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V.M.G.RAJASEKARN-RAMANI SRI SARADA SAKTHI MAT. HR.SEC.SCHOOL

Commerce Lesson 1 – One Marks
PRINCIPLES OF MANAGEMENT

Choose the correct answer:

1.Management is what a does?

a.Manager b. Subordinate c. Supervisor d. Superior

2. Management is an
a. Art b.Science c. Art and Science d. Art or Science
3.Scientific Management is developed by_______________

a. Fayol b. Taylor c. Mayo d. Jacob

4.Dividing the work into small tasks is known as

a. Discipline b. Unity c. Division of work d. Equity

5.With a wider span, there will be hierarchical levels.

a.More b.Less c.Multiple d.Additional

6.The observation of people at work that would reveal the one best way to do
a task is known as
a.Scientific management b.Creative management c.Human resource
management d.Classicalmanagement

7.The founder of scientific management was

a.Peter F. Drucker b.Frederick Taylor c.Henry Fayol d.Elton

8.The first management principles were developed by

a.Victor Meldrew b.Charles c.Henry Fayol d.Taylor
9.Studying the future and arranging the means for dealing with it is part of
the process of
a.Organising b.Controlling c.Coordinating d.Planning
10.Division of work, authority and responsibility, unit of command were
proposed as part of the fourteen principles of management by
a.Fayol b.Meldrew c.Taylor d.Charles

11.Principles of management are not

a.Absolute b.Flexible c.Behavioural d.Universal

12.How are principles of management formed?

a.In a laboratory b.By experience of managers c.By experience of
customers d.Byexperienceofprodurs

13.The principle of management are significant because of

a.Changing technology b.Utilisation of resource
c.Increase in efficiency d.Initiative
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14.Henry Fayol was a

a.Social Scientist b.Accountant c.Production Engineer d.Mining
Engineer
15.Which of the following is not a principle of management given by Taylor?
a.Functional foremanship b.Science, not rule of the thumb
c.Maximum, not restricted output d.Harmony, not dischord
16.A reporting relationship in which an employee receives order from, and
reports to only one supervisor is known as
a.Unity of direction b.Unity of command c.Centralization d.Planning
17.Which of the following is not a function of management?
a.Staffing b.Planning c.Controlling d.Cooperation

18.Find the odd one out.

a.Board of directors b.Chief executive c.Foremen d.Shareholders

19.Management should find one best way to perform a task. Which

technique of scientific management is defined in this sentence.
a.Time study b.Motion study c.Fatigue study d.Method study
20.Observe the following management principles and pick the odd one out.
Justify your answer.
a.Unity of command b.Unity of direction c.Maximum output
d.Equity
21.Which of the following is not the functional areas of management?
a.Production management b.Marketing management c.Personnel
management d.Informationmanagement

22. Which of the following is not true?

a.Management is universal b.Management is an art c.Management
is a social process d.Management is alwaysbureaucratic

23.Modern managers are:

a.Action oriented b.Able to build a sense of shared values c.Able to
manage changes efficiently d.All of the above

24.Management has now developed into a specialised body of and

a.Management theory, philosophy b.Art, science c.Science,
psychology d.None of these
25. _ studies in many universities and institutions of higher learning
are recognized as a separate discipline.
A.Science b.Psychology c.Management d.Philosophy

26. have approach concentrates on the entire organisation.

A. Systems b.Contingency c.Man Power d.None of these.

27. approach emphasises dynamic nature of management process in an

ever changing business environment.
A. Systems b.Man power c.Contingency d.Management
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28.The art of management is fully reflected in the capacity of a manager.

A. Professional association b.Separate discipline c.Decision making
d.Co ordination

29. is all about plans and actions.

A. Management b.Accountant c.Administration d.Specialisation
30. means decisions taken by manager as per their personal jundgements.

A. Mental revolution b.Cooperation c.Rule of thumb d. None of these

31. requires a complete change in the outlook of both management and
workers.

A. Group discussion b.Rule of thumb c.Cooperation d.Mental

revolution
32. implies the concentration of decision making authority at the top
management.
A. Centralization b.Remuneration c.Scalar chain d.Equity

33 refers to the chain of superiors ranging from top management to the

lowest rank.
A. Authority b.Responsibility c.Line of authority d.Remuneration
34. is the study of how to create an organizational structure that leads to
high efficiency and effectiveness
A. Scientific management b.Planning c.Allocation management
d.None of these

35. is part and parcel of our day to day life.

