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This section includes InterviewSolutions, each offering curated multiple-choice questions to sharpen your knowledge and support exam preparation. Choose a topic below to get started.
| 15951. |
Which of the following cannot be classified as an auxiliary to trade? a) Mining b) Insurance c) warehousing d) transport |
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Answer» Correct option is a) Mining |
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| 15952. |
Businessmen earn profit for a) income b) Growth c) risk taking d) all of them |
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Answer» d) all of them |
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| 15953. |
Pre-shipment inspection is obligatory for all exporting firms. True/False ? Given reason. |
| Answer» False: Pre-shipment inspection is not compulsory for star trading houses, export houses, industrial units set up in export processing zones (EPZs) and special economic zones (SEZs) and 100 percent export oriented units (EOUs) | |
| 15954. |
Which of the broad categories of industries covers oil refinery and sugar mills? a) primary b) secondary c) tertiary d) none of them. |
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Answer» b) secondary |
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| 15955. |
Which of the broad categories of industries covers oil refinery and sugar mills? (a) Primary (b) Secondary (c) Tertiary (d) None of them |
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Answer» (b) Secondary |
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| 15956. |
Once upon a time a round of Election to the five Legislative Assemblies of the country was in progress. The different political parties were putting in the best of their efforts to entice the people through their respective promises to them. There were three main political parties contensting elections in the test states . One of the political parties made a promise that if they came into power, they would set up such public sector enterprises in the states which will have the partnership of both the public and the government . However, in these enterprises, the ownership of the government shall not be less than 51% . The setting up of these enterprises is done as per the provisions of the Indian Companies Act, 2013. The financing of these enterprises is done jointly by both , the people and the government . The second political party promised that if they came into power, they would set up such public sector enterprises which will be completely under the ownership of the government . The burden of financing them will not be put on the shoulders of the people , but they will be managed with the general budget . The third political pary, which was contesting the elections for the first time promised that on coming into power they would set up such public sector enterprises which will be fully financed by the government . However , there will no bar to get loan from the people to set up them. They will be set up as per the special Act passed by the Parliament or the State Legislative Assembly. On the basis of the above para, identify the type of public sector enterprises to be set up to being promised by the three political parties. Also state any two merits of each of them. |
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Answer» (a) The first political party promised to set up Government Companies . (Explain two merits ) (b) The second political party promised to set up Department Undertakings. (Explain two merits ) (c ) The third political party promised to set up Public Corporations / Statutory Corporations. (Explain two merits ) |
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| 15957. |
Explain any four steps that business enterprise should be taken to protect the environment. |
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Answer» Five measure to control environment pollution are: 1. Definite commitment by top management of enterprise to create, maintain and develop work culture for environmental protection and pollution prevention. 2. Complying with laws and regulations enacted by the government for prevention of pollution. 3. Participation in government programmes relating to management of hazardous substance, plantation of trees and checking deforestation. 4. Ensuring that commitment to environmental protection is shared throughout the enterprise by all divisions and employees. 5. Arranging educational workshop and training materials to share technical information and experience with suppliers, dealers and customers to get them actively involved in pollution control programmes. |
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| 15958. |
Explain the need for pollution control. |
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Answer» Need for Pollution Control: 1. Reduction of health hazard: Pollution control measures can check diseases like cancer, heart attack & lung complications and support a healthy life on earth. 2. Reduced Risk of Liability: It is a sound business policy to install pollution control devices in its premises to reduce the risk of liability of paying compensation to the affected people. 3. Cost Saving: An effective pollution control programme is needed to save costs of operating business. 4. Improved Public Image: A firm that adopts pollution control measures enjoys a good reputation as a socially responsible enterprise. 5. Other social benefits: Pollution control results in many other benefits like clearer visibility, cleaner buildings, better quality of life, and the availability of natural products in a purer form. |
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| 15959. |
What steps can an enterprise take to protect the environment from the dangers of pollution? |
