BGS MCQ with Answers in Bold

1. --------is the process of analyzing the environment for the identification of factors which have
impact on or have implication for the business.
(a)Forecasting (b) assessment (c ) scanning (d) None of these
2. The low income economies are sometimes referred to as ----------
(a) First world (b) Second world (c ) Third world (d) None of these
3. This is the Govt.’s strategy in respect of public expenditure and revenue which have a significant
Impact on business.
(a) Monetary policy (b) Fiscal Policy (c ) Trade policy (d) Foreign exchange policy
4. In which year the constitution of India was amended to add, among other things, that India should
be a socialist state?
(a) 1954 (b) 1976 (c ) 1980 (d) 1985
5. The method used for transferring complex technology is -----------
(a) Trunkey contracts (b) Licensing agreements (c )Training of experts (d) None of these
6. ---------is concerned with holding the balance between economic and social goals and between
Individual and communal goals.
(a) Corporate Management (b) Corporate governance (c ) Business ethics (d) None
7. In which year the Adrian Cadbury Committee on corporate governance was appointed?
(a) 1991 (b) 1996 (c ) 1980 (d) 2000
8. CII stands for
(a) Confederation of Indian Industries (b) Condition of Indian Industries
(c ) Classes of Indian Industries (d) Civilians of Indian Industries
9. According to Birla Committee on Corporate governance, the non executive directors should
Comprise at least -------- per cent of the Board, if one of them is the chairman
(a)30% (b) 20 (c ) 10 (d) 70
10. According to Birla Committee, the non executive directors should Comprise at least -------- per
cent of the Board, if the Chairman and managing director is the same person.
(a) 50% (b) 20% (c ) 10 (d) 20
11. --------- is concerned with the withdrawal of State from an industry or sector, partially or fully
(a) Liberalization (b) Modernisation (c ) Privatization (d) Globalisation.
12. In which year Govt. of India appointed the Rangarajan Committee on disinvestment in PSEs
(a) 1990, (b) 1991 (c ) 1993 (d) 1996
13. The Govt. of India constituted a Public sector Disinvestment commission on------
(a) 15 March 1991 (b) 23 Aug 1993 (c ) 23 Sept.1993 (d) 06 May 1994
14. Which Act was replaced with the introduction of Competition Act 2002?
(a) FERA (b ) MRTP (c) POTA (d) None of these
15. Competition Act was enacted in the year-------
(a) June 2002 (b) Dec. 2002 (c ) January 1999 (d) None of these
16. Which committee recommended the enactment of Competition Act
(a) High level Committee on competition policy and Law
(b) A Committee on Law and Order
(c ) A Central Committee for Research and Policy
(d) None of these.
17. ----------is the rate at which the central bank discounts or rediscounts the eligible bills.
(a) Credit rate (b) Bank rate (c ) Bill rate (d) Deposit rate
18. Who is concerned with the auditing of the receipts and expenditure of the State and Central Govt.
(a) Accountant General (b) Comptroller and Auditor General
( C) Reserve Bank of India (d) None of the above.
19. Which policy is concerned with raising revenue through taxation and deciding on the level and
Pattern of expenditure?
(a) Monetary policy (b) fiscal Policy (c ) Cash policy (d) None of these
20. Who is responsible for presenting the Union Budget before the Parliament?
(a) Prime Minister (b) Finance Minister (c) RBI Governor (d) None of the se
21. ---------is concerned with all current expenditure of the Govt. on administration
(a) Revenue expenditure (b) Capital expenditure (c) Total Expenditure (d) None
22. The Planning commission was set up in India in --------
(a) 1950 (b) 1951 (c) 1947 (d) 1952
23. Who is the President of National Development Council ?
(a) Finance Minister (b) Prime Minister (c) Monteng sing Aluvalia (d) None
24. The intervening period between third and forth Five year plans is regarded as ---
(a) Plan period (b) Plan holidays (c ) Plan days (c) None of these
25. Which Govt. introduced the concept of ‘ Rolling Plan’
(a) Manmohan govt. (b) Vajpayee (c) Janatha Govt. (d) Rao Govt.
26. From which five year plan ‘growth with social justice’ has received added emphasis?
(a) 5th (b) 4th (c ) 3rd (d) 6th
27. Which sector got priority in the 1st five year plan?
(a) Agriculture (b) Industrial (c) Infrastructure (d) Communication
28. GAAT was born in the year--------------
(a) 1948 (b)1945 (c) 1947 (d) 1950
29. What was the predecessor of WTO?
(a) GAAT (b) IMF (c) ADB (d) None of the above
30. In which year WTO was formulated ?
(a) 1995 (b) 1948 (c )1991 (d) 1988
31. FEMA was passed in the year ---
(a) 1999 (b) 1989 (c) 2000 (d) 1997
32. ----------refers to regulation of credit for specific purpose or branches of economic activity?
