CA Foundation BCK Chapter 6 MCQ with Answers – Common Business Terminologies

Students should practice CA Foundation BCK Chapter 6 MCQ with Answers Common Business Terminologies – CA Foundation BCK MCQ Questions based on the latest syllabus.

BCK CA Foundation Chapter 6 MCQ Questions – Common Business Terminologies

CA Foundation BCK Chapter 6 MCQ with Answers – Common Business Terminologies

Introduction:

1. Which of the following Is part of various perspective of BCK?
(a) Technical and Commercial
(b) Financial
(c) HR and Administrative
(d) Allofthcabove
Answer:
(d) Allofthcabove

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.
Answer:
(a) Product, Price, Place & Promotion

3. Which of the following sign language is related with food distinction?
(a) Fragile – handle with care
(b) Thiswayup
(c) Keep Dry
(d) Veg./Non Veg.
Answer:
(d) Veg./Non Veg.

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
Answer:
(a) A market in which stock price is increasing consistently

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
Answer:
(a) A market in which the stock price are increasing consistently.

CA Foundation BCK Chapter 6 MCQ with Answers – Common Business Terminologies

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
Answer:
(a) Badla

7. Bid is the opposite of __________.
(a) Ask/offer
(b) Call
(c) Equity
(d) None of the above
Answer:
(a) Ask/offer

8. Bid is the opposite of __________.
(a) Ask/Offer
(b) Call
(c) Equity
(d) None
Answer:
(a) Ask/Offer

9. The lowest price at which an owner is willing to sell his security is:
(a) Bid
(b) ASK
(c) Cags
(d) Sale value
Answer:
(b) ASK

10. The opposite of bid is __________.
(a) Ask/Offer
(b) Call
(c) Purchase
(d) None of the above.
Answer:
(a) Ask/Offer

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 pur¬pose.
(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.
Answer:
(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 pur¬pose.

12. Which of the following is Return on Investment.
(a) Dividend
(b) Interest
(c) Yield
(d) None of the above
Answer:
(c) Yield

13. Shares of a company listed on stock exchange are:
(a) Securities
(b) Listed shares
(c) Debentures
(d) Bonds
Answer:
(b) Listed shares

CA Foundation BCK Chapter 6 MCQ with Answers – Common Business Terminologies

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
Answer:
(a) Dividend

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
Answer:
(b) Exchange Ratio

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
Answer:
(a) Breakeven point

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.
Answer:
(a) Companies first issue to general public

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
Answer:
(b) Annuity Due

19. An economic resource that is ex-pected to be of benefit in the future is called as __________.
(a) Future Value
(b) Present Value
(c) Asset
(d) None of these.
Answer:
(c) Asset

20. Which one of the following is not a part of intangible Assets?
(a) Copyrights
(b) Trade market
(c) Bills Receivable
(d) Patents
Answer:
(c) Bills Receivable

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
Answer:
(a) Defensive Stock

22. __________ is the simultaneous purchase and sale of two identical 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
Answer:
(c) Arbitrage

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
Answer:
(a) A pool of money managed by experts by investing in stocks, bonds and other securities with the objective of improving their savings.

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
Answer:
(a) Bad 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&LA/c
Answer:
(b) Balance Sheet

26. Those Stock market players, who are pessimistic they expect share prices to fall one called as __________.
(a) Bulls
(b) Bears
(c) Long Position Holder
(d) None of these
Answer:
(b) Bears

CA Foundation BCK Chapter 6 MCQ with Answers – Common Business Terminologies

27. What is a financial instrument?
(a) Anything that ranges from cash, deed, negotiable instrument, or for that matter any written and authenticated evidence that shows the existence of a transaction or agreement.
(b) Is basically any security that is held with the government and has the highest possible rate of interest.
(c) Is a contract where the borrower, who is also the purchaser, pays a series of in statements that in-cludes the interest of the principal amount
(d) None of the above
Answer:
(a) Anything that ranges from cash, deed, negotiable instrument, or for that matter any written and authenticated evidence that shows the existence of a transaction or agreement.

