CA Foundation  >  Mock Tests & Past Year Papers for CA Foundation  >  Business Economics Mock Test - 3 Download as PDF

Business Economics Mock Test - 3


Test Description

100 Questions MCQ Test Mock Tests & Past Year Papers for CA Foundation | Business Economics Mock Test - 3

Business Economics Mock Test - 3 for CA Foundation 2023 is part of Mock Tests & Past Year Papers for CA Foundation preparation. The Business Economics Mock Test - 3 questions and answers have been prepared according to the CA Foundation exam syllabus.The Business Economics Mock Test - 3 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 - 3 below.
Solutions of Business Economics Mock Test - 3 questions in English are available as part of our Mock Tests & Past Year Papers for CA Foundation for CA Foundation & Business Economics Mock Test - 3 solutions in Hindi for Mock Tests & Past Year Papers for CA Foundation course. Download more important topics, notes, lectures and mock test series for CA Foundation Exam by signing up for free. Attempt Business Economics Mock Test - 3 | 100 questions in 100 minutes | Mock test for CA Foundation preparation | Free important questions MCQ to study Mock Tests & Past Year Papers for CA Foundation for CA Foundation Exam | Download free PDF with solutions
1 Crore+ students have signed up on EduRev. Have you?
Business Economics Mock Test - 3 - Question 1

In case the data were collected on the basis of sample, the users should satisfy themselves regarding:

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

In case the data were collected on the basis of sample, the users should satisfy themselves regarding the following:
a) adequacy of sample
b) use of proper sampling technique
c) collection of data by trained, experienced and unbiased investigator

Business Economics Mock Test - 3 - Question 2

CPI for industrial workers(1982=100) is 526 in January 2005 which would mean ______.

Detailed Solution for Business Economics Mock Test - 3 - Question 2

if the industrial worker spent Rs 100 in 1982 for a basket of commodities, he needs Rs 526 in January 2005 to be able to buy an identical basket of commodities.

Business Economics Mock Test - 3 - Question 3

Depreciation means __________.

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

In accounting terms, depreciation is defined as the reduction of recorded cost of a fixed asset in a systematic manner until the value of the asset becomes zero or negligible. A land is the only exception which cannot be depreciated as the value of land appreciates with time.

Business Economics Mock Test - 3 - Question 4

Which of the following is not an macroeconomics agent?

Detailed Solution for Business Economics Mock Test - 3 - Question 4

Macroeconomic study considers all the factors of an economy as a whole rather to considering them individually.
Therefore firms. individuals etc are micro economic units and central bank, governments etc are macro economic agents.

Business Economics Mock Test - 3 - Question 5

Economists who are concerned about the behaviour of individual households, firms and industries are studying __________.

Detailed Solution for Business Economics Mock Test - 3 - Question 5

Microeconomics is the study of particular firm, particular household, individual price, wages, income, industry and particular commodity.

Business Economics Mock Test - 3 - Question 6

If each item of a data is increased by 5 times, then the Arithmetic mean ___________.

Detailed Solution for Business Economics Mock Test - 3 - Question 6

Arithmetic mean refers to the average amount in a given group of data. The arithmetic mean between a and b = (a+b)/2.
So if a is increased by 5 and b is increased by 5, then the
Arithmetic mean = {(a+5)+(b+5)}/2
= (a+b+10)/2
= (a+b)/2 + 10/2
= (a+b)/2 +5
Therefore, the arithmetic mean also increases by 5.

Business Economics Mock Test - 3 - Question 7

The factor cost method of estimating national income includes which of the following?

Detailed Solution for Business Economics Mock Test - 3 - Question 7

The factor cost method takes into account the cost incurred to employ factors of production in the economy. The factors of production, namely, land is paid rent, labour is paid wages, capital is paid interest and entrepreneur is paid profits. These costs are taken into account to measure national income using the factor cost method.

Business Economics Mock Test - 3 - Question 8

Bulk of public revenue comes from ________.

Detailed Solution for Business Economics Mock Test - 3 - Question 8

The income of the government through all its sources is called public revenue. Taxes are the major source of public revenue because today taxes are charged in almost all the sectors such as railways, cinema halls, toll plaza, restaurant, etc. Hence, bulk of public revenue comes from taxes.

Business Economics Mock Test - 3 - Question 9

Which country follows an flexible exchange rate system?

Detailed Solution for Business Economics Mock Test - 3 - Question 9

In a flexible rate system, the price of the domestic currency in international markets is purely determined by the market forces of supply and demand. It is allowed to appreciate and depreciate as per the market conditions, without intervention by the central bank. The Federal Reserve does not intervene in the forex market for the US dollar and it is classified as a freely floating currency.  

