

The market demand curve show

Detailed Solution for Business Economics Mock Test - 1 - Question 33

The market demand curve shows the quantity of a good that consumers would like to purchase at different prices.

Business Economics Mock Test - 1 - Question 34

How much interest is paid by the RBI on the money deposited under the CRR measure?

Detailed Solution for Business Economics Mock Test - 1 - Question 34

No interest is paid by the RBI on the money deposited under the CRR measure

Business Economics Mock Test - 1 - Question 35

An increase in the supply of a good is caused by

Detailed Solution for Business Economics Mock Test - 1 - Question 35

An increase in supply is caused by other factors other than price as such all the statements given here are true.

Business Economics Mock Test - 1 - Question 36

AC is obtained by dividing TC by the level of

Detailed Solution for Business Economics Mock Test - 1 - Question 36

AC=TC/Output

Business Economics Mock Test - 1 - Question 37

In a situation when MRS>PX/PY, the consumer would react by

Detailed Solution for Business Economics Mock Test - 1 - Question 37

MRS is the amount of Good-Y which a consumer is willing to give up for one unit more of Good-X. In a situation when MRS>PX/PY, the consumer would react by increasing the consumption of commodity-X.

Business Economics Mock Test - 1 - Question 38

Which of the following will not decrease the demand for a normal good?

Detailed Solution for Business Economics Mock Test - 1 - Question 38

With an increase in income, the demand for normal goods increase.

Business Economics Mock Test - 1 - Question 39

The law of diminishing returns

Detailed Solution for Business Economics Mock Test - 1 - Question 39

The law of diminishing returns is reflected in the increasing with a decreasing rate sloped portion of the marginal product curve

Business Economics Mock Test - 1 - Question 40

A line that connects all points where the marginal rate of technical substitution is equal to the ratio of input prices is called the

Detailed Solution for Business Economics Mock Test - 1 - Question 40

A line that connects all points where the marginal rate of technical substitution is equal to the ratio of input prices is called the expansion path.

Business Economics Mock Test - 1 - Question 41

The oil company 'Standard Oil' delivers Q amount of oil to the market. They developed a new technology which helps them drill oil at a cheaper cost. As a result, 'Standard Oil' would be willing to ________

Detailed Solution for Business Economics Mock Test - 1 - Question 41

If the costs of production go down, the supply curve shifts to the right as the willingness to sell would be greater at any given price. Hence, 'Standard Oil' would supply more oil at a given price and the same amount of oil at a lower price.

Business Economics Mock Test - 1 - Question 42

If a car is purchased by a taxi-operator, it will be regarded as a:

Detailed Solution for Business Economics Mock Test - 1 - Question 42

The car will be both a capital and a final good.

Business Economics Mock Test - 1 - Question 43

If income is distributed evenly, the Gini co-efficient is:

Detailed Solution for Business Economics Mock Test - 1 - Question 43

A Gini coefficient of zero corresponds to precise equality in income distribution

Business Economics Mock Test - 1 - Question 44

Which of the following systems is followed by the Reserve Bank of India for issuing currency?

Detailed Solution for Business Economics Mock Test - 1 - Question 44

The RBI follows the minimum reserve system, wherein it has to maintain a minimum quantity of gold bullion as reserves to issue currency. 

Business Economics Mock Test - 1 - Question 45

When MU is zero , TU is

Detailed Solution for Business Economics Mock Test - 1 - Question 45

When MU is zero, TU is maximum that point is called as point of satiety or maximum satisfactions.

Business Economics Mock Test - 1 - Question 46

An isoquant that is

Detailed Solution for Business Economics Mock Test - 1 - Question 46

An isoquant that is further from the origin represents greater output.

Business Economics Mock Test - 1 - Question 47

Deposits in the banks are:

Detailed Solution for Business Economics Mock Test - 1 - Question 47

Deposits are part of the liabilities of the bank.