28. __________ is a facility by which investors are in a position to buy/sell all 30 scripts of Sensex in a position to buy/sell all 30 scrips of Sensex in the proportion of current weights in the Sensex in one go.
(a) Internet Trading
(b) Index Trading
(c) Basket Trading
(d) Group Trading
Answer:
(c) Basket Trading

29. __________ is a measurement of the relationship between Stock price of any particular Stock and the move-ment of whole market.
(a) Standard Deviation
(b) Variance
(c) Market Variance
(d) Beta
Answer:
(d) Beta

30. Risk is a probable chance that investments’ actual returns will be __________ than as calculated.
(a) Increased
(b) Reduced
(c) Equal
(d) None of the above
Answer:
(b) Reduced

31. The market in which the Stock prices one increasing Consistently is called as __________.
(a) Bull Market
(b) Bear Market
(c) Bear Trend
(d) Short Market
Answer:
(a) Bull Market

32. Financially sound companies with paid dividend is known as?
(a) Blue chip
(b) Bonds
(c) Debenture
(d) None of the above.
Answer:
(a) Blue chip

33. What is the meaning of arbitrage?
(a) Buying & selling of different commodities
(b) Simultaneous buying & selling of identical commodities
(c) Only buying of identical com-modities
(d) Selling of identical commodities only
Answer:
(b) Simultaneous buying & selling of identical commodities

CA Foundation BCK Chapter 6 MCQ with Answers – Common Business Terminologies

34. The number of units of given currency that can be purchased for one unit of another currency is called __________.
(a) Current ratio
(b) Exchange rate
(c) Equity
(d) Dividend
Answer:
(b) Exchange rate

35. __________ is an option that givens to the investor the right but no obligation to buy a particular Stock at a specified price within a specified time period.
(a) Put Option
(b) Call Option
(c) Derivative option
(d) Badla option.
Answer:
(b) Call Option

36. __________ is the measure of return on investments in terms of percentage.
(a) Yield
(b) Index
(c) Equity
(d) Bonus
Answer:
(a) Yield

37. The unsecured short term Prom-issory Notes at large firms, usually issued in denominations at ₹ 1,00,000 or more with interest rate below the prime lending rate are called as :
(a) Bills Payable
(b) Commercial Paper
(c) Certificate of Deposit
(d) Unsecured Loan.
Answer:
(b) Commercial Paper

38. __________ are the persons or entities to whom we have to pay money in future in respect of goods purchased from them on credit.
(a) Creditors
(b) Debtors
(c) Lenders
(d) Borrowed
Answer:
(a) Creditors

39. The Underlying asset in derivative may be:
(a) Financial Intermediary
(b) Commodities & Currencies
(c) Interest Rates
(d) Any of these
Answer:
(d) Any of these

40. __________ is a party or person who acts as a link between a provider who provides securities and the user, who purchases the securities.
(a) Financial Intermediary
(b) Financial Agent
(c) Financial Advisor
(d) None of these
Answer:
(a) Financial Intermediary

41. When the assets at a division one sold off piecemeal, rather than as an operating activity, it is called as :
(a) Liquidation
(b) Merger
(c) Amalgamation
(d) Absorption
Answer:
(a) Liquidation

42. For Call options, __________ means the stock price is below the strike price.
(a) Out of the Money
(b) In the Money
(c) Other than Money
(d) With Money.
Answer:
(a) Out of the Money

CA Foundation BCK Chapter 6 MCQ with Answers – Common Business Terminologies

43. The collection of various types at securities related to various companies is called as:
(a) Portfolio
(b) Investment
(c) Bundle
(d) Stock
Answer:
(a) Portfolio

44. __________ ratio is calculated by dividing the market price of the share by the Earnings per share.
(a) EPS
(b) DPS
(c) P/E Ratio
(d) D/P Ratio
Answer:
(c) P/E Ratio

45. 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.
Answer:
(b) Yield to Call

46. 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.
Answer:
(a) Zero Coupon Bonds

47. Which of the following statements are true?
(a) Brand equity refers to the value of a brand.
(b) Brand equity is based on the ex-tent to which the brand has high brand loyalty, name awareness, perceived quality and strong product associations.
(c) Brand equity includes other “in-tangible” assets such as patents, trademarks and channel relation-ships.
(d) All of the above
Answer:
(d) All of the above

48. Personal selling is done through __________.
(a) Singh language
(b) Social Media
(c) Written Communication
(d) Oral Communication
Answer:
(d) Oral Communication

49. __________ involves charging a relatively high price for a short period of time.
(a) Price skimming
(b) Price sensitivity
(c) USP
(d) Holding price
Answer:
(a) Price skimming

CA Foundation BCK Chapter 6 MCQ with Answers – Common Business Terminologies

50. __________ is related with reaching out to a group of consumers sharing Coming Consumer characteristics with the most appropriate advertisements.
(a) Tele Marketing
(b) Sphere Marketing
(c) Target Marketing
(d) Test Marketing.
Answer:
(c) Target Marketing

51. 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 ser-vices.
(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
Answer:
(c) Marketing activity directed from one business to another.