Business Economics Mock Test - 3 - Question 10

When the producers are producing homogeneous products, the market will be

Detailed Solution for Business Economics Mock Test - 3 - Question 10

A production which is the same for every firm in the industry is called a homogeneous product. One farmer’s carrots are indistinguishable from those produced by any other farmer. They are homogeneous. A market is said to be perfectly competitive when all firms act as price-takers — when they can sell as such as they like at the going price but nothing at a higher price as they sell homogeneous products.

Business Economics Mock Test - 3 - Question 11

Comparability is one of the important attributes for the numerical facts to be known as _____________.

Detailed Solution for Business Economics Mock Test - 3 - Question 11

Comparability is one of the important attributes for the numerical facts to be known as  statistics

Business Economics Mock Test - 3 - Question 12

Utility means _________.

Detailed Solution for Business Economics Mock Test - 3 - Question 12

Utility is the want-satisfying power of a commodity. It is the satisfaction, actual or expected, obtained from the consumption of a commodity. It differs from person-to-person, place-to-place and time-to-time. It is the ability of a good to satisfy a want.

Business Economics Mock Test - 3 - Question 13

A study of how increases in the corporate income tax rate will affect the national unemployment rate is an example of:

Detailed Solution for Business Economics Mock Test - 3 - Question 13

Macroeconomics deals with all the issues affecting the national economy.
For example, an increase in the direct tax such as corporate income tax will increase the cost of the corporate sector.
Thus, in order to compensate their costs, one of the measure may be to lessen the employees which will further affect the unemployment in the economy.

Business Economics Mock Test - 3 - Question 14

Foreign investments includes _______.

Detailed Solution for Business Economics Mock Test - 3 - Question 14

Foreign investments includes _______.
foreign direct investments
portfolio investments
foreign institutional investments

Business Economics Mock Test - 3 - Question 15

Which of the following cannot be accepted as a factor of production?

Detailed Solution for Business Economics Mock Test - 3 - Question 15

Light of the sun cannot be accepted as a factor of production.

Business Economics Mock Test - 3 - Question 16

Who is called the 'father of economics'?

Detailed Solution for Business Economics Mock Test - 3 - Question 16

Adam Smith is called the 'father of economics'.

Business Economics Mock Test - 3 - Question 17

Which of the following is an example of Non-durable good?

Detailed Solution for Business Economics Mock Test - 3 - Question 17

Milk & Bread are example of Non-durable good

Business Economics Mock Test - 3 - Question 18

The merits of Sampling include____________.

Detailed Solution for Business Economics Mock Test - 3 - Question 18

Sampling refers to the selection of few items from a given group. Types of sampling include:
a) Random sampling
b) Deliberate sampling
Merits of sampling include:
a) it is less costly since only a few items are selected.
b) it requires less time since it is easy to deal with few items.
c) it gives detail information regarding to the selected sample.

Business Economics Mock Test - 3 - Question 19

Functions of money are:

Detailed Solution for Business Economics Mock Test - 3 - Question 19

Functions of money are:
stock of value
medium of exchange
measure of value

Business Economics Mock Test - 3 - Question 20

When total product is 100 units and units of variable factor are 4, average product will be ____________________.

Detailed Solution for Business Economics Mock Test - 3 - Question 20

When total product is 100 units and units of variable factor are 4, average product will be  25

Business Economics Mock Test - 3 - Question 21

__________is the basic objective before a discriminating monopolist.

Detailed Solution for Business Economics Mock Test - 3 - Question 21

The monopolist is the sole producer in the industry and faces no competition, thus the main aim is profit maximization. To achieve this the monopolist will always produce at the point where MC = MR. If MR ≥ MC it is profitable to increase production.  If MR ≤ MC it is profitable to decrease production.

Business Economics Mock Test - 3 - Question 22

The expenditure method of estimating national income includes ___________.

Detailed Solution for Business Economics Mock Test - 3 - Question 22

Expenditure method of measuring national income takes into account the expenditures made by various economic agents in the economy in a given year. The economic agents refers to individuals, households, business firms and government.

Business Economics Mock Test - 3 - Question 23

Measures to check inflation can be ________.

Detailed Solution for Business Economics Mock Test - 3 - Question 23
  • check of increasing money incomes
  • making available more of real goods & services
Business Economics Mock Test - 3 - Question 24

Economics cannot be neutral between ends, as it is _______.

Detailed Solution for Business Economics Mock Test - 3 - Question 24

Economics is the science of human behaviour as individuals as well as economy as a whole. So when it comes to attach neutrality between two concepts or ends of economics, it becomes impossible due to its practical application that have given realistic results based on day to day life.

Business Economics Mock Test - 3 - Question 25

The term SEZ stands for _________.

Detailed Solution for Business Economics Mock Test - 3 - Question 25

SEZ stands for Special Economic Zone. Government provides a lot of subsidies and facilities to the firms of these areas in order to uplift the standard of economic conditions of those people living in these areas.

