CHAPTER 1 : BUSINESS ORGANISATION AND THEIR STAKE HOLDER

1. Which are/is advantages of limited company ?

i. Less money available for investment
ii. Reduces risk for investors
iii. Separate legal personality
iv. There is a restriction on size
A. iii only
B. i and ii only
C. ii and iii only
D. All above
2. Statement 1 : NGO is a legally constituted organization of people acting together
dependently from any form of government.
Statement 2 : Mutual associations are owned by their members rather than outside
investor.
Are the following statement true or false?
A. Both statement are true
B. Statement 1 is true, statement 2 is false
C. Statement 1is false, statement 2 is true
D. Both statement are false
3. i. Tax increase
ii. Regulations
iii. Legal action
iv. Publicity
As an external stakeholder, what government can do?
A i and iii only
B. i, iii and iv only
C. i , ii and iii only
D. ii , iii and iv only

4. Which of the following statements is false?

A. Organisation overcome peoples individual limitations whether physical and
intelectual
B. Organisation enable people to specialize in what they do best
C. Executive directors are not participate in the daily operations of organization
D. Non-executive directors are invited to join in an advisory capacity
5. How organisation can be differ?
i. Control
ii. Size
iii. Technology
iv Ownership
A. i, ii and iv only
B. ii , iii and iv only
C. ii and iv only
D. All above
6. Public sector company is owned by?
A. Government
B. Foreigner
C. Local
D. NGOs
7. What type of industry which converting one resources into another?
A. service sector
B. Agriculture
C. Manufacturing
D. Energy

CHAPTER 2: BUSINESS ENVIRONMENT

1. Why organisation encourage retirement?
A. To overcome peoples individual limitation
B. More money available for investment
C. Promotion opportunities for younger worker
D. To increase labour efficiency
2. What are the types of outsourcing?
i. Total
ii. Ad-Hoc
iii, Project management
iv. Sub-partial
A. i and ii only
B. ii , iii and iv only
C. i , ii and iii only
D. All above
3. What is disadvantage of outsourcing?
A. Long term contracts encourage planning for future.
B. It is risky to let outsider handle as company may have highly confidential
information
C. Outsourcing can remove uncertainty about cost, as there is often a long
term contract
D. A specialist organization is able to retain skills and knowledge.
4. Which of the following are internal appraisal?
i. Strength
ii. opportunities
iii. Weakness
iv. Threats
A. i and ii only

B. i and iii only

C. i , ii and iii only
D. ii and iv only
5. Which are/is the aim of Corporate social responsibility
i. Ensure that organization take responsibility for their actions
ii. Encourage positive impact on the environment
iii. Encourage organization to do right thing
iv. Help organisation to think sustainability
A. i and iv only
B. i and iii only
C. ii,iii and iv only
D. All above
6. Linkages connect the activities of the value chain. Are the following statements true
or false?
Statement 1 : Activities in the value chain does not effect one another
Statement 2 : Linkages require co-ordination
A. Statement 1 is false and statement 2 is true
B. Statement 2 is false and statement 1 is true
C. Both statement are true
D. Both statement are false
7. Which one is primary activity?
A. Marketing and Sales
B. Human resource management
C. Procurement
D. Firm infrastructure
8. What is the function of inbound logistics?

A. Storing the product and its distribute to customer

B. Convert resource inputs into final product
C. Installing products, repairing them and upgrading them
D. Receiving, handling and storing inputs to the production system
9. What are the effects of IT on organisation?
i. Reliance on IT
ii. Routine processing
iii. New method of communication and providing customer services
iv. The view of information as invaluable resources
A. i and iv only
B. i,ii and iii only
C. i and iii only
D. All above

CHAPTER 3 : MACRO ECONOMIC ENVIRONMENT

1. Which statement is/are true ?
Statement 1 : Fiscal policy provides a method of managing aggregate demand in
the economy
Statement 2 : Monetary policy uses money supply, interest rates or debit controls
to influence aggregate demand
A. Statement 1 is true and statement 2 is wrong
B. Both statement are true
C. Both statement are wrong
D. Statement 2 is true and statement 1 is wrong
2. Economic growth may be measured by increases in the real gross national product
(GNP) per head of the population.
Which one of the following is not advantages of economic growth?
A. Much economic activity tends to create pollution, such acid rain and nuclear
waste.
B. Growth implies slower use of natural resources.
C. There is a danger that some sections of the population, unable to adapt to the
demands for new skills and more training, will be unemployed in the
developing economy
D. In the short run, therefore, higher growth requires a cut in consumption.
3. Which of the following are causes of inflation?
i)

Cost push factors

ii)

Demand pull factors

iii)

Supply pull factors

iv)

Expectations

A. i, ii, and iii only

B. all above
C. i, ii and iv only
D. i, iii and iv only

Which of the following is not an injection into the circular flow?

A. Investment spending
B. Import demand
C. Export demand
D. Government spending

Which are/is statement true?

Statement 1 : During recovery and boom years, the demand for output and jobs is low and
unemployment is high.

Statement 2 : During decline and recession years , the demand for output and jobs falls, and
unemployment falls to a low level .
A. Statement 1 true , statement 2 false
B. Statement 1 false , statement 2 true
C. Both statements are true
D. Both statements are false