Business Economics Mock Test - 1 - Question 48

If investment increases from 400 to 600 and income increases from 3,000 to 4,000, the MPS should be equal to

Detailed Solution for Business Economics Mock Test - 1 - Question 48

Business Economics Mock Test - 1 - Question 49

If Rs 150 are required to buy $2, instead of Rs 100 earlier, then:

Detailed Solution for Business Economics Mock Test - 1 - Question 49

This is a case of depreciation, and the import bill rises as a result. 

Business Economics Mock Test - 1 - Question 50

A vertical supply curve parallel to Y axis implies that the elasticity of supply is

Detailed Solution for Business Economics Mock Test - 1 - Question 50

A vertical supply curve is parallel to Y axis implies that the elasticity of supply is zero.

Business Economics Mock Test - 1 - Question 51

Those goods which satisfy human wants directly are called :

Detailed Solution for Business Economics Mock Test - 1 - Question 51

Consumer goods satisfy human wants directly. 

Business Economics Mock Test - 1 - Question 52

The quote about the nature of statistics, "Statistics are like the clay from which you can make a God or a devil as you please", is attributed to:-

Business Economics Mock Test - 1 - Question 53

If isoquants are plotted on a graph with capital measured on the vertical axis and labor on the horizontal axis, then an increase in the wage rate will cause the isocost line

Detailed Solution for Business Economics Mock Test - 1 - Question 53

If isoquants are plotted on a graph with capital measured on the vertical axis and labor on the horizontal axis, then an increase in the wage rate will cause the isocost line to become steeper and the optimal quantity of labor will decrease.

Business Economics Mock Test - 1 - Question 54

Equilibrium:

Detailed Solution for Business Economics Mock Test - 1 - Question 54

Equilibrium is an important idea for predicting economic changes. The statement is true regarding the equilibrium. The state of equilibrium arrives when the demand and supply match at a point. This is important to know as it helps what can be the possible conditions that can take place if any of the demand or supply levels change in the economy. 

Business Economics Mock Test - 1 - Question 55

In pre-industrial times, which of the following contributed the most to a country's economy?

Detailed Solution for Business Economics Mock Test - 1 - Question 55

Even though the economy was primarily agrarian, the revenues from trade mainly arose out of trade of manufactured products.

Business Economics Mock Test - 1 - Question 56

If the government spending multiplier is found to be 1, what is the marginal propensity to consume?

Detailed Solution for Business Economics Mock Test - 1 - Question 56

Business Economics Mock Test - 1 - Question 57

Which assumptions implies the consumer aims at utility maximization ?

Detailed Solution for Business Economics Mock Test - 1 - Question 57

A rational consumer always desires to obtain maximum satisfaction.

Business Economics Mock Test - 1 - Question 58

Which of the following is not a determinant of a consumer's demand for a commodity?

Detailed Solution for Business Economics Mock Test - 1 - Question 58

Population is not a determinant of a consumer's demand for a commodity.

Business Economics Mock Test - 1 - Question 59

For the short run shutdown decision, which of the following cost is treated as sunk cost?

Detailed Solution for Business Economics Mock Test - 1 - Question 59

For the short run shutdown decision, the fixed costs are treated as sunk costs because they must be paid regardless of whether output is being produced or not.

Business Economics Mock Test - 1 - Question 60

Which among the following institutions have to maintain SLR?

Detailed Solution for Business Economics Mock Test - 1 - Question 60

All the given options have to maintain SLR.

Business Economics Mock Test - 1 - Question 61

Who can issue the Registration Cum Membership Certificate? 

Detailed Solution for Business Economics Mock Test - 1 - Question 61

Export Promotion Council or Federation of Indian Export Organization if not these two then there is another option of Export Development Authority.

Business Economics Mock Test - 1 - Question 62

Name the principles of scientific management which emphasises on the study and analysis of methods rather than estimation. 