Business Economics Mock Test - 3 - Question 26

The name of the single European currency: 

Detailed Solution for Business Economics Mock Test - 3 - Question 26

The name of the single European currency is Euro. Almost all the countries in the European Union use Euro as their currency. This facilitates easy trade. However, Dollar is the currency of USA, Yen is of Japan and Pounds is of UK.

Business Economics Mock Test - 3 - Question 27

According to law of demand, _____________, if the price of a commodity falls, the quantity demanded of it will rise and if the price of a commodity rises, its quantity demanded will decline.

Detailed Solution for Business Economics Mock Test - 3 - Question 27

Other things being equal

Business Economics Mock Test - 3 - Question 28

True value added = _________.

Detailed Solution for Business Economics Mock Test - 3 - Question 28

True value added = Value added - depreciation

Business Economics Mock Test - 3 - Question 29

The country that enjoys the socialist economic system is __________.

Detailed Solution for Business Economics Mock Test - 3 - Question 29

Socialism is a term applied to an economic system in which property is held in common and not individually, and relationships are governed by a political hierarchy. Common ownership doesn’t mean decisions are made collectively, however. Instead, individuals in positions of authority make decisions in the name of the collective group.

Business Economics Mock Test - 3 - Question 30

The economy of a country, which has acquired very high stage of development and where per capita income and standard of living is high, is termed as _________.

Detailed Solution for Business Economics Mock Test - 3 - Question 30

The economy of a country, which has acquired very high stage of development and where per capita income and standard of living is high, is termed as Developed economy. National income in development economies is very high. High national income implies a greater flow of goods and services in the economy. Developed economy has high level of efficiency and productivity. There is full utilization of human and natural resources.

Business Economics Mock Test - 3 - Question 31

Economics has ___________.

Detailed Solution for Business Economics Mock Test - 3 - Question 31

Economics is a subject of wide range. It is a subject that is derived after careful study of proven facts and figures to establish a cause and effect relationship between them as well as it is based on the belief on many economist that is set up after valued and moral statements that describes social and economic welfare. 

Business Economics Mock Test - 3 - Question 32

A natural monopoly has declining _________ over large range of output.

Detailed Solution for Business Economics Mock Test - 3 - Question 32

Natural monopoly is a situation which exist due to the high fixed or start up costs to set up a business. It is seen basically where there are unique technology, raw materials.etc. A monopoly based on size and market strength is known as natural monopoly. It also has a long run average cost which is declining over large range of output.

Business Economics Mock Test - 3 - Question 33

Level of savings depends upon __________.

Detailed Solution for Business Economics Mock Test - 3 - Question 33

Savings is that part of income which isn't used for consumption and is thus, saved. The level of savings in the economy depends upon the ability of the people to fulfill their consumption needs using a part of their income and the willingness to save, which is driven by the returns on savings and investment.

Business Economics Mock Test - 3 - Question 34

When MU is zero, TU is _________.

Detailed Solution for Business Economics Mock Test - 3 - Question 34

When marginal utility is zero, then total utility is maximum because any further consumption of that commodity will lead to negative marginal utility and therefore total utility will tend to decrease. 

Business Economics Mock Test - 3 - Question 35

____________ says that "the additional benefit which a person derives from a given increase in his stock of a thing diminishes with every increase in the stock that he already has."

Detailed Solution for Business Economics Mock Test - 3 - Question 35

Marshall says that "the additional benefit which a person derives from a given increase in his stock of a thing diminishes with every increase in the stock that he already has."

Business Economics Mock Test - 3 - Question 36

Monopoly means ______.

Detailed Solution for Business Economics Mock Test - 3 - Question 36

A market structure characterized by a single seller, selling a unique product in the market. In a monopoly market, the seller faces no competition, as he is the sole seller of goods with no close substitute.

Business Economics Mock Test - 3 - Question 37

When the price of petrol goes up, demand for cars will _____ . 

Detailed Solution for Business Economics Mock Test - 3 - Question 37

the price of petrol goes up, demand for cars will fall

Business Economics Mock Test - 3 - Question 38

Sampling process involves __________________.

Detailed Solution for Business Economics Mock Test - 3 - Question 38

A sample is a part of the whole population. It represents all the characteristics of the whole population. Sample survey investigation is done to save time. Sampling process involves- a) selecting the sample
b) collecting the information
c) making an interferences about population

Business Economics Mock Test - 3 - Question 39

Correlation is______________.

Detailed Solution for Business Economics Mock Test - 3 - Question 39

Correlation is independent of change in both of scale and origin. Correlation simply measures the strength of association between two or more variables i.e. how strongly they are connected.

Business Economics Mock Test - 3 - Question 40

Use the following data and answer the question.
In an economy, the following combinations of two goods can be produced with the available resources, and the given state of technology.
If at some other point say K, the economy produces 3,000 Cellphones and 32,000 quintals of Rice, it would __________.

