CS Foundation Emerging Trends in Business MCQ Questions
Question 1.
In India which of the following is a source of law?
(a) Acts of Parliament
(b) The politicians
(c) Self-regulating codes of practice
(d) Table A of the Companies Act
Answer:
(a) Acts of Parliament
Question 2.
Out of the following which is NOT an example of a political risk?
(a) Government regulations
(b) Cost of production
(c) War
(d) Civil unrest
Answer:
(b) Cost of production
Question 3.
Main factor for spending on R and D are
(a) For survival in the market
(b) For change in environment
(c) For change in government policies
(d) Change in company’s image.
Answer:
(a) For survival in the market
Question 4.
Strategic planning is ……….
(a) To develop relation between the organization and its environment.
(b) Creating new opportunities by stretching and exploiting capabilities in new ways.
c. The skills of the senior management
(d) Utilizing ail the resources of an organization to their full capacity.
Answer:
(d) Utilizing ail the resources of an organization to their full capacity.
Question 5.
The value chain main attempt purpose is not to make identify those activities that add value to:
(a) The key skills that will be required by organization.
(b) The senior managers strategies and efforts in the organization
(c) The organization’s shareholders.
(d) The customer or final user.
Answer:
(d) The customer or final user.
Question 6.
What type of strategic capabilities is the source of sustainable competitive advantage for a based view of strategy?
(a) Strategy based on unique resources and casual ambiguity.
(b) Dynamic capabilities with complex features.
(c) Operational excellence. .
(d) Strategic capabilities, which are valuable to buyers, rare, robust and non-substitutable.
Answer:
(d) Strategic capabilities, which are valuable to buyers, rare, robust and non-substitutable.
Question 7.
Which of the following is true about business strategies?
(a) Well defined missions make strategy development much easier.
(b) An organisation should stick with its strategy for life of the business.
(c) All firms with an industry will adopt the some strategy.
(d) Organisational……..strategies depend on operations strategies.
Answer:
(c) All firms with an industry will adopt the some strategy.
Question 8.
Location is a good criteria regarding a marked strategy as
(a) It takes care of politics
(b) It takes care of suppliers
(c) It takes care of government policies
(d) Both b and c
Answer:
(a) It takes care of politics
Question 9.
Corporate strategy is
(a) The implementation of plans to achieve long-term aims
(b) Vertical marketing strategy.
(c) More specific and practical than marketing strategy.
(d) Both a and b
Answer:
(a) The implementation of plans to achieve long-term aims
Question 10.
To optimise the productivity of retail space and inventory is the proper strategy is
(a) Efficient store assortments
(b) Revision of organisation processes by information systems
(c) Efficient replacement
(a) The implementation of plans to achieve long-term aims
Answer:
(a) The implementation of plans to achieve long-term aims
Question 11.
Upstream supply chain is:
(a) Exclusively inside an organization
(b) The distribution of products or delivery of services to customers
(c) Both the a and b
(d) Involved with procurement of material from suppliers.
Answer:
(a) Exclusively inside an organization
Question 12.
can be used to reduced rest time
(a) Batch method
(b) Low technology job
(c) High technology job.
(d) Flow method
Answer:
(d) Flow method
Question 13.
The typical aim of the break of task in supply chain management is:
(a) To increase costs of distribution
(b) To enhance product and service quality
(c) To reduced costs of new product development
(d) Both the b and c
Answer:
(c) To reduced costs of new product development
Question 14.
Assessment of competitive rivalry does not include an understanding of.
(a) The extent to which competitors are in balance
(b) Market growth rates. ‘
(c) Fixed costs, exit barriers and operational efficiency.
(d) The management structure of an organisation.
Answer:
(d) The management structure of an organisation.
Question 15.
By concept of budgeting we mean
(a) Formulation of plans for future company in numerical terms
(b) Deciding the future of company
(c) Preparing the plans for the company
(d) None of the above
Answer:
(a) Formulation of plans for future company in numerical terms
Question 16.
By the term SCM we mean
(a) Supply chain management
(b) Supply chain monitoring
(c) Supply chain movement
(d) None of the above
Answer:
(a) Supply chain management
Question 17.
When the data is shared with the Company’s suppliers in SCM than it is called
(a) Upstream
(b) Downstream
(c) Both a and b
(d) None of the above
Answer:
(a) Upstream
Question 18.
When the data is shared with the Company’s clients in SCM than it is called
(a) Upstream
(b) Downstream
(c) Both a and b
(d) None of the above
Answer:
(b) Downstream
Question 19.
