MANAGEMENT MCQs - CareerMCQs

The Practice of Management written by __________.
A. Peter F. Drucker.
B. Terry.
C. Louis Allan.
D. Hendry Fayol.
ANSWER: A

Management is an organ, organs can be described and defined only through their functions. This
definition was given by____________.
A. Peter F. Drucker.
B. Terry.
C. Louis Allan.
D. Hendry Fayol.
ANSWER: A

Management is what a manger does_____________.
A. Peter F. Drucker.
B. Terry.
C. Louis Allan.
D. Hendry Fayol.
ANSWER: C

To manage is to forecast and plan, to organize, to compound, to co-ordinate and to control. This
definition was given by____________.
A. Peter F. Drucker.
B. Hendry Fay.
C. Louis Allan.
D. Terry.
ANSWER: B

Management is the art of getting things done through and with an informally organized_____________.
A. Harold Koontz.
B. Terry.
C. Louis Allan.
D. Hendry Fayol.
ANSWER: A

Management is the art and science of decision making and leadership _____.
A. Harold Koontz.
B. Donald J. Clough.
C. Louis Allan.
D. Terry.
ANSWER: B

Luther Gullik classifies the function of management as ___________.
A. POSDCORB.
B. POSTCARD.
C. POSDCORB.
D. POSDORBC.
ANSWER: C

Father of Adminstrative management______________.
A. Mary Parkett.
B. Lillian Gilberth.
C. Henry Fayol.
D. Elton Mayo.
ANSWER: C

Pioneer of Human Relations is___________.
A. Mary Parkett.
B. Lillian Gilberth.
C. Henry Fayol.
D. Elton Mayo.
ANSWER: D

Henry Fayol laid down_____________.
A. 12 principles.
B. 13 principles.
C. 14 principles.
D. 15 principles.
ANSWER: C

Espirit de corps means______________.
A. union is strength.
B. service is our motto.
C. buyer beware.
D. product is our strength.
ANSWER: A

F.W. Taylor is associated with________________.
A. Scientific Management.
B. Future management.
C. Modern management.
D. Principles of management.
ANSWER: A

Management is________________.
A. an art.
B. a science.
C. an art and a science.
D. an art not science.
ANSWER: C

Henry Fayol was a French__________________.
A. Industrialist.
B. Writer.
C. Manager.
D. Actor.
ANSWER: A

General and IndustrialManagement was written by_________________.
A. Harold Koontz.
B. Terry.
C. Louis Allan.
D. Hendry Fayol.
ANSWER: D

Every subordinate should receive orders from and be accountable to only one superior is __________.
A. Unity of direction.
B. Unity of command.
C. Centralization.
D. Scalar chain.
ANSWER: B

Control system of an organisation has no influence over the _____________.
A. internal environment.
B. external environment.
C. customers.
D. government.
ANSWER: B

The chain of command from the highest authority to the lowest level in the organization is _________.
A. Unity of direction.
B. Unity of command.
C. Centralization.
D. Scalar chain.
ANSWER: D

Allotment of work to each worker on the basis of the capacity of an average worker functioning in the
normal working condition is _____________.
A. social task planning.
B. scientific task planning.
C. not a planning.
D. scientific organizing.
ANSWER: B

Study of the movements of both the workers and the machine to eliminate wasteful movement is
_____________.
A. fatigue study.
B. time study.
C. motion study.
D. work study.
ANSWER: C

A study relating to the fixing of the working hours with rest periods to recoup the energy while
performing in job is called ____________.
A. fatigue study.
B. time study.
C. motion study.
D. work study.
ANSWER: A

The first and foremost function of management is ___________.
A. planning.
B. organizing.
C. controlling.
D. coordination.
ANSWER: A

Planning lays down the overall objective, strategies and polices for the total enterprise is ___________.
A. corporate planning.
B. divisions planning.
C. unit planning.
D. department planning.
ANSWER: A

Strategic planning is ___________.
A. long term planning.
B. medium term planning.
C. short term planning.
D. annual planning.
ANSWER: A

The assumptions about future derived from forecasting and used in planning are known as
_____________.
A. planning premises.
B. freehold premises.
C. business premises.
D. corporate premises.
ANSWER: A

Goals, aims, purposes, missions and target is also known as ____________.
A. objective.
B. strategies.
C. polices.
D. rules.
ANSWER: A

Contingent plan to meet environmental pressures is ______________.
A. objective.
B. strategies.
C. polices.
D. rules.
ANSWER: B

A chronological sequence of steps to be undertaken to enforce a policy and to attain an objective is
known as ___________.
A. objective.
B. strategies.
C. procedures.
D. rules.
ANSWER: C

A statement of expected results expressed in numerical terms for a definite period of time in the future
is known as ____________.
A. objective.
B. strategies.
C. procedures.
D. budgets.
ANSWER: D

The process of establishing a time sequence for the work is known as __________.
A. objective.
B. schedules.
C. procedures.
D. budgets.
ANSWER: B

A rigid plan, no scope for discretion __________.
A. rule.
B. schedules.
C. procedures.
D. budgets.
ANSWER: A

Specifying the manner of executing policy is known as ________________.
A. objective.
B. schedules.
C. procedures.
D. budgets.
ANSWER: C

____________ is the harmonising or synchronising of individual efforts with the purpose of achieving
group goals..
A. coordination.
B. control.
C. decision making.
D. delegtion.
ANSWER: A

__________ is an obligation to perform certain functions and achieve certain results.
A. responsibility.
B. decentralisation.
C. centralisation.
D. delegation.
ANSWER: A

Plan that establish a required method of handling future activities is called _________.
A. rules.
B. procedures.
C. policy.
D. methods.
ANSWER: B

Set of clear instruction in a clear and logical sequence to perform a particular task______.
A. rules.
B. programme.
C. policy.
D. methods.
ANSWER: B

Employees will be promoted on the basis of seniority is an example of __________.
A. rules.
B. procedures.
C. policy.
D. methods.
ANSWER: C

Steps to be taken for selecting sales persons is an example of ___________.
A. rules.
B. procedures.
C. policy.
D. methods.
ANSWER: B

An identified group of people contributing their efforts towards the attainment of goals is called an
_____________.
A. organization.
B. business.
C. management.
D. department.
ANSWER: A

A system of co-operative activities of two or more persons is called __________.
A. department.
B. co-ordination.
C. organization.
D. control.
ANSWER: C

Supply of human and material resources and helps to achieve the objective of businessis______________.
A. planning.
B. organisaiton.
C. management.
D. control.
ANSWER: B

Formal authority flows from upwards to downwards in___________.
A. formal organization.
B. informal organization.
C. business or oganisation.
D. strategic organization.
ANSWER: A

Informal authority flows upwards to downwards or horizontally in_____________.
A. formal organization.
B. informal organization.
C. business or oganisation.
D. strategic organization.
ANSWER: B

Rules, duties and responsibilities or workers are given in writing in______________.
A. formal organization.
B. informal organization.
C. business or oganisation.
D. strategic organization.
ANSWER: A

Which is created for technological purpose?
A. formal organization.
B. informal organization.
C. business oroganisation.
D. strategic organization.
ANSWER: A

Which arises from mans quest for social satisfaction?
A. formal organization.
B. informal organization.
C. business or oganisation.
D. strategic organization.
ANSWER: B

Which type of organization is permanent and stable?
A. formal organization.
B. informal organization.
C. business or oganisation.
D. strategic organization.
ANSWER: A

Which type of organization gives importance to terms of authority and functions?
A. formal organization.
B. informal organization.
C. business or oganisation.
D. strategic organization.
ANSWER: A

Which type of organization gives importance to people and their relationships?
A. formal organization.
B. informal organization.
C. business or oganisation.
D. strategic organization.
ANSWER: B

Which organisaitonal relationship gives a greater job satisfaction and results in maximum production?
A. formal organization.
B. informal organization.
C. business or oganisation.
D. strategic organization.
ANSWER: B

Which type of organization has no place in the organization chart?
A. formal organization.
B. informal organization.
C. business or oganisation.
D. strategic organization.
ANSWER: B

Decision making is the selection based on some criteria from two or more possible alternatives is
defined by___________.
A. Farland.
B. Mac Donald.
C. Terry.
D. M.C. Nites.
ANSWER: C

The selection of best alternative from many alternatives is known as__________.
A. selection.
B. decision-making.
C. organizing.
D. budgeting.
ANSWER: B

Deal with routing and repetitive problems is a __________.
A. programmed decision.
B. non-programmed decision.
C. major decision.
D. minor decision.
ANSWER: A

Placing purchase order is an example of ________.
A. programmed decision.
B. non-programmed decision.
C. major decision.
D. decision.
ANSWER: A

The decision which is taken within the purview of the policy of the organization is_______.
A. programmed decision.
B. non-programmed decision.
C. major decision.
D. minor decision.
ANSWER: A