Detailed Solution for Business Economics Mock Test - 3 - Question 40

When the economy produces 3,000 units of cellphones, it has the required resources to produce 38,000 quintals of rice. So if the economy produces less quintals of rice with the same production of cellphones, then the economy is not utilizing the resources efficiently which indicates that the production point will lie inside the production possibility curve. 

Business Economics Mock Test - 3 - Question 41

FERA is _________ Exchange Regulation Act.

Detailed Solution for Business Economics Mock Test - 3 - Question 41

FERA is Foreign Exchange Regulation Act.

Business Economics Mock Test - 3 - Question 42

In a ___________ Budget, Revenue equals Expenditure.

Detailed Solution for Business Economics Mock Test - 3 - Question 42

In a  balanced Budget, Revenue equals Expenditure.

Business Economics Mock Test - 3 - Question 43

Which of the following terms is used in the field of economics?

Detailed Solution for Business Economics Mock Test - 3 - Question 43

Balance of Payment is an economic term which record all international financial transactions made by a country's residents . 

A country's balance of payment tells you whether it saves enough economic output to pay for its imports. It also revels whether the country produces enough economic output to pay for its growth. 

The balance of payment is reported for a quarter or a year. A balance of payment deficit means the country imports more , services and capital than exports vice versa. 

Business Economics Mock Test - 3 - Question 44

Economic utilities may be created or added by ______________.

Detailed Solution for Business Economics Mock Test - 3 - Question 44

Economic utilities means accumulation of all utilities of a nation. Therefore, to create utility on such a large scale we can enhance the qualities of the product in production process so that it provides more satisfaction, we can make the product available to all the consumers through transportation which will increase utility and lastly we can do consumer analysis and know their requirements according to which we can produce required consumer goods.

Business Economics Mock Test - 3 - Question 45

Indifference curve cannot intersect each other because _________.

Detailed Solution for Business Economics Mock Test - 3 - Question 45

If two indifference curves intersects each other than there would be more than one equilibrium or more than one point where the customer can get maximum satisfaction. This violates the laws of indifference curve. 

Business Economics Mock Test - 3 - Question 46

Micro economics adopts _________ approach.

Detailed Solution for Business Economics Mock Test - 3 - Question 46

Where macro economics considers the society as a whole, on the other hand micro economics adopts the factors on individual basis. The approach of micro economics starts with the decisions of an individual about the allocation of time and revenue. The study of micro economics purely involves the study of factors on individual basis.

Business Economics Mock Test - 3 - Question 47

Who is known as father of Economics?

Detailed Solution for Business Economics Mock Test - 3 - Question 47

Adam Smith was a Scottish economist who greatly influenced the economic theories of his time and came up with the first definition of economics on wealth generation, thus, he is known as the father of economics.

Business Economics Mock Test - 3 - Question 48

The total balance of payment statement __________.

Detailed Solution for Business Economics Mock Test - 3 - Question 48

While the balance of payments account must always balance in an accounting sense, it is possible for the balance of payment account to be in surplus on either the capital or current account, and have and equal amount of deficit to match this surplus.

Business Economics Mock Test - 3 - Question 49

"Marketing economies may be on the buying or selling side of a business." This statement is _____.

Detailed Solution for Business Economics Mock Test - 3 - Question 49

Market economies refers to the markets were exchange mechanism prevails. So after the production, when want satisfying power is added to the commodity and it is ready for exchange against money or any valued goods, they take place in market economies where market behaviour i.e, consumer and producer behaviour is observed for the business.

Business Economics Mock Test - 3 - Question 50

Full form of DMU is ______________.

Detailed Solution for Business Economics Mock Test - 3 - Question 50

Diminishing marginal utility states that when a consumer goes on consuming a standard unit of a commodity, the additional utility in every successive unit of consumption keeps on diminishing. It is based on the assumption that the consumer needs to consume a standard unit of the commodity.

Business Economics Mock Test - 3 - Question 51

Budget is the ______________.

Detailed Solution for Business Economics Mock Test - 3 - Question 51

A is a financial plan for a defined period of time, usually a year. 

A budget is an annual financial statement for a defined period of time, usually one year. The budget estimates the revenue and expenditure of the government.

Business Economics Mock Test - 3 - Question 52

Rent will be produced at that time when ________.

Detailed Solution for Business Economics Mock Test - 3 - Question 52

Rent on land will be produced only when different types of lands are differently fertile. At the same time the supply of land should be elastic and not perfectly elastic.

Business Economics Mock Test - 3 - Question 53

A successful inclusive growth strategy includes which among the following?

Detailed Solution for Business Economics Mock Test - 3 - Question 53

The process of expanding the economy is depended on the growing markets and production of goods and services. Economic growth originally take place by increasing the productivity of individuals, businesses, and institutions. The productivity growth specifically in the knowledge economy. It is a long term technique and is concerned with sustained growth. Inclusive growth focuses on productive employment instead of income redistribution.

