Competitive Exams: Commerce MCQs (Practice_Test 13 of 99)

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  1. Which one of the following functions does not relate to O & M Division?
    1. To enlarge the organization
    2. To improve organization
    3. To simplify methods
    4. To create and maintain an efficient administrative machinery
  2. Which one of the following statements explains the concept of unity of command?
    1. All the workers focus on a common goal
    2. All the workers receive instructions from one authority
    3. All the workers are accountable to one authority
    4. All the workers aim at One objective at a time
  3. An organizational manual is designed to promote
    1. better clientele for a company
    2. better relationship between the units in an industry
    3. better understanding of basic organizational structures
    4. better information about business of the company
  4. The psychologist A H Maslow has developed a widely acclaimed conceptual framework for understanding human motivation. Human needs, according to Maslow, tend to follow the classification of five categories of needs given as under
    1. Egoistic needs
    2. Safety needs
    3. Social needs
    4. Physiological needs
    5. Self-fulfillment needs

    These needs, according to Maslow, follow a basic hierarchical pattern from the most basic to the highest level needs as follows

    1. 1, 2,3, 4,5
    2. 4, 2,3, 1,5
    3. 5, 4,3, 2,1
    4. 1, 3,2, 4,5
  5. Douglas McGregor made five basic assumptions about people in his theory Y. First four assumptions are
    1. People are ambitious
    2. They seek responsibility
    3. They are dynamic
    4. They recognize and accept organizational goals

    The fifth assumption is

    1. people are always cooperative and cheerful at their work
    2. people are not self-centered
    3. people are by nature resistant to change
    4. people are intelligent and possess creative potential
  6. In case of retirement of a partner, the partner՚s loan account would be shown
    1. in his capital account
    2. in his wife՚s loan account
    3. in his loan account
    4. in the total amount due to him
  7. As per Garner vs Murray Rule, the loss resulting from a partner՚s. Insolvency, is borne by other partners in
    1. equal ratio
    2. their capital ratio
    3. their profit-sharing ratio
    4. 3: 1 ratio
  8. The movement of securities from one stock exchange to another with the object of reaping a profit from the disparity in share prices is called
    1. Averaging
    2. Arbitraging
    3. Backwardation
    4. Forward trading
  9. Consider the following statements
    1. Transfer and transmission of shares are the same thing
    2. ‘Stag’ is a speculative person who applies for shares in a new issue expected to be over-subscribed to make profit by selling such shares at a premium
    3. Stock is a bundle of fully paid shares put together for convenience

    Which of the above statements is/are correct?

    1. 1 and 2
    2. 2 and 3
    3. 3 only
    4. 2 only
  10. When a company exceeds the powers granted to it by its Memorandum of Association, it is called
    1. Intra vires
    2. Ultra vires
    3. Lien
    4. Mutatis mutandis
  11. Consider the following statements: Issue of bonus shares can be made out of the
    1. General Reserve Account
    2. Realized Capital Profits Account
    3. Revaluation Reserve Account
    4. Profit and Loss Account (Cr.)

    Which of these statements are correct?

    1. 1 and 4
    2. 2 and 3
    3. 1,2 and 4
    4. 2,3 and 4
  12. In case the partnership deed does not specify the rights and obligations, the provisions of the Partnership Act, 1932 lay down which of the following rights and duties of a partner?
    1. Every partner has a right to take part in the conduct and management of the firm՚s business
    2. Every partner has the right to receive interest on loans and advances made by him to the firm. The rate of interest should be 8 % unless otherwise agreed to by the parties
    3. Every partner has the right to be indemnified for the expenses incurred and losses sustained by him in the firm՚s business

    Select the correct answer using the codesgiven below

    1. 1 and 3
    2. 2 only
    3. 1,2 and 3
    4. 2 and 3
  13. Which of the following is not the legal position of sole proprietorship?
    1. The proprietor and his business have separate personality
    2. Free from legal formalities in operation
    3. The liability is unlimited
    4. Not governed by any Special Act
  14. Kurt Lewins three phases of organizational change consist of
    1. unfreezing, changing, feedback
    2. Changing, refreezing. Feedback
    3. unfreezing, evaluation, refreezing
    4. unfreezing, changing, refreezing
  15. Which one of the following statements is not correct?
    1. Management by objectives is a philosophy of management
    2. Management by objectives is an approach of management
    3. Management by objectives is a process of participative management
    4. Management by objectives is a control technique

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