CA Foundation BCK Chapter 4 MCQ with Answers – Government Policies for Business Growth

Students should practice CA Foundation BCK Chapter 4 MCQ with Answers Government Policies for Business Growth – CA Foundation BCK MCQ Questions based on the latest syllabus.

BCK CA Foundation Chapter 4 MCQ Questions – Government Policies for Business Growth

CA Foundation BCK Chapter 4 MCQ with Answers – Government Policies for Business Growth

Introduction:

1. The Government Policies are “Sine qua non” for all spheres of the economy. The term “Sine qua non” means:
(a) Indispensible
(b) Universal
(c) Robust
(d) Applicable
Answer:
(a) Indispensible

2. In which country, the import of second hand foreign cars is allowed?
(a) India
(b) Bangladesh
(c) Japan
(d) USA
Answer:
(b) Bangladesh

3. During the time of Emperor Chandra Gupta Maurya, the great intellectual guru of the emperor, _________ outlined the public policy of the State.
(c) Akbar
(b) Sultan
(c) Chanakya
(d) Todarmal
Answer:
(c) Chanakya

4. At the time of attaining freedom in 1947, India witnessed the existence of the problem of _________.
(a) Multiplicity of Princely States
(b) Lack of Industries
(c) Lack of enough food-grains
(d) All of the above
Answer:
(d) All of the above

5. In Delhi sultanate, who introduced stringent tax reforms:
(a) Alauddin Khilji
(b) Akbar
(c) Todarmal
(d) Chanakya
Answer:
(a) Alauddin Khilji

6. During the time of Akbar, land reforms were introduced under the leadership of :
(a) Alauddin Khilji
(b) Akbar
(c) Todarmal
(d) Chanakya
Answer:
(c) Todarmal

7. During the time when Ashoka, the Great, ruled Magadh, _________ introduced the policy of Peace & Harmony.
(a) Ashoka
(b) Chandragupta
(c) Todarmal
(d) Chanakya
Answer:
(a) Ashoka

8. Who has authorised the book “Arthashastra”, a Conceptual frame work of State Craft and public Policy?
(a) Chandragupta Maurya
(b) Chanakya
(c) Plato
(d) Akbar
Answer:
(b) Chanakya

CA Foundation BCK Chapter 4 MCQ with Answers – Government Policies for Business Growth

9. At the time of independence, Strong policy making was required as the nation had a diversity of:
(a) Languages
(b) Cultures
(c) Inequalities
(d) All of the above
Answer:
(d) All of the above

10. Which of the following is not a part of European Nations?
(a) Germany
(b) Denmark
(c) Japan
(d) Sweden
Answer:
(c) Japan

11. ERICS Stands for _________.
(a) Brazil, Russia, India, China and South Africa
(b) Britain, Russia, India, China and Sweden
(c) Brazil, Russia, India, Columbia, and South America
(d) Britain, Russia, India, Columbia and Sweden.
Answer:
(a) Brazil, Russia, India, China and South Africa

12. Which one of the following is regarded as Socialist and Communist State?
(a) China
(b) North Korea
(c) Erstwhile Soviet Union
(d) All of the above
Answer:
(d) All of the above

13. There have been monumental efforts in changing the post-indepen-dence policies specially in 1991. These efforts are Commonly referred to as :
(a) LPG
(b) SEC
(c) RRB
(d) None of the above
Answer:
(a) LPG

14. Which one of the following is an example of Liberalization?
(a) Simplification of tax structure
(b) Removing quotas and bars
(c) Removing economic restrictions
(d) All of the above
Answer:
(d) All of the above

15. The measures of lifting the trade barriers are covered in:
(a) Liberalization
(b) Privatization
(c) Globalization
(d) All of the above
Answer:
(c) Globalization

16. Simplification of trade restrictions related to import is an example of:
(a) Globalization
(b) Privatization
(c) Disinvestment
(d) Aggregation
Answer:
(a) Globalization

17. LPG stands for:
(a) Liberalization
(b) Privatization
(c) Globalization
(d) All of these
Answer:
(d) All of these

18. Globalization means:
(a) Taking off restrictions in export and import of goods and services.
(b) Gradual decrease in Government command and control over economic policies.
(c) Transfer of Government owner-ship to private lands.
(d) None of these.
Answer:
(a) Taking off restrictions in export and import of goods and services.