52. __________ 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.
Answer:
(a) Unique selling proposition

53. 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
Answer:
(a) Mission

54. __________ is a strategy which involves setting low prices in order to discourage or deter potential new extranets to the supplier’s market.
(a) Pre-Emptive Pricing
(b) Low Pricing
(c) Cut-throat Pricing
(d) Bargaining Pricing.
Answer:
(a) Pre-Emptive Pricing

55. 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
Answer:
(a) Customer loyalty

56. __________ 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.
Answer:
(a) Cash discount

57. “Personal selling” is done through:
(a) Written Communication
(b) Oral Communication
(c) TV and Media
(d) Sign Language
Answer:
(b) Oral Communication

58. 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
Answer:
(a) Niche marketing

59. The basic requirement that an individual buyer wishes to satisfy is __________.
(a) Customer loyalty
(b) Customer need
(c) Customer Satisfaction
(d) Customer want
Answer:
(b) Customer need

CA Foundation BCK Chapter 6 MCQ with Answers – Common Business Terminologies

60. 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
Answer:
(d) Customer want

61. 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 mar-ket.
(c) A strategy involves setting lowr 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.
Answer:
(a) The effect a change in price will have on customers.

62. 4 P’s of marketing are:
(a) Plan, Price, Production, Publicity
(b) Plan, Production, Place and Pro-motion
(c) Plan, Price, Product, Promotion
(d) Product, Price, Place, Promotion
Answer:
(d) Product, Price, Place, Promotion

63. 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
Answer:
(d) All of the above

64. 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.
Answer:
(b) Mass Marketing

65. __________ 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
Answer:
(a) Market Research

66. The Strategy plays an inevitable role in the growth of any organization. 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
Answer:
(d) Business Model

CA Foundation BCK Chapter 6 MCQ with Answers – Common Business Terminologies

67. __________ 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
Answer:
(a) Benchmarking

68. 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
Answer:
(c) Consortium

69. 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
Answer:
(d) All of the above

70. 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
Answer:
(b) Forecasting

71. 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.
Answer:
(a) Market Segmentation

72. If a business Is to grow exponen tially, there should be addition of value customers. __________ is the process of growing sales by offering existing products or new versions of then to new consumer groups.
(a) Market Research
(b) Market Development
(c) Market Entry
(d) Market Positioning
Answer:
(b) Market Development

73. There may be any aspect of the external environment which causes problems and which may per cent a business In achieving Its objectives.
These one technically termed as:
(a) Threats
(b Limitations
(c) Disadvantages
(d) Hindrances.
Answer:
(a) Threats

74. __________ is high Soclo-econom Ic group of usually relatively young, likely, intelligent, Socially and geo graphically mobile people who adopt new products first.
(a) First Movers
(b) Smart Researcher
(c) Innovators
(d) Marketing Champions.
Answer:
(c) Innovators

75. __________ 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
Answer:
(a) E-Commerce

76. __________, 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
Answer:
(b) Acceptance

CA Foundation BCK Chapter 6 MCQ with Answers – Common Business Terminologies

77. __________ 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.
Answer:
(c) Certificate of Deposit

78. __________ represents the amount that is required to be main-tained by every scheduled Bank with RBI.
(a) Cash Reserve Ratio
(b) Statutory Liquidity Ratio
(c) Repo rate
(d) Reserve Repo Rate
Answer:
(a) Cash Reserve Ratio

79. __________ 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.
Answer:
(a) Bank Rate

80. 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 deposit 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 is filled up.
Answer:
(a) A cap is a limit that regulates the increase or decrease in the rate of interest and instalments of an adjustable rate mortgage.