The decision taken by lower level management is a _____________.
A. programmed decision.
B. non-programmed decision.
C. major decision.
D. minor decision.
ANSWER: A

The decision deal with novel and non-repetitive problems is___________.
A. programmed decision.
B. non-programmed decision.
C. individual decision.
D. non-economic decision.
ANSWER: A

Opening of new branch is an example of ___________.
A. programmed decision.
B. non-programmed decision.
C. individual decision.
D. non-economic decision.
ANSWER: B

The decision taken by high level of management is _______________.
A. programmed decision.
B. non-programmed decision.
C. individual decision.
D. non-economic decision.
ANSWER: B

Non-programmed decision is also called _____________.
A. routine decisions.
B. structured decisions.
C. strategic decisions.
D. operative decisions.
ANSWER: C

Programmed decision is also known as _____________.
A. routine decisions.
B. structured decisions.
C. strategic decisions.
D. operative decisions.
ANSWER: D

The decision which has long term impact on business is _____.
A. programmed decision.
B. non-programmed decision.
C. individual decision.
D. non-economic decision.
ANSWER: B

The decision which relates to day-to-day operation of an organization is known as ____.
A. major decision.
B. organisational decision.
C. personal decision.
D. operative decision.
ANSWER: D

The decision which does not incur any expenses is known as ____.
A. economic decision.
B. crisis decision.
C. non-economic decision.
D. problem decision.
ANSWER: C

The decision which is implemented within the concerned department is known as ___.
A. economic decision.
B. departmental decision.
C. non-economic decision.
D. problem decision.
ANSWER: B

Decision taken by committee formed by the top management for specific purpose is ____.
A. group decision.
B. organisational decision.
C. personal decision.
D. operative decision.
ANSWER: A

Crisis decision is also known as ____.
A. group decision.
B. major decision.
C. minor decision.
D. spot decision.
ANSWER: D

A decision taken to meet unexpected situations is known as ____.
A. economic decision.
B. crisis decision.
C. non-economic decision.
D. problem decision.
ANSWER: B

The authority flows from top to bottom through the structure of an organization is ____.
A. The acceptance of authority theory.
B. The formal authority theory.
C. The competence theory.
D. The organisaiton theory.
ANSWER: B

Which theory is also called traditional authority theory?
A. The acceptance of authority theory.
B. The formal authority theory.
C. The competence theory.
D. The organisaiton theory.
ANSWER: B

If the subordinates do not accept the command of their superior, then the superior cannot be said to
have any authority over them is given in.
A. The acceptance of authority theory.
B. The formal authority theory.
C. The competence theory.
D. The organisaiton theory.
ANSWER: A

The type of authority is invested with the persons by virtue of the office held by them is ____.
A. The acceptance of authority theory.
B. The formal authority theory.
C. The competence theory.
D. The organisaiton theory.
ANSWER: C

The process whereby a manger shares his work and authority with his subordinates is________.
A. Decentralisaiton
B. Responsibility.
C. Delegation.
D. decision making.
ANSWER: C

The subordinate is granted authority to perform all the functions in his department or division is ____.
A. general delegation.
B. formal delegation.
C. specific delegation.
D. informal delegation.
ANSWER: A

The orders, instructions or direction are delegated to a particular person specifically is known as ____.
A. general delegation.
B. formal delegation.
C. specific delegation.
D. informal delegation.
ANSWER: C

When authority is delegated as per the organisaiton structure it is called ____.
A. formal delegation.
B. informal delegation.
C. general delegation.
D. specific delegation.
ANSWER: A

When an individual or a group agrees to work under the direction of an informal leader is called _____.
A. formal delegation.
B. informal delegation.
C. general delegation.
D. specific delegation.
ANSWER: B

Delegation made by written orders and instruction is known as ____.
A. oral delegation.
B. written delegation.
C. downward delegation.
D. sideward delegation.
ANSWER: B

Departmentation on the basis of activities grouped according to the type of customer is _____.
A. departmentation by function.
B. departmentation by products.
C. departmentation by territory.
D. departmentation by customers.
ANSWER: D

The process of dividing the large monolithic functional organization into small and flexible
administrative units is called ____.
A. staffing.
B. delegation.
C. departmentation.
D. control.
ANSWER: C

Departmentation is a part of the ___.
A. organisaiton process.
B. control process.
C. planning process.
D. staffing process.
ANSWER: A

Banks, insurance companies and distribution agencies are examples of ____.
A. departmentation by function.
B. departmentation by products.
C. departmentation by territory.
D. departmentation by customers.
ANSWER: C

Departmentation on the basis of production process is called ____.
A. equipment department.
B. departmentation by products.
C. departmentation by territory.
D. departmentation by customers.
ANSWER: A

The term span of management is also known as ____.
A. span of business.
B. span of control.
C. span of activity.
D. span of planning.
ANSWER: B

The number of subordinates that report directly to a single supervisor is ___.
A. span of supervision.
B. span of activity.
C. span of business.
D. span of organizing.
ANSWER: A

Few subordinates report directly to a manger is ____.
A. wide span of management.
B. large span of management.
C. small span of management.
D. narrow span of management.
ANSWER: D

Large number of subordinates report to a manager is ____.
A. wide span of management.
B. large span of management.
C. small span of management.
D. narrow span of management.
ANSWER: A

Making assignments, issuing orders and instructions, providing guidance and inspiration to subordinates
for the achievement of organizational objective is called ___.
A. Planning.
B. Organizing.
C. Directing.
D. controlling.
ANSWER: C

Motivation based on force of fear is called ____.
A. negative motivation.
B. positive motivation.
C. extrinsic motivation.
D. intrinsic motivation
ANSWER: A

Wages, salaries, bonus, vacation pay, insurance are examples of ____.
A. financial motivation.
B. non-financial motivation.
C. extrinsic motivation.
D. intrinsic motivation.
ANSWER: A

Participation, recognition and power are some of the examples of ___.
A. financial motivation.
B. non-financial motivation.
C. extrinsic motivation.
D. intrinsic motivation.
ANSWER: B

____ means that each section has its own workers to perform activities within the department.
A. centralisation.
B. departmentation.
C. decentralisation.
D. delegation.
ANSWER: C

According to Maslow, self-actualization needs is a ____.
A. high level needs.
B. medium level needs.
C. lower level needs.
D. psychological needs.
ANSWER: A

Expectancy motivation theory is given by ____.
A. Vroom.
B. Maslow.
C. Herzberg.
D. Mc Gregor.
ANSWER: A

Management By Objectives was introduced by _____.
A. Taylor.
B. Elton Mayo.
C. Peter Drucker.
D. Maslow.
ANSWER: C

Leadership behaviour is influenced by certain qualities of a person is ____.
A. Followers theory.
B. Trait theory.
C. Situational theory.
D. Managerial grid.
ANSWER: B

The leadership theory study leaders behaviour is _____.
A. Flowers theory.
B. Trait theory.
C. Behavioural theory.
D. Managerial grid.
ANSWER: C

All decision-making power is centralized in the leader is under ____.
A. autocratic style.
B. liberal leader.
C. democratic leader.
D. institutional leader.
ANSWER: A

The leader makes decisions in consultation with his followers is ____.
A. autocratic style.
B. liberal leader.
C. democratic leader.
D. institutional leader.
ANSWER: C

Complete freedom for group or individual decision, with a minimum of leader participation is under
____.
A. autocratic style.
B. democratic style.
C. free-rein style.
D. creative style.
ANSWER: C

A leader exercises his power over his followers because of his position held in the. organizational
hierarchy is ____.
A. autocratic leader.
B. intellectual leader.
C. liberal leader.
D. institutional leader.
ANSWER: D

The leader who excels as a leader because of his superior knowledge is ___-.
A. autocratic leader.
B. intellectual leader.
C. liberal leader.
D. institutional leader.
ANSWER: B

A leader who serves as the head of the family and treats his followers like his family members is ____.
A. paternalistic leader.
B. intellectual leader.
C. liberal leader.
D. institutional leader.
ANSWER: A

A leader motivates his followers to work hard by offering them rewards is ____.
A. positive style.
B. negative style.
C. autocratic style.
D. democratic style.
ANSWER: C

A leader forces his followers to work had and penalizes them is ____.
A. positive style.
B. negative style.
C. autocratic style.
D. democratic style.
ANSWER: B

Leader acts more as bosses then leadership style is ____.
A. positive style.
B. negative style.
C. autocratic style.
D. democratic style.
ANSWER: B

The leader acts as a liaison officer between the employees and the outside world is ____.
A. positive style.
B. free-rein style.
C. autocratic style.
D. democratic style.
ANSWER: B

The last function of management is____.
A. Planning.
B. Organizing.
C. Controlling.
D. Staffing.
ANSWER: C

