1. Which of the following is not a principle of WTO?

(A) Free Trade

(B) Non-discrimination
(C) Fair Competition
(D) Discrimination

2. Disequilibrium in the balance of payment is caused by which economic factor?

(A) Secular disequilibrium
(B) Religious disequilibrium
(C) Uniform disequilibrium
(D) Inconsistent disequilibrium

3. Identify a factor that doesn’t play an important role in attracting FDI.

(A) Laws, Rules and Regulation
(B) Administrative procedure
(C) Cost of Resources
(D) Language

4. Which of the following is not a characteristic of a joint venture?

(A) Equity position held by each of the partners
(B) Possible only with legally incorporated entities
(C) Intent by partner to share in the management
(D) One of the partners acquires complete stock of the other

5. Who proposed the theory of competitive advantage?

(A) David Ricardo
(B) Bruce Kogur
(C) Michael Gannon
(D) Adam Smith

6. Which of the following is not a level of Regional economic integration?

(A) Customs union
(B) Common market
(C) Economic union
(D) National union

7. Which of the following is not the goal of Corporate Social Responsibility (CSR)?
(A) Ensure environmental sustainability
(B) Promote empowerment of women and depressed classes
(C) Develop awareness about issues of social concern
(D) To acquire benefits and tax concessions from the Govt.
8. Which of the following is not a mode of entry into International business?
(A) Direct exporting
(B) Indirect exporting
(C) Intercorporate transfers
(D) Personalized sales contract

9. Which of the following entry strategies is adopted by McDonald's in the International

market?
(A) Licensing
(B) Strategic alliance
(C) Franchising
(D) Acquisition

10. Which of the following types of FDI includes the creation of new assets and a production
facility in the host country?
(A) Strategic alliances
(B) Merger and acquisition
(C) Brownfield investment
(D) Greenfield investment

11-20

11. Which one of the following is an example of a representative personal account?

(A) Salary and wages account
(B) Loss due to fire account
(C) Bad debts account
(D) Pre-paid salary account

12. Pre-acquisition profit in a subsidiary company is considered as:

(A) Revenue profit
(B) Goodwill
(C) Capital profit
(D) Outsiders' liability

13. The ratio of variable cost to sales is 70%. The Break-even point occurs at 80% capacity.
Find 100% capacity sales when fixed cost is ₹6,00,000.
(A) ₹25,00,000
(B) ₹20,00,000
(C) ₹30,00,000
(D) ₹40,00,000
14. What is the index of conservatism in capital structure?
(A) Working Capital Ratio
(B) Operating Ratio
(C) Price Earning Ratio
(D) Proprietary Ratio

15. The Audit that is compulsory as per the Law is termed as a:

(A) Statutory Audit
(B) Management Audit
(C) Internal Audit
(D) Balance Sheet Audit

16. AS-15 deals with:

(A) Employee benefits
(B) Lease
(C) Construction contract
(D) Impairment of assets

17. Activity-Based Management aims at:

(A) Improving general management
(B) Eliminating non-value-adding activities
(C) Identifying costs with cost drivers
(D) Managing the normal loss

18. Business economics is microeconomics in character because:

(A) It studies the problems of an individual business unit
(B) It is related to resources
(C) It studies the market
(D) It influences national income

19. The main objective of a business firm is to:

(A) Undertake a process of production
(B) Undertake profit-making process
(C) Undertake social activities
(D) Undertake national activities

20. If a change in all inputs leads to a proportional change in output, it is a case of:
(A) Increasing returns to scale
(B) Constant returns to scale
(C) Diminishing returns to scale
(D) Variable returns to scale

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Answers

1 - (D) Discrimination
2 - (A) Secular disequilibrium
3 - (D) Language
4 - (D) One of the partners acquires complete stock of the other
5 - (A) David Ricardo
6 - (D) National union
7 - (D) To acquire benefits and tax concessions from the Govt.
8 - (D) Personalized sales contract
9 - (C) Franchising
10 - (D) Greenfield investment
11 - (D) Pre-paid salary account
12 - (C) Capital profit
13 - (C) ₹30,00,000
14 - (D) Proprietary Ratio
15 - (A) Statutory Audit
16 - (A) Employee benefits
17 - (B) Eliminating non-value-adding activities
18 - (A) It studies the problems of an individual business unit
19 - (B) Undertake profit-making process
20 - (B) Constant returns to scale

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Here are the remaining 80 multiple-choice questions with options, followed by their answers
at the end.