(a) Credit control (b) Selective Control (c) Bank control (d) None of these
33. ---------is the difference between the market value of security and the amount lent by the Bank?
(a) Loan amount (b) Margin of safety (c ) Margin (d) None of these
34. The quota system was first introduced in the year?
(a) 1955 (b) 1960 (c) 1949 (d) 1952
35. PLR stands for
(a) Prime ministers Land Recovery (b) Prime Lending Rate (c) Price Leverage Rate
(d) None of these
36. The policy of govt. related to Export and Import is
(a) IMEX policy (b) EXIM policy (c) Export policy (d) None of these]
37. SEZ stands for ----
(a) Special Economic Zone (b) Special Export Zone (c) Socially Backward Zone (d) None
38. ------- is an Act to control and regulate the concentration of economic power to the commondetriment?
(a) IRDA Act (b) MRTP (c) ILO Act (d) FERA
39. Consumer Protection Act was came in to force-------
(a) 1985 (b) 1986 (c) 1999 (d) 1989
40. --------consist of economic conditions ,economic policies, industrial policies and economic system
(a) Business environment (b) Economic Environment (c) Natural Environment (d) None
41. Indian Economy is an example of ------
(a) Capitalist economy (b) Closed economy (c) Mixed Economy (d) None of these
42. ------- economy is not planned, controlled or regulated by the Govt.
(a)Closed Economy (b) Mixed Economy (c) Free market economy (d) None of these
43. --------is the main aim of economic planning in India?
(a)Economic Growth (b) Industrial expansion (c) Growth with social justice (d) N0ne
44. ------is the apex body of the economic planning in India?
(a) Planning Commission (b) Parliament (c) Supreme Court (d) None of these
45. TRYSEM was implemented during
(a) 2nd plan period (b) 5th plan period (c) 4th plan period (d) 7th Plan period
46. In the PEST frame work for environmental analysis, what does the letter E stands for
(a) Ethical (b) Economic (c) Educational (d) Ecological
47. Analysing process of change in the Business environment involves conceptualizing it as
(a) Diverse (b) Complex (c) Dynamic (d) Static
48. Who was forced to step-down as Chief Executive after describing one of his Company’s products
As ‘total crap’?
(a) Gerald ratner (b) Bill Gates (c) Alan sugar (d) None of these
49. In which year was the National Minimum wage introduced in the UK
(a) 1995 (b) 1999 (c) 1998 (d) 2000
50. The concept of a firms ‘license to operate’ refers to
(a) A legal requirement for company registration
(b) An agreement recognizing trade unions
© The need for a firm to retain its legitimacy in the eyes of the public
(d) The qualifications needed by company directors
51. What does the term ‘third sector’ refers to
(a) The voluntary sector (b) The service sector
(c ) The high technology industries (d) None of these
52. A multinational Corporation is defined as
(a) Having a multi ethnic work force
(b) Having suppliers in more than one country.
© Carrying out production in more than one country.
(d) None of the above
53. Which type of organizational structure is characterized by department s dealing with specialized task
(a) Matrix (b) Divisional (c) Hierarchical (d) Functional
54. The demand curve for a product will shift outwards to the right when
(a) The price of a substitute good rise (b) Consumer income fall
(c ) Consumer expect the price of the good fall in the future.
(d) The price of the product itself fall
55. If the demand for good is relatively price inelastic and its price rises, the revenue will
(a) fall (b) remain constant (c) rise (d) Depends on how supply responds
56. Which of the following option is not an example of ‘market failure’?
(a) Failure to produce merit goods (b) Failure to produce public goods
(c ) Failure of a firm to maximize its profits(d) Failure to account externalities