CA Foundation BCK Chapter 4 MCQ with Answers – Government Policies for Business Growth

19. Gradual decrease in Government command and control over the economic policies:
(a) Globalization
(b) Privatization
(c) Liberalization
(d) None of the above.
Answer:
(c) Liberalization

20. Which one of the following coun¬tries is included in BRICS nations?
(a) Sweden
(b) South Africa
(c) South Korea
(d) Singapore
Answer:
(b) South Africa

21. In which country, you do not have to pay a single penny to enter the National Art Gallery?
(a) England
(b) India
(c) Both India and England
(d) You have to pay in both countries
Answer:
(a) England

22. A _________ emanates from decision and decision is taken in line with _________ identify the right expression to fill in the blanks.
(a) Policy, Goal
(b) Plan, Budget
(c) Goal, Plan
(d) Budget, Plan
Answer:
(a) Policy, Goal

23. _________ outlined political system as a set of interactions having structures, each of which per-forms its functions in order to keep it like a going Concern.
(a) Gabriel Philips
(b) Gabriel Almond
(c) David Easton
(d) Kautilya
Answer:
(b) Gabriel Almond

24. Who has propounded model on political-policy relationship known as Black Box Model?
(a) Gabriel Philips
(b) Gabriel Almond
(c) David Easton
(d) Kautilya
Answer:
(c) David Easton

25. _________, given by David Easton, identifies that there are many Societal demands which one not in-cluded in the decisions and policies designed by the State.
(a) Black Box Model
(b) Politics Box Model
(c) Policy Box Model
(d) White Box Model
Answer:
(a) Black Box Model

26. _________ has classified the inputs of political system into generic functional categories.
(a) Gabriel Almond
(b) Gabriel Solomon
(c) Richard David
(d) David Easton
Answer:
(a) Gabriel Almond

27. The outputs of political system generally take the form of:
(a) Governmental Policies
(b) Programs
(c) Decisions
(d) All of these
Answer:
(d) All of these

28. The generic functional categories of inputs of political system include:
(a) Political Socialization & recruit-ment
(b) Interest Aggregation & articula-tion
(c) Political Communication
(d) All of the above.
Answer:
(d) All of the above.

29. _________ are those which are carried on by a political system in response to demands or Stresses placed upon the system in the form of inputs.
(a) Economic System
(b) Input activities
(c) Output activities
(d) Political System
Answer:
(c) Output activities

30. In the Context of political, the democracy frames:
(a) Stringent Policies
(b) No Policies
(c) Liberal Policies
(d) Complex Policies
Answer:
(c) Liberal Policies

31. An _________ rules looks for policies which dominate over public freedom.
(a) Autocratic
(b) Democratic
(c) Free Rein
(d) Royal
Answer:
(a) Autocratic

CA Foundation BCK Chapter 4 MCQ with Answers – Government Policies for Business Growth

32. Identify the one which may be considered as a public policy:
(a) A decision by a Central Govern-ment to purchase a fleet of cars
(b) An old building to be demolished by a municipal corporation
(c) All citizens are to be provided with biometric aadhaar card
(d) Government passes a special resolution to change the name of a park
Answer:
(c) All citizens are to be provided with biometric aadhaar card

33. In any economy, the public policy is guided by _________ factors.
(a) Social and cultural
(b) Religious
(c) Political
(d) All of these
Answer:
(d) All of these

34. In Delhi Metro, the first compartment in the moving direction is re-served for ladies. This policy of keeping reservation emanates from:
(a) Socio perspective
(b) Welfare perspective
(c) Cultural perspective
(d) Socio-cultural prospective
Answer:
(d) Socio-cultural prospective

35. The Statement “Public policy is whatever Government chooses to do or not to do” is given by:
(a) Thomas R. Dye
(b) Richard Rose
(c) Carl J. Friedrich
(d) Martin Luther
Answer:
(a) Thomas R. Dye

36. Public Policies are always
(a) Goal oriented
(b) Minutely defined
(c) Pro-rich
(d) For the poor
Answer:
(a) Goal oriented

CA Foundation BCK Chapter 4 MCQ with Answers – Government Policies for Business Growth

37. According to _________, “Public policy is not a decision; it is a course or pattern of activity”.
(a) Thomas R. Dye
(b) Richard Rose
(c) Carl J. Friedrich
(d) Martin Luther
Answer:
(b) Richard Rose