81. 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
Answer:
(a) Debit Card

82. 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
Answer:
(a) Repo Rate

83. 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
Answer:
(b) Reverse Repo Rate

84. A negotiable instrument that in-structs the bank to pay a particular amount of money from the writer’s bank, to the receiver is called __________.
(a) A cheque
(b) A draft
(c) An overdraft
(d) RTGS
Answer:
(a) A cheque

85. __________ 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
Answer:
(a) Value at Risk

86. 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
Answer:
(b) Letter of Credit

87. 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
Answer:
(a) Lock-in period

CA Foundation BCK Chapter 6 MCQ with Answers – Common Business Terminologies

88. __________ 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.
Answer:
(d) All of the above.

89. __________ is a technology where the banking organizations resort to the use of electronics, computers and other networks to execute transactions and transfer funds.
(a) E-cash
(b) Digi-cash
(c) Hedge
(d) Cap
Answer:
(a) E-cash

90. 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.
Answer:
(b) Automated Teller Machine

91. __________ 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
Answer:
(a) Bridge Financing

92. When the rates of interest can be changed contractually by lender, de-positor or the payee, these are called as __________.
(a) Changing rates
(b) Administered Rates
(c) Adjustable Rates
(d) Accepted Rates
Answer:
(b) Administered Rates

93. __________ 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.
Answer:
(a) Syndicated Loan

94. 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.
Answer:
(b) Smart Cards

95. Sometimes, banks offer services to other Corporate entities, large institu-tions & 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
Answer:
(c) Wholesale Banking

96. __________ 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 Num-ber
(c) Provision identification Number
(d) Permanent Identity Number.
Answer:
(a) Personal Identification Number

97. 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
Answer:
(a) Payer & Payee

98. __________ 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
Answer:
(a) Earnest Money Deposit

99. 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
Answer:
(a) Cashier’s Cheque

CA Foundation BCK Chapter 6 MCQ with Answers – Common Business Terminologies

100. When the interest is calculated on interest also, it is regarded as:
(a) Simple Interest
(b) Simple Annuity
(c) Compound Interest
(d) Compound Annuity
Answer:
(c) Compound Interest

101. 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
Answer:
(a) Debt Settlement

102. __________ is a legal agreement between the lender and the borrower where real estate property is used as collateral for the loan, in order to secure the payment of the debt.
(a) Mortgage
(b) Reverse Mortgage
(c) Guarantee
(d) Loan Agreement
Answer:
(a) Mortgage

103. 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
Answer:
(a) Overdraft

104. __________ 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.
Answer:
(a) Zero Down Payment Mortgage

105. When a country removes the bar¬riers to international trade in goods and services and the international flows of Capital, then this process may be regarded as:
(a) Globalization
(b) Privatization
(e) International Trade
(d) Liberalization
Answer:
(a) Globalization

106. _____________ 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
Answer:
(b) Liberalization

107. ___________ is a road map of company’s future:
(a) Objective
(b) Goal
(c) Vision
(d) Aim
Answer:
(c) Vision

108. ____________ Is a broader mea sure 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
Answer:
(b) Sustainable Development

109. The BCK philosophy that pro-motes the belief and evaluates the business performance on the basis of attaltiment of profit, care for people and care for the plant at equal parani eters Is called as:
(a) Bottom Line
(b) Social Line
(c) Triple Bottom Line
(d) Triple Social Line
Answer:
(c) Triple Bottom Line

110. __________ 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
Answer:
(b) Logistics

111. 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
Answer:
(d) Merger

CA Foundation BCK Chapter 6 MCQ with Answers – Common Business Terminologies

112. When two companies come to-gether to expand their business opera-tion in a newly created entity.
(a) Merger
(b) Partnership
(c) Acquisition
(d) Joint Venture
Answer:
(a) Merger

113. The non or partial realization of expectation is called as __________.
(a) Returns
(b) Earnings
(c) Risk
(d) None of these
Answer:
(c) Risk

114. 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
Answer:
(c) Corporate Governance

115. 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.
Answer:
(a) Goodwill

116. __________ is a set of all the variable external to the firm but influ-ence its decision making fund in town are also influenced by it.
(a) Business Environment
(b) Business Organisation
(c) Business Corpus
(d) None of these
Answer:
(a) Business Environment

117. 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
Answer:
(a) Joint Product

118. __________ is the type of insurance 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
Answer:
(a) Term Insurance

119. __________ 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.
Answer:
(a) Infrastructure

120. 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
Answer:
(b) Turnaround

121. __________ 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
Answer:
(d) Bankruptcy

122. 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
Answer:
(c) Acquisition

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