Business Studies MCQs : This section focuses on the "Business Studies". These Multiple Choice Questions (MCQs) should be practiced to improve the Business Studies skills required for various interviews (campus interview, walk-in interview, company interview), placement, entrance exam and other competitive examinations.
Question 1
What is Centralization?
A. Retention of decision-making authority
B. Dispersal of decision-making authority
C. Creating division as a profit centre
D. Opening the new center of branches
Question 2
The industries which provide support services to other industries are known as
A. Primary industries
B. Secondary industries
C. Commercial industries
D. Tertiary industries
Question 3
Transfer of interest exists in the case of
A. Profession
B. employment
C. business
D. none of these
Question 4
Corporate social responsibility that extends beyond legal mandates can help meet societal expectations in the absence of
A. Statutory devices
B. Social tool
C. Cost tool and Techniques
D. Science tool
Question 5
Minimum number of members to form a public company is
A. 5
B. 7
C. 12
D. 21
Question 6
The certificate of capital will be issued by
A. Registrar of companies Act
B. Controller of companies Act
C. Registrar of capital issues
D. Controller of capital issues
Question 7
Minimum number of members to form a private company is
A. 2
B. 3
C. 5
D. 7
Question 8
Management is said to be poor if it is
A. Efficient but ineffective
B. Effective but inefficient
C. Both inefficient and ineffective
D. None of the above
Question 9
Management is equally important to run a political organisation as it is to run an economic organisation. Which feature of management is being reflected in the given statement?
A. Management is goal oriented
B. Management is multidimensional
C. Management is all pervasive
D. Management is a group activity
Question 10
Which of the following statements highlights that management is a group activity?
A. Organisation is a collection of diverse individuals with different needs
B. Achievement of common goal requires teamwork and co-ordination of efforts in a common direction
C. Each member of the organisation may have different individual goals but they must travel together towards common goals
D. All of the above
Question 11
Management is defined as?
A. An art
B. A science
C. Both art and science
D. None of the above
Question 12
To have an effective delegation is important to have a responsibility along with?
A. Authority
B. Manpower
C. Incentives
D. Promotion
Question 13
Identify the activity which does not support trade?
A. Banking
B. Warehousing
C. Insurance
D. Mining
Question 14
Which item does not cause any business risk?
A. Breakdown of machinery
B. Efficient management
C. Riot
D. Changing government policy
Question 15
In which business, the support service activities are categorized?
A. Commercial industries
B. Primary industries
C. Secondary industries
D. Tertiary industries
Question 16
Which of the element is not a part of the communication process?
A. Decoding
B. Communication
C. Channel
D. Receiver.
Question 17
Grouping of activities on the basis product lines is a part of
A. Delegated organization
B. Divisional organization
C. Functional organization
D. Autonomous organization
Question 18
In which occupation people get salary or wages in return for their word?
A. Employment
B. Business
C. Profession
D. None of the above
Question 19
Which of the below-mentioned item does not follow the scalar chain?
A. Functional structure
B. Divisional structure
C. Formal organization
D. Informal organization
Question 20
In business, why it is essential to make a profit?
A. It provides a return to investors.
B. It provides funds for future extension
C. It increases the reputation of a company
D. All the above
Question 21
Name the process that converts a message into communication symbols
A. Media
B. Encoding
C. Feedback
D. Decoding
Question 22
Which of the following is not a management function
A. Planning
B. Staffing
C. Cooperating
D. Controlling
Question 23
Oil refinery and sugar mill are classified under which industries?
A. Primary
B. Secondary
C. Tertiary
D. None of the above
Question 24
Out of four points which is not an economic activity?
A. Production
B. Social service
C. Professional
D. Trading in goods
Question 25
Which of the following is the characteristic of a business?
A. Production
B. Exchange or sale
C. Risk element
D. All the above
Question 26
Which option is not a business activity?
A. Production of goods
B. Transportation
C. Exchange of goods
D. Work in a factory for wages
Question 27
What is Centralisation?
A. Retention of decision-making authority
B. Dispersal of decision-making authority
C. Creating division as a profit centre
D. Opening the new centre of braches
Question 28
Which of the following is a false statement?
A. The scope of commerce is narrower than business.
B. Commerce includes trade and auxiliaries to trade.
C. Foreign trade is purchase and sale by the traders of the same country.
D. Traders serve as a link between producers and consumers.
Question 29
Policy formulation comes under which role?
A. Top-level managers
B. Middle-level managers
C. Operational management
D. All of the above
Question 30
Policy formulation is a task of?
A. Top-level managers
B. Middle-level managers
C. Operational management
D. All of the above