38. In USA, who fought for the rights of black people?
(a) Martin Luther
(b) Abraham Lincoln
(c) James Madison
(d) Benjamin Franklin
Answer:
(a) Martin Luther

39. India is a pluralistic Society. Therefore, there are many opinions. We have legal system.
(a) No
(b) Simple
(c) Complex
(d) Tyranny
Answer:
(c) Complex

40. Public policy is a proposed course of action of a person, group or Gov-ernment within a given environment providing opportunities and obstacles which the policy was proposed to utilize and overcome in an effort to reach a goal to realizing objective or purpose. This is the opinion of _________.
(a) Carl J. Friedrich
(b) Thomas R. Dye
(c) Richard Bose
(d) Swami Vivekananda
Answer:
(a) Carl J. Friedrich

41. In India, the public policies are implemented in the form of :
(a) Law & ordinances
(b) Court decisions
(c) Executive orders
(d) Any of these
Answer:
(d) Any of these

42. The Public Policy depicts the con¬cern of the Government and involved its action to a particular problem an which the policy is made. Therefore, public Policy is:
(a) Aggressive
(b) Positive
(c) Negative
(d) Autocratic
Answer:
(b) Positive

43. Public Policy Process is _________ in nature.
(a) Static
(b) Continuous
(c) Unilateral
(d) Autocratic
Answer:
(b) Continuous

44. Consider the following :
I. Problem Identification
II. Policy evaluation
III. Policy Adoption
IV. Policy Implementation
V. Policy Formulation
The Public Policy Process may be represented by:
(a) I, II, III, IV & V
(b) I, V, III, IV & II
(c) I, III, V, IV & II
(d) I, III, V, II & IV
Answer:
(b) I, V, III, IV & II

45. The Lok Sabha of Indian Parliament is also called as:
(a) House of the People
(b) House of the States
(c) Council of the States
(d) None of these
Answer:
(a) House of the People

46. The Rajya Sabha is also Called as:
(a) House of the People
(b) House of the States
(c) Council of the States
(d) None of these
Answer:
(c) Council of the States

47. The process of law making in India may be broadly divided into _________ Stages.
(a) Two
(b) Three
(c) Four
(d) Five
Answer:
(b) Three

CA Foundation BCK Chapter 4 MCQ with Answers – Government Policies for Business Growth

48. The bill is notified as an Act, after the _________ gives assent.
(a) President
(b) Parliament
(c) Prime Minister
(d) Vice President
Answer:
(a) President

49. A policy decision making can result in a _________.
(a) Monetary action
(b) Social action
(c) Charitable action
(d) None of these
Answer:
(b) Social action

50. Which one of the following is not a part of first phase of process of law making in India?
(a) Identification of need for a new law
(b) Drafting of Proposed law
(c) Seeking inputs from ministries
(d) Approval of bill by Standing Committee.
Answer:
(d) Approval of bill by Standing Committee.

51. Once the bill is passed by both the Houses, a copy of the bill is _________.
(a) Sent to legislative department of Ministry of Law and Justice for scrutiny
(b) Sent to the President for Comment
(c) Sent to the President for assent
(d) Notified to the public as an Act.
Answer:
(a) Sent to legislative department of Ministry of Law and Justice for scrutiny

52. The bill is introduced in the Parliament :
(a) Before the vetting of draft bill by, the Law Ministry.
(b) After approval of bill by the Cabinet
(c) Before approval of bill of the Cabinet
(d) After the assent by the President
Answer:
(b) After approval of bill by the Cabinet

53. In India, which one of the folio wins is lawmaking body at Central level?
(a) Indian Parliament
(b) Legislative Assemblies
(c) Council at State level
(d) Group of Ministers
Answer:
(a) Indian Parliament

54. The law making bodies at the State level are _________.
(a) Lok Sabha
(b) Rajya Sabha
(c) Both Lok Sabha & Rajya Sabha
(d) Legislative Assemblies & Councils
Answer:
(d) Legislative Assemblies & Councils

55. Which of the following is type of Public Policies.
(a) Facilitative Policv
(b) Regulatory Policy
(c) Restrictive Policy
(d) All of these
Answer:
(d) All of these

56. SEBI, RBI and IRDA are:
(a) Regulatory Institutions
(b) Policy institutions
(c) Satellite Institutions
(d) Goal setting bodies
Answer:
(a) Regulatory Institutions

