CA FOUNDATION PAPER - 4 (BUSINESS AND COMMERCIAL KNOWLEDGE) 500+ MCQs
CHAPTER - 6 COMMON BUSINESS TERMINOLOGIES
Hello Students ! Hope you all are doing well. We are Glad to Inform you that we are providing A whole new sets of objective based questions for your CA FOUNDATION BUSINESS AND COMMERCIAL KNOWLEDGE (PAPER - 4 ) EXAMINATION in which you are getting most important Chapterwise MCQs for all the Chapters of BCK AND ECONOMICS
- These MCQs are specially designed to give a quick and comprehensive view just before your examination
- There are More than 100+ MCQs of this particular chapter that cover 100% part of your chapter
1. Which of the following is part of various perspective of BCK?
-
(a) Technical and Commercial
(b) Financial
(c) HR and Administrative
(d) All of the above
2. Under Commercial Facet, the P's of good marketing are:
-
(a) Product, Price, Place & Promotion
(b) Product, People, Place & Promotion
(c) People, Product, Price & Promotions
(d) Price, Product, People and Place.
3. Which of the following sign language
is related with food distinction?
-
(a) Fragile - handle with care
(b) This way up
(c) Keep Dry
(d) Veg./Non Veg.
Finance, Stock and Commodity Market Terminology
4. Bull Market is called
-
(a) A market in which stock price is
increasing consistently
(b) A market in which stock price is decreasing consistently
(c) Both (a) and (b)
(d) None of the above
5. What is a bull market?
-
(a) A market in which the stock price
are increasing consistently.
(b) A market in which the stock price are decreasing consistently.
(c) A market in which the stock price are stable over a long time.
(d) None of the above
6. Carrying forward of transaction form one settlement period to the next without effecting delivery or payment is called ______________
-
(a) Badla
(b) Beta
(c) Blue chips
(d) Basket trading
7. Bid is the opposite of
-
(a) Ask/offer
(b) Call
(c) Equity
(d) None of the above
8. Bid is the opposite of
-
(a) Ask/Offer
(b) Call
(c) Equity
(d) None
9. The lowest price at which an owner is willing to sell his security is:
-
(a) Bid
(b) ASK
(c) Cags
(d) Sale value
10. The opposite of bid is
-
(a) Ask/Offer
(b) Call
(c) Purchase
(d) None of the above.
11. What is consolidation?
-
(a) It is an expense that is supposed to reflect the loss in value of a fixed asset.
(b) Combination of two or more enti- ties that occurs when the entities transfer all their net assets to a new entity created for that purpose.
(c) Potential liability arising from a past transaction or a subsequent event.
(d) Costs that can be attributed clearly to the activity you are considering
12. Which of the following is Return on Investment.
-
(a) Dividend
(b) Interest
(c) Yield
(d) None of the above
13. Shares of a company listed on stock
exchange are:
-
(a) Securities
(b) Listed shares
(c) Debentures
(d) Bonds
14. A portion of the after-tax profits paid out to the owners of a business as a return on their investment is:
-
(a) Dividend
(b) Expense
(c) Expenditure
(d) Deferred income
15. The number of units of given currency that can be purchased for one unit of another currency is called _____________
-
(a) Current Ratio
(b) Exchange Ratio
(c) Equity
(d) Dividend
16. It is the amount of revenue from sales which exactly equals the amount of expense.
-
(a) Breakeven point
(b) Total revenue
(c) Both (a) and (b)
(d) None of these
17. What IPO is related to:
-
(a) Companies first issue to general public
(b) Rights issue of the company
(c) Both (a) & (b)
(d) None of these.
18. There may be a series of payments of an equal amount at fixed intervals for a specific number of periods. When the payments occur at the beginning of each period, it is called as
-
(a) Annuity
(b) Annuity Due
(c) Perpetuity
(d) Perpetuity Due
19. An economic resource that is expected to be of benefit in the future is called as
-
(a) Future Value
(b) Present Value
(c) Asset
(d) None of these.
20. Which one of the following is not a part of intangible Assets?
-
(a) Copyrights
(b) Trade market
(c) Bills Receivable
(d) Patents
21. A stock that provides a constant dividends and stable earnings even in the periods of economic downturn is______________
-
(a) Defensive Stock
(b) Cash budget
(c) Income stock
(d) Listed stock
22. __________________ is the simultaneous purchase and sale of two identi- cal commodities or instruments. This simultaneous sale and purchase is done in order to take advantage of the price variations in two different markets.
