Q.1 Which of the following is considered a primary function of management?
Planning
Marketing
Advertising
Selling
Explanation - Planning is a core management function that involves setting objectives and determining the best course of action to achieve them.
Correct answer is: Planning
Q.2 GDP stands for:
Gross Domestic Product
Global Development Plan
General Domestic Profit
Gross Debt Percentage
Explanation - GDP measures the total monetary value of all goods and services produced within a country's borders in a specific time period.
Correct answer is: Gross Domestic Product
Q.3 Which financial statement shows a company's assets, liabilities, and equity at a specific point in time?
Income Statement
Balance Sheet
Cash Flow Statement
Statement of Retained Earnings
Explanation - A balance sheet provides a snapshot of a company's financial position by listing assets, liabilities, and equity.
Correct answer is: Balance Sheet
Q.4 Which economic system is characterized by private ownership and market-driven decision-making?
Socialism
Capitalism
Communism
Feudalism
Explanation - Capitalism relies on private ownership and market forces to allocate resources and make economic decisions.
Correct answer is: Capitalism
Q.5 Which of the following is an example of a monopoly?
Google in search engines
Walmart in retail
Small local bakery
Farmers' market
Explanation - A monopoly exists when a single firm dominates a market, like Google in the search engine industry.
Correct answer is: Google in search engines
Q.6 Which indicator is used to measure inflation?
CPI
GDP
FDI
NPA
Explanation - Consumer Price Index (CPI) measures changes in the price level of a basket of consumer goods and services, which is used to track inflation.
Correct answer is: CPI
Q.7 Who is known as the father of modern management?
Henry Fayol
Peter Drucker
Frederick Taylor
Elton Mayo
Explanation - Frederick Taylor is recognized for his principles of scientific management, focusing on efficiency and productivity.
Correct answer is: Frederick Taylor
Q.8 In accounting, what does 'liquidity' refer to?
Ability to repay debts quickly
Total assets
Market share
Profitability
Explanation - Liquidity measures how easily a company can meet its short-term financial obligations using its assets.
Correct answer is: Ability to repay debts quickly
Q.9 Which of the following is a direct tax?
Income Tax
GST
Excise Duty
Customs Duty
Explanation - Direct taxes are paid directly to the government by individuals or organizations, e.g., income tax.
Correct answer is: Income Tax
Q.10 What is the primary objective of working capital management?
Maximizing short-term profits
Ensuring liquidity and operational efficiency
Reducing long-term debt
Increasing market share
Explanation - Working capital management ensures a company can meet its short-term obligations while maintaining smooth operations.
Correct answer is: Ensuring liquidity and operational efficiency
Q.11 Which organization publishes the 'World Economic Outlook'?
World Bank
IMF
OECD
UNDP
Explanation - The International Monetary Fund (IMF) publishes the World Economic Outlook, analyzing global economic trends.
Correct answer is: IMF
Q.12 Which of the following is an example of a leading economic indicator?
Unemployment rate
Stock market performance
Consumer Price Index
Gross Domestic Product
Explanation - Leading indicators predict future economic activity, and stock market trends often signal upcoming economic changes.
Correct answer is: Stock market performance
Q.13 The term 'Blue Chip Stocks' refers to:
High-risk, high-return stocks
Shares of large, financially stable companies
Government bonds
Startup equity shares
Explanation - Blue chip stocks are shares of well-established, financially sound companies with a history of stable earnings.
Correct answer is: Shares of large, financially stable companies
Q.14 What does FDI stand for in business context?
Foreign Direct Investment
Fiscal Debt Initiative
Financial Development Index
Fixed Deposit Investment
Explanation - FDI refers to investments made by a company or individual from one country into business interests in another country.
Correct answer is: Foreign Direct Investment
Q.15 SWOT analysis helps a business to:
Assess its Strengths, Weaknesses, Opportunities, Threats
Forecast financial statements
Calculate market share
Design marketing campaigns
Explanation - SWOT analysis evaluates internal and external factors affecting a business to make strategic decisions.
Correct answer is: Assess its Strengths, Weaknesses, Opportunities, Threats
Q.16 Which policy tool is used by central banks to control money supply?
Monetary Policy
Fiscal Policy
Trade Policy
Industrial Policy
Explanation - Monetary policy involves controlling the money supply and interest rates to achieve economic objectives like inflation control.
Correct answer is: Monetary Policy
Q.17 Which of the following is a characteristic of a public limited company?
Limited liability, shares traded publicly
Unlimited liability, private ownership
Government ownership
Non-profit status
Explanation - Public limited companies allow the general public to buy shares, and shareholders’ liability is limited to their investment.
Correct answer is: Limited liability, shares traded publicly
Q.18 Which of these is a key component of Porter’s Five Forces framework?
Threat of new entrants
Corporate social responsibility
SWOT analysis
Balance sheet analysis
Explanation - Porter’s Five Forces analyzes competitive pressures in an industry, including the threat posed by new entrants.
Correct answer is: Threat of new entrants
Q.19 Which of the following is considered an external source of business finance?
Retained earnings
Bank loans
Depreciation fund
Owner’s capital
Explanation - External finance comes from outside the business, such as loans or issuing shares, unlike internal sources like retained earnings.
Correct answer is: Bank loans
Q.20 The term 'bear market' refers to:
Rising stock prices
Falling stock prices
Stable stock prices
Volatile commodity prices
Explanation - A bear market is characterized by declining stock prices, typically signaling negative investor sentiment.
Correct answer is: Falling stock prices
Q.21 Which of the following is a function of the Reserve Bank of India (RBI)?
Issuing currency
Collecting income tax
Regulating stock exchanges
Managing elections
Explanation - RBI is the central bank of India responsible for issuing currency, regulating banks, and controlling monetary policy.
Correct answer is: Issuing currency
Q.22 What is the primary goal of corporate social responsibility (CSR)?
Maximizing shareholder profit only
Contributing to social and environmental well-being
Minimizing tax liability
Expanding market share
Explanation - CSR involves businesses taking responsibility for their social, environmental, and economic impacts.
Correct answer is: Contributing to social and environmental well-being
Q.23 Which of the following is an example of a fiscal policy measure?
Government increasing income tax
RBI increasing repo rate
Floating exchange rate system
Setting credit rating norms
Explanation - Fiscal policy involves government decisions on taxation and spending to influence the economy.
Correct answer is: Government increasing income tax
Q.24 The term 'liability' in accounting refers to:
Assets owned by a company
Debts and obligations
Net profit
Equity capital
Explanation - Liabilities are financial obligations or debts that a company owes to external parties, such as loans or payables.
Correct answer is: Debts and obligations
Q.25 Which of the following is a method of non-financial performance measurement?
Customer satisfaction surveys
Return on Investment
Earnings per share
Net profit margin
Explanation - Non-financial performance indicators include measures like customer satisfaction, employee engagement, and brand loyalty.
Correct answer is: Customer satisfaction surveys