CS Foundation Emerging Trends in Business MCQ Questions

Question 1.

Good marketing is no accident, but a result of careful planning and……..

(a) Execution
(b) Selling
(c) Strategies
(d) Tactics.
Answer:
(a) Execution

Question 2.

Compared to licensing, franchising is a more advantageous entry mode because:

(a) It generates economies of scale in marketing to international customers
(b) It is low-risk and low-cost
(c) It offers greater control
(d) All the above
Answer:
(d) All the above

Question 3.

…….. is the cornerstone of international franchising.

(a) Focus
(b) Concentration
(c) Standardisation
(d) Adaptation
Answer:
(c) Standardisation

Question 4.

If you are purchasing a franchise, one of the reason could be:

(a) It is always much cheaper than setting up a new business venture
(b) There is complete control over important decisions
(c) The business can use its own name in advertisements
(d) The risks of failure are lower as it is buying a well known business idea.
Answer:
(a) It is always much cheaper than setting up a new business venture

Question 5.

Which of the following is not the feature of B2B e-commerce?

(a) Pricing is based on quantities and often negotiable
(b) Manufacturers, retailers involved in this type of transaction
(c) More rapid response to customer enquiries
(d) Mostly commodities goods.
Answer:
(c) More rapid response to customer enquiries

Question 6.

Where buyers name their own prices, such type of ecommerce is called

(a) B2C.
(b) B2B.
(c) C2B.
(d) None of the above.
Answer:
(d) None of the above.

Question 7.

The classification of E-commerce domain that involves business activity initiated by the consumer and targeted to businesses is known as:

(a) Business to Consumer (B2C)
(b) Consumer to Business (C2B)
(c) Consumer to Consumer (C2C)
(d) Business to Business (B2B)
Answer:
(b) Consumer to Business (C2B)

Question 8.

……. is a B2B type of trading network that links a particular seller with its own trading partners.

(a) Search driven network
(b) Private trading network
(c) Virtual network
(d) Catalog driven network
Answer:
(b) Private trading network

Question 9.

A Website that is designed not to sell the company’s products directly rather to build customer goodwill is known as a…..website.

(a) Customer service
(b) Marketing
(c) Private Trading
(d) Sales Marketing
Answer:
(a) Customer service

Question 10.

Website that engages consumers in interactions that takes them closer to a direct purchase is known as a website.

(a) Customer service
(b) Marketing
(c) Private trading
(d) Sales marketing
Answer:
(c) Private trading

Question 11.

While preparing a website, designers should take care that the site enables user-to-user communication. This design feature is known as………..

(a) Context
(b) Connection
(c) Community
(d) Commerce
Answer:
(b) Connection

Question 12.

Out of these which statement is true?

(a) Both private and public companies need one director
(b) Private companies need two directors but ” public companies need 3
(c) Private companies need one director but public companies need two
(d) Both private and public companies need two directors
Answer:
(a) Both private and public companies need one director

Question 13.

What relationship best suits between these two concepts?

(a) E- business is a principle of e-commerce
(b) E-commerce is a subset of e-business
(c) E- business and e- commerce are both equal
(d) All of the above
Answer:
(a) E- business is a principle of e-commerce

Question 14.

Outsourcing is used by an organization for the interest of:

(a) Redirecting or conserving energy directed at the competencies of a particular business
(b) Making more efficient use of worldwide labor, capital, technology and resources
(c) Lowering firm costs or to make more efficient use of worldwide labor, capital, technology and resources
(d) Any of the above
Answer:
(d) Any of the above

Question 15.

Which of the following is not effective in preventing a potential competition from entering the market?

(a) High capital costs
(b) Differentiation.
(c) Retaliation
(d) Low switching costs are buyers
Answer:
(a) High capital costs

Question 16.

A company’s marketing environment includes various……….. that are made up of groups that have an actual or potential interest in, or impact on, an organisation’s ability to achieve its objectives.

(a) Publics
(b) Intermediaries
(c) Teams
(d) Audiences
Answer:
(a) Publics

Question 17.

The term loyalty is closely associated with

(a) Licensing
(b) Direct exporting
(c) Contract manufacturing
(d) Piggybacking
Answer:
(a) Licensing

Question 18.

Franchising is a……….method

(a) Workforce-oriented
(b) Market-oriented
(c) Production-oriented
(d) Management-oriented
Answer:
(b) Market-oriented

Question 19.

The advantage that is not available with BPO is……..

(a) Flexible
(b) Focus
(c) Speed
(d) Communication
Answer:
(d) Communication

Question 20.

Invariably the benefits of BPO are.