Fixation of standards, measurement of performance, comparison, and correction of deviation are the
steps in________.
A. planning.
B. organizing.
C. Staffing.
D. control process.
ANSWER: D

Planning is looking ahead and control is_________.
A. looking back.
B. looking front.
C. looking sideward.
D. looking down.
ANSWER: A

Control exercised while the activity is in progress is__________.
A. concurrent control.
B. feed forward control.
C. feedback control.
D. preserving control.
ANSWER: A

Exchange of ideas, opinions, information etc. between two or more persons is________.
A. Planning.
B. organizing.
C. Communication.
D. Staffing.
ANSWER: C

Communication is a _______.
A. one-way process.
B. two-way process.
C. three-way process.
D. four-way process.
ANSWER: B

The person who sends a message is known as________.
A. Sender.
B. Receiver.
C. Messenger.
D. Communicator.
ANSWER: A

The act of making ones ideas and opinions known to others is said by_______.
A. Meyer.
B. Brown.
C. Newman.
D. Keith Davis.
ANSWER: A

The act of translating the message into words, pictures, symbols, signs or some other form is known as
_________.
A. Sender.
B. Receiver.
C. Encoding.
D. decoding.
ANSWER: C

The person who receives the message is called _________.
A. sender.
B. receiver.
C. encoding.
D. decoding.
ANSWER: B

Converting symbols, signs or pictures into meaning is known as _______.
A. Sender.
B. receiver.
C. encoding.
D. decoding.
ANSWER: D

communication that flow from superior to subordinates is________.
A. downward communication.
B. upward communication.
C. horizontal communication.
D. informal communication.
ANSWER: A

Informal communication is commonly known as ________.
A. downward communication.
B. upward communication.
C. horizontal communication.
D. Grapevine.
ANSWER: D

Communication of policies, procedures and programmes is example of_________.
A. downward communication.
B. upward communication.
C. horizontal communication.
D. informal communication.
ANSWER: A

Reports, suggestions, appeals, grievances, etc is example of_________.
A. downward communication.
B. upward communication.
C. horizontal communication.
D. informal communication.
ANSWER: B

Inter-depoartmental committee meeting is an example of__________.
A. downward communication.
B. upward communication.
C. horizontal communication.
D. informal communication.
ANSWER: C

Rumours and gossips are_________.
A. downward communication.
B. upward communication.
C. horizontal communication.
D. informal communication.
ANSWER: D

Exchange of messages through spoken words is_________.
A. oral communication.
B. written communication.
C. gestural communication.
D. sideward communication.
ANSWER: A

Lectures, group discussions, interviews, social gathering are example of _____.
A. oral communication.
B. written communication.
C. gestural communication.
D. sideward communication.
ANSWER: A

Letters, circulars, memos, bulletin, manuals, reports are example of________.
A. oral communication.
B. written communication.
C. gestural communication.
D. sideward communication.
ANSWER: B

The problems in communication channels is known as______.
A. organizational barriers.
B. mechanical barriers.
C. personal barriers.
D. semantic barriers.
ANSWER: B

The integration of objectives and activities of an organization is________.
A. control.
B. co-ordination.
C. Planning.
D. organizing.
ANSWER: B

Co-ordination between the activities of various departments and individuals working within the
organization is known as _________.
A. vertical co-ordination.
B. external co-ordination.
C. internal co-ordination.
D. horizontal co-ordination.
ANSWER: C

Scalar chain means ________.
A. hierarchy levels.
B. chain of command.
C. delegation of authority.
D. span of control.
ANSWER: A

The oldest type of organization__________.
A. functional organization.
B. line organization.
C. matrix organization.
D. committee organization.
ANSWER: B

The organization which was devised by FW Taylor was ________.
A. functional organization.
B. matrix organisation.
C. committee organization.
D. line and staff organization.
ANSWER: A

Devices which shows the organizational relationships________.
A. organizational charts.
B. scalar chain.
C. over all plan.
D. Budgets.
ANSWER: A

When the supervisor commands subordinates and has close supervision is called ______.
A. free-rein.
B. autocratic.
C. consultative.
D. democratic.
ANSWER: B

Praise, recognition and power are_______.
A. intrinsic motivation.
B. extrinsic motivation.
C. positive motivation.
D. negative motivation.
ANSWER: A

X and Y theory was introduced by_______.
A. Mc gregor.
B. Peter drucker.
C. Henry fayol.
D. FW taylor.
ANSWER: A

Time-event network is _________.
A. PERT.
B. CPM.
C. MIS.
D. statistical reports.
ANSWER: A

Management is ____________.
A. art.
B. science.
C. art and science.
D. humanities.
ANSWER: C

Decision making helps in the smooth function of the___________.
A. business.
B. staffing.
C. organization.
D. planning.
ANSWER: A

The transmission of thoughts from person to another is_____________.
A. communication.
B. controlling.
C. consultative.
D. organizing.
ANSWER: A

The study relating to the movement of a machine operator and his machine while performing the job is
called__________.
A. time study.
B. work study.
C. motion study.
D. fatigue study.
ANSWER: C

Selecting a best course of action among the alternatives is called as_________.
A. decision making.
B. planning.
C. organizing.
D. controlling.
ANSWER: A

The decisions which are frequent and repetitive in nature are called as________.
A. non programmed decisions.
B. programmed decisions.
C. major decisions.
D. operative decisions.
ANSWER: B

A decision which is taken to meet unexpected situation__________.
A. problem decision.
B. certainty decisions.
C. crisis decision.
D. organizational decision.
ANSWER: C

The right of a person to give instructions to his subordinates is known as_________.
A. responsibility.
B. authority.
C. accountability.
D. line authority.
ANSWER: B

Elements of delegation_________.
A. responsibility, authority, accountability.
B. authority, delegation, accountability.
C. responsibility, decentralization, centralization.
D. controlling, responsibility, authority.
ANSWER: A

The extent to which power and authority are retained at the top is called as________.
A. centralization.
B. decentralization.
C. responsibility.
D. accountability.
ANSWER: A

_____ deals with appointing people and placing them at the appropriate jobs.
A. Human resources.
B. Recruitment.
C. Staffing.
D. Placement.
ANSWER: C

Business means ________.
A. Commerce.
B. industry and commerce.
C. trade and commerce.
D. selling and buying of goods.
ANSWER: B

Which of the following is not an economic activity?
A. A doctor practicing.
B. A lawyer practicing law.
C. A professional cricketer playing cricket.
D. A student playing cricket.
ANSWER: D

Which of the following is an extractive industry?
A. Cattle breeding.
B. Forest cultivation.
C. Hunting.
D. Flour mills.
ANSWER: C

Which of the following is not a manufacturing industry?
A. Iron and steel works.
B. Flour bills.
C. Fruit canning.
D. Mining.
ANSWER: D

A valid definition of a business purpose is to ______.
A. create a customer.
B. maximize profits.
C. serve the society.
D. increase the wealth of the firm.
ANSWER: A

Sole-trade organization is also called as ______.
A. individual proprietorship
B. Partnership.
C. joint stock company.
D. co-operative society.
ANSWER: A

Who is dormant partner?
A. One who takes no active part in business.
B. A working partner.
C. Partner for profits
D. Minor partner
ANSWER: A

In case of minor acting as a partner, his personal properties are ___.
A. liable for the debts of the firm.
B. not liable for the debts of the firm.
C. partly liable for the debts of the firm.
D. only debts of the firm.
ANSWER: B

When a partnership is dissolved?
A. In any case of death of any of the partner.
B. By mutual consent.
C. By insolvency of any of the partner.
D. By insanity or madness.
ANSWER: A

The liability of a sole proprietor is _______.
A. limited to the extent of his capital invested in the business.
B. limited to the extent of the value of business assets.
C. limited to the extent of the value of business assets and his all private assets.
D. limited value of the business assets.
ANSWER: C

The maximum number of partners in a firm carrying on banking business is__.
A. 7.
B. 10.
C. 50.
D. 20
ANSWER: C

The agreement of partnership _______.
A. must be oral.
B. must be in writing.
C. can be either oral or in writing.
D. must be in writing on a stamp paper.
ANSWER: D

Liability of partners in respect of the firms debts is _______.
A. limited up to the amount of his capital in the business.
B. Unlimited.
C. limited up to the amount of guarantee given by the partner.
D. limited up the amount of his capital and loan to the firm if any.
ANSWER: D

A partner in a firm _______.
A. cannot transfer his share to an outsider.
B. can transfer his share to an outsider with the consent of majority partners.
C. can transfer his share to an outsider without the consent of any other partners.
D. can transfer his share to an outsider with the consent of all other partners.
ANSWER: A

A manager with a share in the profits ______.
A. is only a servant of the firm.
B. becomes a partner by the operation of law.
C. becomes a partner by implied agreement.
D. becomes a partner from status.
ANSWER: A