Scope of financial management does not include
(a) Financial decisions
(b) Investment decisions
(c) Dividend decisions
(d) None of the above
Answer:
(d) None of the above
Question 20.
An appropriate strategy to achieve expectations of investors is
(a) Corporate strategy
(b) Efficient replacement
(c) Business unit strategy
(d) Operational strategy
Answer:
(a) Corporate strategy
Question 21.
An appropriate strategy to develop market for company is:
(a) Business unit strategy
(b) Corporate strategy
(c) Efficient replacement strategy
(d) Operational strategy
Answer:
(a) Business unit strategy
Question 22.
An appropriate strategy to optimize resources and people is
(a) Corporate strategy
(b) Operational strategy
(c) Business unit strategy
(d) Efficient replacement strategy
Answer:
(b) Operational strategy
Question 23.
A transaction involves……..
(a) At least two parties
(b) Each party has something that might be of value to the other party
(c) Each party is capable of communication and delivery
(d) All of the above
Answer:
(d) All of the above
Question 24.
Marketing management is………
(a) Managing the marketing process
(b) Monitoring the profitability of the companies products and services
(c) Selecting target markets
d The art and science of choosing target markets and getting, keeping and growing customers through creating, delivering and communicating superior customer Value
Answer:
d The art and science of choosing target markets and getting, keeping and growing customers through creating, delivering and communicating superior customer Value
Question 25.
A business tool used for determining a products offering is
(a) Marketing mix
(b) Administration
(c) Human resource management
(d) Selling
Answer:
(a) Marketing mix
Question 26.
A major advantage of the corporate form of organization is:
(a) Reduction of double taxation.
(b) Limited owner liability.
(c) Legal restrictions.
(d) Ease of organization.
Answer:
(a) Reduction of double taxation.
Question 27.
The company sets its marketing budget by estimating the investment in current assets at different points of time. Select the type of budget keeping in view the above mentioned purpose
(a) Sales Budget
(b) Cash-Budget
(c) Working capital Budget
(d) Production Budget
(b) Cash-Budget
Question 28.
To develop its market segments, Dabur planned to produce 20000 bottles of Roohafza everyday. This approach of setting budget is
(a) Sales budget
(b) Production budget
(c) Cash budget
(d) None of the above.
Answer:
(a) Sales budget
Question 29.
The import of strategies on the general dissection and basic character of a company is strategy
(a) Medium large
(b) Short large
(c) Long large
(d) Temporal
Answer:
(b) Short large
Question 30.
Which of the following is true?
(a) Corporate strategy is shaped by functional strategy.
(b) Functional strategy is shaped by corporate strategy.
(c) Corporate mission is shaped by functions strategy.
(d) None of the above.
Answer:
(d) None of the above.
Question 31.
Downstream supply chain is:
(a) Exclusively inside an organisation
(b) Involved with procurement of material from suppliers
(c) The distribution of products or delivery of services to customers
(d) Both the a and b
Answer:
(b) Involved with procurement of material from suppliers
Question 32.
……….. offers the opportunity to produced goods as per customer and specific need.
(a) Job method
(b) Batch method
(c) Flow method
(d) All of the above.
Answer:
(d) All of the above.
Question 33.
Out of these which is not a function normally performed by the HR department?
(a) Recruitment and selection
(b) Pay and reward.
(c) Accounting
(d) Employee relations.
Answer:
(d) Employee relations.
Question 34.
As marketing manager for globalisation, of your company one should take care of various things except
(a) Informal liquidation.
(b) Deregulation of antitrust lows
(c) Working around the clock
(d) Political stability
Answer:
(a) Informal liquidation.
Question 35.
For international development of business enterprise it should always take care of following points
(a) Unnecessary controls on Industrial licensing, reduction in tax, rates, socio-cultural
(b) Reduction in tax, unnecessary controls on industrial licensing, shareholders
(c) Media, socio-cultural, shareholders
(d) Unnecessary controls on industrial licensing, reduction in taxes, freedoms in fixing prices.
Answer:
(d) Unnecessary controls on industrial licensing, reduction in taxes, freedoms in fixing prices.
Question 36.
The marketing mix when applied to international markets must:
(a) Be standardised throughout the global market.
(b) Ignore the cultural and environmental
variations between the different markets
(c) Take into account the cultural and environmental differences between markets.
(d) a and b
Answer:
(c) Take into account the cultural and environmental differences between markets.