-
(a) Cap
(b) Term insurance
(c) Arbitrage
(d) Hedge
23. What are mutual funds?
-
(a) A pool of money managed by experts by investing in stocks, bonds and other securities with the objective of improving their savings.
(b) A number of shares which are less than or greater than but not equal to the board lot size.
(c) A company's first issue of shares to general public.
(d) None of the above
24. You have sold goods worth 16,000 on credit to Mr. X, who has paid 10,000 only in full settlement and balance 6,000 is not going to be received. This 6,000 may technically be called as :
-
(a) Bad Debts
(b) Doubtful Debts
(c) Debts
(d) Good Debts
25. _________________ is a statement of the financial position of a company at a single specific time which usually lists all assets and liabilities.
-
(a) Trial Balance
(b) Balance Sheet
(c) Final Accounts
(d) P&L A/c
26. The rate of return earned on a bond, if it is called before its maturity date is called as:
-
(a) Yield to Maturity
(b) Yield to Call
(c) Yield to Earning
(d) Yield to Return.
27. A bond that pays no annual interest but is sold at a discount below par, is called as ____________________
-
(a) Zero Coupon Bonds
(b) Tax Free Bonds
(c) Interest Free Bonds
(d) None of these.
Marketing Terminology
28. Which of the following statements are true?
-
(a) Brand equity refers to the value of a brand.
(b) Brand equity is based on the extent to which the brand has high brand loyalty, name awareness,perceived quality and strong product associations
(c) Brand equity includes other "intangible assets such as patents,trademarks and channel relationships.
(d) All of the above.
29. Personal selling is done through
-
(a) Singh language
(b) Social Media
(c) Written Communication
(d) Oral Communication
30. _______________________ involves charging relatively high prices for a short period of time.
-
(a) Price skimming
(b) Price sensitivity
(c) USP
(d) Holding price
31. _________________ is related with reaching out to a group of consumers sharing Coming Consumer characteristics with the most appropriate advertisements.
-
(a) Telemarketing
(b) Sphere Marketing
(c) Target Marketing
(d) Test Marketing.
32. What is meant by B2B?
-
(a) Buying behaviour that concerns the process that buyers go through when deciding whether or not to purchase goods or services.
(b) A company's business model is management's storyline for how the strategy will be a money maker.
(c) Marketing activity directed from one business to another.
(d) None of the above
33. _______________ is a customer benefit that no other product can claim.
-
(a) Unique selling proposition
(b) Unique selling point
(c) Special Benefit Preposition
(d) None of these
34. The Unique purpose of a firm that sets it apart from firms of its type, identifies scope of operations in the manner that affects values and priorities of the firm's strategies is called as :
-
(a) Mission
(b) Objective
(c) Purpose
(d) Goal
35. _____________________ is a strategy which involves setting low prices in order to discourage or deter potential new extranets to the supplier's market.
-
(a) Preemptive Pricing
(b) Low Pricing
(c) Cut-throat Pricing
(d) Bargaining Pricing.
36. The falling or attitude that inclines
a customer either to return to the com
pany/Shop/outlet to purchase these
again may be regarded as ________________
-
(a) Customer loyalty
(b) Customer need
(c) Customer Satisfaction
(d) Customer want
37. ___________ is the reduction in the price of goods given to encourage sale
on cash base.
-
(a) Cash discount
(b) Trade discount
(c) Both (a) & (b)
(d) None of these.
38. "Personal selling" is done through:
-
(a) Written Communication
(b) Oral Communication
(c) TV and Media
(d) Sign Language
39. The exploitation of comparatively small market segments by businesses that decide to concentrate their efforts is called:
-
(a) Niche marketing
(b) Mass marketing
(c) Market segmentation
(d) Market positioning
40. The basic requirement that an individual buyer wishes to satisfy is _______________________
-
(a) Customer loyalty
(b) Customer need
(c) Customer Satisfaction
(d) Customer want
41. A desire for a specific product or service to satisfy the underlying need is called as
-
(a) Customer loyalty
(b) Customer need
(c) Customer Satisfaction
(d) Customer want
42. What is price sensitivity?
-
(a) The effect a change in price will have on customers.
(b) Charging a relatively high price for a short time where a new, innovative, or much-improved product is launched onto a market.
(c) A strategy involves setting low prices in order to discourage or deter potential new entrants to the suppliers market.
(d) It measures the responsiveness of a change in demand for a product following a change in its own price.
