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Q1. The term transactions in business referes to-
- A) Exchange of goods
- B) goods and services
- C) transfer of goods
- D) Goods and sale
Answer: (C) transfer of goods
Transaction referes to transfer of goods. The buyer and seller often involved in the exchange of items of value such as goods, information, services and money.
Q2. Channel of distribution is zero level in-
- A) Manufacturers → physician → consumer
- B) Manufacturer → wholesaler → physician → patient
- C) Manufacturer → retailer → patient
- D) Manufacturer → patient
Answer: (D) Manufacturer → patient
zero level channels have no intermediates.
Q3. Type of relationship of street vendor is-
- A) small scale fixed retailer
- B) large scale retailer
- C) Itinerant retailer
- D) Pertinent retailer
Answer: (C) Itinerant retailer
The trem itinerant retailer shall include person selling goods door to door as well as person selling goods from a mobile cart, trailer or similar devices.
Q4. OTC drugs are-
- A) Ethical drugs
- B) Prescription drugs
- C) Ethical and prescription drugs
- D) non-prescription drugs
Answer: (D) non-prescription drugs
OTC drugs are over the counter medicines, sold directly to a consumer wothout a prescripton.
Q5. Safety stock is used for -
- A) For protection of store from fire or thefts
- B) As an insuarance claim during emergency
- C) for emergency to meet unforeseen demands
- D) to increase the market value of product
Answer: (C) for emergency to meet unforeseen demands
safety stock is also known as buffer stock and its is used in emergency to meet extra demands.
Q6. ICICI stands for -
- A) Industrial Credit and Investment Corporation of India
- B) Inductrial and Commercial Investment Corporation of India
- C) Indian Corporation of Investments and Commercial Institution
- D) Industrial Corporation of Investment and Credit Income
Answer: (A) Industrial Credit and Investment Corporation of India
ICICI stands for Industrial Credit and Investment Corporation of India.
Q7. Which one of the following will not apear as source of fund in flow statement?
- A) Increase in share capital
- B) increase in working capital
- C) increase in secured loans
- D) funds from operation
Answer: (B) increase in working capital
Increase in working capital will not appear as source of fund in flow statement.
Q8. Inventories comprise of-
- A) Raw material
- B) General store machinery
- C) Finished products
- D) All of the above
Answer: (D) All of the above
Inventory refers to the goods and material that a business holds for the ultimate purpose of resale/repair.
Q9. A leader who permits the members of the group to do whatever they want to do whatever they want to do may be classified into-
- A) Democratic leader
- B) Laissez - Faire leader
- C) Herzberg leader
- D) social leader
Answer: (B) Laissez - Faire leader
The Laissez - Faire leadership style is where all the rights and powers to make decision is fully given to the worker.
Q10. Advertisement and salesmanship help to remove the-
- A) Hindrance of place
- B) Hindrance of persons
- C) Hindrance of finance
- D) Unawareness
Answer: (D) Unawareness
advertisement and salesmanship help to remove the unawareness.
Q11. Business is an-
- A) non-economic activity
- B) economic activity
- C) both economic and non-economic activity
- D) All of the above
Answer: (B) economic activity
Business is also known as Enterprise or a firm. It is an economic activity.
Q12. Partners who are neither entitled to take part in the management nor do they invest and get a share of profits are-
- A) silent partners
- B) Prtners by estoppel
- C) Nominal partner
- D) Limited partner
Answer: (A) silent partners
Silent partners do not involved in a business.
Q13. The oldest form of business organisation is-
- A) Joint stock company
- B) Sole Proprietorship
- C) Partnership
- D) All of the above
Answer: (B) Sole Proprietorship
Sole or single properietorship is considered as the simplest as well as the oldest form of business ownership.
Q14. The buying and selling of pharmaceuticals items for making profit is called-
- A) Trading
- B) Commerce
- C) Direct service
- D) Miscellaneous
Answer: (A) Trading
Trading is the value added function of the economic process.
