Business Administration Paper – 2003 Solved MCQs ICAR NET Set 1

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(1) Business risk is influenced by the firm’s decision to use debt in its financial structure.

(a) True

(b) False

Answer: (a)

(2) The most important function of management is controlling.

(a) True

(b) False

Answer: (a)

(3) A short term creditor would consider liquidity ratios to be more important than efficiency ratios.

(a) True

(b) False

Answer: (a)

(4) According to Maslow, when a need is satisfied, it tends to lose its ability to motivate.

(a) True

(b) False

Answer: (a)

(5) The term marketing mix refers to the degree of advertising Vs personal selling used to market product.

(a) True

(b) False

Answer: (b)

(6) The difference between an agent and a merchant wholesaler is that an agent always takes title but a merchant wholesaler does not.

(a) True

(b) False

Answer: (b)

(7) The management of working capital is required because of a lack of short term synchronization between demand and supply.

(a) True

(b) False

Answer: (a)

(8) A manager who believes that people inherently dislike work probably accepts McGregor’s Theory X.

(a) True

(b) False

Answer: (a)

(9) Inventory carrying costs can be minimized by carrying fewer units in inventory.

(a) True

(b) False

Answer: (a)

(10) A balance sheet is an accounting report used solely for the corporate form of business.

(a) True

(b) False

Answer: (b)

(11) For management, budgeting is perhaps the most powerful_____.

(a) Forecasting tool

(b) Control device

(c) Hiring tool

(d) Accounting measure

Answer: (b)