A nominal partner is ______.
A. not entitled to share the profits of the concern.
B. entitled to equal share in the profits unless there is an agreement to any other profit sharing ratio.
C. not liable for the acts of other partners.
D. not able to third parties.
ANSWER: A

The minimum number of members in a private limited company is ___.
A. 2.
B. 3.
C. 7.
D. 10
ANSWER: A

Memorandum of association of a firm contains _______.
A. rules regarding the internal management of the company.
B. rules regarding the constitution and activities of the company.
C. rules regarding the external management.
D. rules regarding the constitution.
ANSWER: B

The liability of shareholders of a public company is limited to the _____.
A. nominal value of shares.
B. extent of their private assets.
C. paid up value of shares.
D. accounts called up.
ANSWER: C

A Government company is one in which ______.
A. the entire share capital is held by the central and / or state government.
B. 50% of capital is held by central government and the remaining 50% by one or more state
governments.
C. at least 50% of the capital is held by central and / or state governments.
D. entire share capital held by state government.
ANSWER: D

A Company is called an artificial person because ____.
A. it does not have the shape of a natural person.
B. it cannot be used in the court of law.
C. it is invisible and intangible.
D. it exists only in contemplation of law.
ANSWER: C

The liability of members of a co-operative society is ______.
A. limited to the amount of nominal value of capital held.
B. limited to the amount of paid up value of the capital held.
C. unlimited.
D. limited or unlimited depending upon what the society has opted for it.
ANSWER: D

Membership of a co-operative is_________.
A. compulsory.
B. voluntary
C. not essential.
D. not compulsory.
ANSWER: B

The minimum number of members required for registration of a co-operative society is ______.
A. 2
B. 7
C. 10
D. 20
ANSWER: C

A member of a co-operative society can leave the society by _____.
A. transferring his share to another person without anybodys consent.
B. transferring his share to another person with the consent of the managing committee.
C. transferring his share to a fellow number.
D. withdrawing his capital from the society.
ANSWER: D

Which of the following is an example of a company incorporated by a special act of parliament?
A. Delhi cloth and general mills ltd.
B. Tata iron and steel Co. Ltd.
C. Industrial Finance Corporation of India Ltd.
D. Swadesh Cotton Mills Ltd.
ANSWER: C

Dividend on preference capital will be paid ______.
A. only when there are profits.
B. even if there are no profits.
C. only when directors recommend.
D. only when share holders recommen
ANSWER: C

A public corporation means _____.
A. public company
B. government company.
C. statutory corporation.
D. department of union government.
ANSWER: C

The partnership entity is _______.
A. legal entity.
B. legal entity and accountable entity.
C. neither entity nor accountable entity.
D. group of individuals without legal status.
ANSWER: B

Promoter is a person who ________.
A. takes part in the incorporation of a company .
B. is a director.
C. is a relative of the managing director.
D. works to publicity to the company.
ANSWER: A

The minimum number of shareholders in a public limited company is ___.
A. 2
B. 3
C. 5
D. 7
ANSWER: D

A private company should have at least _____ members.
A. 2
B. 7
C. 10
D. 50
ANSWER: A

The charter of a company is its ______.
A. prospectus.
B. statement lieu of prospectus.
C. memorandum of association.
D. articles of association.
ANSWER: C

An association of 25 people not registered under the companies act, but carrying on business, is a/an______.
A. partnership.
B. private company.
C. public company.
D. illegal association.
ANSWER: D

A partnership firm cannot raise funds by _______.
A. bank loan
B. Partner loan
C. debentures
D. partner capital
ANSWER: C

The term Capitalization is used in relation to ______.
A. sole-proprietorship.
B. partnership.
C. joint stock companies.
D. co-operative societies.
ANSWER: C

Over-capitalization results from ____.
A. payment of excessive amount for goodwill.
B. underestimating the rate of capitalization.
C. raising more money than can be profitably used.
D. raising only the money.
ANSWER: C

Which of the following securities is not redeemable?
A. Equity shares.
B. Preference shares.
C. Cumulative preference shares.
D. Debentures.
ANSWER: A

Preference shares are those which carry preferential tight in respect of ____.
A. dividends.
B. repayment of capital.
C. both dividend and repayment of capital.
D. right to vote on all important motions in AGM.
ANSWER: D

Investment in which of the following is most risky?
A. Equity shares.
B. Preference shares.
C. Debentures.
D. Land.
ANSWER: C

Which of the following is not an ownership security?
A. Equity shares.
B. Debentures.
C. Preference shares.
D. Shares.
ANSWER: C

In which of the following, interest / dividend is payable even if the company does not earn profit?
A. Equity capital.
B. Preference capital.
C. Debentures.
D. Shares.
ANSWER: B

Debentures cannot be ________.
A. irredeemable.
B. participating.
C. registered.
D. bearer.
ANSWER: C

Ploughing back of profits means ________.
A. earning of black money.
B. dividends not claimed by shareholders.
C. retaining the earnings.
D. not paying dividends in a particular year.
ANSWER: C

Deferred shares can be issued by ________.
A. public company.
B. private company.
C. private company which is deemed to be a public.
D. government company.
ANSWER: B

Which of the following companies may issue share warrants?
A. Companies limited by guarantee.
B. Private limited companies.
C. Both private and public limited companies.
D. Trust.
ANSWER: C

A bearer of a share warrant of a company is _____.
A. a creditor of the company.
B. a member of the company.
C. a member subject to certain conditions.
D. not a member of the company.
ANSWER: D

Bank overdraft is a good source of finance for ______.
A. short term.
B. medium term.
C. long term.
D. short and long term.
ANSWER: A

The most important economic function of new issue market is to ____.
A. provide liquidity to securities.
B. provide facilities for converting saving into investments.
C. give proper direction to the flow of capital.
D. give direction.
ANSWER: B

Which of the following are components of organized sector of stock exchange?
A. Commercial banks.
B. Investors in securities.
C. Financial institutions like LFC, IDBI.
D. Other financial institutions.
ANSWER: B

Which of the following methods is not used for raising capital through the sale of new securities?
A. By issue of prospectus.
B. Rights issue.
C. Stock exchange placing.
D. Private placing.
ANSWER: C

The most common method used for marketing of new securities is ____.
A. sale of existing shareholders.
B. stock exchange placing.
C. direct sale to public through prospectus.
D. sale to biometers.
ANSWER: C

The first stock exchange was set up in India in _______.
A. Calcutta.
B. Bombay.
C. New Delhi.
D. Chennai.
ANSWER: B

A speculator who applies for new share is ________.
A. a stag.
B. middle man.
C. jobber.
D. lame duck.
ANSWER: A

Dealings in stock exchanges can be done by public ______.
A. directly.
B. directly or through brokers.
C. only through brokers.
D. only by corporate houses.
ANSWER: C

Members of Bombay stock exchange are unofficially classified into ___.
A. brokers and jobbers.
B. brokers and tarawaniwalas.
C. jobbers and tarawaniwalas.
D. there is no such classification of members of stock exchange.
ANSWER: B

Speculation in stock exchange means _____.
A. investment in securities.
B. gambling in securities.
C. buying and selling securities in the hope of making profile due to change in prices.
D. creating secret profits.
ANSWER: C

Which of the following speculators expect fall in the prices of securities in the near future?
A. Bull.
B. Bear.
C. Stag.
D. Under inter.
ANSWER: B

Which of the following speculative activities is based on disparity in quoted prices in different markets?
A. Option dealing.
B. Arbitrage.
C. Margin trading.
D. Blank transfers.
ANSWER: B

In India there are __________ recognized stock exchanges at present
A. 15.
B. 16.
C. 17.
D. 21.
ANSWER: D

Listing of securities in a stock exchange for the purpose of trading indicates that__.
A. at the time of listing, the company is financially sound.
B. at the time of listing, the company is legally organized.
C. the stock exchange guarantees about the financial soundness of the company.
D. the stock exchange not guarantees about the financial position.
ANSWER: B

When the name of the transferess is not filled in not filled in the transfer deed, without filling in the
name of the transferre it is called _______.
A. option dealing.
B. forward dealing.
C. blank transfers.
D. carry over.
ANSWER: C

When a right to sell a security is acquired, it is known as _______.
A. call option.
B. put option.
C. double option.
D. single option.
ANSWER: A

Stock exchange deals with the ______.
A. second hand securities.
B. issued of equity shares.
C. issue of preference shares.
D. issue of debentures.
ANSWER: A

Dividend and interest are _______.
A. synonymous terms.
B. different from each other.
C. debited to profit and loss account.
D. divisible profits.
ANSWER: C

The price of a share quoted in the stock exchange is cum, dividend when ____.
A. it is inclusive of dividend declared.
B. it is exclusive of dividend declared.
C. it excludes interest.
D. it includes interest.
ANSWER: A