Detailed Solution for Business Economics Mock Test - 1 - Question 62

Science not rule of thumb is the principle, which emphasises on study and analysis of methods rather than estimation. 

Business Economics Mock Test - 1 - Question 63

___ is an empty exercise without controlling because, in the absence of a control system, it is impossible to monitor the progress and keep a check on the proper implementation of plans.

Detailed Solution for Business Economics Mock Test - 1 - Question 63

Planning is an empty exercise without controlling because, in the absence of a control system, it is impossible to monitor the progress and keep a check on the proper implementation of plans.

Business Economics Mock Test - 1 - Question 64

Which limitation of planning states that 'Once plans are made, managers may not be in a position to change them'? 

Detailed Solution for Business Economics Mock Test - 1 - Question 64

Planning leads to rigidity. A specific plan clearly indicates the objective to be achieved and the ways of doing work. Since the manager may not be able to change these plans, it leads to rigidity.

Business Economics Mock Test - 1 - Question 65

Which industry is engaged in producing goods for intermediate or final consumption through processing of raw materials?

Detailed Solution for Business Economics Mock Test - 1 - Question 65

Manufacturing industries are engaged in producing goods through processing of raw material.

Business Economics Mock Test - 1 - Question 66

Administration can be viewed as?

Detailed Solution for Business Economics Mock Test - 1 - Question 66

Administration can be viewed as a part of management.

Business Economics Mock Test - 1 - Question 67

The employees of Manav Ltd, have formed a dramatic group for their recreation. Identify the type of organisation.

Detailed Solution for Business Economics Mock Test - 1 - Question 67

Since the dramatic group is made for recreation, the members of the group communicate freely and there won't be any strict hierarchical order or reporting relationships. The organisation arises spontaneously. This is an example of informal organisation.

Business Economics Mock Test - 1 - Question 68

The directors of a famous I.T company have decided to set up a new firm in Pune, with an estimated cost of rupees of eight crores. Which of the following sources of finance would be most suitable?

Detailed Solution for Business Economics Mock Test - 1 - Question 68

Setting up of a plant means funds are required for investment in long-term assets. There are various sources of long-term finance, such as equity shares, preference shares, and debentures.

Business Economics Mock Test - 1 - Question 69

Strategic planning is done by:

Detailed Solution for Business Economics Mock Test - 1 - Question 69

Strategic planning is done by top managers of the firm.

Business Economics Mock Test - 1 - Question 70

Mr. Ram has his own artificial jewellery shop. He prefers to not join hands with any other persons, why? 

Detailed Solution for Business Economics Mock Test - 1 - Question 70

Mr. Ram has his own shop. He prefers to not join hands with any other person, because in a small business, there are limited savings, and a personal connection to the business. 

Business Economics Mock Test - 1 - Question 71

The activities that are connected with the extraction and production of natural resources and reproduction and development of living organisms is called ___

Detailed Solution for Business Economics Mock Test - 1 - Question 71

The activities that are connected with the extraction and production of natural resources and reproduction and development of living organisms is called primary industry. 

Business Economics Mock Test - 1 - Question 72

Estimating Manpower Requirement is a ___ .

Detailed Solution for Business Economics Mock Test - 1 - Question 72

Workload analysis means to find out number and type of employees required to perform various jobs designed in organisational structure. The manpower requirement can find out by equating workload analysis to workforce analysis.

Business Economics Mock Test - 1 - Question 73

Buying and selling of goods and services in large quantities for the purpose of resale or intermediate use by ___ . 

Detailed Solution for Business Economics Mock Test - 1 - Question 73

Buying and selling of goods and services in large quantities for the purpose of resale or intermediate use by wholesale trader

Business Economics Mock Test - 1 - Question 74

Companies with a higher growth pattern are likely to:

Detailed Solution for Business Economics Mock Test - 1 - Question 74

Companies with higher growth opportunities tend to retain more money out of their earnings so as to finance the required investments. Therefore, higher growth prospects result in lower dividend payment.