(a) Taking case of core business.
(b) It is cost effective
(c) A double edged sword
(d) A and B
Answer:
(d) A and B

Question 21.

Franchising is a part of

(a) Privatization
(b) Liberalization
(c) Globalization
(d) None of the above.
Answer:
(a) Privatization

Question 22.

The characteristic word “reach” when achieved by e-business it refers to:

(a) Different number of customers can interact with categories of products.
(b) The effectiveness of relationship.
(c) Non-standardized goods sold here.
(d) None of the above.
Answer:
(a) Different number of customers can interact with categories of products.

Question 23.

………… is the term that involves the use of electronic platforms such as intranets, extranets and the internet to conduct a company’s business

(a) E-commerce
(b) Commerce
(c) Both a and b
(d) None of the above
Answer:
(a) E-commerce

Question 24.

Advantages to a franchisor in a franchise are

(a) Capital injection
(b) Market penetration
(c) Risk sharing
(d) All of the above
Answer:
(d) All of the above

Question 25.

E- business is:

(a) The use of electronic communications for all business processes.
(b) An organization using electronic media to purchase from its suppliers.
(c) An organization using electronic media to sell direct to its customers
(d) Any electronically mediated communication between- an organization and its stakeholders.
Answer:
(d) Any electronically mediated communication between- an organization and its stakeholders.

Question 26.

Select the benefits an organization can receive from outsourcing

(a) Increase technical abilities
(b) Financial savings
(c) Market agility
(d) All of the above
Answer:
(a) Increase technical abilities

Question 27.

The most uncommon reason why companies outsource is

(a) Better manage the costs of internal processes
(b) More market exposure
(c) Tap outside sources of expertise
(d) Reduce headcount and related expenses
Answer:
(d) Reduce headcount and related expenses

Question 28.

Which of the following are the influential drivers affecting the growth of outsourcing markets?

(a) Rapid growth
(b) Core competencies
(c) Industry changes
(d) All of the above
Answer:
(d) All of the above

Question 29.

Which of the following is an outsourcing risk?

(a) Gain of control
(b) Flexibility
(c) Geopolitical certainty
(d) None of the above
Answer:
(c) Geopolitical certainty

Question 30.

What is the outsourcing option that includes the closest location and direct customer control?

(a) Offshore outsourcing
(b) Nearshore outsourcing
(c) Onshore outsourcing
(d) None of the above
Answer:
(d) None of the above

Question 31.

Which of the following is a challenge of outsourcing?

(a) Contract length
(b) Competitive edge
(c) Confidentiality
(d) All of the above
Answer:
(d) All of the above

Question 32.

What categories should an organization evaluate when making an outsourcing decision?

(a) Salary cost .
(b) Geopolitical risk
(c) English proficiency
(d) All of the above
Answer:
(c) English proficiency

Question 33.

………. is the corner stone of international franchising

(a) Concentration.
(b) Adaptation
(c) Standardization
(d) Focus
Answer:
(c) Standardization

Question 34.

One Advantage of outsourcing the services is

(a) It is economical
(b)It helps in diversifying the business
(c) The time zone problem is solved
(d) All of the above.
Answer:
(a) It is economical

Question 35.

Compared to licensing, franchising is a more advantageous mode of entry because

(a) It offers greater control
(b) It generates economies of scale in marketing to international customers.
(c) It is low-risk and low-cost
(d) All the above.
Answer:
(d) All the above.

Question 36.

In line with a franchising agreement, a franchiseed.may use:

(a) Geographic region exclusively
(b) Patents, designs, trade secrets and business know-how
(c) Trade marks copyright and trade secrets
(d) All of the above.
Answer:
(d) All of the above.

Question 37.

Near shore outsourcing is.

(a) Contracts done by company with other companies within a company’s own country.
(b) Contracts done by a company with neighbouring countries companies
(c) Contracts with companies excluding neighbouring countries.
(d) None of the above.
Answer:
(b) Contracts done by a company with neighbouring countries companies

Question 38.

The contracting of a specific business task, such as payroll to a third party service provider is

(a) BPO
(b) Insourcing
(c) Outsourcing
(d) Offshore-outsourcing
Answer:
(a) BPO

Question 39.

Advantages to the franchisee in a franchise are

(a) Marketing
(b) Economies of scale
(c) Instant goodwill
(d) All of the above
Answer:
(d) All of the above
Question 40.

Network marketing includes how many distribution channels?

