MBA/MBA Business Environment MCQ Set 1 Sample Test,Sample questions

Question:
'Level playing field' argument of industries requires

1.MNCs to be stopped from investing in India

2.Licence to MNCs be given only in environment-friendly technologies

3.MNCs to be treated at par with the domestic industry

4.Domestic industry to be given preference over MNCs.


Question:
A protectionist measure whereby members of a regional trading bloc agree to impose an identical rate of protection on all goods imported from non-member countries.

1.Common quota arrangements

2.Non-tariff agreement

3.Technological standards control

4.VER agreements


Question:
A situation where a country exports a product at a price below its cost of production.

1.Full cost pricing

2.New protectionism

3.Dumping

4.Price skimming


Question:
A situation where any advantage given by one member of the WTO to another member must be extended to all WTO members.

1.The excessive invoicing principle

2.The intra-regional principle

3.The trade diversion principle

4.The most favoured nation principle


Question:
Among the supply side measures to control inflation is

1.Curtailing public expenditure

2.Mopping up excess liquidity through taxation

3.Credit control measures of RBI

4.Maintaining price levels through 'administered price mechanism' and 'effective PDS'


Question:
An MNC (multinational company or corporation) can be defined as a firm which:

1.Is beyond the control of any government.

2.Is one of the largest 200 firms in the world?

3.Operates directly or owns subsidiaries in more than one country

4.All of the above


Question:
Banking sector will fall under which of the following sectors?

1.Agricultural sector

2.Service sector

3.Manufacturing sector

4.Industrial sector


Question:
Black money in India

1.Raises domestic prices

2.Encourages lavish consumption

3.Causes loss of revenue to the exchequer

4.Effects all of the above


Question:
Business comprises all ______ seeking activities and enterprises that provides goods and services necessary to an economic system.

1.Profit.

2.Loss.

3.Production.

4.None of these.


Question:
Business environments is encompassed as the climate or set of condition, Economics, social (or) institutional in which business ______ are conducted.

1.operations.

2.customs.

3.rituals.

4.meetings.


Question:
Closed economy' is one in which

1.Only export takes place

2.Neither exports nor imports take place

3.Money supply is fully controlled

4.Exchange rates are under a full control of the government


Question:
Coca Cola is a good example of a ______ MNC (Multinational Corporation).

1.conglomerate

2.free-standing

3.vertically integrated

4.horizontally integrated


Question:
Competition is beneficial to the competing firms besides benefiting the ____

1.producers.

2.intermediaries.

3.finances.

4.consumers.


Question:
Developments banks are otherwise called as_______

1.LIC.

2.UTI.

3.DFI.

4.Barter.


Question:
Find the odd one out

1.Find the odd one out

2.HPCL

3.ONGC Ltd.

4.ESSAR OIL


Question:
Goals realization continuously will lead to ______

1.mission fulfillment.

2.maximum customers.

3.high revenue.

4.low revenue.


Question:
Governments policy towards industries is called as ____

1.economic policy.

2.industrial policy.

3.monetary policy.

4.work policy.


Question:
In a flexible exchange-rate system, an increase in the domestic interest rate would tend to

1.Improve the current account and worsen the capital account

2.Improve the capital account and worsen the current account.

3.Improve both the current and the capital accounts.

4.Worsen both the accounts.


Question:
In communism the ______ determines ones employer and employment.

1.state.

2.country.

3.business.

4.people.


Question:
In which production India has attained self-sufficiency?

1.Fertilizers

2.Edible oil

3.Petroleum

4.Food grains


Question:
Income tax is an item of

1.Concurrent List

2.State list

3.Union List

4.Residuary List


Question:
India has

1.Parliamentary form of government

2.Presidential form of government

3.Both parliamentary and presidential form of government

4.None of these


Question:
India is not a member of

1.G-15

2.ASEAN

3.UNO

4.ILO


Question:
Inflation, in theory occurs

1.When prices of essential commodities outstrip income

2.When money supply grows at a higher rate than GDP in real terms

3.When exchange rate of domestic currency falls in foreign exchange markets

4.When fiscal deficit exceeds balance of payments deficit.


Question:
Micro environment is also known as _____

1.Direct.

2.Indirect.

3.Same.

4.Fine.