Question 37.
The process of privatisation is where:
(a) Services that were previously supplied internally are outsourced.
(b) A company is transferred from public limited by closure of an enterprise.
(c) A state-owned or nationalised corporation is sold to the private sector through sale of equity.
(d) All of the above.
Answer:
(d) All of the above.
Question 38.
Identify the best definition of planning
(a) An integrated process in which plans are formulated, carried out and controlled
(b) The core activity of planners and planning departments
(c) Devising ways of achieving the objectives of an organization
(d) Setting an organization’s objectives and the means of reaching them
Answer:
(d) Setting an organization’s objectives and the means of reaching them
Question 39.
Which one of the following may NOT be a factor behind starting a business?
(a) Routine workload
(b) Size of the firm
(c) Finance
(d) Location of the business
Answer:
(a) Routine workload
Question 40.
What doe we mean by ITES
(a) Indian Technology enabled services
(b) International Telecommunication extra services.
(c) IT enabled services.
(d) None of the above
Answer:
(c) IT enabled services.
Question 41.
An auditor has the right to communicate the audit results to
(a) Employers
(b) Some other auditor
(c) Company
(d) a and c
Answer:
(c) Company
Question 42.
Which one of the following is not correctly matched?
(a) Record keeping: Accounting
(b) Managing procedural formalities: secretarial functions
(c) Programs to enhance renewable resource: accounting
(d) None of the above.
Answer:
(c) Programs to enhance renewable resource: accounting
Question 43.
These are the factors location of business
(a) Labour
(b) Communication
(c) Suppliers
(d) All of the above
Answer:
(d) All of the above
Question 44.
“A trader is not a middleman bringing the buyer and seller together and receiving the commission for the services provided by him” Is the statement
(a) True
(b) False
(c) Depends on the condition
(d) There is nothing specified about it
Answer:
(a) True
Question 45.
From a system perspective the correct sequence of an organisation’s supply chain.
(a) Transformation process, delivery to customers, acquisition of resources.
(b) Acquisition of resources, transformation process, delivery to customers
(c) Delivery to customers, acquisition of resources, transformation process.
(d) All of the above
Answer:
(a) Transformation process, delivery to customers, acquisition of resources.
Question 46.
Why do companies spend on research and development
(a) To do business in a streamlined way
(b) It is a part of business
(c) Change is a crucial part of business.
(d) None of the above.
Answer:
(b) It is a part of business
Question 47.
What is the primary purpose of budgeting?
(a) Planning
(b) Control
(c) Organizing
(d) Direction
Answer:
(b) Control
Hint:
Budgets are plans and budgetary control are the comparisons of plans with the actual performance. Control is provided by comparisons of actual results against budget plan
Question 48.
These influences the choice of location business:
a. Labour
b. Government Assistance
(c) Population
(d) All of the above
Answer:
(d) All of the above
Hint:
The main factors affecting location are:
(a) Raw materials
(b) Market
(c) Transport costs:
(d) Land
(e) Labour
(f) Population
(g) Waste disposal
(h) Government
(i) Overseas location decisions
Question 49.
Main factor for spending on R and D are
a. For survival in the market
b. For change in environment
c. For change in government policies
(d) Change in company’s image.
Answer:
b. For change in environment
Hint:
Flow production (Process Production) is also a very common method of production. Flow production is when the product is built up through many segregated stages; the product is built upon at each stage and then passed directly to the next stage where it is built upon again. The production method is financially the most efficient and effective because there is less of a need for skilled workers.
Question 50.
What is the chief work done by top authorities in of structure of management?
(a) Decision-Making
(b) Recruiting Manpower
(c) Holding Meeting ‘
(d) Selling Products
Answer:
(a) Decision-Making
Hint:
The top level management is doing the work of thinking, planning and deciding that is why they are called brain of the organisation.
Question 51.
Which one of the following strategy deals vyith day-to-day activities of a business?
(a) Corporate strategy
(b) Operational strategy
(c) Business unit strategy
(d) None of the above.
Answer:
(b) Operational strategy
Hint:
Corporate Strategy- is concerned with the selection of business in which company should compete. It is a crucial level since it is a deciding factor for investors in the business and acts to guide strategic decision-making throughout the business. Corporate strategy is often stated explicitly in a “mission statement”. .
Question 52.
Which level of management is responsible for strategic planning in an organisation?
(a) Lower level management
(b) Middle level management
(c) Top level management
(d) All of the above.
