300+ TOP Business Studies MCQs and Answers Online Quiz

Business Studies Multiple Choice Questions

1. Regarding specifications limits and control limits for quality it can be said that:

a. both are one and the same

b. control limits are wider than the specification limits

c. specification limits are wider than control limits

d. None of the above

2. Assemble line balancing aims to achieve desired production rate accompanied by

a. maximum utilization of the plant and machinery

b. maximum utilization of the workforce

c. minimum inventories of raw materials and work in progress

d. None of the above

3. The main characteristic of functional organization is:

a. Its structure is based on specialization

b. Line officers act on the advice of specialists

c. Orders flow in a line from top to bottom

d. The ultimate responsibility of all tasks is held by a top officer

4. Management By Objectives (MBO) is:

a. Result Oriented Philosophy

b. Concept of leadership

c. Bureaucratic Approach

d. A process of determination of objectives

5. Main functions of financial management is/are

a. Financial planning

b. Procurement of funds

c. Allocation of net profits

d. All of these

6. As per quantitative concept working capital means:

a. Total of current assets

b. Difference of current assets and current liabilities

c. Excess of current Assets over current liabilities

d. All the above

7. ________ is/are fixed working capital

a. Minimum stock of raw materials

b. Minimum stock of finished goods

c. Minimum bank balance

d. All the above

8. Essential elements of a business plan include

a. Description of the product or service

b. Details of the management

c. Financial projections

d. All of the above

9. Requirement of ________ working capital changes due to fluctuation in demand.

a. fixed

b. variable

c. circulating

d. operating

10. Capital budgeting is a part of

a. Receivable management

b. Investment decision

c. Dividend decision

d. Capital Structure

11. ________ entrepreneur neither introduce new changes nor adopt new methods innovated by others

a. Technical

b. Fabian

c. Induced

d. Business

12. Special Economic Zone (SEZ) concept was first introduced in

a. China

b. Japan

c. India

d. England

13. Aggregate production planning involves:

a. defining objectives of the organization and setting priorities to attain these

b. studying strength, weakness, opportunities of and threats to the organization and planning the system accordingly

c. Both a. and (B)

d. None of the above

14. Forward scheduling and backward scheduling are:

a. finite loading systems

b. infinite loading systems

c. short – intervals scheduling techniques

d. techniques used for planning production in MRP system

15. The following is not the principle of organization

a. Principle of strategy

b. Principle of coordination

c. Principle of ultimate responsibility

d. Principle of delegation

16. The principles of ‘unity of command’ connote that:

a. An employee should receive orders from only one superior

b. There should be one plan for one group

c. A department should have only one boss

d. Regarding one plan only one officer should issue the instructions

17. Which one is not included in financial management

a. Procurement of finances

b. Co. ordination in organisation

c. Financial control

d. None of these

18. As per quantitative concept, working capital means:

a. Total of current assets

b. Difference of current Assets and current liabilities

c. Excess of fixed assets over current liabilities

d. All the above

19. Nature of seasonal working capital is:

a. short. term

b. medium. term

c. long. term

d. variable

20. Excess working capital is the evidence of

a. Ideal funds

b. defective credit policy

c. Managerial inefficiency

d. All the above

21. Profitability Index is most closely related with

a. accounting rate of return

b. internal rate of return

c. net present value

d. payback period

22. Corporate social responsibility is about:

a. The ethical rights and duties between a company and its host societies.

b. Moral rights and duties between a company and its shareholders

c. Quality of leadership of organizations

d. Misuse of corporate ethics policies

23. Aggregate production planning is for

a. Short term horizon

b. Intermediate time horizon

c. Long time horizon

d. None of the above

24. The object of control is:

a. To know current business trends

b. To supervise effectively

c. To take corrective action after knowing deviations

d. To check the repetitions of faults

25. The following is not a component of planning :

a. Objectives

b. Programmes

c. Strategy

d. Forecasting

26. Contingency management concept assumes that:

a. A best method of doing work can be determined in management

b. Management depends on traditions

c. Management depends on personal ability and skills, not on circumstances

d. There is no single way to manage in all circumstances

27. The objectives of financial management is/are

a. Profit maximization

b. Wealth maximization

c. A and B both

d. None of the above

28. According to operating cycle concept, working capital is:

a. networking capital

b. circulating capital

c. operating capital

d. required liquid part of net working capital during operating cycle method

29. Adequate working capital is required for

a. Prompt payment to suppliers

b. Increase in credit

c. Exploitation of favorable opportunities

d. All of above

30. Forecasting of working capital is based on _________ according to net current assets method

a. cash cost

b. credit sales

c. total cost

d. credit policy

31. The entrepreneur who does not change the method of production already introduced is

a. Drone entrepreneur

b. Fabian entrepreneur

c. Classical entrepreneur

d. None of the above

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