Question:
Mixed economy means

1.Co–existence of small and large industries

2.Promoting both agriculture and industries in the economy

3.Co–existence rich and poor

4.Co–existence of public and private sectors


Question:
MNCs are in a good position to vary their strategies in different phases of the product life cycle. For instance in the ____ phase(s) they will usually _____

1.decline, maintain high prices

2.launch, move production to low-cost countries

3.growth and maturity, move production to low-cost countries

4.growth, maintain high prices


Question:
National Income estimates in India is prepared by

1.Planning Commission

2.RBI

3.Finance Ministry

4.C.S.O


Question:
Political environments refers to the influence exerted by the _____ political institutions?

1.2

2.3

3.4

4.5


Question:
Self fulfillment and immediate gratification _______________ cultural values.

1.decreases.

2.rises.

3.diminishes.

4.slow down.


Question:
Stagflation means

1.Inflation with recession

2.Recession and stagnation

3.Inflation galloping like a stag

4.Inflation and increasing output


Question:
The largest share in India's national income is from

1.Service sector

2.Agriculture sector

3.Manufacturing sector

4.Trade sector


Question:
The main objective of society and business is ____

1.economic and social objective.

2.cultural objective.

3.technological objective.

4.non objective.


Question:
The main watchdog of international trade is

1.IMF

2.World Bank

3.WTO

4.UNCTAD


Question:
The objective of case-study is

1.Remedial

2.Diagnostic

3.Educational

4.All of the above


Question:
The Plan Holiday refers to the period

1.1965-68

2.1966-69

3.1967-70

4.1978-80


Question:
The President of India is elected by

1.Parliament (i.e. both the Lok Sabha and the Rajya Sabha)

2.By an Electoral College comprising of the elected members of the Lok Sabha, the Rajya Sabha and the State Legislatures.

3.Together by the Central and the State governments

4.By the people directly


Question:
Todays business is not characterized by ________

1.diversification.

2.loss.

3.fight.

4.conflict.


Question:
VAT is imposed

1.Directly on consumer

2.On final stage of production

3.On first stage of production

4.On all stages of production up to the final sale


Question:
When MNCs reduce their tax bill in different host countries this is usually done by a technique called:

1.Technology transfer.

2.Transfer pricing.

3.Import substitution.

4.Product switching.


Question:
Which of the following can be a disadvantage to the host country of MNC investment:

1.Drives out domestic competitors

2.Sends profits abroad

3.Threatens to leave if not "helped".

4.Imports components


Question:
Which of the following countries per capita income is the highest?

1.India

2.Bangladesh

3.Thailand

4.Pakistan


Question:
Which of the following is not a fundamental right enshrined in the Indian Constitution?

1.Right to freedom of religion

2.Right to equality

3.Right to equal pay for equal work for men as well as women

4.Right to freedom of thought and expression


Question:
Which of the following is NOT likely to be a benefit that host countries will obtain from MNCs?

1.Technology transfer

2.Import substitution

3.The ability to impose high tax rates on them

4.Job creation


Question:
Which of the following is the most integrated form of regional economic arrangement?

1.Customs union

2.Economic union

3.Free trade area

4.Multilateral trading area


Question:
Which of the following items is not included in a country’s balance of payments?

1.Shipping services

2.Interest received from abroad

3.Import and export duties

4.Tourists' expenditure


Question:
Which of the following regulates the working of stock markets in India?

1.FEMA

2.RBI

3.SEBI

4.Ministry of Finance


Question:
Who is the Chairman of NDC?

1.Finance Minister

2.Prime Minister

3.Lok Sabha Speaker

4.Minister of Planning


Question:
____ are the directives to the various government and non government agencies and are fundamental in the governance of the country.

1.State policies.

2.Fundamental rights.

3.Directive principles.

4.Fundamental Rules.


Question:
____ change is a potent form for the reconfiguration of industrial boundaries.

1.Technological.

2.Economical.

3.Organizational.

4.Environmental.


Question:
______ involves a degree of purposefulness by manager as he receives information inputs.

1.Informal research.

2.Formal research.

3.Indirect viewing.

4.Conditioned Viewing.


Question:
______ plays the watch dog in order to ensure that both function in public interest and within the boundaries of constitution.

1.Legislature.

2.Executive.

3.Judiciary.

4.None of the above.


Question:
______ stresses the negative consequences of failure to study the environment

1.William F.glueck.

2.Lawrence R.jauch.

3.Jothi.

4.None of the above.


Question:
______ stresses the philosophy of individualism believing in private ownership.

1.Capitalism.

2.Socialism.

3.Marxism.

4.Developism.


Question:
____________ state can have an elected or hereditary head.

1.Democratic.

2.Autocratic.

3.Socialized.

4.None of the above.


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