Business Administration Paper – 2003 Solved MCQs Competitive Exams Set 2

Get unlimited access to the best preparation resource for CTET/Paper-2 : get questions, notes, tests, video lectures and more- for all subjects of CTET/Paper-2.

For complete answers and explanations visit Doorsteptutor. com

(12) The income statement is a summary of:

(a) Revenue and expenses

(b) Assets, liabilities and capital

(c) Increases and decreases in capital

(d) None of these

Answer: (a)

(13) One benefit of using ratio analysis when interpreting financial statements is that:

(a) Ratios facilitate comparisons between different companies.

(b) All ratios have exact standard values with which performance can be compared.

(c) Ratios take into account all the specific factors affecting particular companies and industries.

(d) None of these

Answer: (a)

(14) Planting and policy making are primarily functions of:

(a) Top management

(b) Middle management

(c) Operating management

(d) None of these

Answer: (a)

(15) An informal organization often exists within a business because:

(a) Not all relationships can be specifically defined.

(b) Small organizations do not necessarily emphasize strict adherence to line authority.

(c) Human behavior naturally crosses established authority lines.

(d) All of these

Answer: (a)

(16) In marketing, selling and buying would be called the:

(a) Primary functions

(b) Exchange functions

(c) Profit functions

(d) Critical functions

Answer: (b)

(17) Institutional advertising is:

(a) Aimed only at people in institutions

(b) Run only by institutions

(c) Designed to promote a type of product rather than a particular brand.

(d) Designed simply to show that the firm is a good place to do business.

Answer: (d)

(18) The current ratio of a firm having ₹ 25,000 of current assets, ₹ 30,000 of fixed assets, ₹ 5000 of current liabilities and ₹ 10,000 of fixed liabilities would be:

(a) 5: 1

(b) 7: 1

(c) 10: 1

(d) None of these

Answer: (a)

(19) The organizational form that replaces individual authority at all levels with group representation is:

(a) Line

(b) Line and staff

(c) Functional

(d) Committee

Answer: (a)

(20) Working Capital may be expressed as:

(a) Current assets minus current liabilities

(b) Current and fixed assets minus current and fixed liabilities

(c) Current assets over current liabilities

(d) Current and fixed assets over current and fixed liabilities

Answer: (a)