Answer:
(c) Top level management
Hint:
Strategy is the direction and scope of an organisation over the long-term: which achieves advantage for the organisation through its configuration of resources within a challenging environment, to meet the needs of markets and to fulfil stakeholder expectations. Since it involves various aspects of planning it is done by top level managers of organisation.
Question 53.
Which one of the following is the responsibility of human resource management?
(a) To ensure respect for individual employer
(b) To ensure reconciliation of individual goals with those of the organisation
(c) To achieve and maintain high morals among the employees
(d) All of the above.
Answer:
(d) All of the above.
Hint:
The various objectives of Human resource management are To effectively achieve organisational objective To develop and maintain employees To ensure respect for individual employer To attend legal, social, ethical issues.
To ensure reconciliation of individual goals with those of the organisation
Question 54.
Marketing is a……….concept than selling.
(a) Narrow
(b) Older
(c) Broader
(d) None of the above
Answer:
(c) Broader
Question 55.
Which one of the following is not a part of Porter’s generic strategy?
(a) Focus
(b) Cost leadership
(c) Differentiation strategy
(d) Market segmentation.
Answer:
(d) Market segmentation.
Hint:
The three strategies of porter are
(A) Cost leadership
(B) Differentiation
(C) Focus
Question 56.
Which one of the following is not a part of ‘marketing mix’?
(a) Planning
(b) Product
(c) Price
(d) Place.
Answer:
(a) Planning
Hint:
The 4Ps is one way – probably the best-known way of defining the marketing mix. The 4Ps are: Product (or Service) Place, Price, Promotion.
Question 57.
In marketing, a distinctive group of consumers is known as:
(a) A class
(b) A segment
(c) An emerging market
(d) None of the above.
Answer:
(b) A segment
Question 58.
Car servicing is an example of
(a) Batch processing
(b) Job processing
(c) Flow processing
(d) Contract processing.
Answer:
(b) Job processing
Hint:
In Job method Products are manufactured to meet the requirements of a specific order. The quality involved is small and the manufacturing of the product will take place as per the specifications given by the customer. It is used when a product is produced with the labour of one or few workers and is scarcely used for bulk and large scale production. Thus this process is always non-standardised
Question 59.
Which of the following type of budget is prepared to assess the level of inventories, receivables etc.?
(a) Material Budget
(b) Profitability Budget
(c) Cash Budget
(d) Working Capital Budget.
Answer:
(d) Working Capital Budget.
Hint:
Working capital budget is a part of the total budgeting process of a business. It is prepared by estimating the future long-term and short-term working capital needs for example current assets like inventory, debtors, receivables, etc.
Question 60.
Which of the following strategy focuses on issues of production processes, material, etc. ?
(a) Operation Strategy
(b) Business Unit Strategy
(c) Corporate Strategy
(d) Marketing Strategy.
Answer:
(a) Operation Strategy
Hint:
An operation strategy for a business is the company’s plan for how the business will operate to achieve a set of goals.
Question 61.
Generally, is responsible for complying procedural .formalities relating to corporate restructuring in a company
(a) Finance function
(b) Marketing function
(c) Secretarial function
(d) Administration function
Answer:
(c) Secretarial function
Question 62.
Which of the following is not an accounting function:
(a) Maintaining accounts in compliance with Accounting Standards
(b) Arranging for finance
(c) Journalisation and preparation of final accounts
(d) Attrition monitoring
Answer:
(b) Arranging for finance
Hint:
The finance department of a business takes responsibility for organising the financial and accounting affairs including the preparation and presentation of appropriate accounts and the provision of financial information for managers. The main areas covered by the financial department include preparation of balance sheet, providing management advice etc. Arranging of finance is a financial service not accounting function
Question 63.
A means of obtaining financial resources that involves the sale of part of the ownership of the business is called:
(a) Bankruptcy
(b) Equity financing
(c) Commercial loans
(d) Debt financing
Answer:
(b) Equity financing
Hint:
Equity financing is the method of raising capital by selling company stock to investors. In return for the investment, the shareholders receive ownership interests in the company.
Question 64.
Film production is done by which method of production?
(a) Job method
(b) Batch method
(c) Flow method
(d) Group method
Answer:
(a) Job method
Hint:
Job Method: In this system Products are manufactured to meet the requirements of a specific order. The quality involved is small and the manufacturing of the product will take place as per the specifications given by the customer. It is used when a product is produced with the labour of one or few workers and is scarcely used for bulk and large scale production. Thus this process is always non-standardised.