A. Management b.Industry c.Commerce d.Economics
36. is growing in all countries.
A. Knowledge b.Management literature c.Both d.None of these

37. is the decision making body of an organizations.

A. Administration b.Functional organization c.Leadership
d.Decentralisation

38.Authority refers to
A. Getting work done b.Scalar chain c.Right to get work done d.Being in a
managerial position
39. helps to finish to task on time.
A. Planning b.Motivation c.Team spirit d.Remuneration

40. order ensures the fluid operation of a company through authoritative

procedure.
A. Social order b.Material order c.Human order d.None of these

41. is essential for the smooth functioning of all organizations.

A. Unity of command b.Unity of direction c.Discipline d.Remuneration .

42. The father of Scientific Management is _______.

a) F.W.Taylor b) Henry Fayol c). Luther Gullick d) Urwick
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43. The father of Modern Management is _______

a) F.W.Taylor b) Henry Fayol c). Luther Gullick d) Urwick

44. Henry Fayol has developed _____________principles of management.

a) 10 b) 12 c) 14 d) 16

45. The Scientific Management was confined to ____________ function only.

a) Sales b) Accounting c) Production d) Finance

46. The most misinterpreted word in management is _____________.

a) Planning b) Controlling c) Delegating d) Organizing

47. Under Scientific Management Scientific task setting

includes________________.
a) Time Study b) Motion Study c) Method Study d) All the above

48. “Management is a multiple purpose organ that manages a business,

manages a manager and manages workers and work” – Who said this?
a) Harold Konntz b) Peter Drucker c) Kenneth O’ Donell d) Henry Fayol

49. Authority, discipline, unity of command and unity of direction are

_______________.
a) Taylor’s four principles of management b) Principles of human relations
movement c) Elements of Weber’s ideal bureaucratic structure
d) Four of Fayol’s fourteen principles of management.

50. Which one of the following is not a basic function of the management
process?
a) Controlling b) Organising c) Motivating d) Working

51. The recent emerged type of managerial job is _____________.

a) Top Manager b) Middle Manager c) First Line Manager d) None of the
above

52. Which one of the following is not included in the 4 M’s of Management
Principles?
a) Men b) Machine c) Method d) Material

53. Which of the following approach emphasizes dynamic nature of

management process in an ever changing business environment?
a) Contingency approach b) Systems approach
c) Behavioral approach d) None

54. “Management is the art of getting things done through other people” –
This statement comes under which part of
Management process?
a) Co-ordination Process b) Purposive Process c) Social Process
d) All the above

55. A change in the attitude of workers and management towards each other
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is known as ________________.
a) Mental Revolution b) Co-operation c) Both a & b d) None

56. Which of the following feature does not form one of Fayol’s 14 principles
of management?
a) Esprit de Corps b) Individualism c) Initiative d) Order

57. Assertion (A): Management is a continuous process. Reason (R): Managers

first plan, then organize and finally perform the function of controlling.
Codes:
(A) Both (A) and (R) are correct and (R) is correct
explanation of (A).
(B) Both (A) and (R) are correct, but (R) is not a correct explanation of (A).
(C) (A) is correct, but (R) is incorrect. (D) (A) is incorrect, but (R) is correct.

58. Assertion (A) : One can be sure about future course of actions by making
good plans. Reasoning (R) : Planning brings certainty in future course of
actions of an organisation.
(A) (R) is correct but (A) is not correct. (B) (A) is correct but (R) is not
correct.
(C) Both (A) and (R) are correct. (D) Both (A) and (R) are not correct.

59. Statement (A): Sales promotion has a strong impact on consumer

behaviour in rural India. Reason (R): Rural people in India give utmost
significance to sales promotion schemes.
Codes:
(A) Statement (A) is correct but Reason (R) is incorrect.
(B) Statement (A) is incorrect, but Reason (R) is correct.
(C) Both Statement (A) and Reason (R) are correct.
(D) Both Statement (A) and Reason (R) are incorrect.