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MCQs (21-100)

21-30

21. The cost of retained earnings to the shareholders is basically:

(A) A dividend that would be paid to shareholders
(B) An interest that would be paid to the bank
(C) A marginal cost on capital invested
(D) An opportunity cost of such funds to shareholders

22. Which of the following is a technique of hedging?

(A) Swaps
(B) Options
(C) Futures
(D) Spot

23. The coefficient of correlation:

(A) Varies between +1 and -1
(B) Has no limit
(C) Can be less than -1
(D) Can be more than 1

24. Which of the following is not a probability sampling method?

(A) Quota sampling
(B) Cluster sampling
(C) Stratified sampling
(D) Systematic random sampling

25. Which Act governs specific banking functions in India?

(A) The Indian Coinage Act, 1906
(B) The Bankers' Books Evidence Act, 1891
(C) The Negotiable Instruments Act, 1881
(D) The Banking Companies Act, 1970/1980

26. Which section of the Information Technology Act, 2002 deals with hacking and its
penalties?
(A) Section 65
(B) Section 66
(C) Section 62
(D) Section 67

27. Which of the following is not a pricing method?

(A) Cost-based pricing
(B) Differentiated pricing
(C) Affordability-based pricing
(D) Leverage pricing
28. The habit of people to analyze information completely and interpret it is called:
(A) Self-actualization
(B) Selective attention
(C) Selective distortion
(D) Selective retention

29. Which of the following is not a type of digital banking?

(A) Unified Payment Interface (UPI)
(B) Internet Banking
(C) Mobile Banking
(D) Central Banking System

30. Which of the following refers to a company benefiting from a major event's publicity
without sponsoring it?
(A) Dependent marketing
(B) Survival marketing
(C) Ambush marketing
(D) Skill marketing

31-40

31. In which type of agreement do companies control production or prices?

(A) Cartel
(B) Exclusive distribution
(C) Resale price maintenance
(D) Tie-in arrangement

32. What is the purpose of tax planning?

(A) To evade taxes
(B) To legally minimize tax liability
(C) To delay tax payment indefinitely
(D) To avoid taxes entirely

33. Which section of the Right to Information (RTI) Act, 2005 is related to public authorities?
(A) Section 2(h)
(B) Section 2(n)
(C) Section 3
(D) Section 2(j)

34. Which of the following statements about intellectual property rights is false?
(A) Copyright protects literary and artistic works
(B) Trademarks protect brand names and logos
(C) Patents protect new inventions
(D) Copyright protects industrial designs

35. Under Income Tax, which income is not exempted from tax?
(A) Income from a farm house
(B) Property income of a local authority
(C) Property income of a political party
(D) Income from let-out house property

36. What is the full form of LLP in business structure?

(A) Limited Liability Partnership
(B) Large Listed Partnership
(C) Local Legal Partnership
(D) Limited Legal Policy

37. What does AS-15 in Accounting Standards relate to?

(A) Revenue recognition
(B) Employee benefits
(C) Accounting for leases
(D) Inventories

38. Which of the following is an example of a horizontal agreement?

(A) Cartel
(B) Exclusive distribution
(C) Resale price maintenance
(D) Tie-in arrangement

39. Which of the following is a non-diversifiable risk?

(A) Interest rate risk
(B) Purchasing power risk
(C) Market risk
(D) Operating risk

40. The statutory auditor of a company is appointed by:

(A) The CEO
(B) The Board of Directors
(C) The Shareholders
(D) The CFO

21 - (D) An opportunity cost of such funds to shareholders

22 - (D) Spot
23 - (A) Varies between +1 and -1
24 - (A) Quota sampling
25 - (C) The Negotiable Instruments Act, 1881
26 - (B) Section 66
27 - (D) Leverage pricing
28 - (B) Selective attention
29 - (D) Central Banking System
30 - (C) Ambush marketing
31 - (A) Cartel
32 - (B) To legally minimize tax liability
33 - (A) Section 2(h)
34 - (D) Copyright protects industrial designs
35 - (D) Income from let-out house property
36 - (A) Limited Liability Partnership
37 - (B) Employee benefits
38 - (A) Cartel
39 - (C) Market risk
40 - (C) The Shareholders

