Category: Commerce Objective Questions

MCQs on Business Studies: Below are the list of Commerce MCQs and Answers as per the new syllabus. Business Studies and enhance your subject knowledge.

Business Studies MCQs for CBSE Class 11th and 12th :

1. Out of four points which is not an economic activity?
(A) Production
(B) Social service
(C) Professional
(D) Trading in goods

Answer

Answer: (B)

2. Which option is not a business activity?
(A) Production of goods
(B) Transportation
(C) Exchange of goods
(D) Work in a factory for wages

Answer

Answer: (D)

3. Which of the following is the characteristic of a business?
(A) Production
(B) Exchange or sale
(C) Risk element
(D) All the above

Answer

Answer: (D)

4. Oil refinery and sugar mill are classified under which industries?
(A) Primary
(B) Secondary
(C) Tertiary
(D) None of the above

Answer

Answer: (B)

5. Identify the activity which does not support trade?
(A) Banking
(B) Warehousing
(C) Insurance
(D) Mining

Answer

Answer: (D)

6. In which occupation people get salary or wages in return for their word?
(A) Employment
(B) Business
(C) Profession
(D) None of the above

Answer

Answer: (A)

7. Which item does not cause any business risk?
(A) Breakdown of machinery
(B) Efficient management
(C) Riot
(D) Changing government policy

Answer

Answer: (D)

8. In which business, the support service activities are categorized?
(A) Commercial industries
(B) Primary industries
(C) Secondary industries
(D) Tertiary industries

Answer

Answer: (D)

9. In business, why it is essential to make a profit?
(A) It provides a return to investors.
(B) It provides funds for future extension
(C) It increases the reputation of a company
(D) All the above

Answer

Answer: (D)

10. Which of the following is a false statement?
(A) The scope of commerce is narrower than business.
(B) Commerce includes trade and auxiliaries to trade.
(C) Foreign trade is purchase and sale by the traders of the same country.
(D) Traders serve as a link between producers and consumers.

Answer

Answer: (C)

11. Which of the following is not a management function.
(A) Planning
(B) Staffing
(C) Cooperating
(D) Controlling

Answer

Answer: (C)

12. Policy formulation comes under which role?
(A) Top-level managers
(B) Middle-level managers
(C) Operational management
(D) All of the above

Answer

Answer: (A)

13. Management is defined as?
(A) An art
(B) A science
(C) Both art and science
(D) None of the above

Answer

Answer: (C)

14. Which of the below-mentioned item does not follow the scalar chain?
(A) Functional structure
(B) Divisional structure
(C) Formal organization
(D) Informal organization

Answer

Answer: (D)

15. What is Centralisation?
(A) Retention of decision-making authority
(B) Dispersal of decision-making authority
(C) Creating division as a profit centre
(D) Opening the new centre of braches

Answer

Answer: (A)

16. To have an effective delegation is important to have a responsibility along with?
(A) Authority
(B) Manpower
(C) Incentives
(D) Promotion

Answer

Answer: (A)

17. Grouping of activities on the basis product lines is a part of.
(A) Delegated organization
(B) Divisional organization
(C) Functional organization
(D) Autonomous organization

Answer

Answer: (B)

18. Policy formulation is a task of?
(A) Top-level managers
(B) Middle-level managers
(C) Operational management
(D) All of the above

Answer

Answer: (A)

19. Which of the element is not a part of the communication process?
(A) Decoding
(B) Communication
(C) Channel
(D) Receiver.

Answer

Answer: (B)

20. Name the process that converts a message into communication symbols
(A) Media
(B) Encoding
(C) Feedback
(D) Decoding

Answer

Answer: (B)

MCQs on Goods and Services Tax: Below are the list of Commerce MCQs and Answers as per the new syllabus. Ace up your preparation with the Objective Questions available on GST Objective Questions.

MCQs on Goods and Services Tax :

1. What is the full form of GST?
(A) Goods and Supply Tax
(B) Goods and Services Tax
(C) General Sales Tax
(D) Government Sales Tax

Answer

Answer: (B)

2. GST was implemented in India from
(A) 1st January 2017
(B) 1st April 2017
(C) 1st March 2017
(D) 1st July 2017

Answer

Answer: (D)

3. In India, the GST is a dual model of
(A) UK
(B) Canada
(C) USA
(D) Japan
(e) China

Answer

Answer: (B)

4. GST is a consumption of goods and service tax based on
(A) Development
(B) Dividend
(C) Destiny
(D) Duration
(e) Destination

Answer

Answer: (e)

5. India’s GST structure are based on how many structures?
(A) 6
(B) 4
(C) 3
(D) 5

Answer

Answer: (B)

6. The maximum rate for CGST is?
(A) 28
(B) 12
(C) 18
(D) 20

Answer

Answer: (D)