(a) 0
(b) 1
(c) 2
(d) 3
Answer:
(a) 0

Hint:
Network Marketing is a business model in which a distributor network is needed to build the business. It is also known as multilevel marketing. In this kind of marketing the distribution channel is at 0 level as the firm sells goods directly to distributors.

Question 41.

Network marketing involves:

(a) Direct Marketing
(b) Indirect Marketing
(c) Both (a) and (b)
(d) None of the above. .
Answer:
(a) Direct Marketing

Hint:
Network marketing is Direct selling method in which independent-agents serve as distributors of goods and services

Question 42.

Which one of the following is a category in which Business Process Outsourcing can be categorised?

(a) Back office outsourcing
(b) Front office outsourcing
(c) Offshore outsourcing
(d) All of above
Answer:
(d) All of above

Hint:
In this, third party agencies perform your back office as well as front office data entry tasks effectively in quick turnaround times. In the 90s we used outsourcing to refer to big business sending jobs offshore.

Question 43.

Which among the following is one of the largest ‘Job providers’ in India?

(a) Network marketing
(b) Business process outsourcing
(c) Medical tourism
(d) Film industry.
Answer:
(b) Business process outsourcing

Question 44.

Which one of the following is a great concern for E-COMMERCE?

(a) Speed
(b) Quality
(c) Security risk
(d) Maintenance cost.
Answer:
(c) Security risk

Hint:
Disadvantages of E- Commerce Increased competition Security
High start up cost Slow adoption
Customer Relations Problems No human interaction Returning goods Fraud

Question 45.

The online purchase of a book from f1ipkart.com is an example of-

(a) B2B e-commerce
(b) B2C e-commerce
(c) C2B e-commerce
(d) C2C e-commerce
Answer:
(b) B2C e-commerce

Hint:
B2C (Business-to-Consumer)
The two or more entities that interact in this type of transactions involve a business and a consumer. The businesses offer a set of merchandise at given prices, discounts and shipping and delivery options.

Question 46.

For a car manufacturing firm, which of the following business process is most suitable for outsourcing?

(a) Production Management
(b) Quality Assurance
(c) Customer Relationship
(d) None of the above.
Answer:
(c) Customer Relationship

Hint:
Outsourcing simply refers to subcontracting an internal business function to an outside provider. Business process outsourcing is a great option for organizations looking to streamline business processes and increase productivity and profit.
Outsourcing gives you access to experts in fields related to your business. Marketing gurus, certified public accountants, certified human resource professionals and customer service coordinators are ready and waiting to help you grow your business. Thus for a car manufacturing outsourcing customer relations is most suitable.

Question 47.

In which of the following, personal digital assistants (PDAs) are used for buying and selling of goods and services?

(a) E-commerce
(b) M-commerce
(c) V-commerce
(d) All of the above.
Answer:
(b) M-commerce

Hint:
M-commerce (mobile commerce) is the buying and selling of goods and services through wireless handheld devices such as cellular telephone and personal digital assistants (PDAs).

Question 48.

What is e-commerce?

(a) It refers to the use of computer network
(b) It refers to the idea of extracting business intelligence
(c) It refers to the buying and selling of goods and services
(d) Both (a) and (c)
Answer:
(a) It refers to the use of computer network

Hint:
E-commerce is the buying and selling of goods and services, or the transmitting of funds or data, over an electronic network, primarily the Internet.

Question 49.

Franchiser helps franchisee on setting up business or not-

(a) yes
(b) No
(c) Partly yes
(d) Can’t say
Answer:
(a) yes

Hint:
A franchisor is a party who owns trade mark or trade name. He provides support in the form of marketing, advertising, training, sometimes finance. In return of this he receives fees.

Question 50.

What is the other name of network marketing?

(a) Multi level marketing
(b) Zero level marketing
(c) Both (a) and (b)
(d) None of the above
Answer:
(c) Both (a) and (b)

Hint:
Network marketing, also known as Multi-Level Marketing (MLM), is a business model where independent contractors buy into a company and earn a commission on the products they sell.

Question 51.

Which amongst the following is the disadvantage of E-commerce?

(a) Lower transaction cost
(b) Difficulty in training and maintenance
(c) Security problems
(d) Both (b) and (c)
Answer:
(d) Both (b) and (c)

Hint:
Disadvantages of E- Commerce Increased competition Security
High start up cost Slow adoption
Customer Relations Problems No human interaction Returning goods
Difficulty in training and maintenance Fraud

Question 52.

BPO not only gives specialised performance, but also provides

(a) Same Cost
(b) Saving in Cost
(c) Different Cost
(d) None of the above
Answer:
(b) Saving in Cost

Hint:
Advantages of outsourcing are
1. Outsourcing saves time
2. Outsourcing expands your knowledge base
3. Outsourcing saves money
4. Increase efficiency
5. Start new projects quickly.
6. Level the playing field

Question 53.