57. Which of the following is an example of a Primary form of Business activity?
(a) Hair dressing (b) Automobile production (c ) Banking (d) Forestry
58. The price of a goods will tend to rise if
(a) The current price is above the equilibrium
(b) The current price is below the equilibrium
(c ) The quantity demanded is less than the quantity supplied
(d) There is a reduction in the cost of a substitute commodity
59. Productivity is measured by
(a) The growth on Output of a firm (b) The growth on Profit of a firm
(c ) Total output/Total input (d) Total amount of investments in capital goods
60. The transfer of asset from public sector to the Private sector is referred to as
(a) Privatisation (b) De regulation (c ) Nationalisation (d) Individualisation
61. The Branch of Govt. that is responsible for implementing or carrying out law and policy is referred
(a) The legislature (b) The executive (c ) The Judiciary (d) The bureaucracy
62. A Sub culture may be defined as
(a) A Criminal culture (b) An inferior culture
(c ) A culture that is shared by a particular group with in the society
(d) A cultural practice that is submerged or hidden
63. The main objectives of macroeconomic policy is
(a) A high and stable level of employment (b) A low and stable rate of inflation
(c ) A stable and satisfactory rate of economic growth (d) All of the above
64. Who was first argued that the purpose of business was to make profit?
(a) Milton fried man (b) Margara thcher (c ) Elaine stembnerg (d) John Crane
65. How many headings are there in AVIVA’s Group Corporate social responsibility policy?
(a) 4 (b ) 8 (c ) 24 (d) 6
66. CSR is
(a)The same as business ethics. (b) A theory about ethics
© The integration of social and environmental concern in the daily business of the firm
(d) The title of a Govt. Committee
67. What was the focus of the Nike case?
(a) The quality of the sports foot wear (b)The control of branding
(c ) Monitoring the conditions and rights of those involved in the supply chain
(d) The ethics of sponsor ship
68. The globally responsible leadership Initiative (GRLI) was partly founded by
(a) Enron (b) The UN global compact (c) The WHO (d) Robert Maxwell
69. What is triple bottom line audit?
(a) A social, economic and environmental audit
(b) An audit of the three major financial project of a business.
(c ) An audit by the Physical Health of Employees
(d) An audit of all the Sporting resources of the enterprise.
70. What does the PPP or P3 initiative refer to?
(a) Public policy papers (b) Public Private Partnership
(c ) Private Procurement Production (d) Personal Production Proposal
71. What does the PFI initiative refer to ?
(a)Private Finance Initiative (b) Private Fiscal Initiative
(c ) Public Financial Initiative (d ) Private Foundation Investment
72. The term ‘late industrialization’ refers to
(a) The need to delay industrialization because of its threats to the environment
(b) The problem faced by many developing countries as they seek to catch up to the
Levels of development of richer countries
(c ) The belief that it is too late for many countries to industrialise.
(d ) That we are how entering a post industrialized world.
73. Which of the following economists is regarded as having developed the theory of comparative
Advantage?
(a) Adam Smith (b) David Rechardo (c ) Joseph stiglits (d) Amartya Sen
74 Globalisation refers to
(a) A more integrated and interdependent world(b) Lower income world wide
(c ) Less foreign trade and investment (d) Global warming
75. Which one of the following is a pull factor in emigration?
(a) Political oppression (b) Job Opportunities
(c ) Food shortage (d) War
76. Which of the following do not facilitate globalization
(a) Improvements in communication (b) Barriers to trade and investment
(c ) immigration control (d) Removal of control on movements of capital across borders.
77. Which of the following is not a deriver of globalization?
(a) The fragmentation of consumer taste between countries
(b) The competitive process (c ) The need to gain economies of scale (d) None of these
78. Globalisation is beneficial for firms because
(a) It protects them against foreign competition
(b) It cushions them from the effects of events in other countries.
(c ) It opens up new market opportunities
(d) It increases the risk and uncertainty of operating in globalizing world economy.
79. Globalisatiion can create problem for business because
(a)It can result in more competition
(b) It increases vulnerability to political risk and uncertainty when operating abroad
(c ) It means that they can increase price
(d ) All the options are correct.
80. An environment which is increasingly complex and turbulent displays
(a) More orderly competition (b)More predictable demand
(c) A reduced risk of product obsolescence. (d) Increased speed of innovation
81. Which of the following is not a business opportunity generated by globalization?
(a) Access to low cost labour (b) Cheap international transport
(c ) Currency crisis (d) Less stringent regulations of the Business Environment
82. Exploring the strategic implications of global warming is best described as -------
(a) An external environment analysis (b) Scenario planning
(c ) Futures forecasting (d ) A PESTLE analysis
83. PESTLE is an analytical tool which helps to under take?
(a) An internal analysis (b ) An external analysis
(c )A competitor analysis (d)A strategic analysis
84. An analysis of the external environment enables a firm to identify
(a) Strengths and opportunities (b) Strength and weakness
(c ) Weakness and threats (d) Opportunities and threats
85. To determine a country’s attractiveness to business require
(a) A detailed analysis of elements in the macro environment
(b) An assessment of the political and financial risks of doing business in that country
(c ) An analysis of the competitive environment
(d) All of the above
86. Secondary screening involves
(a) An external environmental analysis (b) Risk analysis
(c ) An external environment analysis and risk analysis
(d) A competitor analysis
87. The home locations of most of the World’s large Multi National Companies is
(a) North America and Europe (b) North America and Asia
(c ) Europe and South America (d) Europe and Asia
88. Multinational Corporations
(a) Always produce primary goods (b) Always produce manufactured goods
(c ) Always produce service (d) May produce primary or manufactured goods
89. ---------refers to highly educated and skilled people who migrate from poor developing countries
To wealthy industrial countries .