41. Which of the following factors does not affect the width of a confidence interval?
(A) Sample size
(B) Confidence level
(C) Population size
(D) Variability in the population

42. When an observation in a dataset is zero, its geometric mean is:

(A) Positive
(B) Zero
(C) Negative
(D) Cannot be calculated

43. Regression analysis is used to study:

(A) The degree of association between variables
(B) The variability of data
(C) The relationship between two or more variables
(D) The best alternative solution

44. A bag contains 8 white and 3 red balls. If two balls are drawn at random, what is the
probability that one is white and one is red?
(A) 3/55
(B) 28/55
(C) 24/55
(D) 4/55
45. Which type of hypothesis is tested in research?
(A) Null hypothesis
(B) Alternative hypothesis
(C) Both (A) and (B)
(D) Descriptive hypothesis

46. Which of the following is not included in the definition of a foreign bank?
(A) A bank with its headquarters in India and operations abroad
(B) A bank with its headquarters abroad and operations in India
(C) A bank headquartered abroad with no business in India
(D) A bank established abroad with a subsidiary in India

47. The Reserve Bank of India (RBI) influences liquidity and interest rates using various
tools. Which of the following is incorrect?
(A) Open Market Operations
(B) Repo Rate
(C) Changing Bank Rates
(D) Distorted Bank Policy

48. The concept of reinsurance means:

(A) Two companies undertake risk jointly
(B) One company transfers its risk to another insurer
(C) A company insures multiple risks
(D) A company reduces premium costs

49. A short-term promissory note issued at a discount by companies is called:

(A) Treasury Bill
(B) Commercial Paper
(C) Certificate of Deposit
(D) Credit Note

50. Which of the following is not a controllable variable in marketing?

(A) Price
(B) Consumer preferences
(C) Product
(D) Promotion

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51-60
51. The term Theory Z is related to which country’s management practices?
(A) Indian
(B) British
(C) Chinese
(D) Japanese

52. The main objective of Human Resource Management (HRM) is:

(A) Profit maximization
(B) Workforce utilization
(C) Employee satisfaction
(D) Process automation

53. A company's competitive advantage is achieved through:

(A) Lower costs
(B) Superior customer service
(C) Innovation
(D) All of the above

54. Liquidity risk refers to:

(A) The risk of not having enough cash to meet obligations
(B) The risk of investment fluctuation
(C) The risk of high taxation
(D) The risk of inflation

55. Which of the following is not a function of financial management?

(A) Investment decision
(B) Dividend decision
(C) Marketing strategy
(D) Capital structure decision

56. The balance sheet of a company shows:

(A) Revenues and expenses
(B) Financial position on a specific date
(C) Cash flows
(D) All of the above

57. Double-entry accounting means:

(A) Each transaction is recorded twice
(B) Every transaction has two equal effects
(C) Accounts are maintained in two sets of books
(D) All transactions involve two parties
58. Brand equity refers to:
(A) A company's physical assets
(B) Customer loyalty and reputation
(C) The price of a product
(D) A type of financial investment

59. Which of the following is not an example of a derivative instrument?

(A) Options
(B) Swaps
(C) Futures
(D) Bonds

60. A Zero-Coupon Bond:

(A) Pays interest annually
(B) Pays no interest and is issued at a discount
(C) Pays interest only at maturity
(D) Pays interest in monthly installments

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Answers (41-100)

41 - (C) Population size

42 - (D) Cannot be calculated
43 - (C) The relationship between two or more variables
44 - (B) 28/55
45 - (C) Both (A) and (B)
46 - (C) A bank headquartered abroad with no business in India
47 - (D) Distorted Bank Policy
48 - (B) One company transfers its risk to another insurer
49 - (B) Commercial Paper
50 - (B) Consumer preferences

51 - (D) Japanese
52 - (C) Employee satisfaction
53 - (D) All of the above
54 - (A) The risk of not having enough cash to meet obligations
55 - (C) Marketing strategy
56 - (B) Financial position on a specific date
57 - (B) Every transaction has two equal effects
58 - (B) Customer loyalty and reputation
59 - (D) Bonds
60 - (B) Pays no interest and is issued at a discount

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This completes all 100 multiple-choice questions with answers. Let me know if you need any
modifications or explanations.