60. Assertion(A): Development of each and every person to his or her greatest
efficiency and prosperity is given importance. Reason(R)Taylors Scienctific
Management propounds individual prosperity.
(A) Both A and R are true and R is the correct explanation of A
(B) Both A and R are true but R is not the correct
explanation of A (C) A is true, but R is false (D) A is false, but R is true

61. Statement (A): Business environments and the opportunites that

managers have to create positive change and progress in the workplace.
Statement(B): Management is a liberal art and is about much more than
productivity
(A) Both A and R are true and R is the correct explanation of A
(B) Both A and R are true but R is not the correct explanation of A
(C) A is true, but R is false (D) A is false, but R is true
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V.M.G.RAJASEKARN-RAMANI SRI SARADA SAKTHI MAT. HR.SEC.SCHOOL

12th Commerce Lesson 2 – One Marks
FUNCTIONS OF MANAGEMENT

Choose the correct answer:

1.Which of the primary function of management?

a. Innovating b.Controlling c.Planning d.Decision making
2.Which of the following is not a main function?
a.Decision making b.Planning c.Organising d.Staffing

3.Distribution of work in group wise or section wise is called as

A. Co ordinating b.Controlling c.Staffing d.Organising

4.Which of the following is verification function?

A. Planning b.Organising c.Staffing d.Controlling

5.Management functions are called as

A. Managerial process b.Cyclical process c.Psychological process
d.Accounting process

6.Nothing can be performed without

a.Organising b.Staffing c.Planning d.Controlling

7.Consumers are satisfied through

A. Coordination b.Motivation c.Innovation d.Representation

8.Which of the following is not a function of management?

A. Budgeting b .Profit earning c.Staffing d.Planning

9.Which among the following is not a subsidiary function of management?

A. Communication b.Innovation c.Motivation d.Decision making

10. Co ordination means_____________

A. Organising activities b.Directing activities c.Synchornizing activities d.All
of these

11.Planning, organizing, directing and controlling are the

A. Functions of management b.Goals of management c.Results of
management d.All of the above
12.Coordinating people and human resources to accomplish organizational goals
is the process of
A. Planning b.Directing c.Manageme d.Leadership

13.Which of the following would be included in the controlling function?

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a.Measuring results against corporate objectives b.Explaining routines

c.Setting standards d.living assignments

14. Specific, short term statements detailing how to achieve an organization’s

goals is known as its

a.Vision b.Mission statement c.Objectives d.Operational planning

15.An outline of the fundamental purpose of an organisation is called its

A. Mission statement b.Objectives c.Policy d.All of the above

16.Strategic planning is done by

A. Top managers of the firm b.Middle managers c.Supervisory managers
d.Non supervisory employees

17. Empowerment is related to

A. Planning b.Organizing c.Directing d.Controlling

18.Supervisory management spends most of his / her time

A. Planning and controlling b.Directing and controlling
c.Planning and organizing d.Organizing and controlling

19. Functions of management can be classified into categories.

a.Two b.Three c.Four d.Five

20. is the process of establishing harmonious relationship among the

members of an organization
A. Planning b. Organising c. Staffing d. Controlling

21.__ refers to placement of right persons in the right jobs.

A. Directing b. Planning c. Controlling d.Staffing

22. is included in every managerial functions.

a.Co-ordination b.Motivation c.Staffing d.Planning

23. The goals are achieved with the help of

A. Motivation b.Innovation c.Representation d.Communication

24. helps in the smooth functioning of an organisation.

a.Communication b.Decision – making c.Planning d.Controlling
25. is the transmission of human thoughts, views or opinions from one person
to another person.
A. Communication b.Innovation c.Representation d.Motivation

26. helps the regulation of job and coordinates the activities.

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A. Innovation b.Communication c.Representation d.Motivation

27. Which of the following functions or activities requires recruiting and
placing qualified personnel needed for the organization so that it may
achieve its objectives and goals?
a) Planning b) Staffing c) Organizing d) Controlling
28. _________ is concerned with marshalling the human and other
resources of the organization.
a) Planning b) Organizing c) Directing d) Controlling
29. Which of the following management functions involve analyzing
information, setting goals, and making decisions about what needs to
be done?
a) Planning b) Organizing c) Directing d) Controlling
30. The word ______________ denotes a function, a task, and a
discipline
a) Management b) Leadership c) Motivation d) None of the above
31. Span of management may be larger in the case of ________________.
a) Hard working subordinates b) Loyal subordinates
c) Centralised works and less responsibility d) repetitive work and
clear responsibility
32. Following are some of the statements related with management.
a) Management is essential in all organizations as well as at all levels of
an organization.
b) Management makes policy and administration carries it out
c) In modern times, management can be replaced by the computer.
d) Top Management is also known as administrative management
The correct statements are :

33. Which of the following skills is equally important at all levels of

management?
a) Technical skill b) Human Relation skill c) Conceptual skill d) All of
the above
34. Which principle of management emphasizes replacement of rule of
thumb method?
a) Decision Theory b) Administrative Theory c) Scientific
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Management Theory d) Contingency Theory