Indexing is an important _____.
A. method of filing.
B. method of maintaining account books.
C. aid to filing.
D. method of maintaining statistical books.
ANSWER: B

A certain percentage of the sum assured is paid periodically according to the terms of policy is known
as ________ .
A. Term policy
B. Endowment policy
C. Money-Back Policy
D. Group insurance policy
ANSWER: C

Computer hardware refers to _______.
A. all the equipment required for proper functioning of a programme.
B. punched cards, punched paper tapes or magnetic tapes.
C. data required for immediate working.
D. the end product of final information obtained from the computer.
ANSWER: A

Memory unit is a part of _______.
A. punched card system.
B. electronic data processing.
C. both Punched card system and Electronic data processing.
D. both Punched card system and manually operated accounting machines.
ANSWER: B

What is called to buying of shares by taking money from brokers?
A. Margin trading.
B. Curb dealing.
C. Badla.
D. Forward.
ANSWER: A

The primary aim of co-operative is to ________.
A. earn more profits.
B. serve the members.
C. raise production.
D. raise more money.
ANSWER: B

A sleeping partner is one who _______.
A. contributes capital.
B. takes active part in the business.
C. contributes members.
D. contributes materials.
ANSWER: A

The principle of indemnity does not apply to _____ .
A. Burglary insurance
B. Fire Insurance
C. Marine Insurance
D. Life and Personal Accident insurance
ANSWER: D

In vertical filing system, files or folders are kept ________.
A. one upon the other.
B. in standing upright position.
C. in packets or large envelopes.
D. in a cupboard, divided into a number of small compartments.
ANSWER: B

The primary function of an office is _______.
A. making, using and preserving records.
B. remuneration personnel.
C. carrying out the management policies.
D. safeguarding of authority means.
ANSWER: A

Decentralization of authority means _________.
A. giving permission to the subordinate to do his work.
B. conveying what the subordinate is expected to do.
C. delegating responsibility.
D. departmentalizing activities.
ANSWER: D

Which of the following methods of filing do you recommend for a large size undertaking?
A. Pigeon hole system.
B. Spike files.
C. Box files.
D. Vertical filing.
ANSWER: D

Planning and control are ______ functions of an office.
A. informative.
B. administrative.
C. public.
D. private.
ANSWER: B

_______ is a major physical facility in an office.
A. Office accommodation.
B. Open office.
C. Closed office.
D. Public office.
ANSWER: A

_____ is an important consideration for setting up an office.
A. Office accommodation.
B. Office location.
C. Closed office.
D. Public office.
ANSWER: B

Guarantee for employer for the loss out of employee’s dishonest is_______.
A. Burglary insurance
B. Fidelity insurance
C. third party insurance
D. medical insurance
ANSWER: B

Insurance is based on the principle of _______.
A. co-operation
B. democracy
C. equality
D. welfare
ANSWER: A

_____ Office is in the form of a hall where all the employees work.
A. Open.
B. Public.
C. Private.
D. System.
ANSWER: A

The building used by the professional is called _________ office.
A. quiet.
B. sound.
C. big.
D. small.
ANSWER: A

A building jointly owned is called office________.
A. layout.
B. condominium.
C. accommodation.
D. location.
ANSWER: B

Which type of classification is based on numerical order?
A. Alphabetical classification.
B. Numerical classification.
C. Subject wise classification.
D. Geographical classification.
ANSWER: B

Which type of classification is based on the area of operation?
A. Alphabetical classification.
B. Numerical classification.
C. Subject wise classification.
D. Geographical classification.
ANSWER: D

Spike file is also called as ______.
A. card board file.
B. pillar file.
C. box file.
D. pigeon-hole method.
ANSWER: B

In which method of filing, papers and documents are placed in metal holders in chorological order?
A. Box file.
B. Bound book.
C. Metal holders.
D. Pillar file.
ANSWER: C

In which method of filing, all the letters and documents are passed in the book in chorological order?
A. Box file.
B. Bound book.
C. Metal holders.
D. Pillar file.
ANSWER: B

Which types of files are available in the form of tray that lie flat horizontally in a cabinet?
A. Horizontal files.
B. Vertical files.
C. Visible files.
D. Metal files.
ANSWER: C

Which index system is used when small information is required about customers?
A. Vowel index
B. Book index
C. Strip index
D. Card index
ANSWER: C

Except life insurance the maximum term of other insurance is ________ .
A. 12 months
B. 24 months
C. 6 months
D. 36 months
ANSWER: A

The person whose risk is insured is called ______ .
A. Insured
B. Assured
C. Indemnity
D. both (a) & (b)
ANSWER: D

Life insurance in its present form came to India from ______.
A. The United Kingdom.
B. The USA.
C. Canada.
D. Germany.
ANSWER: A

A Bull speculator is also called as _______.
A. mandiwala.
B. tejiwala.
C. tarawaniwalas.
D. vaniwalas.
ANSWER: B

A speculator who expects a rise in price of securities in the future are called as __.
A. bear.
B. bull.
C. stag.
D. lame duck.
ANSWER: B

A bear speculator is also called as _______.
A. manidiwala.
B. tejiwala.
C. tarawaniwalas.
D. vaniwala.
ANSWER: A

The person who deals in shares, debentures as independent operators are called as
A. brokers.
B. jobbers.
C. tarawaniwalas.
D. manidiwalls.
ANSWER: B

The purpose of an office is to furnish essential services to the ____.
A. public.
B. management.
C. clerks.
D. creditors.
ANSWER: B

The office management simply means to ______.
A. eliminate.
B. withdraw.
C. control.
D. decide.
ANSWER: C

Filing is an important aspect of ______.
A. record keeping.
B. book keeping.
C. house-keeping.
D. time keeping.
ANSWER: C

Equity shares were earlier known as _____.
A. ordinary shares.
B. deferred shares.
C. redeemable shares.
D. irredeemable shares.
ANSWER: A

A ______ is an acknowledgement of a debt.
A. share.
B. debenture.
C. equity share.
D. preference share.
ANSWER: B

The debentures are not given any security on assets are called as _____ debentures.
A. unsecured.
B. secured.
C. bearer.
D. registered.
ANSWER: A

The debentures are given a security on assets are called as _____ debentures.
A. unsecured.
B. secured.
C. bearer.
D. registered.
ANSWER: B

The preference shares holders who have no claim for the arrears of dividend are ___ preference
shares.
A. cumulative.
B. non-cumulative.
C. redeemable.
D. irredeemable.
ANSWER: B

The ____ co-operative societies are established for the benefit of small producers.
A. consumers.
B. producers.
C. marketing.
D. housing.
ANSWER: B

The ____ co-operatives are associations of producers for selling their products at remunerative prices.
A. consumers.
B. producers.
C. marketing.
D. housing.
ANSWER: C

Which co-operative societies are helpful to their members in purchasing land and constructing houses?
A. Consumers.
B. Producers.
C. Marketing.
D. Housing.
ANSWER: D

____ societies are voluntary associations of farmers framed to reap me benefits of large scale farming
an scientific lines
A. Co-operative farming.
B. Consumers.
C. Producers.
D. Marketing.
ANSWER: A

Co-operative societies have ____ management.
A. government.
B. democratic.
C. autocratic.
D. private.
ANSWER: B

____ Debentures are to be redeemed on the expiry of a certain period.
A. Redeemable.
B. Irredeemable.
C. Convertible.
D. Non-convertible.
ANSWER: A

When a transfer of shares takes place by the operation of law, it is known as ___.
A. surrender of shares.
B. transmission of shares.
C. redeemable shares.
D. irredeemable shares.
ANSWER: A

The return of shares to the company is known as ____.
A. surrender of shares.
B. transmission of shares.
C. redeemable shares.
D. irredeemable shares.
ANSWER: B

The optimum point is an _____ size of a firm.
A. ideal.
B. average.
C. over.
D. extra.
ANSWER: A

Which type of shareholders does not have voting rights?
A. Equity shareholders.
B. Preference shareholders.
C. Deferred shareholders.
D. Ordinary shareholders.
ANSWER: B

Unsecured debentures are also called as ___.
A. mortgaged debentures.
B. simple debentures.
C. bearer debentures.
D. registered debentures.
ANSWER: B

Secured debentures are also called as ___.
A. mortgaged debentures.
B. simple debentures.
C. bearer debentures.
D. registered debentures.
ANSWER: A

_______ are the most important source of short term capital.
A. Commercial banks.
B. Trade credit.
C. Installment credit.
D. Advances.
ANSWER: A

The first stock exchange in the world_____.
A. Mumbai stock exchange.
B. America stock exchange.
C. London stock exchange.
D. France stock exchange.
ANSWER: C

According to _____, Office exists anywhere, where certain kinds of work are performed.
A. Leffingwell.
B. Robinson.
C. Edward roche.
D. Mills.
ANSWER: C