Q15. Warehousing is done to save-
- A) Time
- B) Place
- C) Cost
- D) Labour requirements
Answer: (B) Place
Warehousing is done primarily to save place.
Q16. The maximum number of members in public limited company is-
- A) 20
- B) 30
- C) 50
- D) unlimited
Answer: (D) unlimited
There is no restriction for maximum number of members in a public limited company.
Q17. In a mail order business goods are sold on-
- A) cash
- B) credit
- C) both cash and credit
- D) Instalment basis
Answer: (A) cash
In a mail order business goods are sold on cash and it can be done exclusively from home.
Q18. Coding of items helps in-
- A) Handling of store items
- B) Standardization of drug
- C) Reduction of items
- D) All of the above
Answer: (A) Handling of store items
coding of items helps in handling of store items.
Q19. The layout of drug store depends upon-
- A) Pharmacist/proprietor
- B) Rules specified in shedule N
- C) Availability of space
- D) All of the above
Answer: (B) Rules specified in shedule N
Schedule N includes list of minimum equipment for the efficient running of a pharmacy.
Q20. ABC analysis is based on-
- A) Unit price material
- B) consumption value of material
- C) storage value of material
- D) All of the above
Answer: (B) consumption value of material
ABC analysis is the business term used to define inventory chategorisation technique often used in material management. It is also known as selective inventory control. It depends on consumption value of materials.
Q21. Which of these data of marketing research is more reliable?
- A) Primary data
- B) secondary data
- C) both primary and secondary data
- D) none of the above
Answer: (A) Primary data
Marketing research is the process or set of process that link the consumers, customers and end users to the marketer through information. Primary data is more reliable for marketing research.
Q22. Location which attracts the customer for shopping may be termed as-
- A) Interceptive location
- B) Geographic location
- C) Generative Location
- D) Sucipent location
Answer: (C) Generative Location
People are attracted to generative location for the purpose of shopping thus it generates business. E.g. shopping centers, out laying retail stores, full line department stores.
Q23. Bank provides finance to bussiness for-
- A) Long term
- B) Short term
- C) medium term
- D) Any of the above
Answer: (D) Any of the above
finance deals with the allocation of assets. Bank provides finance to the business for various length of time.
Q24. Fixed rate of divident is given to-
- A) Equity share holders
- B) Preference share holders
- C) Differed shares
- D) Any of the above
Answer: (B) Preference share holders
Fixed rate of divident is given to preferance share holders.
Q25. Each transaction has double effect is shown by-
- A) Dual aspect concept
- B) Realization concept
- C) cost concept
- D) Money measurement concept
Answer: (A) Dual aspect concept
dual aspect concept also known as duality principle, it is a fundamental convention of accounting.
Q26. What is the role of shareholders in a company?
- A) Owners
- B) Creditors
- C) Managers
- D) Any of the above
Answer: (A) Owners
shareholders are the owners of the company. They have different percentage of ownership (share).
Q27. Plant and machinery will appear on-
- A) Debit side of balance sheet
- B) Debit side of profit and loss account
- C) Credit side of balance sheet
- D) Credit side of profit and loss account
Answer: (A) Debit side of balance sheet
In a balance sheet, plant and machinery are placed on the debit side.
Q28. Buying of items from foreign country is called-
- A) Export
- B) Import
- C) Enteport
- D) All of the above
Answer: (B) Import
Import is buying of items from foreign country.
Q29. Trial balance helps in preparing-
- A) Trading account
- B) profit and loss account
- C) Balance sheet
- D) All of the above
Answer: (D) All of the above
Trial balance checks the sum of debits against the sum of credits.
Q30. A chemist shop deals only in drugs so it is an example of-
- A) General store
- B) Single line store
- C) Street stall
- D) none of the above
Answer: (B) Single line store
Single line store is also known as speciality store.
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