35. The number of subordinates a superior can effectively handle is
called __________.
a) Organizing people b) Span of Control c) Co-ordination d)
Direction
36. “Espirit De Corps” principle was enunciated by _______
a) Earnest Dale b) Chestor Bernard c) Henry Fayol d) None of the
above
37. Which of the following is not the management function?
a) Co-operation b) Planning c) Organising d) Controlling
38. Empirical Approach of management is also known as _______
approach of management.
a) Traditional b) Contingency c) systems d) behavioural
39. “The principles of scientific management” book is published by
F.W.Taylor in the year _________.
a) 1911 b) 1921 c) 1931 d) 1941
40. Administration is concerned with thinking function while
management is concerned with _____________ function.
a) Planning b) Auditing c) Doing d) Developing
41. POSDCORB means_____________
a) Planning, Organising, Directing, Controlling, ReportWriting
b) Planning, Organising, Staffing, Directing, Controlling, Reporting
and Budgeting
c) Planning, Organising, Staffing, Directing, Costing, Reconsiliation and
Budgeting d) None of the above
42. Assertion (A): When span of control is wide co-ordination and
control becomes difficult.
Reason (R): In a narrow span, levels of authority reduce.
Codes:
(A) Both (A) and (R) are true and (R) is the correct explanation of (A).
(B) Both (A) and (R) are true, but (R) is not a correct explanation of
(A).
(C) (A) is true, but (R) is false. (D) (A) is false, but (R) is true.
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43. Assertion (A): Corporate planning deals with the futurity of

present decisions in terms of setting goals, developing strategies to
achieve them, translating strategies into detailed operational
programmes and
Assuring that plans are carried out.
Reason (R): Corporate planning is essential in large organizations to
develop a unified framework in planning and decision- making.
Now select your answer according to the coding scheme given below
(A) Both A and R are true and R is the correct explanation of A
(B) Both A and R are true but R is not the correct explanationof A
(C) A is true, but R is false (D) A is false, but R is true
44. Assertion (A): Self help by mutual help is feature of cooperation.
Reason (R): The ultimate aim of co- operation is the production of fine
Human being and not the production of rich goods.
Now select your answer according to the coding scheme given
below-
(A) Both A and R are true and R is the correct explanation of A
(B) Both A and R are true but R is not the correct explanation of A
(C) A is true, but R is false (D) A is false, but R is true
45. Assertion (A): Operating style of the international business can be
spread to the entire globe.
Reason (R): The style is limited to the internal economy only.
Codes:
(A) Both (A) and (R) are true. (B) (A) is true, but (R) is false.
(C) (A) is false, but (R) is true. (D) Both (A) and (R) are false.
46. Assertion (A): All decisions taken through mental process are
rational.
Reason (R): Decision making is a mental process.
(A) (R) is correct, but (A) is not correct
(B) (A) is correct, but (R) is not correct
(C) Both (A) and (R) are correct
(D) Both (A) and (R) are not correct
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V.M.G.RAJASEKARN-RAMANI SRI SARADA SAKTHI MAT.HR.SEC.SCHOOL

12th Commerce Lesson 3 – One Marks
MANGEMENT BY OBJECTIVES AND MANAGEMENT BY EXCEPTION
Choose the correct answer:

1. System give full scope to the individual strength and

responsibility.
a.MBO b.MBE c.MBM d.MBA

2.Which is the first step in process MBO?

a.Fixing ke4y result area b.Appraisal of activities
c.matching resources with activities d.defining organisational
objectives

3. keeps management alert to opportunities and threats by

identifying critical problems.
a.MBA b.MBE c.MBM d.MBO

4. Delegation of authority is easily done with the help of

a.MBM b.MBE c.MBO d.MBA

5. What is MBO?
a.managerial Business Objects b.management by objectives
c.Management by organization d.management of business
organisation

6. MBO is popularised in
a.USA b.Japan c.India d.UK

7.MBO is a/an
a.Philosophy b.training c.principle d.management system

8.MBE refers to
a.management by efficiency b.management by extraordinary
c.management by exception d.management by objectives

9.Systematic evaluation of performance is made with the help of

a.MBO b.KRA c.MBE d.MBA

10.Management by objective is
a.goal oriented b.work oriented c.both d.none of these
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11.Third step in process of management by objectives is to

review job and agreement
a.develop performance standards b.guide setting of objective
c.ongoing performance d.discussion

