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M.C.Q (1 Marks)

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MCQ 11 Mark
Preliminary Contracts are:
  • A
    binding on the company
  • B
    binding on the guarantor
  • C
    not binding on the company
  • D
    binding on the promoters
Answer
(C) not binding on the company
Explanation:

Preliminary contracts are contracts entered into by the promoters on behalf of the company before its incorporation with third parties. Such contracts are legally not binding upon the company even after it comes into existence.
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MCQ 21 Mark
Under Village and Small Industries Sector which of the following accounts for modern small industries.
  • A
    Hand looms
  • B
    Power looms
  • C
    Khadi
  • D
    Coir
Answer
(B) Power looms
Explanation:

Power looms and small scale industries come under modern small industries.
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MCQ 31 Mark
Cattle breeding farms, poultry farms, and fish hatchery come under which industry?
  • A
    Genetic
  • B
    None of there
  • C
    Manufacturing
  • D
    Extractive
Answer
(A) Genetic
Explanation:

Genetic industries are those industries that are engaged in re-production and multiplication of species of plants and animals with the sole objective of sale and earning profit.
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MCQ 41 Mark
Which of the following issues faced by small businesses is incorrect regarding the raw materials required by them for production?
  • A
    Low bargaining power due to the small quantity of purchases made by them
  • B
    Required raw materials are not available easily
  • C
    Large storage facilities to store the materials
  • D
    Compromise on the quality as they have to pay high prices to get good quality materials
Answer
(C) Large storage facilities to store the materials
Explanation:

Large storage facilities to store the materials. Since due to a shortage of funds no bulk quantity is purchased and no need to store.
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MCQ 51 Mark
Assertion (A): The principle of indemnity is not applicable to life insurance.
Reason (R): Indemnity means the promise of the insurer to put back the insured in the same position as before the mishap.
  • A
    Both A and R are true and R is the correct explanation of A.
  • B
    Both A and R are true but R is not the correct explanation of A.
  • C
    A is true but R is false.
  • D
    A is false but R is true.
Answer
(B) Both A and R are true but R is not the correct explanation of A.
Explanation:

The principle of indemnity is not applicable to life insurance because the insurer can't bring back the life of a person and there is no money equivalent to live. That's why he can't bring the insured back into the position before the mishap.
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MCQ 61 Mark
________ damages the quality of land making it unfit for agriculture or plantation.
  • A
    Noise Pollution
  • B
    Water Pollution
  • C
    Air Pollution
  • D
    Land Pollution
Answer
(D) Land Pollution
Explanation:

Land pollution is caused by the dumping of toxic wastages on land. It changes the physical, chemical, and biological characteristics of the land and deteriorates the quality of land that make it unfit for cultivation.
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MCQ 71 Mark
In which year National Small Industries Corporation(NSIC) was set up?
  • A
    1953
  • B
    1954
  • C
    1956
  • D
    1955
Answer
(D) 1955
Explanation:

National Small Industries Corporation Limited (NSIC) is a Mini Ratna PSU established by the Government of India in 1955 It falls under Ministry of Micro, Small & Medium Enterprises of India. NSIC has set up training cum incubation centre managed by professional manpower.
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MCQ 81 Mark
Which is the first stage in the formation of a company?
  • A
    Subscription of capital
  • B
    Promotion
  • C
    Registration
  • D
    Incorporation
Answer
(B) Promotion
Explanation:

Promotion Stage is the first stage in the formation of a company.
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MCQ 91 Mark
________ retail business acts as a universal supplier of a wide variety of products.
  • A
    Tele-shopping
  • B
    Multiple shop
  • C
    Departmental store
  • D
    Mail-order business.
Answer
(C) Departmental store
Explanation:

The departmental store is a retail business which acts as a universal supplier of a wide variety of products.
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MCQ 101 Mark
Which of the following utilities are provided by the wholesalers:
  • A
    Neither time nor place utility
  • B
    Only time utility
  • C
    Only place utility
  • D
    Both time and place utility
Answer
(D) Both time and place utility
Explanation:

