Introduction to business full book 2nd Test

Introduction to business full book 2nd test

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1 / 50

1. Profitability of a business can be measured through a key
variables such as

a) Revenue

b) Cost

c) Profit

d) All of the above

2 / 50

2. Which of the following terms best describes ‘The general
level of human happiness based on such thing as life
expectancy, educational standards, health, sanitation and
leisure time’?

a) Quality of business

b) Quality of life

c) Quality of Food

d) Management by objectives (MBO)

3 / 50

3. Which one of the following is not a source document?

a) Sale invoice

b) Purchase invoice

c) Ledger

d) Bank statement.

4 / 50

4. Which of the following best describes a vision statement?

a) Plan

b) Vision statement

c) Mission

d) Objective

5 / 50

5. A mission statement should be a clear and short statement. Which of the following questions should it include?

a) What is our value to the customer?

b) What will our business be?

c) What are our strategic goals?

d) All of the above

6 / 50

6. Which of the following is a not-for-profit organization.

a) Edhi Foundation

b) SECP

c) K-Electric

d) XYZ Pvt Ltd

7 / 50

7. The co-owners of a business are called partners and they collectively form a _______.

a) Corporation

b) General partnership

c) Company

d) Partnership firm

8 / 50

8. Which of the following statements is true for a Limited Liability Partnership (LLP)?

a) Liability is limited to the amount invested

b) Partners have unlimited liability

c) No partners are involved in management

d) Only one partner is liable

9 / 50

9. Corporations are characterized by:

a) Unlimited liability

b) Limited liability

c) Sole ownership

d) Small-scale operations

10 / 50

10. The operating system is an example of:

a) Primary storage

b) Secondary storage

c) Tertiary storage

d) All of the above

11 / 50

11. The main purpose of publishing annual financial reports is to

a) Attract customers

b) Show management accountability

c) Evaluate the company's internal culture

d) None of the above

12 / 50

12. Which theory suggests that leadership effectiveness depends on the interaction between the leader's style and the specific situation?

a) Trait theory

b) Contingency theory

c) Path-goal theory

d) Leader-member exchange theory

13 / 50

13. Which of the following is NOT a commonly accepted benefit of implementing CSR in business?

a) Increased brand loyalty

b) Reduced risk and regulatory scrutiny

c) Increased short-term profitability

d) Improved employee morale

14 / 50

14. Which of the following is a component of Porter's Five Forces?

a) Bargaining power of suppliers

b) Organizational culture

c) Legal constraints

d) Product life cycle

15 / 50

15. In Herzberg's two-factor theory, which of the following factors is considered a hygiene factor?

a) Recognition

b) Achievement

c) Salary

d) Responsibility

16 / 50

16. Which type of contract requires the free consent of both parties?

a) Voidable contract

b) Implied contract

c) Quasi-contract

d) Social contract

17 / 50

17. Which of the following is not an advantage of Optical Character Recognition (OCR)?

a) Accuracy

b) Cost efficiency

c) Scanning speed

d) None of the above

18 / 50

18. A power company's procurement and logistics aim to:

a) Ensure electricity distribution equals production

b) Provide items at competitive prices to business units

c) Reduce energy costs by efficient billing

d) Focus solely on end-user supply

19 / 50

19. The 4 Ps of the Marketing Mix include:

a) Product, Price, Promotion, People

b) Product, Price, Promotion, Place

c) Product, People, Process, Promotion

d) Product, Price, People, Position

20 / 50

20. The doctrine of 'Ultra Vires' means:

a) Acts done beyond the scope of company’s authority

b) Acts done within legal limits

c) Corporate liability

d) Breach of contract

21 / 50

21. Which of the following is essential for a valid contract?

a) Offer and acceptance

b) Consideration

c) Legal purpose

d) All of the above

22 / 50

22. political parties, lobby group, and schools are
_____ of ideas.

a) Professionals

b) Marketers

c) Advisors

d) Consultants

23 / 50

23. What is the basis of ascertaining the need for new
goods and services

a) Customer desire

b) Marketing research

c) Market segmentation.

d) Consumption of the product.

24 / 50

24. A person who volunteers for the company’s CSR
activity receives a souvenir or certificate in return
for the time spent. Is this an activity of marketing
or is this a process of exchange?

a) YES

b) NO

25 / 50

25. Which of the following best illustrates the concept of ‘opportunity cost’?

a) The financial loss incurred from a failed business venture

b) The potential benefits of the next best alternative when a decision is made

c) The depreciation of assets over time

d) The costs associated with environmental regulations

26 / 50

26. Which of the following is a direct effect of effective corporate governance on a company?

a) Improved market position

b) Increased executive compensation

c) Stronger investor confidence

d) Shortened decision-making timelines

27 / 50

27. What is the best example of “corporate social responsibility”?

a) Cutting operational costs

b) Adopting eco-friendly production methods

c) Improving employee productivity

d) Increasing shareholder dividends

28 / 50

28. Which of the following is true about the financial aspect of a business?

a) Debt financing is always cheaper than equity financing.

b) Equity financing never dilutes ownership.

c) Debt financing incurs interest obligations but does not dilute ownership.

d) Both debt and equity financing result in a dilution of ownership.