12. Second step in process of management by objectives is to

Guided setting of objective
a.ongoing performance discussion b.review job and agreement
c.develop performance.d. standards

13.Target coaching, work planning, mutual goal settings and

performance objectives are all terms used to specify concept
called ___________________
a.behavioural rating approach b.management by objectives
c.combination method d.critical incident method

14.Management by objective (MBO) is also known as

a.management by results b.management by goals
c.management by planning d.management by evaluation

15. Management by objective is a

a.set of rules b.series of procedure
c.way of thinking about management d.all of the above

16.In management by objective (MBO) the manager and

subordinate jointly.
a.Identify common goals
b.Defines each individual’s major areas of responsibility
c.Access the contribution of each of its member
d.All of the above

17.Objectives are decided by

a.Superior b.Subordinates.c.Mutual consultations of both
superior and subordinates d.None of these

18.The following is/are the disadvantage(s) of management by

objective (MBO
a.Inflexibility b.Lack of relevant skill
c.Lack of individual motivation d.All of the above

19. harmonises the goal of an individual with the organisation’s

goal.
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a.MBO b.MBE c.MBA d.MBM

20. are fixed on the basis of organisational objectives premises.

a.MBA b.MBE c.KRA d.MBM

21. indicates the strength of an organisation.

a.MBO b.KRA c.MBA d.MBE

22. are inducedto set standards themselves by giving an

opportunity.
a.Superior b.Subordinates c.Both d.None of these

23. should take corrective action.

a.Superior b.Subordinate c.Customer d.Supplier

24.An is a part of the dynamic world.

a.organisation b.land c.labour d.capital

25. provides a foundation for participative management.

a.MBE b.MBO c.MBM d.MBA

26. is easily done with the help of MBO.

a.chain of command b.Unity of direction
c.Delegation of authority d.Unity of control

27. is taken by the management very quickly.

a.Decision b.Planning c.Motivation d.staffing

28. is a time consuming process.

a.MBE b.KRA c.MBO d.None of these

29. has both a general business application and a business

intelligence application.
a.MBO b.MBE c.HRA d.MBA

30. focuses managerial attention on major problems.

a.MBA b.HRA c.MBE d.MBO

31. can avoid uniformed and impulsive action.

a.MBO b.MBE c.KRA d.HRM
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32. is also known as management by result.

a.management by objectives b.management by art
c.management by subordinate d.management by planning
33.Objectives are the of management action.
a.design b.end point c.starting points d.planning

34.Which one of the following is not correctly matched?

a.MBO – management by objectives b.MBE – management by
exception c.KRA – key results area d.MBO – management by
organisation

35.Organisational objectives – top level employees

Goals or objectives – meaningful manner
Appraisal of activities – Frank discussion
KRA - market, standing, innovation

36.MBO creates self-control and motivates the manager into

action before somebody tells his to do something.
MBO tries to combine the long run goals of organisation with
shorty run goals. (iii). A high degree of motivation to employee
through MBO.
a.(i) is correct b.(ii) is correct
c.(i) and (ii) are correct d.(i), (ii) and (iii) are correct.

37.Objectives for each section, department or division are framed

on the basis of overall objectives of the organisation.
Key result areas are arranged on a priority basis.
Delegation of authority is easily is done with the help of MBE.
a.(i) is correct b.(i) and (ii) are correct
c.(ii) and (iii) are correct d.(i), (ii) and (iii) are correct

38.(i), Objectives are farmed on the basis of availability of

resources. (ii).The subordinates should take corrective action.
(iii).At the end of the fixed period for achieving the objectives
there should be a discussion between the superior and
subordinates.
a.(i) is correct b.(i) and (ii) are correct
c.(i) and (iii) are correct d.(i), (ii) and (iii) are correct

39.(i). MBO motivates the workers by job enrichment and makes

the jobs meaningful. (ii).The status of subordinate is necessary
for proper objectives setting.
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(iii). Objectives should be changed according to the changed

circumstances, external or internal.
a.(i) is correct b.(ii) is correct
c.(i) and (iii) are correct d.(i), (ii) and (iii) are correct

40. Which one of the following is not true for MBO?

a) It acts an effective performance appraisal tool b) The superior
evaluate the individual concerned c) It forces the management
to plan the activities in a systematic way d) Better management
and improved communication.

