Business Administration Paper – 2004 Solved MCQs ICAR NET Set 2

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(13) If a manufacturer gives a 30 percent discount to retailers and a 10 percent discount to wholesalers, which type of discount is being given?

(a) Quantity

(b) Cash

(c) Functional (also called trade discount)

(d) Seasonal

Answer: (c)

(14) Publicity differs from advertising in as much as:

(a) It is directed at large numbers of consumers.

(b) Its message is of a non-personal nature.

(c) It is carried by the mass media.

(d) It is a non paid Form of reaching the public.

Answer: (d)

(15) In which stage of the PLC are promotion expenses per product item usually highest?

(a) Introduction

(b) Growth

(c) Maturity

(d) Decline

Answer: (a)

(16) Which of the following is not a disadvantage of using a Committee?

(a) High cost in time and money

(b) Splitting responsibility

(c) Group deliberation and judgment

(d) Compromise decisions

Answer: (c)

(17) Identify the Organization established by our Federal government to regulate security markets:

(a) SBP

(b) SEC

(c) NAB

(d) NFC

Answer: (b)

(18) If the credit terms are 2/10, net 30 and the amount of invoice is Rs. 4000, how much is the discount if the invoice is paid in 20 days?

(For example, the term 2/10, net 30 allows a customer to deduct 2% of the net amount owed if the customer pays within 10 days of the invoice date. If a customer does not pay within the discount period of 10 days, the net purchase amount (without the discount) is due 30 days after the invoice date.)

(a) Zero

(b) Rs. 30

(c) Rs. 60

(d) Rs. 120

Answer: (a)

(19) Which of the following is not part of the promotion-mix?

(a) Public relations

(b) Product planning

(c) Personal selling

(d) Advertising

Answer: (b)

(20) Selling activities include:

(a) Sales presentations

(b) Demonstrations

(c) Handling objections

(d) Closing the sale

(e) None of these

Answer: (d)