57. In order to protect Indian pro-ducts, the Government has imposed Custom Duties. The nature of this public policy is:
(a) Restrictive
(b) Regulatory
(c) Facilitating
(d) Liberal
Answer:
(a) Restrictive

58. The Conducive policies towards the development of Micro-Small- Medium Enterprises are an example of _________ policy.
(a) Restrictive
(b) Regulatory
(c) Facilitating
(d) Liberal
Answer:
(c) Facilitating

59. The formation of National Skills Development Corporation is example of _________ policy.
(a) Restrictive
(b) Regulatory
(c) Facilitating
(d) Liberal
Answer:
(c) Facilitating

60. Which one of the following is the example of Regulatory Practices?
(a) Customs duties
(b) RBI
(c) MSME
(d) NSDC
Answer:
(b) RBI

CA Foundation BCK Chapter 4 MCQ with Answers – Government Policies for Business Growth

61. During the time of independence of India, two major political thoughts were reining the world. These were :
(a) Capitalist Model (Followed by USA)
(b) Communistic Model ( Followed by Soviet Union)
(c) Both (a) & (b)
(d) None of the above.
Answer:
(c) Both (a) & (b)

62. After independence, Planning Commission (now NITI Aayog) was established to make economic plans for a period of _________ years.
(a) Three
(b) Four
(c) Five
(d) Seven
Answer:
(c) Five

63. After independence, India followed a:
(a) Socialistic Path of Development
(b) Commonwealth Model of Growth
(c) Mixed Economic Path
(d) Capitalistic Model of Development
Answer:
(c) Mixed Economic Path

64. NITI Aayog replaced:
(a) Planning Commission
(b) Election Commission
(c) MRTP Commission
(d) Financial Commission
Answer:
(a) Planning Commission

65. Which of the following institutions has been scrapped recently?
(a) Minerals and Metals Regulatory Commission
(b) Coal India Limited
(c) Planning Commission
(d) FIPB
Answer:
(c) Planning Commission

66. Many of the Eastern European nations signed “Warsaw Pact” and followed the _________ pattern of economy.
(a) Communistic
(b) Capitalistic
(c) Mixed
(d) Regional
Answer:
(a) Communistic

67. Which one of the following western European nations have followed a Capitalistic model?
(a) Great Britain
(b) France and Spain
(c) Portugal and Germany
(d) All of the above.
Answer:
(d) All of the above.

68. The Constitution of the nation outlines the nature of policies to be taken for the growth and development of the nation. This Constitution was framed and accepted in _________.
(a) 1947
(b) 1948
(c) 1950
(d) 1951
Answer:
(c) 1950

69. When India became independent, the problems prevailing were _________.
(a) Socio – economic transformation
(b) National Integrity
(c) External Environment
(d) All of the above
Answer:
(d) All of the above

70. Immediately after independence, the new Government of India inden- tified a thoroughly close knit relation and interaction between the important Government agencies. These agencies were :
(a) Political Executive
(b) Legislature
(c) Bureaucracy & judiciary
(d) All of the above.
Answer:
(d) All of the above.

71. What was the reason behind India’s journey towards liberalization?
(a) Fall of Warsaw Pact nations
(b) Formation of European Union
(c) Pressure of heady development loans from agencies like IMF, World Bank and ADB.
(d) All of the above.
Answer:
(d) All of the above.

72. Who invests the foreign currency in India to get better returns, other than Foreign Direct Investments?
(a) Non-Resident Indians
(b) Overseas citizens of India
(c) Both (a) & (b)
(d) None of the these
Answer:
(c) Both (a) & (b)

73. In any economy, the foreign Direct Investment:
(a) Is meant for setting up of business.
(b) Brings forex investment
(c) Enhances employment opportunities
(d) All of the above.
Answer:
(d) All of the above.