Business Economics Mock Test - 1 - Question 75


Q. What is the minimum percentage of shares required to be subscribed?

Detailed Solution for Business Economics Mock Test - 1 - Question 75

As per the rule laid down by SEBI, a minimum of 90% of the total shares offered needs by the company has to be subscribed.

Business Economics Mock Test - 1 - Question 76

Sita opened a small stationery shop in her town. However, she figures the need to hire middlemen to take care of the marketing aspect in order to get her business known and earn more customers. Even then she realizes that it is a challenge. Why?

Detailed Solution for Business Economics Mock Test - 1 - Question 76

Even after Sita hires middlemen for her marketing needs, they charge an exorbitant fee for doing so. This leads to a huge reduction in her revenues earned. 

Business Economics Mock Test - 1 - Question 77

What is the prerequisite of selection? 

Detailed Solution for Business Economics Mock Test - 1 - Question 77

The prerequisite of selection is recruitment because in recruitment company receives a large number of applications and then only the selection process starts.

Business Economics Mock Test - 1 - Question 78

The cheapest source of finance is:

Detailed Solution for Business Economics Mock Test - 1 - Question 78

Retained earning is a part of profit which is not distributed among shareholders as dividends but is retained in the business for future use. It is also known as self financing. It is available free of cost for the business.

Business Economics Mock Test - 1 - Question 79

________________________________ is a functional 24 * 7 facility, fund transfer at any time of the day.

Detailed Solution for Business Economics Mock Test - 1 - Question 79

Immediate payment service is a functional 24 * 7 facility, fund transfer at any time of the day. 

Business Economics Mock Test - 1 - Question 80

___  refers to shifting an employee to a similar job with no change in salary, status, and responsibility.

Detailed Solution for Business Economics Mock Test - 1 - Question 80

Transfer refers to shifting an employee to a similar job with no change in salary, status, and responsibility.

Business Economics Mock Test - 1 - Question 81

Which is the form of organization where the initial cost of setting-up of the business is least?

Detailed Solution for Business Economics Mock Test - 1 - Question 81

As far as initial business setting-up costs are concerned, sole proprietorship is the least expensive way to start a business. 

Business Economics Mock Test - 1 - Question 82

A situation where fewer shares have to be sold than offered is called ____?

Detailed Solution for Business Economics Mock Test - 1 - Question 82

A situation where fewer shares have to be sold than offered is called under-subscription.

Business Economics Mock Test - 1 - Question 83

A Treasury bill is an instrument of  ____________.

Detailed Solution for Business Economics Mock Test - 1 - Question 83

A treasury bill is an instrument of short term debt. Treasury bills are sold with maturities of four, thirteen, twenty-six and fifty-two weeks.

Business Economics Mock Test - 1 - Question 84

___________________ is an online record of what a person has picked up while browsing the online store. 

Detailed Solution for Business Economics Mock Test - 1 - Question 84

Shopping cart is an online record of what a person has picked up while browsing the online store. 

Business Economics Mock Test - 1 - Question 85

What are the two important sources from where the owner's funds can be obtained?

Detailed Solution for Business Economics Mock Test - 1 - Question 85

Owner's funds are the funds that are provided by the owners of an enterprise, which may have sole trader or partner or shareholder of a company. The owner's capital is invested for a long period of time. Such capital forms the basis on which owners acquire their right of control of management. An issue of equity shares and retained earnings are the two important sources where owner's funds can be obtained.

Business Economics Mock Test - 1 - Question 86

Government subsidy of ___ is provided to the small businesses for building capital assets.

Detailed Solution for Business Economics Mock Test - 1 - Question 86

Government subsidy of 15-20% is provided to the small businesses for building capital assets.

Business Economics Mock Test - 1 - Question 87

The most common route for investments by MNCs in countries around the world is to__________________. 