Here are the remaining 40 multiple-choice questions with options, followed by their answers
at the end.

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MCQs (61-100)

61-70

61. A group of closely related products constitutes a:

(A) Product Mix
(B) Product Quality
(C) Product Line
(D) Uniformity

62. Which of the following is an example of a secondary market transaction?

(A) A company issuing new shares
(B) An investor buying shares from another investor on a stock exchange
(C) A company borrowing money from a bank
(D) A company selling assets to another company

63. The Reserve Bank of India (RBI) acts as a banker to:

(A) Public sector banks only
(B) The Government of India
(C) All private banks
(D) All insurance companies

64. Which type of unemployment occurs when there is a mismatch between workers' skills
and available jobs?
(A) Cyclical Unemployment
(B) Structural Unemployment
(C) Frictional Unemployment
(D) Seasonal Unemployment
65. Which of the following is a feature of monopolistic competition?
(A) A single seller in the market
(B) Free entry and exit
(C) Homogeneous product
(D) Absence of price competition

66. Which of the following is not an assumption of perfect competition?

(A) Large number of buyers and sellers
(B) Free entry and exit
(C) Product differentiation
(D) Perfect knowledge of the market

67. Which section of the Companies Act deals with Corporate Social Responsibility (CSR)?
(A) Section 125
(B) Section 135
(C) Section 145
(D) Section 155

68. In a market economy, the allocation of resources is determined by:

(A) The government
(B) Central planning authorities
(C) Market forces of demand and supply
(D) Political factors

69. Which financial statement provides information about a company’s revenues and
expenses over a period?
(A) Balance Sheet
(B) Cash Flow Statement
(C) Income Statement
(D) Shareholder’s Equity Statement

70. Which of the following is a function of the capital market?

(A) Short-term lending
(B) Long-term investment financing
(C) Providing overdraft facilities
(D) Regulating bank interest rates

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71-80
71. The Phillips Curve shows the relationship between:
(A) Inflation and unemployment
(B) Demand and supply
(C) GDP and economic growth
(D) Interest rates and consumption

72. Which financial ratio measures a company’s ability to meet its short-term liabilities?
(A) Profitability Ratio
(B) Liquidity Ratio
(C) Efficiency Ratio
(D) Debt Ratio
73. The function of a Central Bank is to:
(A) Issue currenc
(B) Regulate money supply
(C) Control inflation
(D) All of the above
74. Which of the following statements about inflation is true?
(A) Inflation increases the purchasing power of money
(B) Inflation decreases the cost of goods
(C) Inflation erodes the real value of money
(D) Inflation has no effect on interest rates
75. Which of the following financial instruments is considered the least risky?
(A) Common stocks
(B) Corporate bonds
(C) Government bonds
(D) Mutual funds
76. Which of the following is not a component of fiscal policy?
(A) Taxation
(B) Government spending
(C) Open market operations
(D) Public borrowing
77. Which of the following is an example of a fiscal deficit?
(A) When government revenue exceeds expenditure
(B) When government expenditure exceeds revenue
(C) When a company spends more than its earnings
(D) When a country’s exports exceed imports
78. The main purpose of monetary policy is to:
(A) Control inflation
(B) Increase budget deficits
(C) Reduce foreign investments
(D) Control population growth
79. Which organization is responsible for regulating stock markets in India?
(A) RBI
(B) SEBI
(C) IRDA
(D) NITI Aayog
80. Which economic indicator measures the total value of goods and services produced in a
country?
(A) GDP
(B) GNP
(C) CPI
(D) Inflation Rate
81. Which of the following is an indirect tax?
(A) Income Tax
(B) Corporate Tax
(C) GST
(D) Wealth Tax
82. A situation where a single buyer dominates the market is called:
(A) Monopoly
(B) Oligopoly
(C) Monopsony
(D) Cartel
83. Which type of elasticity measures the responsiveness of demand to income changes?
(A) Price Elasticity
(B) Income Elasticity
(C) Cross Elasticity
(D) Supply Elasticity
84. Which of the following is not a source of government revenue?
(A) Taxation
(B) Government borrowing
(C) Foreign aid
(D) Private sector investment
85. Which law states that "bad money drives out good money"?
(A) Say’s Law
(B) Gresham’s Law
(C) Law of Demand
(D) Keynes’ Law
86. Which of the following is an example of a trade barrier?
(A) Free trade agreement
(B) Tariffs
(C) Import subsidies
(D) Open markets
87. A measure of inflation that includes the cost of consumer goods and services is called:
(A) Consumer Price Index (CPI)
(B) Producer Price Index (PPI)
(C) Wholesale Price Index (WPI)
(D) Inflation Rate
88. Which financial market deals with short-term lending and borrowing?
(A) Capital Market
(B) Money Market
(C) Commodity Market
(D) Derivatives Market
89. Which organization publishes the Human Development Index (HDI)?
(A) World Bank
(B) United Nations Development Programme (UNDP)
(C) IMF
(D) WTO
90. Which financial statement reports a company’s financial position at a specific point in
time?
(A) Income Statement
(B) Balance Sheet
(C) Cash Flow Statement
(D) Equity Statement
91. Which of the following is an example of an indirect tax?
(A) Income Tax
(B) Corporate Tax
(C) Central Excise Duty
(D) Wealth Tax