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Answer» Role of Business in Environmental Protection: 1. A definite commitment by top management to create a work culture for environmental protection 2. Ensuring that commitment of environmental protection is shared throughout the enterprise by all divisions and employees. 3. Developing clear cut policies and programmes for purchasing good quality raw materials, introducing superior technology, using scientific techniques of disposal of waste and developing employee skills for pollution control 4. Complying with the laws and regulations enacted by the Government for prevention of pollution. 5. Participation in government programs relating to management of hazardous substances, cleaning up of polluted rivers, plantation of trees, and checking deforestation. 6. Periodical assessment of pollution control programmes in terms of costs and benefits with a view to improve them. 7. Arranging educational workshops and training materials to share technical information with everyone involved in pollution control. |
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| 15960. |
The occupation in which people work for others and get remunerated in return is known as ……….. (a) Business (b) Employment (c) Profession (d) None of them |
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Answer» (b) Employment |
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| 15961. |
XYZ Ltd. is specialised in consultancy service. The company makes software for a reputed bank of USA . It is specialised in making accounts of that bank. To carry on this work XYZ Ltd. hire professionals like engineers, Cas, etc. , who are very comptent in providing such services. Identify the type of business services provided by XYZ Ltd. |
| Answer» Knowledge Process Outsourcing (KPO) | |
| 15962. |
Unique enterprise is dealing in auto spare parts . With the expansion in business the enterprise found that the decisions are delayed and level of coordination is coming down. The CEO of the company called for a meeting of all the managers . Ayush a newly appointed manager suggested that company should have its own internet so that all the employees can interact and pass important information to each other through internet. Even short meeting of different departments can be conducted through Video conferencing to take fast action. The CEO liked the idea and installed an internet connection for connnecting all the employees on line. Which type of e-commerce is suggested by Mr Ayush ? Explain. |
| Answer» Intra-B Commerce (Explain ) | |
| 15963. |
Explain any 4 types of outsourcing services. |
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Answer» 1. Financial services. 2. Advertising services 3. Courier services 4. Customer support services |
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| 15964. |
Name the resources required for Ecommerce. |
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Answer» Resources Required for Successful e-Business Implementation: 1. Computer system 2. Internet connection and technically qualified workforce 3. A well developed web page 4. Effective telecommunication system 5. A good system for making payment using credit instruments. |
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| 15965. |
Mr. Arun, a retailer pays tax online. Identify this E-Commerce Transaction |
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Answer» C2G E-Commerce Transaction |
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| 15966. |
Current assets are those assets which get converted into cash(a) within six months(b) within one year(c) between one year and three years(d) between three and five years |
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Answer» (b) Current assets are those assets which can be converted into cash or can be used to pay off liabilities within a time span of 12 months, i.e. one year. Some of the examples of current assets are cash, cash equivalents, inventories, debtors, bills receivables, etc. |
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| 15967. |
Financial planning arrives at(a) minimising the external borrowing by resorting to equity issues(b) entering that the firm always have significantly more fund than required so that there is no paucity of funds(c) ensuring that the firm faces neither a shortage nor a glut of unusable funds(d) doing only what is possible with the funds that the firms has at its disposal |
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Answer» (c) Financial Planning aims at ensuring that the firm faces neither a shortage nor a glut (excess) of unusable funds. If there is a shortage of funds then the firm will not be able to carry out its planned activities and commitments. On the other hand, if there are excess funds available then it adds to the cost of business and also encourages wastage of funds. Thus, financial planning focuses on ensuring the availability of just enough funds at the right time. |
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| 15968. |
Higher dividend per share is associated with(a) high earnings, high cash flows, unstable earnings and higher growth opportunities(b) high earnings, high cash flows, stable earnings and high growth opportunities(c) high earnings, high cash flows, stable earnings and lower growth opportunities(d) high earnings, low cash flows, stable earnings and lower growth opportunities |
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Answer» (d) If a company gives higher dividend per share then it gets associated with high amount of earnings as only if they will earn higher, they will be able to give higher dividends; higher cash flow as the payment of dividend involves cash outflow; stable earnings as stable earnings means that the company is confident of its future earning potentials; and lower growth opportunities because it requires less requirement of retained earnings and their retained earnings while lowering the amount of dividends paid. |