29 / 50

29. A business organization striving for profitability through ethical dealings aligns primarily with:

a) Corporate social responsibility

b) Short-term profit maximization

c) Visionary leadership

d) Market saturation

30 / 50

30. According to Kotler and Armstrong: Anything that
can be offered to a market for attention,
acquisition, use or consumption that must increase
want or need. It includes physical objects, services,
persons, places, organizations and ideas.

a) True

b) False

31 / 50

31. Which one of the following does not demonstrate
ethical labor practices

a) To give labour satisfactory wages.

b) To create interest towards work

c) To avoid their mistakes

d) To deal with them politely

32 / 50

32. Which of the following is not the element of
control system?

a) Comparator

b) Effecter

c) Integration

d) Standard

33 / 50

33. Which of the following IS system is used at middle
level management when tactical decisions are
taken

a) MIS, DSS

b) TPS

c) EIS

d) None of the above

34 / 50

34. Cheaques and deposit slip are the examples of
_______

a) Transaction processing system

b) Magnetic ink character recognition

c) Magnetic input character recognition

d) Optical mark reading

35 / 50

35. _______ which is normally integrated
with ________ and allows credit and debit cards to
be read for instant payment for good

a) Electronic point of scale, QR code

b) Barcode, QR code

c) Electronic point of scale, Barcodes

d) None

36 / 50

36. Short term finance is used to finance current
assets and _______

a) Noncurrent assets

b) To pay off liabilities.

c) Support operation

d) All of above

37 / 50

37. Short term financing is shown as a_________ on
the balance sheet.

a) Current assets

b) Current liability

c) Quick assets

d) Noncurrent liability

38 / 50

38. ABC company manufacture only one product, for
business expansion the company intends to
expand its

a) Short term debt financing

b) Long term finance

c) Operating leases

d) All of the above

39 / 50

39. Which of the following is a characteristic of a highly decentralized organizational structure?

a) Centralized decision-making

b) Low operational efficiency

c) High degree of autonomy for local branches

d) Limited external partnerships

40 / 50

40. Which of the following would be most affected by changes in consumer behavior?

a) Customer satisfaction scores

b) Sales and revenue targets

c) Organizational structure

d) Internal communication strategies

41 / 50

41. Strategic fit in HRM refers to:

a) Aligning HR policies with the business strategy and external environment

b) Matching HR policies with industry trends

c) Benchmarking HR policies with competitors

d) Adjusting HR strategies quarterly

42 / 50

42. Outsourcing HR functions like payroll can best be categorized as a:

a) Strategic activity

b) Cost-cutting measure for non-strategic HR functions

c) Comprehensive employee engagement approach

d) Core strategic HR function

43 / 50

43. Which of the following function close collaboration
is necessary with production within the
organization. Which of the following function close collaboration
is necessary with production within the
organization.

a) Marketing

b) Finance

c) Human Resource Management.

d) All of the above

44 / 50

44. What is the main purpose of a Gantt Chart in manufacturing operations?

a) Monitor financial performance

b) Schedule and track project timelines

c) Analyze quality control data

d) Manage inventory levels

45 / 50

45. Which metric is crucial for assessing the efficiency of a manufacturing process?

a) Current ratio

b) Inventory turnover ratio

c) Gross profit margin

d) Return on assets

46 / 50

46. The balanced scorecard approach in a manufacturing company focuses on:

a) Financial profitability only

b) Integrating financial, customer, internal processes, and learning/growth measures for balanced management

c) Operational expansion and reduced inventory levels

d) Operational expansion and reduced inventory levels

47 / 50

47. Which costs are most relevant in a make-or-buy decision?

a) Sunk costs and fixed costs

b) Incremental costs, opportunity costs, and relevant future costs

c) Historical production costs only

d) Fixed overheads that do not change with production level

48 / 50

48. The Theory of Constraints (TOC) is best applied when:

a) There are multiple production lines with uniform output

b) Identifying the critical process that limits overall system throughput and focusing on its improvement

c) Costs are fixed across all production processes

d) All processes operate independently without impacting others

49 / 50

49. A cost driver in activity-based costing (ABC) is:

a) A fixed operational expense unrelated to production

b) An element that affects both variable and fixed costs equally

c) A specific factor that influences the total cost of an activity or product line

d) Any cost that is independent of product volume

50 / 50

50. What is the primary objective of a Just-In-Time (JIT) inventory system?

a) Increase storage costs

b) Reduce production lead time

c) Minimize inventory levels

d) Improve labor efficiency

Your score is

The average score is 61%

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