7. The maximum rate for SGST/UTGST is?
(A) 28
(B) 14
(C) 20
(D) 30

Answer

Answer: (C)

8. The maximum rate for SGST/UTGST is?
(A) 28
(B) 14
(C) 20
(D) 30

Answer

Answer: (C)

9. Which code is used to classify goods and services under GST?
(A) HSN Code
(B) SAC/HSN Code
(C) GST Code
(D) SAC Code

Answer

Answer: (B)

10. What does “I” in IGST stands stand for?
(A) Internal
(B) Intregrated
(C) Internal
(D) Intra

Answer

Answer: (B)

MCQ Questions on Retirement and Death of a Partner: Below are the list of Commerce MCQs and Answers as per the new syllabus. Ace up your preparation with the Objective Questions available on Retirement and Death of a Partner Objective Questions. Understand the concept clearly by consistently practicing the Multiple Choice Questions and score well in your exams.

MCQs on Retirement and Death of a Partner :

1. Retiring partner is compensated for parting with the firm’s future profits in favour of remaining partners. The remaining partners contribute to such compensation amount in
(A) Gaining Ratio
(B) Capital Ratio
(C) Sacrificing Ratio
(D) Profit-Sharing Ratio

Answer

Answer: (A)

2. How is goodwill recorded on the retirement of a partner?

A) Remaining Partner’s Capital A/cs	Dr. (In gaining ratio)
To Retiring Partner’s Capital A/c	(with his share of goodwill)
B) Remaining Partner’s Capital A/cs	Dr. (In new ratio)
To Retiring Partner’s Capital A/c	(with his share of goodwill)
C) Goodwill A/c	Dr.
To AllPartner’s Capital A/cs	(In old ratio)
D) Goodwill A/c	Dr.
To Retiring Partner’s Capital A/c	(with his share)

Answer

Answer: (A)

3. A, B, and C are partners in 3:4:2. B wants to retire from the firm. The profit on revaluation on that date was ₹36,000. The new ration of A and C is 5:3. Profit on revaluation will be distributed as
(A) A ₹16,000, B ₹12,000, C ₹8,000
(B) A ₹12,000, B ₹16,000, C ₹8,000
(C) A ₹22,500, C ₹13,500
(D) A ₹23,625, C ₹12,375

Answer

Answer: (B)

4. A, B, and C share profits and losses of the company equally. B retires form business and his share is purchased by A and C in the of 2:3. New profits sharing ratio between A and C respectively would be
(A) 01:01
(B) 02:02
(C) 07:08
(D) 03:05

Answer

Answer: (C)

5.P, Q, and R have been sharing profits in the ration of 8:5:3. P retires. Q takes 3/16th share from P and R take 5.16th share from P. New profit sharing ratio will be
(A) 01:01
(B) 10:6
(C) 9:7
(D) 5:3

Answer

Answer: (A)

6. A, B, and C are equal partners. C retires. He surrenders 3/5th of his share in favour of A and 2/5th in favour of B. New ratio will be
(A) 3:2
(B) 8:7
(C) 7:8
(D) 2:3

Answer

Answer: (B)

7. P, Q, and R are sharing profit and losses equally. R retires and the goodwill is appearing in the book at ₹30,000. Goodwill of the firm is valued at ₹1,50,000. Calculate the net amount to be credited to R’s capital A/c
(A) ₹ 60,000
(B) ₹ 50,000
(C) ₹ 40,000
(D) ₹ 10,000

Answer

Answer: (C)

8. A, B, and C are partners with profit sharing ratio 4:3:2. B retires and goodwill was valued ₹1,08,000. If A and C share profits in 5;3, find out the goodwill shared A and C in favour of B
(A) ₹ 22,500 and ₹ 13,500
(B) ₹ 16,500 and ₹ 19,500
(C) ₹ 67,500 and ₹ 40,500
(D) ₹ 19,500 and ₹ 16,500

Answer

Answer: (D)

9. A, B, and C are partners in a company sharing profit and loss in the ratio of 2:2:2. On March 31, 2018, C died. Accounts are closed on December 31st every year. The sale for the year 2017 was ₹6,00,000 and profits were ₹60,000. The sales for the period from Jan 1, 2018, to March 31, 2018, were ₹2,00,000. THe shareof the deceased partner in the current year’s profits on the basis of sale is
(A) ₹20,000
(B) ₹8,000
(C) ₹3,000
(D) ₹4,000

Answer

Answer: (D)

10. A, B, and C were partners sharing profit and loss in the ratio of 2:2:1. Books are closed on 31st March every year. C dies on the 5th of November 2018. Under the partnership deed, the executors of the deceased partner are entitled to his profit to the date of death, calculated on the basis of last year’s profit. Profit for the year ended 31st March 2018 was ₹2,40,000. C’s share of profit will be
(A) ₹28,000
(B) ₹32,000
(C) ₹28,800
(D) ₹48,000

Answer

Answer: (C)

MCQs on Statistics: Below are the list of Commerce MCQs and Answers as per the new syllabus. Ace up your preparation with the Objective Questions available on Statistics Objective Questions.