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| 15969. |
Write the First Stage : Financial Planning |
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Answer» The process of estimating the fund requirement of a business and specifying the sources of funds is called financial planning. It ensures that enough funds are available at right time so that a firm could honour its commitments and carry out its plans. |
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| 15970. |
Write the Importance of Financial Planning |
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Answer» 1. To ensure availability of adequate funds at right time. |
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| 15971. |
Write About Second stage :Capital Structure |
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Answer» The main source of funds are owner’s funds i.e. equity/share holder’s funds and the borrowed funds i.e. Debts. Borrowed funds have to be repaid at a fixed time and thus some amount of financial risk (i.e. risk of default on payment) is there is debt financing. Moreover interest on borrowed funds has to be paid regardless of whether or not a firm has made a profit. On the other hand, shareholder’s fund involves no commitment regarding payment of returns or repayment of capital. A firm mixes both debt and equity in making financing decisions. Capital structure refers to the mix between owner’s funds and borrowed funds. It will be said to be optimal when the proportion of debt and equity is such that it results in an increase in the value of the equity share. The proportion of debt in the overall capital of a firm is called Financial Leverage or Capital Gearing. When the proportion of debt in the total capital is high then the firm will be called highly levered firm but when the proportion of debts in the total capital is less, then the firm will be called low levered firm. Financial leverage = Debt <---> Equity |
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| 15972. |
Discuss the two objective of Financial Planning. |
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Answer» Financial Planning involves designing the blueprint of the financial operations of a firm. It ensures that just the right amount of funds are available for the organisational operations at the right time. Thereby, it ensures smooth functioning. Taking into consideration the growth and performance, through financial planning, firms tend to forecast what amount of fund would be required at what time. The following are the two highlighted objectives of financial planning. (i) Ensure Availability of Funds: Ensuring that the right amount of funds are available at the right time is one of the main objectives of financial planning. It involves estimating the right amount of funds that are required for various business operations in the long term as well for day to day operations. In addition, it also involves estimating the time at which the funds would be required. Thus, financial planning ensures that right amount of funds are available at the right time. Financial planning also points out the probable sources of funds. (ii) Proper Utilisation of Funds: Financial Planning aims at full utilisation of funds. It ensures that both inadequate funds as well as excess funds are avoided. Inadequate funds hinders the smooth operations and the firm is unable to carry its commitments. On the other hand, excess funds add to the cost of business and encourage unnecessary wasteful expenditure. Thus, financial planning ensures that the funds are properly and optimally utilised. |
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| 15973. |
What is financial risk? Why does it arise? |
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Answer» Financial risk refers to a situation when a company is not able to meet its fixed financial charges such as interest payment, preference dividend and repayment obligations. In other words, it refers to the probability that the company would not be able to meet its fixed financial obligations. It arises when the proportion of debt in the capital structure increases. This is because it is obligatory for the company to pay the interest charges on debt along with the principle amount. Thus, higher the debt, higher will be its payment obligations and thereby higher would be the chances of default on payment. Hence, higher use of debt leads to higher financial risk for the company. |
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| 15974. |
Define a ‘current asset’. Give four examples of such assets. |
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Answer» Current asset of a firm refers to those assets which can be converted into cash or cash equivalents in a short period of time, i.e. less than one year. Such assets are used to facilitate the day to day business operations. As they can be easily converted into cash or cash equivalents, these assets provide liquidity to the company. Firms acquire such assets to meet its various payment obligations. However, such assets provide very little return and are thereby, less profitable. Current assets can be financed through short-term as well as long term sources. Some of the examples of current assets are short term investment, debtors, stocks and cash equivalents. |
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| 15975. |
What are the main objectives of financial management? Briefly explain |
