Business Administration Paper – 2011 Solved MCQs Competitive Exams Set 2

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(12) Who has the most power in Value Chain?

(a) Suppliers

(b) Distributors

(c) Customers

(d) None of these

Answer: (c)

(13) Marketing is:

(a) Sales of goods and services

(b) The range of services starting and ending with the customer

(c) Sales planning and promotion

(d) None of these

Answer: (b)

(14) Marketing Strategy is:

(a) Activities focused to defeat competitors

(b) Activities aimed at creating value and profitable relationship with customers

(c) Activities for maximizing sales

(d) None of these

Answer: (b)

(15) Cost strategy means charging:

(a) Highest price for products

(b) Lowest price for products

(c) Varying prices for products

(d) None of these

Answer: (b)

(16) Branding is:

(a) Not possible for services

(b) Not very useful commercially

(c) Useful for building product loyalty

(d) None of these

Answer: (c)

(17) Creation of value in a business means:

(a) Earning maximum profits

(b) Promoting rapid growth in sales

(c) Optimizing shareholder’s return in a company

(d) None of these

Answer: (c)

(18) Price/Earnings Ratio of a company shows relationship between its:

(a) Net profit and Sales

(b) Gross profit and Net earnings

(c) Market price of its share and Earnings per share

(d) None of these

Answer: (c)

(19) Free Cash Flows are:

(a) Net after tax profit

(b) Expected Revenues minus expected costs and capital expenditures

(c) Cash in hand and in bank

(d) None of these

Answer: (b)

(20) Term interest earned is:

(a) EBIT ÷ Interest on debt

(b) Net profit ÷ Debt

(c) Sales ÷ Interest Payable

(d) None of these

Answer: (a)

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