Life Insurance Corporation was formed with a capital contribution of ______.
A. Rs. 10 Crore.
B. Rs. 15 Crore.
C. Rs. 5 Crore.
D. Rs. 20 Crore.
ANSWER: C

________ is a social device for eliminating or reducing the loss of society from certain risk.
A. Premium
B. Policy
C. Insurance
D. Contract
ANSWER: C

Economic activities are related to ___________.
A. production of wealth.
B. satisfy ones urge.
C. undertaking social service.
D. social service.
ANSWER: A

Profession involves ______.
A. rendering of personal service.
B. undertaking a business.
C. undertaking a contract.
D. profit motive.
ANSWER: A

Which of the following is an economic activity?
A. A farmer in the field.
B. A teacher teaching his son.
C. A social worker at a relief camp.
D. A social worker.
ANSWER: A

The Insurer who grants a guarantee from the direct insurer is called as _________.
A. Direct Insurer.
B. Ceding Insurer.
C. Re-Insurer.
D. Double Insurer.
ANSWER: C

IRDA refers to_________.
A. Insurance Regulatory Development Authority.
B. Indian Regulatory Development Authority.
C. Institute of Regulatory Development Authority.
D. Insurance Regulatory Development Association.
ANSWER: A

The principle of prevention is better than cure refers to __________.
A. Reduction of risk.
B. Avoiding of risk.
C. Transferring of risk.
D. Shifting of risk.
ANSWER: B

Working capital means _______.
A. current asset plus current liability.
B. current asset minus current liability.
C. fixed asset plus current asset.
D. fixed asset minus current asset.
ANSWER: B

Dividends are payable to the _________.
A. share holders.
B. debenture holders.
C. registrar of the company.
D. board of directors.
ANSWER: A

A written agreement signed by all partners is called _______.
A. partnership Deed.
B. partnership agreement.
C. partnership contract.
D. partnership registration.
ANSWER: A

Fully paid-up shares are called _______.
A. securities.
B. stock.
C. dividends.
D. debentures.
ANSWER: B

Insurance business is based on ______________.
A. Parkinson law.
B. Newton law.
C. The theory of probability and law of large numbers.
D. Boyle law.
ANSWER: C

The constitution of the IRDA consists of not more than _________ members.
A. 10 members.
B. 7 members.
C. 9 members.
D. 8 members.
ANSWER: C

An office routine _________.
A. is a system.
B. is an operation.
C. stands in between a system and an operation.
D. stands in between a process and an operation.
ANSWER: A

One-man-one-vote – is the principle adopted by ________.
A. partnership.
B. joint Stock Companies.
C. co-operative Societies.
D. sole proprietorship.
ANSWER: C

The liability of partners in a firm is _______.
A. limited.
B. unlimited.
C. joint liability.
D. separate liability.
ANSWER: B

A member of a company is _____.
A. promoter.
B. registered shareholder.
C. director.
D. broker.
ANSWER: B

The difference between the actual price and excess price of a share is called as ___.
A. discount.
B. forfeiture.
C. premium.
D. surplus.
ANSWER: C

Dividend declared by a company ________.
A. may be paid in kind.
B. must be paid in cash.
C. may be paid in cash or in kind.
D. may be paid in cash only.
ANSWER: D

Equity shareholders are the ______.
A. owners of the company.
B. creditors of the company.
C. debtors of the company.
D. directors of the company.
ANSWER: A

The maximum number of members in case of private limited company is ____.
A. 10
B. 20
C. 30
D. 50
ANSWER: D

Management Is Defined As

To Work For Others

Management Is

Both An Art & Science

The Founder Of Scientific Management Is

Henri Fayol

Scientific Management Approach Is Developed By

F.W.Taylor

Who Presented Bureaucratic Structure For All Organizations?

Max Weber

Hawthorne Experiment Was Conducted By

Elton Mayo

Who Give Administrative Theory Of Organization ?

Henri Fayol

Who States That Human And Interpersonal Relations May Lead To Productivity ?

Elton Mayo

The Organization In Today’s World Is

Open System

The ‘If & Then’ Relationship Is Explained By Which Organizational Theory ?

Contingency Approach

Organization Behavior Is Humanistic , Inter Disciplinary And

Total System Approach

Organization Behavior Is Not A

Pessimistic Approach

Tolman Gives

Cognitive Theory Of Learning

Extension Of Behavior Modification Into Organization Is Known As

Organization Behavior Mod

Which Is Relatively Permanent Change Which Comes With Experience ?

Learning

The Issue Which Is Not Important For Goal Setting Theory ?

Equity Among Worker

Judging Someone On The Basis Of Self Perception Is Known As

Stereotyping

The Principles Of Management Are Used For

Optimum Utilization Of Resources

Henri Fayol Was A

Mining Engineer

Goals Can Be Accomplished Through Group Efforts By

Organization

The Essence Of Management Is

Co Ordination

The Key Feature For Organization Are Group Efforts , Social Invention And

Accomplishment Of Goals

The Study Of Human Behavior In Organization Is Known As

Organization Behavior

Functions Of Management Are Planning , Staffing And

Controlling

The Experienced Managers Formed

Principles Of Management

The Functions Of Management Are Growth Of Organization, Earning Project And

Employment

The Function Of Top Level Managers Is

Policy Formulation

The principle of division by work is best described by

Work should be divided into small tasks

The principles of management given by Taylor are Harmony not discord, maximum not restricted and

Science not rule of thumb

‘One best way’ to perform a task show which technique of management?

Method study technique

Taylor was a

Mechanical Engineer

Taylor principles have

Universal application

Henri Fayol principles have application in

Specialized situations

The contribution of Henri Fayol is termed as

Administrative Management

Henri Fayol was a

French Industrialist

who stated that “management is the creation and maintenance of internal environment in an enterprise , where individual working in groups can perform efficiently toward the attainment of group goals “?

O’ Donell and Koontz

Management means

Getting things done through others

The organization that works on rumors is known as

Informal Organization

Technical, Financial and Security are the Industrial Activities mentioned by

Henri Fayol

A mission statement is used to specify

The Organization’s Goals

MBO stands for

Management by Objectives

Divisional Organization is the grouping of activities on the basis of

Product Lines

Business means ________.
A. commerce.
B. industry and commerce.
C. trade and commerce.
D. selling and buying of goods.
ANSWER: B

Which of the following is not an economic activity?
A. A doctor practicing.
B. A lawyer practicing law.
C. A professional cricketer playing cricket.
D. A student playing cricket.
ANSWER: D

The moral beliefs held by an individual
A. Values
B. Rights
C. Duties
D. Personal
ANSWER: A

Which of the following is an extractive industry?
A. Cattle breeding.
B. Forest cultivation.
C. Hunting.
D. Flour mills.
ANSWER: C

Ethics is derived from the Greek word
A. ethos
B. etho
C. ethic
D. ethical
ANSWER: A

A valid definition of a business purpose is to ______.
A. create a customer.
B. maximize profits.
C. serve the society.
D. increase the wealth of the firm.
ANSWER: A

Sole-trade organization is also called as ______.
A. individual proprietorship.
B. Partnership.
C. joint stock company.
D. co-operative society.
ANSWER: A

The interests and rights of customers are given top priority
A. The Vendor Model
B. The Civic Model
C. The Austre Model
D. The Artistic Model
ANSWER: A

When will a partnership be dissolved?
A. In any case of death of any of the partner.
B. By mutual consent.
C. By insolvency of any of the partner.
D. By insanity or madness.
ANSWER: A

The oldest form of business organization is ______.
A. partnership.
B. sole proprietorship.
C. joint stock company.
D. co-operative undertaking.
ANSWER: B

The maximum number of partners in a firm carrying on banking business is__.
A. 7
B. 10
C. 50
D. 20
ANSWER: B

The agreement of partnership _______.
A. must be oral.
B. must be in writing.
C. can be either oral or in writing.
D. must be in writing on a stamp paper.
ANSWER: C

D. can transfer his share to an outsider with the consent of all other partners.
ANSWER: A

Partnership may come into existence ______.
A. by the operation of law.
B. by an express agreement only.
C. by an express or implied agreement only.
D. by inheritance of property.
ANSWER: C

Registration of partnership is ________.
A. optional under Indian partnership act.
B. compulsory under the Indian partnership act.
C. compulsory under the income tax act.
D. compulsory under Indian contract act.
ANSWER: A

The minimum number of members in a private limited company is ___.
A. Two
B. Three
C. Seven
D. Ten
ANSWER: A

The liability of shareholders of a public company is limited to the _____.
A. paid up value of shares.
B. nominal value of shares.
C. extent of their private assets.
D. accounts called up.
ANSWER: B

The most important advantage of a joint stock company form of business organization is that ______.
A. the liability of its member is limited.
B. members can conveniently transfer their shares.
C. it offers infinite scope for expansion.
D. it mobilizes vast amount of financial resources.
ANSWER: B