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Answer» The paramount objective of the financial management is maximising the shareholders’ wealth. That is, the basic objective of financial management for a company is to opt for those financial decisions that prove gainful from the point of view of the shareholders. The shareholders are said to gain when the market value of their shares rise. The market value of shares increase when the benefits from a financial decision exceed the cost involved in taking them. In other words, a financial decision raises the market value of share if it results in some value addition. Thus, financial decisions should be taken such that some value addition takes place and ultimately the price of the equity share increases. When a financial decision is able to fulfil the primary objective of wealth maximisation, other objectives such as proper utilisation of funds, maintenance of liquidity etc. are automatically fulfilled. |
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| 15976. |
Financial management is based on three broad financial decisions. What are these? |
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Answer» Financial management refers to the efficient acquisition, allocation and usage of funds of the company. It deals in three main dimensions of financial decisions namely, Investment decisions, Financial decisions and Dividend decisions. Investment Decisions: Investment decisions refer to the decisions regarding where to invest so as to earn the highest possible returns on investment. Investment decisions can be taken for both long term as well as short term. Long term investment decisions also known as Capital Budgeting decisions affect a business’ long term earning capacity and profitability. For example, investment in a new machine, purchase of a new building, etc. are long term investment decisions. Short term investment decisions also known as working capital decisions affect a business’ day to day working operations. For example, decisions regarding cash or bill receivables are short term investment decisions. Financial Decisions: Such decisions involve identifying various sources of funds and deciding the best combination for raising the funds. The main sources for raising funds are shareholders’ funds (referred as equity) and borrowed funds (referred as debt). Based on the cost involved, risk and profitability a company must judiciously decide the combination of debt and equity to be used. For example, while debt is considered to be the cheapest source of finance, higher debt increases the financial risk. Financial decisions taken by a company affects its overall cost of capital and the financial risk. Dividend Decisions: The decision involves the decision regarding the distribution of profit or surplus of the company. A company can distribute its profit to the equity shareholders in the form of dividends or retain it with itself. Under dividend decision, a company decides what proportion of the surplus to distribute as dividends and what proportion to keep as retained earnings. It is aimed at maximising the shareholders’ wealth while keeping in view the requirement of retained earnings that are needed for re-investment. |
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| 15977. |
The car salesman took the customer for a drive in the new model in order to ________ its improved features. A) advocate B) demonstrate C) exhibit D) reveal E) expound |
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Answer» Correct option is B) demonstrate |
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| 15978. |
Swayam, a salesman, makes false claims to a, customer about the quality of water order to make sales. Which quality/value is Swayam lacking? |
| Answer» Swayam is lacking integrity and honest. | |
| 15979. |
Q. 24. \( A, B, C \) and \( D \) are partners sharing profits in the ratio of \( 4: 3: 2: 1 . \) On the retirement of \( B \), Goodwill was valued at \( ₹ 3,00,000 . A, C \) and \( D \) decide to continue the firm sharing profits equally. Pass the necessary journal entry. |
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Answer»
C's capital a/c Dr. 40,000 D's capital a/c Dr. 70,000 to A's capital a/c 20,000 to B's capital a/c. 90,000 Working notes; A,B,C and D share profit ratio= 4:3:2:1 New profit ratio =- 1:1:1 GAINING RATIO =NEW RATIO - OLD RATIO A = 1/3-4/10 =-2/30 C= 1/3-2/10= 4/30 D= 1/3-1/10=7/30 B= 3/10 Goodwill of the firm A= 2/30×3,00,000 = 20,000 B= 3/10×3,00,000 = 90,000 C= 4/30×3,00,000 = 40,000 D= 7/30×3,00,000 = 70,000 |
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| 15980. |
Explain. (i) Planning focuses on achieving objectives. (ii) Planning establishes standards for controlling. |
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Answer» (i) Planning focuses on achieving objectives: Planning involves the determination of activities required to be undertaken to achieve objective of organisation. Thus, it can be said that it focuses on achieving objectives. (ii) Planning establishes standards for controlling: Planning involves setting-up of objectives, which as the standards against which actual performance is measured. This helps in finding deviations and taking corrective action in the controlling process. |
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| 15981. |
Organising is the harmonious adjustment of specialised parts for the accomplishment of some common purpose. In the light of above statement, explain any three points of importance of organising. |
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Answer» Organising is important because of three reasons: (i) Benefits of specialisation It facilitates the systematic allocation of work. This reduces the workload as well as enhances productivity, as each task is repetitively performed by a worker which helps him to gain experience and attain specialisation. (ii)Clarify in working relationships The establishment of working relationships clarifies the lines of communication and specifies who is accountable to whom. Thus, there is no confusion regarding performance of work, fixation of responsibility and communication. (iii) Development of personnel: It stimulates creativity amongst the managers. Effective delegation allows the managers to reduce their workload by assigning routine jobs to their subordinates. This helps subordinates to develop newer skills and ability to deal effectively with emerging challenges. Thus, it helps in the development of personnel. |