92. The Law of Diminishing Returns applies to:

(A) Short-run production

(B) Long-run production
(C) Both short-run and long-run production
(D) None of the above

93. Which of the following is an example of a financial intermediary?

(A) Stock Exchange

(B) Mutual Funds
(C) Ministry of Finance
(D) Trade Unions
94. When the government increases spending to boost economic growth, it is called:
(A) Expansionary Fiscal Policy
(B) Contractionary Fiscal Policy
(C) Neutral Fiscal Policy
(D) Regulatory Fiscal Policy
95. The primary objective of monetary policy is to ensure:
(A) Higher GDP growth
(B) Trade balance
(C) Price Stability
(D) Government Revenue
96. A budgeting approach where all expenses must be justified for each new period is called:
(A) Capital Budgeting
(B) Fixed Budgeting
(C) Flexible Budgeting
(D) Zero-Based Budgeting
97. The interest rate at which the central bank lends money to commercial banks is called:
(A) Repo Rate
(B) Reverse Repo Rate
(C) Cash Reserve Ratio (CRR)
(D) Statutory Liquidity Ratio (SLR)
98. The concept that money received today is worth more than the same amount in the
future is known as:
(A) Marginal Utility of Money
(B) Time Value of Money
(C) Liquidity Preference Theory
(D) Purchasing Power Parity
99. The record of all economic transactions between residents of a country and the rest of
the world is called:
(A) Trade Balance
(B) Balance of Payments
(C) Foreign Exchange Reserve
(D) Import-Export Ratio
100. A situation where a country's imports exceed its exports is known as:

(A) Current Account Deficit

(B) Fiscal Deficit
(C) Trade Surplus
(D) Balance of Trade Stability
Answers (61-100)

61 - (C) Product Line

62 - (B) An investor buying shares from another investor
63 - (B) The Government of India
64 - (B) Structural Unemployment
65 - (B) Free entry and exit
66 - (C) Product differentiation
67 - (B) Section 135
68 - (C) Market forces of demand and supply
69 - (C) Income Statement
70 - (B) Long-term investment financing
71 - (A) Inflation and unemployment
72 - (B) Liquidity Ratio
73 - (D) All of the above
74 - (C) Inflation erodes the real value of money
75 - (C) Government bonds
76 - (C) Open market operations
77 - (B) When government expenditure exceeds revenue
78 - (A) Control inflation
79 - (B) SEBI
80 - (A) GDP
82 - (C) Monopsony
83 - (B) Income Elasticity
84 - (D) Private sector investment
85 - (B) Gresham’s Law
86 - (B) Tariffs
87 - (A) Consumer Price Index (CPI)
88 - (B) Money Market
89 - (B) United Nations Development Programme (UNDP)
90 - (B) Balance Sheet
91 - (C) Central Excise Duty
92 - (D) Law of Diminishing Returns
93 - (B) Mutual Funds
94 - (A) Expansionary Fiscal Policy
95 - (C) Price Stability
96 - (D) Zero-based Budgeting
97 - (A) Repo Rate
98 - (B) Time Value of Money 99 - (D) Balance of Payments 100 - (A) Current Account
Deficit