74. OCI refers to _________.
(a) Overseas citizens of India
(b) Overseas Corporate Investors
(c) Other Corporate Investors
(d) None of these
Answer:
(a) Overseas citizens of India

75. As a part of series of measures taken towards liberalizing foreign investment, permission was grouted to _________ to invest up to 100 percent capital in priorities sectors.
(a) Non-Resident Indians
(b) Overseas Corporate Bodies
(c) Both (a) & (b)
(d) 100 percent Capital is never allowed.
Answer:
(c) Both (a) & (b)

76. OCBs mean:
(a) Overseas Corporate Bodies
(b) Ordnance Commission Bilateral Secretariat
(c) Oversees Civic Boards
(d) Oversees Commercial Bilateral Treaties
Answer:
(a) Overseas Corporate Bodies

77. FEMA replaced FERA in _________.
(a) 2004
(b) 2000
(c) 1991
(d) 1999
Answer:
(d) 1999

CA Foundation BCK Chapter 4 MCQ with Answers – Government Policies for Business Growth

78. The _________ Companies in India are examples of FDI presence in India during the past liberalization days.
(a) Samsung, Sony and HP
(b) Coke, Pepsico and Microsoft
(c) General Motors, Hyundai, Honda, Toyota, Volkswagen & Volvo
(d) All of the above.
Answer:
(d) All of the above.

79. Which one of the following measures was taken towards liberalizing foreign investment?
(a) Automatic permission for technology agreements in high prio-rity industries.
(b) Removal of restrictions on FDI in low technology areas.
(c) Liberalization of technology imports.
(d) All of the above.
Answer:
(d) All of the above.

80. In order to give protection to foreign investments, the Government has signed the convention of _________.
(a) Multilateral Investment Agree-ment.
(b) Multilateral Investment Rule.
(c) Multilateral Inflow Guarantee Agency.
(d) Multilateral Investment Guaran-tee Agency.
Answer:
(d) Multilateral Investment Guaran-tee Agency.

81. _________ as a policy helped India in integrating the coun-try’s economy with the world economy.
(a) Globalization
(b) Privatization
(c) Social Regionalism
(d) None of these.
Answer:
(a) Globalization

82. Industrial policy was reformed first through the Industrial Policy in _________, which opened up the foreign Capital inflow.
(a) 1949
(b) 1951
(c) 1991
(d) 2015
Answer:
(c) 1991

83. What was the reason behind re-forms by the Government in 1991?
(a) Dysfunctions in Economy.
(b) Poor efficiency and low productivity in public sector undertakings
(c) Strong trade – Unionism which has crippled the growth of private sector
(d) All of these
Answer:
(d) All of these

84. Upto 1991, The Government of India took huge loans from the source:
(a) Asian Development Bank
(b) World Bank
(c) IMF
(d) All of the above
Answer:
(d) All of the above

85. In 1992, some of the Public Sec-tor Enterprises were first corporatized and process was started to sold a large chunk of shares to public. This process may be regarded as :
(a) Merger
(b) Disinvestment
(c) Globalization
(d) Sell-off
Answer:
(b) Disinvestment

86. In the mid – 1980s, the Soviet Union got broken and _________ independent States were formed.
(a) 7
(b) 11
(c) 15
(d) 21
Answer:
(c) 15

87. In 1992, the Government of India took revolutionary steps to open up the economy. Which one of the following is part of such steps?
(a) Massive Change in economic policy
(b) Priority given to Public Sector
(c) Loss making Public Sector Enterprises were closed or divested
(d) All of these.
Answer:
(d) All of these.

CA Foundation BCK Chapter 4 MCQ with Answers – Government Policies for Business Growth

88. _________ emanates from decision and _________ is taken in line with _________.
(a) Policy, decision and goal
(b) Goal, Policy and Rules
(c) Rules, Policy and goal
(d) Rules, goal and Policy
Answer:
(a) Policy, decision and goal

89. Which one of the following Statement is Correct?
(a) Decisions are not based on Policy.
(b) All decisions can be categorized as the matters of policy.
(c) All the decisions that are taken cannot be categorized as matter of policy.
(d) There is no relation between decision and policy.
Answer:
(c) All the decisions that are taken cannot be categorized as matter of policy.

90. A decision is the _________ of making a _________.
(a) Act, Choice
(b) Impact, Policy
(c) Effect, decision
(d) Rule, decision.
Answer:
(a) Act, Choice

91. There are many policies of the Government having vast areas of op-eration affecting the general welfare and development of the society as a whole. These policies have been for-mulated keeping in view the:
(a) Prime Character of the Indian Constitution
(b) Socio-economic problems
(c) Level of moral values of the so-ciety
(d) All of these
Answer:
(d) All of these

92. The Union Government through different Ministries and various Regulatory Institutions may issue _________.
(a) Codes
(b) Guidelines
(c) Statutes
(d) Any of these.
Answer:
(d) Any of these.