Business Economics Mock Test - 3 - Question 54

_______ is/are example(s) of near money.

Detailed Solution for Business Economics Mock Test - 3 - Question 54

Mutual fund balance, Time deposits, Saving deposits are example(s) of near money.

Business Economics Mock Test - 3 - Question 55

India is a __________.

Detailed Solution for Business Economics Mock Test - 3 - Question 55

A mixed economic system is a system that features characteristics of both capitalism and socialism. A mixed economic system protects private property and allows a level of economic freedom in the use of capital, but also allows for governments to interfere in economic activities in order to achieve the social aim.

Business Economics Mock Test - 3 - Question 56

Symbolically marginal utility is shown ______________.

Detailed Solution for Business Economics Mock Test - 3 - Question 56

Marginal utility is the additional utility that is derived of consuming every extra unit of the commodity. Therefore, marginal utility of some units can be found by deducting total utility of the preceding units by total utility of that unit. These will give us the additional utility derived from consumption of additional units.

Business Economics Mock Test - 3 - Question 57

An indifference curve slopes __________.

Detailed Solution for Business Economics Mock Test - 3 - Question 57

An indiffference curve sloped downwards from left to right as it shows the quantity of good the consumer has to give up in order to purchase more of another good.

Business Economics Mock Test - 3 - Question 58

When classification is done according to qualitative characteristics like social status, physical status, nationality, etc., it is called ______ classification.

Detailed Solution for Business Economics Mock Test - 3 - Question 58

When classification is done according to qualitative characteristics like social status, physical status, nationality, etc., it is called qualitative classification.

Business Economics Mock Test - 3 - Question 59

In recent years the Indian economy has been characterised as a ____________.

Detailed Solution for Business Economics Mock Test - 3 - Question 59

In recent years the Indian economy has been characterised as a  developing economy. 

Business Economics Mock Test - 3 - Question 60

Which of the following cannot be treated as a factor of production?

Detailed Solution for Business Economics Mock Test - 3 - Question 60

Loss is not a factor of production since it does not participate in production mechanism. It does not increase the productivity of an economy. It is an outcome which firms may face in short rum production function.

Business Economics Mock Test - 3 - Question 61

Negative effects of social responsibility ___________. 

Detailed Solution for Business Economics Mock Test - 3 - Question 61

The negative aspects of corporate social responsibility.
The basic reason why a business is formulated is to make a profit. Corporate social responsibility insists on a corporation to make an effort to look out for stakeholders who are not shareholders only, but who have an interest on what an organization does and the outcomes of what it does. Despite of that, its not totally the duty of the corporation to look out for the many people who hold an interest in the company's activities. If the operations of the free market don’t solve the social problem, it is the duty of the government and not the businesses, to address the many issues faced by the society.
Some businesses are just not prepared to deal with social issues. The lack of preparations of a particular business to deal with societal issues needs the managers to be trained and well versed in dealing with the complex issues that many societies face, as this will give them the skills and the knowledge to be prepared to do so.

Business Economics Mock Test - 3 - Question 62

Equity capital serves as ____________ capital as it is to be repaid only at the time of liquidation of a company.

Detailed Solution for Business Economics Mock Test - 3 - Question 62

Equity share capital is the prerequisite before the creation of a company. It is a source of finances raised for the formation of the company and it also represents the ownership of the company.Equity capital serves as a permanent capital as it is to be repaid only at the time of liquidation.

Business Economics Mock Test - 3 - Question 63

Internal trade differs from external trade in which of the following ways?

Detailed Solution for Business Economics Mock Test - 3 - Question 63

Trade is the central activity in the economy. Trade not only refers to the exchange of goods and services within the country but also between two or more countries.Internal trade refers to the trade within the borders of the country. External Trade refers to the trade between two or more countries.

Business Economics Mock Test - 3 - Question 64

Small scale industries are highly _______.

Detailed Solution for Business Economics Mock Test - 3 - Question 64

Small-scale industries are highly labour intensive because they are low in the capital and could not afford the new technology, the only depends upon labour power.

Business Economics Mock Test - 3 - Question 65

Identify the economic objective of the business from the following.

Detailed Solution for Business Economics Mock Test - 3 - Question 65

Economic Objectives: Economic objectives of business refer to the objective of earning a profit and also other objectives that are necessary to be pursued to achieve the profit objective, which includes, the creation of customers, regular innovations and best possible use of available resources.
The main objectives that a business might have are Survival a short term objective, probably for the small business just starting out, or when a new firm enters the market or at a time of crisis. Profit maximization tries to make the most profit possible most like to be the aim of the owners and shareholders.

Business Economics Mock Test - 3 - Question 66

Which among the following is the vision of ICSI?