MCQs on Statistics :

1. A numerical value used as a summary measure for a sample, such as a sample mean, is known as a
(A) Population Parameter
(B) Sample Parameter
(C) Sample Statistic
(D) Population Mean

Answer

Answer: (C)

2. Statistics branches include
(A) Applied Statistics
(B) Mathematical Statistics
(C) Industry Statistics
(D) Both A and B

Answer

Answer: (D)

3. To enhance a procedure the control charts and procedures of descriptive statistics are classified into
(A) Behavioural Tools
(B) Serial Tools
(C) Industry Statistics
(D) Statistical Tools

Answer

Answer: (A)

4. Sample statistics are also represented as
(A) Lower Case Greek Letter
(B) Roman Letters
(C) Associated Roman Alphabets
(D) Upper Case Greek Letter

Answer

Answer: (B)

5. Individual respondents, focus groups, and panels of respondents are categorised as
(A) Primary Data Sources
(B) Secondary Data Sources
(C) Itemized Data Sources
(D) Pointed Data Sources

Answer

Answer: (A)

6. The variables whose calculation is done according to the height, length, and weight are categorised as
(A) Discrete Variables
(B) Flowchart Variables
(C) Measuring Variables
(D) Continuous Variables

Answer

Answer: (A)

7. A method used to examine inflation rate anticipation, unemployment rate, and capacity utilization to produce products is classified as
(A) Data Exporting Technique
(B) Data Importing Technique
(C) Forecasting Technique
(D) Data Supplying Technique

Answer

Answer: (C)

8. Graphical and numerical methods are specialized process utilized in
(A) Education Statistics
(B) Descriptive Statistics
(C) Business Statistics
(D) Social Statistics

Answer

Answer: (B)

9. The scale applied in statistics which imparts a difference of magnitude and proportions is considered as
(A) Exponential Scale
(B) Goodness Scale
(C) Ratio Scale
(D) Satisfactory Scale

Answer

Answer: (C)

10. Review of performance appraisal, labour turnover rates, planning of incentives, and training programs and are examples of
(A) Statistics in Production
(B) Statistics in Marketing
(C) Statistics in Finance
(D) Statistics in Personnel Management

Answer

Answer: (D)

MCQs on Indian Economy: Below are the list of Commerce MCQs and Answers as per the new syllabus. Indian Economy Objective Questions. Understand the concept clearly by consistently practicing the Multiple Choice Questions and score well in your exams.

MCQs on Indian Economy :

1. What option does the central government does not include in development expenditure?
(A) Grant to States
(B) Expenditure on Social and Community Services
(C) Expenditure on Economic Services
(D) Defence Expenditure

Answer

Answer: (D)

2. Depreciation is defined as
(A) destruction of a plant in a fire accident
(B) loss of equipment over time due to wear and tear
(C) closure of a plant due to labour trouble
(D) closure of a plant due to lockout

Answer

Answer: (B)

3. In general, deficit financing can create inflation, but it can be checked if.
(A) Government expenditure increases the aggregate supply in the aggregate demand ratio
(B) All the investment is indicated as payment on national debt only
(C) Only aggregate demand is increased
(D) All of the above

Answer

Answer: (D)

4. On July 12, 1982, The ARDC collaborated with
(A) NABARD
(B) EXIM Bank
(C) RBI
(D) None of the above

Answer

Answer: (A)

5. What is the main cause of exports surplus?
(A) Country’s stringent import policy
(B) Developments in national and international markets
(C) Country’s exports promotion value
(D) None of the above

Answer

Answer: (B)

6. If RBI reduces the cash reserve ratio, the credit creation will
(A) No impact
(B) Decrease
(C) Increase
(D) None of the above

Answer

Answer: (C)

7. Which option is not mentioned in a firms balance sheet?
(A) Cash held at the bank
(B) Revenue from sales of the company’s products
(C) Total issued capital
(D) Value of stocks of raw materials held

Answer

Answer: (B)

8. The state financial corporation in the State bank of India gives assistance especially to
(A) Medium and Small-scale Industries
(B) Large-scale Industries
(C) Cottage Industry
(D) Agricultural Farms

Answer

Answer: (A)

9. The central co-operative banks are directly associated with
(A) Central Government
(B) Land Development Banks
(C) State Co-operative Banks
(D) Farmers

Answer

Answer: (C)

10. The first complete Indian Bank was established in the year.
(A) 1794
(B) 1894
(C) 1896
(D) 1902

Answer

Answer: (B)