43. 4 P's of marketing are:
-
(a) Plan, Price, Production, Publicity
(b) Plan, Production, Place and Promotion
(c) Plan, Price, Product, Promotion
(d) Product, Price, Place, Promotion
44. Which of the following is included in additional P's for service marketing?
-
(a) People
(b) Processes
(c) Physical Evidence
(d) All of the above
45. When many consumers receive the same message from business and non-profit organizations through mass media, such as broadcast television, radio and newspapers, regardless of Consumer interest, it is called as
-
(a) Block Marketing
(b) Mass Marketing
(c) General Marketing
(d) Media Marketing.
46. ______________________ is related with the systematic gathering, recording and analysis of data about problems re- lating to the marketing of goods & services.
-
(a) Market Research
(b) Market Analysis
(c) Market Penetration
(d) None of these
47. The Strategy plays an inevitable role in the growth of any organisation. The management's storyline for how the strategy will be a money market is called as _________________
-
(a) Super Strategy
(b) Mega Strategy
(c) Vision Strategy
(d) Business Model
48. _________________
is the process of comparing the products and services of a business against those of Competitors in a market, or leading businesses in other markets, in order to find ways of improving quality and performance.
-
(a) Benchmarking
(b) Standard Setting
(c) Variance Analysis
(d) None of these
49. Sometimes, a single project is handled by multiple companies, which may be to buy something or to build something. A combination of such several companies working together for a particular purpose is called as ________________
-
(a) Consolidation
(b) Merger
(c) Consortium
(d) None of these
50. Which one of the following are the examples of Fast-Moving Consumer Goods?
-
(a) Soaps, toothpastes & Hair Oils.
(b) Jams, Ketchups & packed Juices.
(c) Ready meal and baked beans.
(d) All of the above
51. The process of estimating future demand by anticipating what buyers are likely to do under a given set of marketing conditions:
-
(a) Cross Marketing
(b) Forecasting
(c) Market Development
(d) Internal Marketing
52. All the consumers have different characteristics. Therefore, they are usually divided into similar nature groups in order to deliver specially de- signed advertisements that meet these characteristics as closely as possible. It refers to __________________
-
(a) Market Segmentation
(b) Market Division
(c) Effective Marketing
(d) Mass Marketing.
53. If a business is to grow exponentially, there should be the addition of value customers. ___________________ is the process of growing sales by offering existing products or new versions of them to new consumer groups.
-
(a) Market Research
(b) Market Development
(c) Market Entry
(d) Market Positioning
54. There may be any aspect of the external environment which causes problems and which may percent a business in achieving its objectives. These one technically termed as:
-
(a) Threats
(b) Limitations
(c) Disadvantages
(d) Hindrances.
55. _____________ is a high Socio-economic group of usually relatively young, likely, intelligent, Socially and geographically mobile people who adopt new products first.
-
(a) First Movers
(b) Smart Researcher
(c) Innovators
(d) Marketing Champions.
56. ____________ is the use of technologies such as the internet, electronic data exchange and industry extranets to streamline business transactions.
-
(a) E-Commerce
(b) E-Streaming
(c) E-Marketing
(d) None of these
Banking Terminology
57. ________________ is a very wide term that is used in context with financial agree-
ments and contracts.
-
(a) Account balance
(b) Acceptance
(c) Annuity
(d) Arbitrage
58. _____________
is a certificate
of savings deposit that promises the depositor the sum back along with
appropriate interest.
-
(a) Deposit
(b) Commercial Deposit
(c) Certificate of Deposit
(d) Commercial paper.
59. __________________
represents the amount that is required to be maintained by every scheduled Bank with RBI.
-
(a) Cash Reserve Ratio
(b) Statutory Liquidity Ratio
(c) Repo rate
(d) Reserve Repo Rate
60. ___________________ is the interest rate at which the central Bank in the discharge of its function as Banker's Bank lends to the commercial banks.
-
(a) Bank Rate
(b) Rate of Interest
(c) Reverse Repo rate
(d) None of the above.
61. What is a cap?
-
(a) A cap is a limit that regulates the
increase or decrease in the rate
of interest and instalments of an
adjustable rate mortgage.
(b) A cap is the total amount of cash that is present in the bank account and can also be withdrawn immediately.
(c) A cap is the certificate of savings nondeposit that promises the depositor the sum back along with appropriate interest.
(d) A cap is a loan where the time and cash flow between a short term loan and a long term loan day is filled up.