93. Which one of the following is the example of distributive policies of the Government?
(a) Adult Education Programme
(b) Food Relief
(c) Social insurance & immunization camps
(d) All of these
Answer:
(d) All of these

CA Foundation BCK Chapter 4 MCQ with Answers – Government Policies for Business Growth

94. _________ are concerned with regulation of national and foreign trade, business, safety measures, public utilities, etc.
(a) Regulatory Rules
(b) Regulatory Policies
(c) Regulatory Act
(d) Distribute Policies
Answer:
(b) Regulatory Policies

95. _________ can be in the area of public distribution to people below poverty line, public welfare, justice for women, health services, etc.
(a) Regulatory Policies
(b) Distributive Policies
(c) Distributive Decisions
(d) None of these
Answer:
(b) Distributive Policies

96. Which one of the following is not a regulatory institution?
(a) RBI
(b) Ministry of Commerce
(c) SEBI
(d) IRDA
Answer:
(b) Ministry of Commerce

97. Government holds responsibility and private sector handles fully and partly the delivery of product and services.
(a) Delegation
(b) Divestment
(c) Displacement
(d) Disinvestment
Answer:
(a) Delegation

98. In case of NOCIL (National Or-ganic Chemicals Industries Limited), the Reliance Industries Limited as a private enterprise expanded and gradually displaced the Government entity. It was a case of:
(a) Partial Disinvestment
(b) Complete Privatization
(c) Delegation
(d) Displacement
Answer:
(d) Displacement

99. What was the main objective of privatization in India?
(a) To Raise revenues to ease the fiscal crunch
(b) To improve the profitability and efficiency of the divested enter-prises
(c) Both (a) & (b)
(d) None of these
Answer:
(c) Both (a) & (b)

100. Which of the following is not a type of Privatization?
(a) Delegation
(b) Displacement
(c) Disinvestment
(d) De-merger.
Answer:
(d) De-merger.

101. Sale of 50% stake in a PSU to a single private sector company is an example of:
(a) Displacement of stake
(b) Decentralization of Authority
(c) Delegation of stake
(d) Disinvestment to form a Joint Venture
Answer:
(d) Disinvestment to form a Joint Venture

102. In India, the Privatization helps in a big way to enhance market potencies by enhancing:
(a) Efficiency
(b) Quality
(c) Competitiveness
(d) All of these
Answer:
(d) All of these

103. As a type of privatization, the delegation may happen through:
(a) Contract
(b) Franchise
(c) Grant
(d) Any of these
Answer:
(d) Any of these

104. The Selling of a portion of owner¬ship (Stake) in a public enterprise to private parties is regarded as:
(a) Delegation
(b) Divestment
(c) Displacement
(d) Disinvestment
Answer:
(d) Disinvestment

CA Foundation BCK Chapter 4 MCQ with Answers – Government Policies for Business Growth

105. In case of Maruti-Suzuki, the Union Government surrendered partial ownership and sold the majority stake to Suzuki of Japan in course of time. This is a case of:
(a) Partial Disinvestment
(b) Displacement
(c) Delegation
(d) Divestment
Answer:
(d) Divestment

106. The Government monopoly through BSNL and MTNL has been taken away by the private sector plays like Airtel, Reliance Jio, Vodafone, etc. This type of privatization may be regarded as _________.
(a) Displacement
(b) De-Centralization
(c) Delegation
(d) Ownership pattern policy
Answer:
(a) Displacement

107. _________ facilitates privatization if it enables private sector to challenge a Government monopoly.
(a) Displacement
(b) De-regulation
(c) Dis-investment
(d) Privatization
Answer:
(b) De-regulation

108. FDI in sectors/activities which do not require any prior approval either of the Government or the Reserve Bank of India is identified as:
(a) Green Channel
(b) Priority route
(c) Non-Commercial Route
(d) Automatic Route
Answer:
(d) Automatic Route

109. The method of FDI other than Automatic route is called:
(a) NRI Route
(b) Government Route
(c) Institutional Route
(d) Priority Route
Answer:
(b) Government Route

110. In the post liberalization and privatization period, India was Con-sidered a lucrative place of FDI inflow because of its :
(a) Huge domestic market
(b) Huge employment opportunity
(c) Low profile in Global economy
(d) None of these
Answer:
(a) Huge domestic market

111. _________ may be described as a flow of capital investment to an enter-prise in a nation by another enterprise located in a different nation by capturing a majority stake in ownership in a company in the target country.
(a) Foreign Direct Investment.
(b) Foreign Direct Inflow
(c) Globalization
(d) Foreign Intuitional Investors.
Answer:
(a) Foreign Direct Investment.