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| 15982. |
Where is NADP reductase enzyme located in the chloroplast? What is the role of this enzyme in proton gradient development? |
Answer»
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| 15983. |
A, B and C are partners sharing profits in the ratio 2:2:1. On retirement of B, goodwill of the firm was valued as Rs. 30,000. The contribution of A and C to compensate B is ______. (a) Rs. 20,000 and Rs. 10,000 (b) Rs. 8,000 and Rs. 4,000 (c) Rs. 10,000 and Rs. 20,000 (d) Rs. 15,000 and Rs. 15,000 |
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Answer» (b) Rs. 8,000 and Rs. 4,000 |
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| 15984. |
Super Ltd. forfeited 100 shares of Rs. 10 each for non- payment of final call of Rs. 2 per share. All these shares were re-issued at Rs. 9 per share. The amount will be transferred to capital reserve account is _______. (a) Rs. 700 (b) Rs. 800 (c) Rs. 900 (d) Rs. 1,000 |
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Answer» The correct answer is : (a) Rs. 700 |
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| 15985. |
"Organising is the harmonious adjustments of specialised parts of the accomplishment of some common purpose or purposes." In the light of this statement, explain any four points of importance of organising. |
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Answer» Organising is the process of defining and grouping activities and establishing authority relationships among them. The organising function helps in the growth and survival of an enterprise in a dynamic environment by providing the following benefits: (i) Benefits of specialisation Systematic allocation of work reduces the workload as well as enhances productivity. As each task is repetitively performed by a worker, it helps him to gain experience and attain specialisation. (ii) Clarity in working relationships The establishment of working relationships clarifies the lines of communication and specifies who is accountable to whom. Thus, there is no confusion regarding performance of work, fixation of responsibility and communication. (iii) Optimum utilisation of resources It leads to proper usage of all materials, financial and human resources by proper assignment of jobs. Assignment of jobs to workers reduces duplication of work, prevents confusion, minimises wastages and allows the best possible use of resources. (iv) Adaptation to change It facilitates modification in organisational structure and revision of inter-relationships among people in order to adapt to environmental changes. It also helps to provide stability and growth, despite of external changes occurring in business environment. (v) Effective administration It gives a clear description of duties and responsibilities of each individual. This helps to avoid confusion regarding work and avoids duplication of activities. |
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| 15986. |
A preference share is one _______. (i) which carries preferential right with respect to payment of dividend at fixed rate(ii) which carries preferential right with respect to repayment of capital on winding up (a) Only (i) is correct (b) Only (ii) is correct(c) Both (i) and (ii) are correct (d) Both (i) and (ii) are incorrect |
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Answer» (c) Both (i) and (ii) are correct |
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| 15987. |
The cheapest source of finance is(a) debenture(b) equity share capital(c) preference share(d) retained earning |
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Answer» (d) The cheapest source of finance is retained earnings. Retained income refers to that portion of net income or profits of an organisation that it retains after paying off dividends. An organisation can reinvest its retained earnings or profits for the purpose expansion, modernisation, etc. It neither involves any fund raising cost nor any risk. Also, unlike other sources of finance it does not involve any obligation in terms of repayment. |
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| 15988. |
Toycars Pvt Ltd is a company manufacturing toys, enjoyinga good market reputation. It has functional organisation with separate departments for production, finance, marketing and human resource. Lately, to use its brand name and to cash on new business opportunities, it is thinking to diversify into manufacturing of electronic toys. (i) What change must be rought about in the organisation structure? (ii) Explain any 4 benefits of adopting such a change. |
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Answer» The company must change its organisation structure from functional to divisional. (ii) Some benefits of adopting divisional structure are: (a) Product specialisation: The company will attain specialisation in all its products. (b) Accountability The company can make divisional heads accountable for profits, revenues and costs of their respective divisions. (c) Flexibility Since, each division functions as autonomous unit, it leads to faster decisions. (d) Facilitate growth By adopting divisional structure, the company can add new divisions for growth, without affecting the other divisions/departments. |
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| 15989. |
The play 'Andher Nagri Chaupat Raja' is written by which of the following?1. Mahavir Prasad Dwivedi2. Maithilisharan Gupta3. Sumitranandan Pant4. Bharatendu Harishchandra |
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Answer» Correct Answer - Option 4 : Bharatendu Harishchandra The correct answer is Bharatendu Harishchandra.