62. When the account holder of a bank
withdraws his own money by card
swiping, such card is called as:
-
(a) Debit Card
(b) Credit Card
(c) Swipe Card
(d) None of these
63. The rate at which banks borrow money from the RBI against pledging or sale of government securities to RBI is known as _________________
-
(a) Repo Rate
(b) Reverse Repo Rate
(c) Conversion Rate
(d) None of these
64. If a schedule bank has surplus
funds, then it can be deposited with
the RBI for short periods. Such rate of
Interest offered by the RBI is called as:
-
(a) Repo Rate
(b) Reverse Repo Rate
(c) Conversion Rate
(d) None of these
65. A negotiable instrument that in- structs the bank to pay a particular amount of money from the bank, to the receiver is called
-
(a) A cheque
(b) A draft
(c) An overdraft
(d) RTGS
66. ______________________
is the sum or portion of the value that is at stake of subject to loss from a valuation in prevalent interest rates.
-
(a) Value at Risk
(b) Sum at Risk
(c) Amount at Risk
(d) Stake Risk
67. A document is issued by a bank, on behalf of the buyer or the importer, stating its commitment to pay a third party (Seller or the exporter), a specific amount, for the purchase of goods by its customer, who is the buyer. Such document is called as:
-
(a) Letter of Guarantee
(b) Letter of Credit
(c) Letter of import
(d) None of these
'
68. A guarantee given by the lender that there will be no change in the quoted mortgage rates for a specified period of time, which is called the ________________
-
(a) Lock-in period
(b) Maturity
(c) Holding Period
(d) Due date
69. ______________ is a system where in customers can conduct their transactions through the internet.
-
(a) Internet Banking
(b) e-banking
(c) Online banking
(d) All of the above
70. ______________
is a technology where the banking organizations resort to the use of electronics, computers and other networks to execute transactions and transfer funds. In a EO
-
(a) E-cash
(b) Digi-cash
(c) Hedge
(d) Cap
71. Now-a-days, there is perfect inte- gration of computers and electronics into the field of banking. The machine used to conduct transactions with the bank are called as:
-
(a) Automatic Teller Machine
(b) Automated Teller Machine
(c) Automatic Transaction Machine
(d) None of these.
72. _________________ is a loan where the time and cash flow between a short term long and a long term loan is filled up.
-
(a) Bridge Financing
(b) Gestation Financing
(c) Step Financing
(d) Terminal Financing
73. When the rates of interest can be changed contractually by lender, depositor or the payee, these are called
as _____________________
-
(a) Changing rates
(b) Administered Rates
(c) Adjustable Rates
(d) Accepted Rates
74. _________________
is a very large loan
extended by a group of small banks to a single borrower, especially corporate
borrowers.
-
(a) Syndicated Loan
(b) Common Loan
(c) Combined Loan
(d) Consortium Loan.
75. There are two types of cords: One is based upon magnetic stripes & others are based on computer chip. The Computer chip based cards are used for data Storage, processing and identification. These cards are known as:
-
(a) Pen Drive
(b) Smart Cards
(c) Debit Card
(d) Computer Cords.
76. Sometimes, banks offer services to
other Corporate entities, large institutions & other financial institutions. The Single term used for all these services offered by the bank is ______________
-
(a) Complete Banking
(b) Centralized Banking
(c) Wholesale Banking
(d) None of these
77. ______________
is a secret code of numbers and alphabets given to Customers to perform transactions through an automatic letter machine.
-
(a) Personal Identification Number
(b) Permanent identification Number
(c) Provision identification Number
(d) Permanent Identity Number.
78. Mr. A is to pay 10,000 to Mr. B. ₹ In this examples A and B may be called
as ______________ and ___________
-
(a) Payer & Payee
(b) Payee & Payer
(c) Payer & Given
(d) Receiver and Payee
79. ______________
is the amount paid
by the buyer to the potential seller of a retail estate, in the initial stages of negotiation of purchase.
-
(a) Earnest Money Deposit
(b) Advance
(c) Repayment
(d) Deposit
80. When the cheque is drawn by a bank on its own name to make pay- ment to other organizations, banks, corporations, etc., then it is called as :
-
(a) Cashier's Cheque
(b) Self Cheque
(c) Yourself Cheque
(d) None of these
81. When the interest is calculated on interest also, it is regarded as:
-
(a) Simple Interest
(b) Simple Annuity
(c) Compound Interest
(d) Compound Annuity
82. The procedure wherein a person in debt negotiates the price with the lender of a loan, in order to reduce the Instalments is called as:
-
(a) Debt Settlement
(b) Debt Repayment
(c) Debt Negotiation
(d) None of these
83. _________________
is a legal
agreement between the lender and the borrower where real estate property is used as collateral for the loanin order to secure the payment of the debt.
-
(a) Mortgage
(b) Reverse Mortgage
(c) Guarantee
(d) Loan Agreement
84. The amount withdrawn from the bank in excess of what has been deposited and appearing in the bank is called as:
-
(a) Overdraft
(b) Balance
(c) Term Loan
(d) None of these
85. _________________
is a type of
mortgage given to a buyer who does not make any down payments while borrowing.