112. Permission for FDI is _________.
(a) Uniform for all sectors
(b) Not Uniform for all sectors
(c) Prohibited in all sectors
(d) Not allowed in India
Answer:
(b) Not Uniform for all sectors

113. Where there is no approval through Automatic Route, the company Concerned has to seek permission from _________.
(a) FIPB
(b) FPIB
(c) BIPF
(d) Ministry of Foreign Trade
Answer:
(a) FIPB

CA Foundation BCK Chapter 4 MCQ with Answers – Government Policies for Business Growth

114. In which of the following sectors, the FDI is prohibited?
(a) Atomic Energy
(b) Nidhi Company
(c) Lottery Business
(d) All of these
Answer:
(d) All of these

115. FIPB stands for:
(a) Foreign Institutional Promotion Board
(b) Foreign Institutional Preparatory Board
(c) Foreign Investment Priority Board
(d) Foreign Investment Promotion Board
Answer:
(d) Foreign Investment Promotion Board

116. India generally receives FDI from:
(a) US
(b) Britain
(c) Singapore & Japan
(d) All of the above
Answer:
(d) All of the above

117. TDR stands for
(a) Transferable Development Rights
(b) Technical Device Rights
(c) Technological Development Rays
(d) None of these
Answer:
(a) Transferable Development Rights

118. In which of the following sector, FDI is not prohibited?
(a) Development of Townships
(b) Construction of residential’ com-mercial premises
(c) construction of roads & bridges
(d) Trade in TDR
Answer:
(d) Trade in TDR

119. Identify the sector where, FDI is not permitted:
(a) Automobile
(b) Infrastructure
(c) Textile
(d) Animal Husbandry
Answer:
(d) Animal Husbandry

120. FDI is allowed in:
(a) Tea Plantation
(b) Coconut Plantation
(c) Sugarcane Plantation
(d) None of the above
Answer:
(a) Tea Plantation

121. Which of the following is correct?
(a) Government looks for FITs over FDI’s for investment purposes
(b) There is no restriction in any sector for FDI
(c) There is limitation on some sectors for FDI
(d) All of these.
Answer:
(c) There is limitation on some sectors for FDI

122. 100% FDI investment allowed in which year?
(a) 2010
(b) 2012
(c) 2014
(d) 2004
Answer:
(b) 2012

123. Hyundai India Limited came to India through the FDI route. It followed the path of:
(a) Divestment in Public Sector Unit
(b) Joint Venture
(c) By creating a 100% Indian sub-sidiary
(d) Replacement of a Government sector business.
Answer:
(c) By creating a 100% Indian sub-sidiary

124. Who cannot be a Foreign Direct Investor?
(a) Governments or Government Agencies
(b) Estates, Trusts, or Other Organi-zations
(c) Unincorporated Private or Public Enterprises
(d) None of the above
Answer:
(d) None of the above

125. FDI may be allowed through _________.
(a) Automatic Route
(b) Government Route
(c) Any of (a) & (b)
(d) None of these
Answer:
(c) Any of (a) & (b)

126. Blackrock invested 30 million USDs as a portfolio investor in Indian stock market. This may be a case of:
(a) FDI
(b) FII investment
(c) Indirect investment
(d) NRI investment
Answer:
(b) FII investment

CA Foundation BCK Chapter 4 MCQ with Answers – Government Policies for Business Growth

127. Foreign Intuitional Investors are:
(a) Large Foreign groups
(b) Having substantial investible funds
(c) Both (a) & (b)
(d) None of these
Answer:
(c) Both (a) & (b)

128. Foreign Intuitional Investors are registered abroad with a view to investing in other nations to invest in:
(a) Equity Markets
(b) Hedge & Pension Funds
(c) Mutual Funds
(d) All of these
Answer:
(d) All of these

129. Which of the following statement is correct about Fils?
(a) They have strong research team.
(b) They Speculate to invest in a Country.
(c) They invest where there is a possibility of strong return in equity market
(d) All of these.
Answer:
(d) All of these.

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