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| 15990. |
_____ children are older than _____. A) My / her B) Mine / hers C) My / hers D) Mine / her |
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Answer» Correct option is C) My / hers |
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| 15991. |
Use ‘ie’ or ‘ei’ to fill in the blanks. 1. f r i e n d s 2. r e p l i e d 3. c a r r i e r 4. e i g h t 5. e i d 6. t h e i r 7. f i e l d8. h a p p i e s t 9. s o l d i e r s |
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Answer» 1. f r i e n d s 2. r e p l i e d 3. c a r r i e r 4. e i g h t 5. e i d 6. t h e i r 7. f i e l d 8. h a p p i e s t 9. s o l d i e r s |
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| 15992. |
‘MYKAA Limited ‘is dealing in all types of cosmetic products. It is enjoying increased demand for its product during the last few years. For the purpose of expansion the company needs ₹ 100 crores as additional capital. The company decides to raise funds through equity shares. Chirag Kapoor, the finance manager of the company recommended that the shares may be sold through issuing houses or brokers. Identify and explain the method recommended by Mr.Kapoor through which the company can raise additional funds for expansion purposes. |
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Answer» Offer for Sale: Under this method securities are not issued directly to the public but are offered for sale through intermediaries like issuing houses or stock brokers. In this case, a company sells securities embolic at an agreed price to brokers who, in turn, resell them to the investing public. |
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| 15993. |
My niece can’t find her umbrella. Is this blue one ______ ? A) of her B) his C) mine D) hers |
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Answer» Correct option is D) hers |
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| 15994. |
A: Is Ashley’s new dress blue? B: No, ______ is green. Helen’s is blue.A) hersB) herC) mineD) ours |
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Answer» Correct option is A) hers |
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| 15995. |
He might have concealed from ___ but not from ___ . A) other/herself B) others/himself C) each other/him D) themselves/us E) on another/it |
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Answer» Correct option is B) others/himself |
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| 15996. |
If ___ can’t talk to Mark ___ don’t want to talk to ___ . A) she/she/somebody B) he/he/anybody C) I/I/any one D) they/they/it E) you/you/they |
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Answer» Correct option is C) I/I/any one |
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| 15997. |
_______ the harm she’s done him, he still loves her. A) In spite of B) Although C) Because D) Even though |
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Answer» Correct option is A) In spite of |
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| 15998. |
She put out ___ hand and took ___ . A) hers/my B) her/mine C) she/he D) them/his E) its/ours |
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Answer» Correct option is B) her/mine |
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| 15999. |
Do you see ___ bushes on the ___ side of the river? A) this/other B) that/another C) them/other D) those/other E) some/other |
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Answer» Correct option is D) those/other |
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| 16000. |
What fatal mistake did Hodge make? |
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Answer» Captain Hodge of the English team saw Livingstone and Southcott the two cracks, were approaching competently. Either of them would catch it easily. Mr. Hodge had to choose between them and, coming to a swift decision, he yelled at living stone to cater the ball. Southcott, a disciplined cricketer, stopped going towards the ball. Then Mr. Hodge made a fatal mistake. He remembered Livingstone’s two missed catches and reversed he decision and roared for Bobby Southcott to catch the ball. Bobby Southcott obediently started again, to catch the ball. Livingstone who had not heard the captain, went straight on. |
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