Detailed Solution for Business Economics Mock Test - 3 - Question 66

Every enterprise has to have a vision and mission for its progress. By vision we mean an enterprise wants to be. It is the future of an enterprise and mission is to reach that vision. Among the statements, 'to be global leader for promoting good corporate governance' is the vision statement of ICSI.

Business Economics Mock Test - 3 - Question 67

Small-scale sector units is/are.

Detailed Solution for Business Economics Mock Test - 3 - Question 67

Requirement of less capital
Small Scale Industries require less capital when compared to large scale industries. India is a capital scarce country and therefore Small Scale Industries are more suitable in the Indian context. They can be started and run by small entrepreneurs who have limited capital resources

Business Economics Mock Test - 3 - Question 68

What does customer care department in call center handle?

Detailed Solution for Business Economics Mock Test - 3 - Question 68

A customer service representative interacts with a company's customers to provide them with information to address inquiries regarding products and services. In addition, they deal with and help resolve any customer complaints. Inbound customer service, the customer calls your company with a service request or an inquiry. Outbound customer service represents or more proactive approach. An agent from your call center contacts customer to follow up on a service issue or to notify customers of new products or policy changes.

Business Economics Mock Test - 3 - Question 69

The Registration of a Joint Stock Company is _______.

Detailed Solution for Business Economics Mock Test - 3 - Question 69

The Registration of a Joint Stock Company is Compulsory

Business Economics Mock Test - 3 - Question 70

The Court may dissolve a firm if a partner _________ commits breach of agreements relating to management of the affairs of the firm or the conduct of the firm's business.

Detailed Solution for Business Economics Mock Test - 3 - Question 70

Both (A) and (B)

Business Economics Mock Test - 3 - Question 71

A Cloth manufacturer distributes its defective product free of cost (after getting them repaired at lower cost) to orphanage. Which values are being attested in this solution?

Detailed Solution for Business Economics Mock Test - 3 - Question 71

In the given case, the manufacturer did not throw away the clothes in the scrap but he repaired them and offered them free of cost to the society. Thus, he fulfilled social responsibility, helped needy class of society as well as fully utilized defective product after improving them.

Business Economics Mock Test - 3 - Question 72

Which of the following is an example of internal trade?

Detailed Solution for Business Economics Mock Test - 3 - Question 72
  • Products purchased from a neighborhood shop in a locality
  • Products purchased from door-to- door salesperson
  • Products purchased from an exhibition
Business Economics Mock Test - 3 - Question 73

Ethical responsibility is __________.

Detailed Solution for Business Economics Mock Test - 3 - Question 73

Ethical responsibility: This includes the behavior of the firm that is expected by society but not codified in law. For example, respecting the religious sentiments and dignity of people while advertising for a product. There is an element of voluntary action in performing this responsibility.

Business Economics Mock Test - 3 - Question 74

Management is an art because of.

Detailed Solution for Business Economics Mock Test - 3 - Question 74
  • The process of management involves the use of know-how and skills
  • The process of management is directed towards the accomplishment of concrete results
  • Management is personalized in the sense that every manager has own approach to problems
Business Economics Mock Test - 3 - Question 75

Which of the following is/are the benefit(s) of e-banking to the banker?

Detailed Solution for Business Economics Mock Test - 3 - Question 75
  • Competitive advantage
  • Network is expanded beyond branches
  • Centralised database reduces work load
Business Economics Mock Test - 3 - Question 76

PDA, smart phone, computer mediated network are the need in _______.

Detailed Solution for Business Economics Mock Test - 3 - Question 76

PDA, smart phone, computer mediated network are the need in m-commerce as m-commerce deals with the trade of goods and services through the wireless gadgets as one doesn't require to search places to plug in.

Business Economics Mock Test - 3 - Question 77

For a retailer competition is ______ compared to wholesalers.

Detailed Solution for Business Economics Mock Test - 3 - Question 77

Whether it's drugstore versus drugstore or drugstore versus superstore, there's a retail competition classification to represent it. Retailers are classified as a particular ''type'' by the North American Industrial Classification System (NAICS). These classifications are determined for the purpose of looking at retail data in the United States economy. For example, if researchers want to look at how single grocery stores in the country are performing, they can go to that classification and gather relevant information. Here are the main categories of retail competition.

Business Economics Mock Test - 3 - Question 78

What are the ways of importing and exporting?

Detailed Solution for Business Economics Mock Test - 3 - Question 78

The two ways of importing and exporting are Direct and indirect.

Direct method involves making the goods available directly to the target customer in a market or by setting up a branch office or subsidiary in the foreign country.

Indirect method involves making the goods available to the customers through a channel partner.

Business Economics Mock Test - 3 - Question 79

Write a word or a term or a phrase which can substitute each of the following statements:
A form of organisation where there is a separation of ownership from management:

Detailed Solution for Business Economics Mock Test - 3 - Question 79

A joint-stock company is a business entity in which shares of the company's stock can be bought and sold by shareholders. Each shareholder owns company stock in proportion, evidenced by their shares. Shareholders are able to transfer their shares to others without any effects to the continued existence of the company.