41. Objectives are the _________ of the management action.

a) Design b) End points c) Starting points d) Planning

42. MBO is also known as __________.

a) Management by results b) Management by goals
c) Management by planning d) Management by evaluation

43. MBO was developed by ___________

a) Peter.F.Drucker b) Chester Bernard c) Fayol d) None

44. MBO offers the basis for assessing the

___________.
a) Operations b) Performance c) Equality d) None

45. Assertion (A): Strategies necessarily need to be changed over

time to suit environmental changes.
Reason (R): To remain competitive, organizations develop those
strategies that create value for customers.
Codes:
(A) (A) is correct, but (R) is incorrect. (B) Both (A) and (R) are
correct.
(C) (A) is incorrect, but (R) is correct. (D) Both (A) and (R) are
incorrect

46. Assertion (A): Communication in organization may be

downward, upward and lateral. The most frequently used
dimension of communication is the downward direction.
Reason (R): This is direction of communication.
Code:
(A) Assertion ‘A’ is true (B) Assertion ‘B’ is not true
(C) Assertion ‘A’ is true and reason ‘R’ is also true
(D) Assertion ‘A’ and reason ‘R’ are not true
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47. Assertion(A): Organisational Objectives play an important role

in the success of a firm
Reason(R) : The first step in the process of MBO is definining
Organisational Objectives
(A) Both A and R are true and R is the correct explanation of A
(B) Both A and R are true but R is not the correct explanation of A
(C) A is true, but R is false (D) A is false, but R is true

48. Assertion(A): Sub-ordinates are also involved in goal setting

in MBO Reason (R): MBO provides a foundation for participative
management.
(A) Both A and R are true and R is the correct Explanation of A
(B) Both A and R are true but R is not the correct explanation of A
(C) A is true, but R is false (D) A is false, but R is true

49. Assertion(A): Only managers have the power over important

decisions, which can be demotivating employees at lower level.
Reason(R) : In the process of MBO the status of subordinates in
objectives setting is not possible.
(A) Both A and R are true and R is the correctexplanation of A
(B) Both A and R are true but R is not the correct explanation of A
(C) A is true, but R is false (D) A is false, but R is true
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V.M.G.RAJASEKARN-RAMANI SRI SARADA SAKTHI MAT.HR.SEC.SCHOOL

12th Commerce Lesson 4 – One Marks
Introduction to financial markets
Choose the correct answer:
1.Financial market facilitates business firms
a.To rise funds b.To recruit workers c.To make more sales d.To minimize fund
requirement

2.Capital market is a market for

a.Short Term Finance b.Medium Term Finance c.Long Term Finance d.Both Short Term
and Medium Term Finance

3.Primary market is also called as

a.Secondary market b.Money market c.New Issue Market d.Indirect Market

4.Spot Market is a market where the delivery of the financial instrument and payment of cash
occurs
a.Immediately b.In the future c.Uncertain d.After on month

5.How many times a security can be sold in a secondary market?

a.Only one time b.Two time c.Three times d.Multiple times

6.Primary and secondary markets compete with each other

a.complement each other b.function independently c.control each other

7.Treasury bill is basically

a.An instrument to borrow short-term funds b.An instrument to borrow long-term funds
c.An instrument of capital market d.None of the above

8.In primary markets, first time issued shares to be publicly traded, in stock markets is
considered as
a.trade offering b.Public markets c.issuance offering d.initial public offering

9.In primary markets, property of shares which made it easy to sell newly issued security is
considered as
a.increased liquidity b.decreased liquidity c.money flow d.large funds

10.Money market where debit and stocks are traded and maturity period is more than a year is
classified as
a.shortterm markets b.longterm markets c.capital markets d.None of these

11.Type of structured market through which funds flow with help of financial instruments
such as bonds and stocks is classified as
a. financial markets b.flow market c.funds market d.capital market
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12.The first issues are floated in

a.Primary market b.Secondary market c.Commodity market d.Regulated market

13.Type of market in which securities with less than one year maturity are traded, is classified as
a.money market b.capital market c.transaction market d.global market

14.Process of selling and buying of stocks and bounds is classified as

a.e-trade b.stock trade c.both ‘A’ and ‘B’ d.none of these

15.__________is an institution or arrangement that facilitates the exchange of financial

instruments.
a.Financial Market b.Capital market c.Organised sector d.Unorganised sector

16.________Is the financial market for trading in debt instrument that is government bonds or
securities.
a.Equity market b.Debt market c.Money market d.Capital market

17.________-Is the market for short term financial claim.

