Commerce MCQs

Multiple Choice / Objective Questions in Commerce 1) Draft 5 year plan is approved by ---- National Development Council 2) Reducing the capital of a company is called

- Internal reconstruction

3) Laws of increasing and constant returns are temporary phases of  Law of Variable Proportion 4) A firm producing large no.of products follow which pricing strategy  Price Leadersship 5) Cartels under oligopoly do not survive for long because of Inter-firm rivalry 6) The modern organization structure , usually recommended is  Flat 7) “Johari Window “ relates to interpersonal communication 8) Relationship marketing relates to  Repeat purchase 9) Capital structure designing has nothing to do with - Solvency 10) Method used to determine wage differentials is  Job Evaluation 11) Induction means  Orientation 12) Labour productivity means  Output is equal to input 13) Trading on Equity means  Trading on borrowed funds 14) To manage ‘is the forecast and plan etc”  Henry Fayol 15) When management pays attention to more important areas looked after by lower level management is known as

 MBO

16) Policy making is an important part of the process of  Planning 17) Job Analysis provides information used for  Procedure 18) Human Relations approach of management is associated with  Elton Mayo Page 1 of 8

19)General definition of economics is  Individual and social choice in the face of scarcity. 20) The immediate solvency ratio is  Quick ratio, but not Current ratio 21) SEZ Policy in India is motivated by experience of CHINA 22) The term funds used in FFS is  CA (-) CL 23) In the long run, in perfect competition, there will be no super normal profits. 24)

Theory X  Autocratic (wants close supervision) Theory Y  Participative Theory Z  Democratic (No personal supervision)

25) Over capitalization is desirable 26) A leader uses the following methods a) uses criticism b) encourages growth c) sets objectives d) gives orders and directions

(Ans c,d)

27) Laissez Faire policy is adopted in  Capitalistic Economic System 28) Land is not depreciable asset, because its value always increases. (But not of its unlimited life) 29) The elasticity of demand for luxury goods is  Infinite 30) Out of HR, time, cost, measurable elements, which is not necessary for MBO  Human relations 31) Function of attracting, acquiring, retaining and development of HR in a firm is called  Staffing 32) Style of production oriented leader in Managerial grid is  9,9 style Page 2 of 8

33) Concept of 4Ps in marketing is profound by  E.J.Mc Carthy 34) 35) Automatic vending, direct selling, telemarketing are  non-store retailing types 36) A product line strategy, wherein a company adds a higher priced product to a line in order to attract a broader market which helps the sale of its existing lower priced product is called Trading Up 37) Use of fixed interest securities in the capital structure is called  Financial Leverage 38) If NPV is positive, the IRR will be

K