Business Basic Multiple Choice Question MCQ
Categories: BUSINESS Multiple Choice Question
1. Which of the following is not an economic activity? (a) Production (b) Social service (c) Professional (d) Trading in goods 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: 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: D 4. Oil refinery and sugar mill are classified under which industries? (a) Primary (b) Secondary (c) Tertiary (d) None of the above Answer: B 5. Identify the activity which does not support trade. (a) Banking (b) Warehousing (c) Insurance (d) Mining Answer: D 6. In which occupation do people get salary or wages in return for their work? (a) Employment (b) Business (c) Profession None of the above 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: B 8. In which business, the support service activities are categorized? (a) Commercial industries (b) Primary industries (c) Secondary industries (d) Tertiary industries Answer: D 9. In business, why is it 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: 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: C 11. Which of the following is not a management function? (a) Planning (b) Staffing (c) Cooperating (d) Controlling 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: A 13. Management is defined as? (a) An art (b) A science (c) Both art and science (d) None of the above Answer: C 14. Which of the below-mentioned items does not follow the scalar chain? (a) Functional structure (b) Divisional structure (c) Formal organisation (d) Informal organisation 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 branches 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: 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: 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: A 19. Which of the elements is not a part of the communication process? (a) Decoding (b) Communication (c) Channel (d) Receiver. Answer: B 20. Name the process that converts a message into communication symbols. (a) Media (b) Encoding (c) Feedback (d) Decoding Answer: B