-
(a) Zero Down Payment Mortgage
(b) Zero Interest Mortgage
(c) Interest free Mortgage
(d) Obligation-free Mortgage.
Other Business Terminology
86. when a country removes the barriers to international trade in goods and services and the international flows of Capital, then this process may be
regarded as:
-
(a) Globalization
(b) Privatization
(c) International Trade
(d) Liberalization
87. __________________ is the systematic process of easing of government's control over the private business activity.
-
(a) Globalization
(b) Liberalization
(c) Privatization
(d) None of these
88. _____________
is a road map of company's future:
-
(a) Objective
(b) Goal
(c) Vision
(d) Aim
89. _____________ is a broader measure of development of a country that includes economic parameters such as income and non-economic parameters such as social equity and ecological balance.
-
(a) Overall Development
(b) Sustainable Development
(c) Economic Development
(d) None of these
90. The BCK philosophy that pro- motes the belief and evaluates the business performance on the basis of attainment of profit, care for people and care for the plant at equal param- eters is called as:
-
(a) Bottom Line
(b) Social Line
(c) Triple Bottom Line
(d) Triple Social Line
91. __________________ is a commercial activity implying moving of supplies to the production facilities and goods and services to their respective markets.
-
(a) Transporting
(b) Logistics
(c) Moving
(d) None of these
92. When two or more companies come together to expand their business operations in a newly created entity.
-
(a) Joint Venture
(b) Acquisition
(c) Partnership
(d) Merger
93. When two companies come together to expand their business operation in a newly created entity.
-
(a) Mergerm
(b) Partnership
(c) Acquisition
(d) Joint Venture
94. The non or partial realization of
expectation is called as ____________
-
(a) Returns
(b) Earnings
(c) Risk
(d) None of these
95. The affairs of a corporation should be executed in a manner so as to ensure that they are conducted in an ethical manner and as per provisions of law. This system of overseeing the affairs of a Corporation is called as:
-
(a) Governance
(b) Observation
(c) Corporate Governance
(d) Corporate Observations
96. ABC Ltd. has purchased various
assets (valued at 10,00,000) at the
consolidated price of 12,00,000.
The excess amount paid ( 2,00,000)
is regarded as :
-
(a) Goodwill
(b) Capital Reserve
(c) Acquisition Cost
(d) Amalgamation Reserve.
97. _______________
is a set of all the
variable external to the firm but influence its decision making fund in town are also influenced by it.
-
(a) Business Environment
(b) Business Organisation
(c) Business Corpus
(d) None of these
98. When two or more products separated in the course of the same processing operation, usually having same substantial values are called as:
-
(a) Joint Product
(b) By Product
(c) Main Product
(d) Mixed Product
90. _______________ is the type of insur- ance which is for a certain time period which provides for no defrayal to the insured industrial, excluding losses during the period, and that becomes null upon its expiration.
-
(a) Term Insurance
(b) Fixed Insurance
(c) Specific Insurance
(d) None of these
100. _____________
is the term which
may be used for basic facilities like buildings, roads, power supplies, etc.
-
(a) Infrastructure
(b) Utilities
(c) Capital Items
(d) Revenue Items.
101. The financial recovery of a company that has been performing poorly for an extended time is called as:
-
(a) Sustenance
(b) Turnaround
(c) Capital Recovery
(d) None of these
101. __________ refers to economic insolvency, wherein the person's assets are liquidated, to pay off all liabilities with the help of a bankruptcy trustee or a Court of law.
-
(a) Recovery
(b) Bad Debts
(c) Insolvency
(d) Bankruptcy
102. ABC Ltd. takes over XYZ Ltd. in
such a manner that forthwith ABC Ltd. will control all the business operations of XYZ. It may be called as :
-
(a) Merger
(b) Demerger
(c) Acquisition
(d) None of these
Hope You Like Our Content ! Please give us a share and drop down your valuable comment
ca foundation,
ca foundation mcqs,
ca foundation BCK,
ca foundation BCK mcqs,
ca foundation BCK objective questions,
ca foundation BCK chapter 6
ca foundation BCK chapter 6 Common Business terminologies
ca foundation BCK chapter 6 mcqs
ca foundation BCK chapter 6 Common Business terminologies mcqs
ca foundation BCK chapter 6 objective questions
ca foundation BCK chapter 6 Common Business terminologies objective questions
ca foundation Common Business terminologies mcqs
ca foundation Common Business terminologies objective questions