Detailed Solution for Business Economics Mock Test - 1 - Question 87

The most common route for investments by MNCs in countries around the world is to form partnerships with local companies.

Business Economics Mock Test - 1 - Question 88

___ are basic truths and guidelines for behaviour. 

Detailed Solution for Business Economics Mock Test - 1 - Question 88

Principles are basic truths and guidelines for behaviour. 

Business Economics Mock Test - 1 - Question 89

"To see whether plans are being implemented and activities are being performed according to schedule,' is a step of planning process. Identify the step 

Detailed Solution for Business Economics Mock Test - 1 - Question 89

Follow- up action, it refers to the process of monitoring the plans, whether they are implemented properly or not. 

Business Economics Mock Test - 1 - Question 90

___ areas are those areas which are critical to the success of an organisation and affect the profits significantly.

Detailed Solution for Business Economics Mock Test - 1 - Question 90

Key Result Areas are those areas which are critical to the success of an organisation and affect the profits significantly.

Business Economics Mock Test - 1 - Question 91

What is the main objective of Public sector enterprises?

Detailed Solution for Business Economics Mock Test - 1 - Question 91

Providing services to the public is the main objective of a public service enterprise.

Business Economics Mock Test - 1 - Question 92

Several acts passed by the government, Court judgements and statutory warnings prescribed under law. These are all included in the ___environment of business?

Detailed Solution for Business Economics Mock Test - 1 - Question 92

Several acts passed by the government, Court judgements and statutory warnings prescribed under law. These are all included in the legal environment of business.

Business Economics Mock Test - 1 - Question 93

A ___________ is the most developed credit instrument of the bank, for the withdrawal of deposits.

Detailed Solution for Business Economics Mock Test - 1 - Question 93

A cheque is the most developed credit instrument of the bank, for the withdrawal of deposits. It is the most convenient and an inexpensive medium of exchange.

Business Economics Mock Test - 1 - Question 94

A commercial bill is used to ____________

Detailed Solution for Business Economics Mock Test - 1 - Question 94

Working capital financing is done by various modes such as trade credit, cash and discount of bills, bank guarantee, letter of credit, factoring, commercial paper, working capital financing extensively used by all small and big businesses.

Business Economics Mock Test - 1 - Question 95

Which of the following alone can ensure effective ethics programme in a business enterprise?

Detailed Solution for Business Economics Mock Test - 1 - Question 95

Involvement of employees alone can ensure effective ethics programme in a business enterprise. It is the employees at different levels who implement ethics policies to make ethical business a reality.

Business Economics Mock Test - 1 - Question 96

Which of the following best indicates the importance of business environment?

Detailed Solution for Business Economics Mock Test - 1 - Question 96

Identification of opportunities and risks, improvement in performance, and coping with rapid changes all indicate the importance of business environment.

Business Economics Mock Test - 1 - Question 97

Financial leverage is called favourable if:

Detailed Solution for Business Economics Mock Test - 1 - Question 97

Financial leverage is the degree to which a company uses fixed-income securities such as debt. Therefore, financial leverage is favorable when the uses to which debt can be put generate returns (ROI) greater than the interest expense associated with the debt (Cost of Debt).

Business Economics Mock Test - 1 - Question 98

Types of organizations in the private sector are:

Detailed Solution for Business Economics Mock Test - 1 - Question 98

Proprietorship and Joint Hindu family business, both, fall under private sector. 

Business Economics Mock Test - 1 - Question 99

Which one of the following modes of entry permits greatest degree of control over overseas opeartions?

Detailed Solution for Business Economics Mock Test - 1 - Question 99

Wholly owned subsidiary permits greatest degree of control over overseas opeartions.

Business Economics Mock Test - 1 - Question 100

Name the organisation in which employees are allowed to communicate freely and these are no rules and regulations.

Detailed Solution for Business Economics Mock Test - 1 - Question 100

In an informal organisation, employees can communicate freely.

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