……….. refers to the idea of extracting business intelligence from the competitive web pages.

(a) Web farming
(b) Web theft
(c) Web heating
(d) None of these
Answer:
(a) Web farming

Hint:
The idea of extracting business intelligence from the competition’s Web pages is called Web farming, a term coined by Richard Hackathon.

Question 54.

Customer care department in call centre handles:

(a) Does telemarketing only
(b) Inbound and outbound activities
(c) Inbound activities only
(d) Outbound activities only.
Answer:
(b) Inbound and outbound activities

Hint:
A customer service representative interacts with a company’s customers to provide them with information to address inquiries regarding products and services. In addition, they deal with and help resolve any customer complaints. Inbound customer service, the customer calls your company with a service request or an inquiry. Outbound-customer service represents a more proactive approach. An agent from your call center contacts customers to follow up on a service issue or to notify customers of new products or policy changes.

Question 55.

………. is a mode of direct marketing by the manufacturer. It consists of recruitments of persons who act as distributors of company’s products:

(a) Viral marketing
(b) Integrated marketing
(c) Network marketing
(d) Aggressive marketing.
Answer:
(c) Network marketing

Hint:
Network marketing, also known as Multi-Level Marketing (MLM), is a business model where independent contractors buy into a company and earn a commission on the products they sell. Network Marketing is a business model in which a distributor network is needed to build the business

Question 56.

E-Commerce results in ………Transaction cost and……..margin.

(a) Higher, lower
(b) Lower, lower
(c) Lower, higher
(d) Higher, higher
Answer:
(c) Lower, higher

Hint:
e-commerce can reduce transaction costs by making a marketplace more efficient. These reduced transaction costs or, equivalently, marketplace benefits can give higher margins.

Question 57.

PDA, smart phone, computer mediated network are the need in…….

(a) Network marketing
(b) E-Commerce
(c) M-Commerce
(d) Marketing
Answer:
(c) M-Commerce

Hint:
M-commerce (mobile commerce) is the buying and selling of goods and services through wireless handheld devices such as cellular telephone and personal digital assistants (PDAs).

Question 58.

Who amongst the following allows to use his trademark and provides assistance in business for a particular amount?

(a) Franchisee
(b) Government
(c) Partnership
(d) Company
Answer:
(a) Franchisee

Hint:
A franchisor is a party who owns trade mark or trade name. He provides support in the form of marketing, advertising, training, sometimes finance. In return of this he receives fees.
A franchisee is a party who uses the trade name or trade mark. He,starts and expands business on the basis of support received from franchisor. He pays fees to franchisor in return of all the support he gets from fi’im.

Question 59.

BPO that is contracted to a company’s neighbouring (or nearby) country is called

(a) off shore outsourcing
(b) near shore outsourcing
(c) on shore outsourcing
(d) None of the above
Answer:
(b) near shore outsourcing

Hint:
Near shore Outsourcing is the way of business operation performed by the nearby or neighboring countries to provide solutions for their clients.

Question 60.

Full form of E-Commerce is …….

(a) electric commerce
(b) electricity commerce
(c) electronic commerce
(d) None of the above
Answer:
(c) electronic commerce

Hint:
Ecommerce (e-commerce) or electronic commerce, a subset of e-business, is the purchasing, selling and exchanging of goods and services over computer networks.

Question 61.

Which of the following are example of B 2 C?

(a) Online shopping websites
(b) Heavy key industries
(c) Purchase by a wholesaler from manufacturer
(d) None of the above
Answer:
(a) Online shopping websites

Question 62.

If a person post an advertisement to sell his product on OLX website, it is an example of

(a) B 2 C
(b) B 2 B
(c) C 2 C
(d) C 2 B
Answer:
(c) C 2 C

Hint:
C2C (Consumer-to-Consumer)
There are many sites offering free classifieds, auctions and forums where individuals can buy and sell. eBay’s auction service is a great example of where person-to-person transactions take place.

Question 63.

Selling + customer satisfaction =

(a) Network Marketing
(b) E-Commerce
(c) M Commerce
(d) Marketing
Answer:
(d) Marketing

Hint:
Marketing
Selling + Customer satisfaction = Marketing

Question 64.

Automobile parts are being purchased from ABC company, by placing orders through its website. This is an example of

(a) Viral marketing
(b) Network marketing
(c) BPO
(d) E-Commerce
Answer:
(d) E-Commerce