Business Growth For Government Policies Multiple Choice Question MCQ

Categories: BUSINESS EDUCATION


1. Industrial policy was reformed first through the Industrial Policy in _________, which opened up the foreign Capital inflow.

(a) 1949

(b) 1951

(c) 1991

(d) 2015

Answer: (c) 1991


2. What was the reason behind re-forms by the Government in 1991?

(a) Dysfunctions in Economy.

(b) Poor efficiency and low productivity in public sector undertakings

(c) Strong trade – Unionism which has crippled the growth of private sector

(d) All of these

Answer: (d) All of these


3. Upto 1991, The Government of India took huge loans from the source:

(a) Asian Development Bank

(b) World Bank

(c) IMF

(d) All of the above

Answer: (d) All of the above


4. In 1992, some of the Public Sec-tor Enterprises were first corporatized and process was started to sold a large chunk of shares to public. This process may be regarded as :

(a) Merger

(b) Disinvestment

(c) Globalization

(d) Sell-off

Answer: (b) Disinvestment


5. In the mid – 1980s, the Soviet Union got broken and _________ independent States were formed.

(a) 7

(b) 11

(c) 15

(d) 21

Answer: (c) 15


6. In 1992, the Government of India took revolutionary steps to open up the economy. Which one of the following is part of such steps?

(a) Massive Change in economic policy

(b) Priority given to Public Sector

(c) Loss making Public Sector Enterprises were closed or divested

(d) All of these.

Answer: (d) All of these.



7. _________ emanates from decision and _________ is taken in line with _________.

(a) Policy, decision and goal

(b) Goal, Policy and Rules

(c) Rules, Policy and goal

(d) Rules, goal and Policy

Answer: (a) Policy, decision and goal


8. Which one of the following Statement is Correct?

(a) Decisions are not based on Policy.

(b) All decisions can be categorized as the matters of policy.

(c) All the decisions that are taken cannot be categorized as matter of policy.

(d) There is no relation between decision and policy.

Answer: (c) All the decisions that are taken cannot be categorized as matter of policy.


9. A decision is the _________ of making a _________.

(a) Act, Choice

(b) Impact, Policy

(c) Effect, decision

(d) Rule, decision.

Answer: (a) Act, Choice


10. There are many policies of the Government having vast areas of op-eration affecting the general welfare and development of the society as a whole. These policies have been for-mulated keeping in view the:

(a) Prime Character of the Indian Constitution

(b) Socio-economic problems

(c) Level of moral values of the so-ciety

(d) All of these

Answer: (d) All of these


11. The Union Government through different Ministries and various Regulatory Institutions may issue _________.

(a) Codes

(b) Guidelines

(c) Statutes

(d) Any of these.

Answer: (d) Any of these.


12. Which one of the following is the example of distributive policies of the Government?

(a) Adult Education Programme

(b) Food Relief

(c) Social insurance & immunization camps

(d) All of these

Answer: (d) All of these



13. _________ are concerned with regulation of national and foreign trade, business, safety measures, public utilities, etc.

(a) Regulatory Rules

(b) Regulatory Policies

(c) Regulatory Act

(d) Distribute Policies

Answer: (b) Regulatory Policies


14. _________ can be in the area of public distribution to people below poverty line, public welfare, justice for women, health services, etc.

(a) Regulatory Policies

(b) Distributive Policies

(c) Distributive Decisions

(d) None of these

Answer: (b) Distributive Policies


15. Which one of the following is not a regulatory institution?

(a) RBI

(b) Ministry of Commerce

(c) SEBI

(d) IRDA

Answer: (b) Ministry of Commerce


16. Government holds responsibility and private sector handles fully and partly the delivery of product and services.

(a) Delegation

(b) Divestment

(c) Displacement

(d) Disinvestment

Answer: (a) Delegation


17. In case of NOCIL (National Or-ganic Chemicals Industries Limited), the Reliance Industries Limited as a private enterprise expanded and gradually displaced the Government entity. It was a case of:

(a) Partial Disinvestment

(b) Complete Privatization

(c) Delegation

(d) Displacement

Answer: (d) Displacement


18. What was the main objective of privatization in India?

(a) To Raise revenues to ease the fiscal crunch

(b) To improve the profitability and efficiency of the divested enter-prises

(c) Both (a) & (b)

(d) None of these

Answer: (c) Both (a) & (b)


19. Which of the following is not a type of Privatization?

(a) Delegation

(b) Displacement

(c) Disinvestment

(d) De-merger.

Answer: (d) De-merger.


20. Sale of 50% stake in a PSU to a single private sector company is an example of:

(a) Displacement of stake

(b) Decentralization of Authority

(c) Delegation of stake

(d) Disinvestment to form a Joint Venture

Answer: (d) Disinvestment to form a Joint Venture