a.Debt market b.Equity market c.Money market d.Capital market

18. Market is the market for long term financial claim more than a year.
a.Primary market b.Secondary market c.Equity market d.Capital market

19.______________Is the marker for securities that are already issued.

a.Primary market b.Secondary market c.Debt market d.Equity market

20.For productive purposes is also made possible.

a.Saving mobilization b.Investment c.Flow of funds d.None of these

21Financial intermediation is the process that the financial intermediaries connect and by
transferring funds from to another.
a.Banks and account holders b.Borrowers and securities firms
c.Borrowers and lenders d.Investors an lender

22.a.Debt market b. Secondary market c.Equity share d.Future market

26.a.Capital formation b.Sale mechanism c.Information d.Money market

27.Which one of the following is not correctly method?

a.Debt market - Bonds b.Money market – Commercial paper
c.Capital market – Stock exchange d.Equity market – Equity shares of companies

28.a.Secondary market - Stock exchange

b.Marketable assets - Shares of listed companies
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c.Non-marketable - Bank deposits

d.Money market - Government Bonds

29.Business firms need large funds to undertake a desired project.

Financial market also helps investors to facilitate them to invest surplus funds and earn a
return.The Indian financial system can be broadly classified into organized sector and
unorganized sector.
a.(i) is correct
b.(i) and (ii) are correct
c.(ii) and (iii) are correct
d.(i), (ii) and (iii) and correct

30.Unorganized sector consist of Regulators, Financial services The organised sector consists
of Money lenders, Indigenous Bankers etc. The financial system facilitates the flow of funds
from the suppliers to the users.
a.(i) is correct b.(ii) is correct c.(iii) is correct d.((i), (ii) and (iii) are correct

31.Equity market is the financial market for trading in equity shares of companies.
Stock exchange is an important institution in the secondary market.
Exchange Trade Market is a centralized organisation (stock exchange) with standardized
procedures.
a.(i) is correct b.(ii) and (iii) are correct c.(ii) is correct
d.(i), (ii) and (iii) are correct

32. The basic purpose of financial management is _________.

a) Assets Maximization b) Sales Maximization c) Wealth Maximization d) All of the above

33. Finance functions are ____________

a) Planning of funds b) Raising of funds c) Allocation of Resources d) All of the above

34. Which of the following is the limitation of profit maximization?

a) Financial management ignores time value of mone b) Financial management overlooks
quality c) Ignores social responsibility of business d) All of these

35. ____________ is the financial market for trading in Equity Shares of Companies.
a) Equity Market b) Capital Market c) Primary Market d) None of the above

36. Which of the following are dealt with Money Market?

a) Treasury Bills b) Commercial Paper c) Certificates of Deposit d) All of the above

37. Which of the following is Marketable Assets?

a) Shares of Listed Companies b) Government Securities c) Bonds of Public Sector
Undertakings d) All of these

38. Raising funds for short-term purpose is____________.

a) Economical b) costly c) beneficial d) None of these

39. Payment after a specific date is ____________ in case of bank credit.

a) Compulsory b) Not compulsory c) Undefined d) None of these

40. Public deposit cannot be for more than _________.

a) one year b) two year c) three year d) four year

41. The finance manager is responsible for ________.

a) Proper utilization of funds b) arrangement of financial resources
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c) acquiring capital assets of the organization d) Efficient management of capital

42. Assertion (A): Accounting information refers to only events which are concerned
with business firm.
Reason (R): Accounting information is presented in financial statements.
Codes:
(A) (A) is correct, but (R) is wrong. (B) Both (A) and (R) are correct.
(C) (A) is wrong, but (R) is correct (D) Both (A) and (R) are wrong.

43. Assertion (A): Sinking fund is a charge against Profit and Loss Account.
Reason (R): Sinking fund is created for repayment of a long term liability.
In the context of the above statements, which one of the following is correct?
Codes:
(A) (A) is correct, but (R) is wrong. (B) Both (A) and (R) are correct.
(C) (A) is wrong, but (R) is correct. (D) Both (A) and (R) are wrong.

44. Assertion (A): As the proportion of one variable factor in a combination with
fixed factor is increased, after a point the marginal product of the factor will diminish.
Reason (R): Beyond the level of optimum combination of inputs leads to this.
Codes:
(A) (R) is appropriate reason of (A).
(B) (R) is not appropriate reason of (A).
(C) (A) and (R) are not related with each other.
(D) (A) is independent of (R).