Business Economics Mock Test - 3 - Question 80

What is the full form of CII ?

Detailed Solution for Business Economics Mock Test - 3 - Question 80

The Confederation of Indian Industry (CII) works to create and sustain an environment conducive to the growth of industry in India, partnering industry and government alike through advisory and consultative processes.

Business Economics Mock Test - 3 - Question 81

Which of the following occupations involve maximum risk?

Detailed Solution for Business Economics Mock Test - 3 - Question 81

Business involves maximum risk as it has some external and internal environment factors which are not in the control of business and creates various types of business risks. Employment, profession and teaching does not not involves as they get fixed remuneration.

Business Economics Mock Test - 3 - Question 82

Scope of _______ has widened to include disability insurance, health/medical insurance, annuity insurance and life insurance proper.

Detailed Solution for Business Economics Mock Test - 3 - Question 82

Scope of life insurance has widened to include disability insurance, health/medical insurance, annuity insurance and life insurance proper.

Business Economics Mock Test - 3 - Question 83

Which function is described as an integration or synchronization of group effort in the organisation?

Detailed Solution for Business Economics Mock Test - 3 - Question 83

Co-ordination is the unification, integration, synchronization of the efforts of group members so as to provide unity of action in the pursuit of common goals. It is a hidden force which binds all the other functions of management.

Features of co-ordination

co-ordination is an on-going or never-ending process rather than a once-for-all activity.

It is a group effort and not individual effort

It is the responsibility of every manager in the organization

It emphasizes on unity of efforts

Business Economics Mock Test - 3 - Question 84

MNCs have helped and also harmed the developing countries.

Detailed Solution for Business Economics Mock Test - 3 - Question 84

Multinational Corporations in developing countries

Environmental costs. Multinational companies can outsource parts of the production process to developing economies with weaker environmental legislation. For example, there is a trade in rubbish, which gets sent to developing economies like India for disposal and recycling.

Profit repatriated. Although multinationals invest in developing economies, the profit is reptriated to the location of the multinational, so the net capital inflows are less than they seem.

Skilled labour. When undertaking new projects, the multinational may have to employ skilled labour from other economies and not the developing economy. This means best jobs are not received by local workers and the investment is diffused.

Raw materials. A large component of multinational investment in developing economies is seeking out raw materials – oil, diamonds, rubber and precious metals. The extraction of raw materials can cause environmental externalities – polluted rivers, loss of natural landscape.

Sweat-shop labour. Not all economists are convinced sweat-shop labour is a good thing. Critics argue that weak labour conditions allow multinationals to use their monopsony power and pay lower wages to workers than they should get paid

Business Economics Mock Test - 3 - Question 85

Subject matter of insurance include(s) _________.

Detailed Solution for Business Economics Mock Test - 3 - Question 85

The subject matter of marine insurance consists of all of the above. Ship or hull insurance indemnifies any damage caused to the ship. Cargo insurance covers the goods or cargo in the ship. Freight insurance reimburses the loss of freight to the shipping company.

Business Economics Mock Test - 3 - Question 86

Which of the following inventions is responsible for the phrase "networked individuals and firms are more efficient than networthed individuals"?

Detailed Solution for Business Economics Mock Test - 3 - Question 86

Internet is responsible for the phrase "networked individuals and firms are more efficient than networthed individuals" as internet usage depends on the network availability in a given area rather than money availability with person. Internet requires a good speed of network in an area given.

Business Economics Mock Test - 3 - Question 87

A behavior that does not conform to accepted beliefs and social norms is defined as ________.

Detailed Solution for Business Economics Mock Test - 3 - Question 87

Unethical behavior is an action that falls outside of what is considered morally right or proper for a person, a profession or an industry. Individuals can behave unethically, as can businesses, professionals and politicians.

Unethical behavior is behavior that is contrary to our own moral principles as well as the principles admired in the community one lives in. Moral principles, such as fairness, honesty, dignity, and concern for individual rights are of profound importance.

Business Economics Mock Test - 3 - Question 88

No shares can be allotted by a public company unless it collects ___________.

Detailed Solution for Business Economics Mock Test - 3 - Question 88

In order to prevent companies from commencing business with inadequate resources, it has been provided that the company must receive applications for a certain minimum number of shares before going ahead with the allotment of shares. According to the Companies Act, this is called the ‘minimum subscription’.

No shares can be allotted by a public company unless it collects minimum subscription.

The limit of minimum subscription is 90 per cent of the size of the issue. Thus, if applications received for the shares are for an amount less than 90 per cent of the issue size, the allotment cannot be made and the application money received must be returned to the applicants.

Business Economics Mock Test - 3 - Question 89

Every business enterprise must undertake such business which is_________________.