Wholesalers provide both time and place utility
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MCQ 111 Mark
Assertion (A): The eldest member of a Hindu Undivided Family is called Karta.
Reason (R): All other members, having equal ownership right over the ancestral property are known as co-parceners.
  • A
    Both A and R are true and R is the correct explanation of A.
  • B
    Both A and R are true but R is not the correct explanation of A.
  • C
    A is true but R is false.
  • D
    A is false but R is true.
Answer
(B) Both A and R are true but R is not the correct explanation of A.
Explanation:

Karta is the eldest member of the HUF who takes all the decisions. Other members, called co-parceners have equal rights over the ancestral property.
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MCQ 121 Mark
Which of the following is false regarding equity shares?
A. Funds raised through equity shares is known as ownership capital.
B. Equity shareholders do not get a fixed dividend.
C. Equity shareholders receive what is left after all other claims on the company's income and assets have been settled.
D. Liability of equity shareholders is unlimited.
  • A
    Only B is false
  • B
    Only D is false
  • C
    Only A is false
  • D
    Only C is false
Answer
(B) Only D is false
Explanation:

The liability of equity shareholder is limited to the extent of capital contributed by them in the company.
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MCQ 131 Mark
The government of India used which parameter to explain small industries?
  • A
    Power consumed for business activities
  • B
    Volume of output
  • C
    Number of persons employed in business
  • D
    Investment in plant and machinery
Answer
(D) Investment in plant and machinery
Explanation:

The parameter used to describe small industries is investment in plant and machinery.
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MCQ 141 Mark
A government company is any company in which the paid-up capital held by the government is not less than ________.
  • A
    51 percent
  • B
    45 percent
  • C
    25 percent
  • D
    49 percent
Answer
(A) 51 percent
Explanation:

A government company means any company in which not less than 51 per cent of the paid-up capital is held by the central government.
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MCQ 151 Mark
Expand VPN:
  • A
    Virtual Public Network
  • B
    Virtual Personal Network
  • C
    Virtual Private Network
  • D
    Virtual Popular Network
Answer
(C) Virtual Private Network
Explanation:

A VPN, or Virtual Private Network, is a type of network connection that allows users to browse the web securely and anonymously.
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MCQ 161 Mark
Which of the following are small industries?
  • A
    More labour intensive and less capital intensive.
  • B
    Less labour intensive and less capital intensive.
  • C
    More labour intensive and more capital intensive.
  • D
    Less labour intensive and more capital intensive.
Answer
(A) More labour intensive and less capital intensive.
Explanation:

Small scale industries employed more labour and less capital.
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MCQ 171 Mark
Which itinerant retailers are mostly found at places where huge floating population gathers?
  • A
    Cheap jacks
  • B
    Market traders
  • C
    Hawkers and paddlers
  • D
    Street traders
Answer
(D) Street traders
Explanation:

Street traders are the small retailers who are commonly found at places where huge floating population gathers for eg., near bus stands or railway stations.
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MCQ 181 Mark
A prospectus is issued by:
  • A
    a joint enterprise
  • B
    a public enterprise
  • C
    a private company
  • D
    a public company seeking investment from the public
Answer
(D) a public company seeking investment from the public
Explanation:

A prospectus is a legal document issued by companies that are offering securities for sale.
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MCQ 191 Mark
What do you mean by entrepreneurship?
  • A
    Pursuing employment
  • B
    Setting up of one's own business
  • C
    Practicing profession
  • D
    All of these
Answer
(B) Setting up of one's own business
Explanation:

Entrepreneurship means setting up own business for profits.
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MCQ 201 Mark
Business transaction taking place within the geographical boundaries of a nation is known as a domestic or national business. It is also referred to as internal business or home trade. Manufacturing and trade beyond the boundaries of one's own country is known as international business.
Permitting another party in a foreign country to produce and sell goods under your trademarks, patents, or copyrights in lieu of some fee is another way of entering into international business. This is through ________.
  • A
    sale of goodwill
  • B
    sale of copyrights
  • C
    sale of trademark
  • D
    licensing and franchising
Answer
(D) licensing and franchising
Explanation:

Permitting another party in a foreign country to produce and sell goods under your trademarks, patents or copyrights in lieu of some fee is another way of entering into international business is through licensing and franchising.
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M.C.Q (1 Marks) - Business Studies STD 11 Commerce Questions - Vidyadip