In the co-operative organization, the voting rights of members are___.
A. in proportion to the capital paid by each member.
B. equal, irrespective of amount of capital contribution.
C. in proportion to the nominal value of capital held by each member.
D. in proportion to the total finance supplied including the amount of loan by each member.
ANSWER: B

Localized materials are available at _____.
A. all the places.
B. certain places
C. central places
D. local places
ANSWER: B

The liability of members of a co-operative society is ______.
A. limited to the amount of nominal value of capital held.
B. limited to the amount of paid up value of the capital held.
C. Unlimited.
D. limited or unlimited depending upon what the society has opted for it.
ANSWER: D

Membership of a co-operative is_________.
A. compulsory.
B. voluntary.
C. not essential.
D. nominated.
ANSWER: B

The minimum number of members for registration of a co-operative society is ______.
A. two
B. seven
C. ten
D. twenty
ANSWER: C

Co-operative and public companies are similar in respect of _______.
A. the liability of members.
B. the minimum number of members required for registration.
C. the maximum number of members.
D. method of distribution of profit.
ANSWER: C

Which of the following is an example of a company incorporated by a special act of parliament?
A. Islam cloth and general mills ltd.
B. FF iron and steel Co. Ltd.
C. Industrial Finance Corporation of Pakistan Ltd.
D.Babri Cotton Mills Ltd.
ANSWER: C

Dividend on preference capital will be paid ______.
A. only when there are profits
B. even if there are no profits.
C. only when directors recommend.
D. only when share holders recommend.
ANSWER: C

A public corporation means _____.
A. public company.
B. government company.
C. statutory corporation.
D. department of union government.
ANSWER: C

The partnership entity is _______.
A. legal entity.
B. legal entity and accountable entity.
C. neither entity nor accountable entity.
D. group of individuals without legal status.
ANSWER: B

Promoter is a person who ________.
A. takes part in the incorporation of a company .
B. is a director.
C. is a relative of the managing director.
D. works to publicity to the company.
ANSWER: A

The minimum number of shareholders in a public limited company is ___.
A. two
B. three
C. five
D. seven
ANSWER: D

The limit for maximum number of members in a public company is restricted to _________.
A. 2000.
B. 5000.
C. 10000.
D. no limit.
ANSWER: D

A private company should have at least _____.
A. 2 members.
B. 7 members.
C. 10 members.
D. 50 members.
ANSWER: A

An association of 25 people not registered under the companies act, but carrying on business, is a/an
______.
A. partnership.
B. private company.
C. public company.
D. illegal association.
ANSWER: D

A partnership firm cannot raise funds through _______.
A. bank loan.
B. partners loan.
C. Debentures.
D. partners capital.
ANSWER: C

Which of the following sources is not use for medium term financing?
A. Issue of equity shares.
B. Issue of debentures.
C. Term loans from banks.
D. Sale of current asset.
ANSWER: A

Which of the following securities is not redeemable?
A. Equity shares.
B. Preference shares.
C. Cumulative preference shares.
D. Debentures.
ANSWER: A

Which of the following securities proves a burden on finances of the company, when company is not
earning profits?
A. Equity shares.
B. Preference shares.
C. Redeemable preference shares.
D. Debentures.
ANSWER: D

Preference shares are those which carry preferential right in respect of ____.
A. dividends.
B. repayment of capital.
C. both dividend and repayment of capital.
D. right to vote on all important motions in AGM.
ANSWER: C

Investment in which of the following is most risky?
A. Equity shares.
B. Preference shares.
C. Debentures.
D. Land.
ANSWER: A

A project, which may not add to the existing profits, should be financed by ___.
A. debentures.
B. preference share capital.
C. equity capital.
D. public deposits.
ANSWER: B

The management of the company is entrusted to _____
A. Promoters
B. Employees
C. Share holders
D. Board of Directors
ANSWER: D

_______ is a substitute for a companys signature.
A. Director signature
B. Manager Signature
C. Common Seal
D. Managing Director Signature
ANSWER: C

Debentures cannot be ________.
A. irredeemable.
B. participating.
C. registered.
D. bearer.
ANSWER: C

Control of management of the company mainly vests in _____.
A. equity shareholders.
B. preference shareholders.
C. debenture holders.
D. share holders.
ANSWER: A

Public deposits obtained by a company means ________.
A. deposits received from government.
B. deposits received from public at large.
C. deposits received from stockiest and agent as advance.
D. deposit received from share holders.
ANSWER: B

______ were the pioneers of the co-operative movement
A. Blackstone society
B. Rochdale Society of Equitable Pioneers
C. Common Purpose Society
D. Mutual Help Society of Pioneers
ANSWER: B

The surplus generated by co-operatives is distributed in the form of _______.
A. Cash and kind
B. Dividend and profit
C. Profit and dividend
D. Dividend and bonus
ANSWER: D

Bank overdraft is a good source of finance for ______.

A. short term.
B. medium term.
C. long term.
D. short and long term.
ANSWER: A

New issue market is an integral part of the ______.
A. stock exchange.
B. capital market.
C. stock exchange and capital market.
D. discount houses.
ANSWER: B

Which of the following are components of organized sector of stock exchange?
A. Commercial banks.
B. Investors in securities.
C. Financial institutions like IDBI.
D. Other financial institutions.
ANSWER: B

Which of the following methods is not used for raising capital through the sale of new securities?
A. By issue of prospectus.
B. Rights issue.
C. Stock exchange placing.
D. Private placing.
ANSWER: C

The most common method used for marketing of new securities is ____.

A. sale of existing shareholders.
B. stock exchange placing.
C. direct sale to public through prospectus.
D. sale to biometers.
ANSWER: C

The first stock exchange was set up in Pakistan in _______.
A. Islamabad.
B. Karachi.
C. Peshawar.
D. Lahore.
ANSWER: B

Stock Exchanges in Pakistan are under the control of ____________.
A. Federall Government.
B.Punjab Govt
C. Sindh Govt
D. Kpk Govt.
ANSWER: A

A speculator who applies for new share is ________.
A. a stag.
B. middle man.
C. Jobber.
D. lame duck.
ANSWER: A

Dealings in stock exchanges can be done by public ______.
A. directly.
B. directly or through brokers.
C. only through brokers.
D. only by corporate houses.
ANSWER: C

Contango charge is paid by ______.
A. bull speculator to bear speculator.
B. bear speculator to bull speculator.
C. lame duck to bull speculator.
D. stag to under writer.
ANSWER: A

Listing of securities in a stock exchange for the purpose of trading indicates that ______.
A. at the time of listing, the company is financially sound.
B. at the time of listing, the company is legally organized.
C. the stock exchange guarantees about the financial soundness of the company.
D. the stock exchange not guarantees about the financial position.
ANSWER: B

A firm which outsources its works requires ______.
A. more employees
B. less employees
C. skilled employees
D. semi-skilled employees
ANSWER: B

When a right to purchase securities is acquired it is know as ________.
A. call option.
B. put option.
C. double option.
D. single option.
ANSWER: B

When a right to sell a security is acquired, it is known as _______.
A. call option.
B. put option.
C. double option.
D. single option.
ANSWER: A

Stock exchange deals with the ______.
A. second hand securities.
B. issue of equity shares.
C. issue of preference shares.
D. issue of debentures.
ANSWER: A

Dividend and interest are _______.
A. synonymous terms.
B. different from each other.
C. debited to profit and loss account.
D. divisible profits.
ANSWER: C

_______ firm enjoys lowest average cost of production.
A. Representative
B. Optimum
C. Small-scale
D. Equilibrium
ANSWER: B

________ scale firms enjoy economies of scale.
A. Complex
B. Medium
C. Large
D. Small
ANSWER: C

Indexing is an important _____.
A. method of filing.
B. method of maintaining account books.
C. aid to filing.
D. method of maintaining statistical books.
ANSWER: B

The primary objective of co-operative society is____
A. Service Motive
B. Profit
C. Sales Turnover
D. Democratic Management
ANSWER: A

Industries are engaged in extracting and supplying products from earth ,air and water_____
A. Extractive Industries
B. Manufacturing Industries
C. Genetic Industries
D. Assembly Industries
ANSWER: A

Providing fair returns to investors
A. Social objectives
B. National objectives
C. Economic objectives
D. Human objectives
ANSWER: A

The term ___ is concerned with moral values
A. Ethics
B. Business
C. Profit
D. Loss
ANSWER: A

What is called to buying of shares by taking money from brokers?
A. Margin trading.
B. Curb dealing.
C. Badla.
D. Forward.
ANSWER: A

The primary aim of co-operative is to ________.
A. earn more profits.
B. serve the members.
C. raise production.
D. raise more money.
ANSWER: B