Detailed Solution for Business Economics Mock Test - 3 - Question 89

Every business enterprise must undertake such business which is lawful. All business organization should adhere to the law of the country to ensure peace and order. Illegal and unlawful business organizations should not be undertaken.

Business Economics Mock Test - 3 - Question 90

A MNC is defined by an organisation ____________.

Detailed Solution for Business Economics Mock Test - 3 - Question 90

A MNC is defined by an organization that carries out production in more than one country other than the domestic country.

Business Economics Mock Test - 3 - Question 91

Which of the following people cannot be called partners?

Detailed Solution for Business Economics Mock Test - 3 - Question 91

Indian partnership Act , provides that though a minor cannot be a partner in a firm , but with the consent of all the partners for the time but, he may be admitted to the benefits of partnership by an agreement executed through his guardian with the other partners.

Insolvency means a person who is not able to pay it's debts . So he cannot be a partner of a partnership firm. No member can be partner without the agreement between a co-owners.

Business Economics Mock Test - 3 - Question 92

Equity capital serves as ____________ capital as it is to be repaid only at the time of liquidation of a company.

Detailed Solution for Business Economics Mock Test - 3 - Question 92

Equity share capital is the prerequisite before the creation of a company. It is a source of finances raised for the formation of the company and it also represents the ownership of the company.Equity capital serves as a permanent capital as it is to be repaid only at the time of liquidation.

Business Economics Mock Test - 3 - Question 93

An enterprise incorporated by a Special Act of Parliament or the State Legislature intending to carry on some business of national importance is called _______.

Detailed Solution for Business Economics Mock Test - 3 - Question 93

The statutory corporations are public bodies which are regulated by a statute. E.g. RBI, SBI .etc. Hence, an enterprise incorporated by a Special Act of Parliament or the state legislature intending to carry on some business of national importance is called statutory corporation.

Business Economics Mock Test - 3 - Question 94

Which of the following is not a function of management ?

Detailed Solution for Business Economics Mock Test - 3 - Question 94

Co-operating refers to working jointly towards the same end. Management briefly refers to the process of dealing with or controlling people or things. Planning, staffing, controlling are covered under this definition. Hence, co-operating is not a function as such, of management.

Business Economics Mock Test - 3 - Question 95

Global enterprises can raise funds through __________,

Detailed Solution for Business Economics Mock Test - 3 - Question 95

Global enterprises have the ability to raise funds from different sources. They may issue equity shares, debentures or bonds to the public. They can also borrow from financial institutions and international banks. They enjoy credibility in the capital market. 

Business Economics Mock Test - 3 - Question 96

Which of the following refers to E-banking?

Detailed Solution for Business Economics Mock Test - 3 - Question 96

Electronic banking is also known as Online banking, virtual banking. E banking refers to electronic payment system that enables a customer to conduct certain banking activities and transaction through internet via a the financial institute's website.

Business Economics Mock Test - 3 - Question 97

The process by which a manager synchronizes the activities of different departments is known as ______________.

Detailed Solution for Business Economics Mock Test - 3 - Question 97

The process by which a manager synchronizes the activities of different departments is known as co-ordination

Business Economics Mock Test - 3 - Question 98

_______ do not have to consult with other individuals to make decisions for the business, which allows them to respond quickly to changes in the marketplace.

Detailed Solution for Business Economics Mock Test - 3 - Question 98

Sole traders  do not have to consult with other individuals to make decisions for the business, which allows them to respond quickly to changes in the marketplace.

Business Economics Mock Test - 3 - Question 99

EBEN stands for ____________

Detailed Solution for Business Economics Mock Test - 3 - Question 99

The European Business Ethics Network  works to promote business ethics in all sectors of society throughout Europe. Working with local, national, and regional actors (person or entity with the capacity of having an impact in trade relations), EBEN seeks to increase awareness about corporate responsibility and encourage higher standards by facilitating dialogue and research on various issues pertaining to corporate ethics. EBEN′s Annual Conference brings together academics from different parts of Europe to explore new ideas and methods for the ethical practice of business. Additionally, EBEN′s Research Conference joins practitioners and academics to share findings and experiences in an effort to advance socially responsible practices in European businesses.

Business Economics Mock Test - 3 - Question 100

Small scale industries are highly.

Detailed Solution for Business Economics Mock Test - 3 - Question 100

Potential for large employment
Small Scale Industries have potential to create employment opportunities on a massive scale. They are labor intensive in character. They use more labor than other factors of production. They can be set up in short time and can provide employment opportunities to more number of people. This is important for a labor abundant country like India.

Use Code STAYHOME200 and get INR 200 additional OFF
Use Coupon Code
Information about Business Economics Mock Test - 3 Page
In this test you can find the Exam questions for Business Economics Mock Test - 3 solved & explained in the simplest way possible. Besides giving Questions and answers for Business Economics Mock Test - 3, EduRev gives you an ample number of Online tests for practice