(a)Direct investment (b) Portfolio Investment (c ) Brain drain (d) Transfer Pricing
90.An attribute that doesn’t contribute to Porters Diamond model is
(a) Government (b) Organised Trade Unions (c ) Demand conditions (d) Factor conditions
91. Identify a factor that doesn’t play an important role in attracting FDI
(a)Laws, rules and regulations (b) Language
(c ) Cost of resources (d) Administrative Procedure and efficiency
92. The Country that attract the largest FDI inflow is –
(a) India (b) USA (c ) China (d) Brazil
93. General Electric follows ------ as its international operational strategy?
(a)Global (b) International (c ) Transnational (d ) None of these
94. Which bank is called the Bank of Issue
(a) RBI (b) SBI (c ) IDBI (d) ICICI
95. Theoretically, what is the most significant organ of WTO
(a) The council for Trade in Goods
(b) The ministerial conference
(c ) The General Council (d) The committee on Trade and Development
96. Where is provision made with regard to the WTO’s institutional arrangements?
(a) In the GAAT (b) In the WTO agreement
(c ) In the UN Charter (d) None of these
97. What is the role of IMF
(a) It control the budgets of National Govts
(b) It acts as a forum for international economics
(c ) It observes world exchange rated, balance of payments and multilateral payments
(d) None of these
98.The Sale of Sub standard and hazardous goods under defined conditions constitute
(a) Restrictive Trade Practice (b) Unfair Trade Practice
(c) MRTP (d) None of these
99.. The Bretton wood twins consist s of IMF and ---------
(a) World Bank (b ) ADB (c ) IDBI (d) ICICI
100.IMF commenced its operation in the year
(a) 1948 (b) 1950 (c ) 1947 (d) 1952
101. The number of institutions included in the world Bank Group is
(a) 5 (b) 4 (c )9 (d) 7
102. If a member has less currency with IMF than its quota, the difference is called ------
(a) Reserve (b ) Margin (c ) Reserve tranche (d ) None of these
103. As per 2006 estimates, India’s debt from IMF stands-------
(a) 150 billion dollars (b) 190 Billion dollars (c ) 250 Billion dollars (d) 138 Billion dollars
104. When India became the member of IMF, the initial par value of Indian rupee was fixed at ----- grams
of
Gold.
(a) 0.26801. (b) 0.364 (c ) 0.359 (d)0.865
105.----- was the International reserve created by IMF to solve the problem of international liquidity
(a) SDR (b ) APR (c ) SDC (d) None of these
106. How many currencies are linked with SDR?
(a) 9 (b) 7 (c ) 6 (d) 5
107. ---------refers to the external forces which have a beating on the functioning of the business.
(a) Environment (b) Culture (c ) System (d) None of these
108. These are forces in the company’s immediate environment that affect the performance of the Co.
(a) Macro environment (b) Micro environment
(c )Technological environment (d) Natural environment
109. In this type of economic system, the Govt. intervention will be absent.
(a) Free enterprise economy, (b) Socialist economy (d) Mixed economy (d) None
110.--------is an economic system where the means of production are owned and managed by the State
(a) Capitalism (b) Socialism (c ) Mixed Economy (d) Common economy
111. India follows --------economic system
(a) Social (b ) Capitalist (c ) Mixed (d) None of these.
112. In ------economic system, there exists both private and public sector?
(a) (a) Social (b ) Capitalist (c ) Mixed (d) None of these.
113. Who was the first chairman of the Planning Commission of India?
(a) Jawaharlal Nehru (b) Rajendraprsad (c ) Gandhiji (d)Ambedkar
114. Who is concerned with the approval of the planning decision formulated by the Planning Commision
(a) NDC (b) (b) CDC (c ) Planning Board (d) None of these
115.When was the first industrial policy of India announced?
(a)April 6 1948 (b) April 9 1948 (c) March 6 1948 (d) April 1947
116.Who announced the Industrial policy of India for the first time?
(a) Gandhiji (b) Nehru (c ) Ambedkar (d) Subhash Chandra bose.