A sleeping partner is one who _______.
A. contributes capital.
B. takes active part in the business.
C. contributes members.
D. contributes materials.
ANSWER: A

Business risks can be ______.
A. avoided.
B. reduced.
C. ignored.
D. erased.
ANSWER: B

In case of dissolution of partnership, the business of the firm __________.
A. does not come to an end
B. comes to an end
C. will come to an end shortly
D. constitution of the firm remains unchanged
ANSWER: A

Earning Goodwill is___ for business ethics
A. Need
B. Uses
C. merits
D. None
ANSWER: A

The computations in a computer are performed by ________.
A. logical unit.
B. memory unit.
C. output unit.
D. control unit.
ANSWER: D

________ layout is not flexible.
A. Product
B. stationary
C. functional
D. combined
ANSWER: A

Which of the following methods of filing do you recommend for a large size undertaking?
A. Pigeon hole system.
B. Spike files.
C. Box files.
D. Vertical filing.
ANSWER: D

Planning and control are ______ functions of an office.
A. informative.
B. administrative.
C. public.
D. private.
ANSWER: B

Maintenance of records is the _________ functions of an office.
A. direct.
B. indirect.
C. basic.
D. private.
ANSWER: C

_______ is a major physical facility in an office.
A. Office accommodation.
B. Open office.
C. Closed office.
D. Public office.
ANSWER: A

_____ is an important consideration for setting up an office.
A. Office accommodation.
B. Office location.
C. Closed office.
D. Public office.
ANSWER: B

_______ is the arrangement of furniture and equipment with the available floor space.
A. Office accommodation.
B. Office location.
C. Office layout.
D. Open office.
ANSWER: C

_________ Layout based on similarity of work.
A. Group.
B. Process.
C. Open.
D. Closed.
ANSWER: A

______ highly flexible type of organization
A. Sole Trading Concern
B. Partnership
C. State Enterprises
D. Joint Stock Companies
ANSWER: A

In case of ________ layout, production is carried on in special purpose machine.
A. functional
B. product
C. stationary
D. combined
ANSWER: B

_____ Office is in the form of a hall where all the employees work.
A. Open.
B. Public.
C. Private.
D. System.
ANSWER: A

Nature of the product is the vital factor,which influences the ___ of the units
A. size
B. profit
C. sales
D. Demand
ANSWER: A

____ refers to a smaller area
A. Site
B. State
C. District
D. Country
ANSWER: A

_____ means a fraction of the capital of a company
A. Stock
B. Exchange
C. Bear
D. Stag
ANSWER: A

Which type of classification is based on the area of operation?
A. Alphabetical classification.
B. Numerical classification.
C. Subject wise classification.
D. Geographical classification.
ANSWER: D

Which type of classification is based on date and time order?
A. Alphabetical classification.
B. Numerical classification.
C. Subject wise classification.
D. Chronological classification.
ANSWER: D

In which method of filing, a spike is fixed in a wooden or a metal base?
A. Pigeon-hole method.
B. The spike file.
C. Card board filing.
D. Box filing.
ANSWER: B

_____ means a place for purchasing and selling something
A. Exchange
B. Stock
C. Stag
D. Bear
ANSWER: A

In which method of filing, all the letters and documents are passed in the book in choronological
order?
A. Box file.
B. Bound book.
C. Metal holders.
D. Pillar file.
ANSWER: B

Horizontal filing is also called as _______.
A. box filing.
B. flat filing.
C. open filing.
D. pillar filing.
ANSWER: B

Which types of files are available in the form of tray that lie flat horizontally in a cabinet?
A. Horizontal files.
B. Vertical files.
C. Visible files.
D. Metal files.
ANSWER: C

Which index system is used when small information is required about customers?
A. Vowel index.
B. Book index.
C. Strip index.
D. Card index.
ANSWER: C

____ is a machine which process text material on a page when operator strikes keys are arranged on
the key boards.
A. Typewriter.
B. Photocopier.
C. Roller copier.
D. Private.
ANSWER: A

Standard typewriter which operates through electricity is _______.
A. portable typewriter.
B. electronic typewriter.
C. mini typewriter.
D. macro typewriter.
ANSWER: B

PBX stands for ________.
A. Private Book Exchange.
B. Private Branch Exchange.
C. Private Block Exchange.
D. Private Business Exchange.
ANSWER: B

____is an instrument which reproduces sound at a distance by means of electricity.
A. Typewriter.
B. Telephone.
C. FAX.
D. Photocopier.
ANSWER: B

Which machine is used for stamping outward mail?
A. Franking machine.
B. Adding machine.
C. Mailing machine.
D. Accounting machine.
ANSWER: A

A Bull speculator is also called as _______.
A. mandiwala.
B. tejiwala.
C. tarawaniwalas.
D. vaniwalas
ANSWER: B

The person who deals in shares, debentures as independent operators are called as _____.
A. brokers
B. jobbers
C. tarawaniwalas
D. manidiwalls
ANSWER: B

Office is to a business what the mainspring is to watch by ____________.
A. G R Terry.
B. Lawrence S R Dicksee.
C. Standing ford.
D. Mill.
ANSWER: A

The purpose of an office is to furnish essential services to the ____.
A. public
B. management
C. clerks
D. creditors
ANSWER: B

The office management simply means to ______.
A. eliminate
B. withdraw
C. control
D. decide
ANSWER: C

Filing is an important aspect of ______.
A. record keeping.
B. book keeping.
C. house-keeping.
D. time keeping.
ANSWER: A

Which is the first procedure for dealing at stock exchange?
A. Placing an order.
B. Selection of broker.
C. Contract note.
D. Settlement.
ANSWER: B

Equity shares were earlier known as _____.
A. ordinary shares.
B. deferred shares.
C. redeemable shares.
D. irredeemable shares.
ANSWER: A

A ______ is an acknowledgement of a debt.
A. Share.
B. Debenture.
C. Equity share.
D. Preference share.
ANSWER: B

The debentures are given a security on assets are called as _____ debentures.
A. unsecured.
B. secured.
C. bearer.
D. registered.
ANSWER: C

The preference shares which cannot be converted into equity shares are _______ preference shares.
A. cumulative.
B. non-cumulative.
C. redeemable
D. non-convertible.
ANSWER: D

Fixed capital is also called as _____.
A. blocked capital.
B. unblocked capital.
C. working capital.
D. non-working capital.
ANSWER: A

Co-operative societies have ____ management.
A. government
B. democratic
C. autocratic
D. private
ANSWER: B

____ Debentures are to be redeemed on the expiry of a certain period.
A. Redeemable
B. Irredeemable
C. Convertible
D. Non-convertible.
ANSWER: A

The return of shares to the company is known as ____.
A. surrender of shares.
B. transmission of shares.
C. redeemable shares.
D. irredeemable shares.
ANSWER: B

The optimum point is an _____ size of a firm.
A. ideal
B. average
C. over
D. extra
ANSWER: A

A representative firm works under ____ conditions.
A. average
B. ideal
C. bad
D. good
ANSWER: A

Which type of shareholders does not have voting rights?
A. Equity shareholders.
B. Preference shareholders.
C. Deferred shareholders.
D. Ordinary shareholders.
ANSWER: B

Which shareholders are the real owners of the company?
A. Equity shareholders
B. Preference shareholders
C. Deferred shareholders
D. Convertible preference shareholders
ANSWER: A

Unsecured debentures are also called as ___.
A. mortgaged debentures.
B. simple debentures.
C. bearer debentures.
D. registered debentures.
ANSWER: B

Modular furniture ______.
A. saves costs.
B. saves time.
C. saves space.
D. saves electricity.
ANSWER: C

The first stock exchange in the world is _________.
A. Mumbai stock exchange.
B. American stock exchange.
C. London stock exchange.
D. France stock exchange.
ANSWER: C

Which method of filing is useful for those concerns where numbers of letters are small?
A. Pigeon-hole.
B. Card board filing.
C. Spike.
D. Press copy book method.
ANSWER: B

Business includes _____.
A. non-economic activities.
B. economic activities.
C. social activities.
D. production activities.
ANSWER: B

Office is a place where _____.
A. office work is done.
B. employees are housed.
C. records are kept.
D. control is situated.
ANSWER: A

Office layout aims at ______.
A. providing space to all employees.
B. optimum utilization of space.
C. providing larger open space.
D. providing space.
ANSWER: B

An open office has the benefit of ______.
A. privacy.
B. economy.
C. efficiency.
D. inflexibility.
ANSWER: B

Which method is suitable for large office?
A. Pigeon-hole system.
B. Spike filing.
C. Vertical filing.
D. Horizontal filing.
ANSWER: D

____ means a method of filing while indexing
A. Classification
B. Trays
C. Page Index
D. Visible Books
ANSWER: A

Modular furniture ______.
A. saves costs.
B. saves time.
C. saves space.
D. saves electricity.
ANSWER: C