117. The industrial policy resolution of 1948 aimed at acceleration of ----- of the Country.
(a) Agricultural development (b) Indl development (c) Infrastructural development
(d) None of these
118. The Industrial policy of 1948 divided the Indian industries in to -------------- catagories.
(a) 5 (b) 4 (c )8 (d) 6
119. Which Industrial Policy Resolution(IPR) is known as Economic Constitution of India?
(a) IPR 1964 (b)IPR 1976 (c ) IPR 1956 (d) IPR 1948
120. Which govt. announced the IP of 1980?
(a) Congress (b) Janatha (c ) BJP (d) UPA
121. Which IP abolished the Industrial licensing?
(a) IPR 1956 (b) IPR 1964 (c ) IP 1991 (d) None of these
122. The agricultural income is fully exempted from Income tax—Is it true?
(a) False (b) Not Applicable (c ) True (d) Partially taxable
123. There are policies which are made to govern the import and export trade
(a) Export policies (b) Import Policies (c ) EXIM policies (d) None of these
124. The Govt. introduced the import liberalization policy in the year-----
(a) 1977- 78 (b) 1991-92 (c) 1988-89 (d) 2001-02
125. When was the EXIM policy announced for the first time?
(a) 1947 (b) 1985 (c ) 1991 (d) 1999
126. EPZ stands for -----
(a) Export Processing Zone (b) Export Promotion Zone (c) External Promotion zone
(d) None of these.
127. ---------concerned with the obligation and duties of business to the society?
(a) Social responsibility (b)Status (c ) Authority (d) None of these
128.Who conducted the social audit in India for the first time?
(a) JRD Tata (b) Birla (c ) Reliance group (d)State Bank
129. -----------is a social movement seeking to augment the rights and powers of buyers?
(a) Consumer movement (b ) Consumerism (c ) Flows (d) None of these
130. In these types of NRI Accounts, the Principal as well as interest in non patriable ?
(a) NRNR A/c (b) NRO (c ) NRSR A/C (d) None of these
131. Which type of securities are bought and sold in open market operation?
(a) Pvt. Securities (b) Govt. securities (c ) Initial securities (d) None of these
132. ------ is the difference between market value of a security and the amount lent by banks against
these
Securities?
(a) Margin o f safety (b ) Margin (c ) Loan amount (d) None of these.
133. The RB I introduced the credit authorization scheme in --------
(a) Nov 1965 (b ) Dec. 1968 (c ) 1948 (d) 1991
134. The term budget is derived from the French word --------
(a) Boget (b) Bougette (c ) Bogeget (d) None of these
135. The Union budget of the coming financial year presented to the parliament on --------
(a) Last working day of February (b ) First working day of February
(c ) March first week (d) Last working day of March
136. Who is concerned with the presentation of Union budget?
(a) Prime Minister (b) Finance Minister (c ) RBI Governor (d) Home Minister
137. Which Bill in concerned with the tax proposals of the Budget?
(a) Cash Bill (b) Finance Bill (c ) State Bill (d) None of these
138.The Union Budget is divided in to ---------parts
(a) 2 (b) 3 (c ) 8 (d) 5
139. Which item of the budget is concerned with the current expenditure of Govt. on administration ?
(a)Capital expenditure (b) Revenue expenditure (c ) Deferred expenditure (d) None
140. --------deals with the receipts from taxes, interest, dividend and profits
(a) Revenue receipts (b) Capital receipts (c ) general receipts (d) Deferred receipts
141.Introduction to business wrote by --------
(a) Reinck (b) Schoeil (c ) Coper (d) Both A& B
142. A good environment is good business. Who said this?
(a) Dr. MS Swaminathan (b) Dr. SS Rao (c ) Dr, M. Sing (d) Dr. R. Rajan
143. Which one of the following cannot be included under the nature of relationship between business
And Environment ?
(a) Inter dependence (b) Dynamic (c ) Social change (D) Fixed
144. External Environment of Business is ------
(a) Physical (b) Demographical (c ) Economic (d) All of these
145. Physical Environment includes-----
(a) Natural Resources (b) Climate (c ) Water (d) All of these
146. Natural Environment Includes-------------
(a) Water (b) Earth (c ) Air (d ) All of these
147. The Economic environment of a business includes?
(a) Economic system (b) Economic policies (c ) Economic conditions (d) All of these
148. Which of the following is not an essential feature of social environment?
(a) Competitiveness (b)Respect for the individual (c )Better quality of life(d) Bailment
149.The New economic policy of India is precious gift of
(a) Dr. VS Rao (b) Dr. Manmohan singh (c ) Mr. Jaswant Sing (d) Venkita Roy
150. Administrative contol contains ---
(a) Industrial Policy (b) Economic planning (c ) GNP (d) GDP