45. Statement A: An Equity market i also know as a Stock market.

Statement B : An equity market is a market in which shares are issued and
traded either through exchanges or over the counter markets.
(A) (A) is correct, but (R) is wrong. (B) Both (A) and (R) are correct.
(C) (A) is wrong, but (R) is correct. (D) Both (A) and (R) are wrong

46. Assertion (A) : Exchange Traded Market I a centralized organization with

standardized
procedures.
Reason (R): All the financial markets are considered for savings mobilization
(A) (A) is correct, but (R) is wrong. (B) Both (A) and (R) are correct.
(C) (A) is wrong, but (R) is correct. (D) Both (A) and (R) are wrong

II. Match the Following:

47. Match List I with List II:
List I List II
Capital Market Commercial Bills
Primary Market ii. Spot Market
Cash Market iii. New Issue Market
Money Market iv. Long Term Finance
a) b) c) d)
a) 4 3 1 2
b) 3 4 1 2
c) 3 2 1 4
d) 4 3 2 1
48. Match List I with List II:
List I List II
Primary Market Pre-determined Time
Secondary Market Indirect Buying and Selling
Future Market Direct Buying and Selling
Capital Market Shares and debentures
a) b) c) d)
a) 4 3 1 2
b) 3 4 1 2
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c) 3 2 1 4
d) 4 3 2 1

49. Find the odd one out:

a) Money Market b) Capital Market c) Over-the-counter Market d) Primary Market
Reason: Over-the Counter Market is a decentralized market and all the others come under
centralized market.

50. Find the odd one out:

a.Regulators b.Financial Institutions c.Financial Services d.Debt market
Reason : Except debt market, all the others are the components of organized sectors.

51. Find the odd one out:

a) Planning of funds b) Raising of funds c) Allocation of Resources d) Sales
Maximisation
Reason : In the above statement except sales maximization all the others are the financial
Functions of management.
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V.M.G.RAJASEKARN-RAMANI SRI SARADA SAKTHI MAT.HR.SEC.SCHOOL

12th Commerce Lesson 5 – One Marks
Capital market
Choose the correct answer:

1.Capital market do not provide

a.Short term Funds b.Debenture Funds c.Equity Funds d.Long term Funds s

2. When the NSEI was established

A. 1990 B.1992 C. 1998 D. 1997

3.Primary market is a Market where securities are traded in the

a.First Time b.Second Time c.Three Time d.Several Times

4.Participants in the capital market includes

a.Individuals b.Corporate c.Financial Institutions d.All of the above

5.How many times a securities can be sold in a secondary market?

a.Only One Times b.Two Time c.Three Times d.Multiple Times

6.Rights Issues refers to the Shares issued to

a.Employees b.Public c.Existing directors d.Existing shareholders
.
7.Which one of the following is not the main functions of a capital market?
a.To mobilise the savings from various sectors of population
b.To enables companies to raise permanent capital
c.To provide employment opportunities for various sectors of the population
d.To encourage the people to invest in productive channels

8.Which of the following is the advantage of investment of foreign capital in India?

a.It brings larger industrial profits b.It reduces our exports
c.It expands our exports d.It brings in new technical know-how

9.Which market facilitates capital formations?

a.Primary market b.Secondary market c.Debt market d.Money market

10.The existence of a capital market enables companies to raise

a.capital formation b.permanent capital c.industrial growth d.all of these

11.Which markets make possible to generate foreign capital?

a.Primary market b.Secondary market c.Money market d.Capital market

12.NESI was established in

A. 1990 B. 1992 C. 1996 D. 1998

13.The NSDL was set up in the year

A. 1990 B. 1992 C. 1996 D. 1998

14.In capital markets, major suppliers of trading instruments are

a.government and corporations b.liquid corporations c.instrumental corporations
d.manufacturing corporations
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15.Which of the following instruments are traded in capital market?

a.Government agency securities b.Negotiable bank CDs
c.Repurchase agreements d.Commercial papers

16.Which of the following does financial services industry consist of?

I)Tele communication II)Insurance
III)Fund Management IV)Trusts
a.I and II b.III and IV c.I, II and III d.II, III and IV

17.Forms an important core of a country’s financial system.

a.Capital market b.Financial market c.Money market d.Debt market

18.Capital market offers an ideal source of finance.

a.internal b.external c.both d.none of these

19.Capital market is called________market.

a.financial b.money c.securities d.debt

20.Capital market is divided into________ categories.

a.two b.three c.four d.five

21.Market is a market for new issues or new financial claims.

a.Secondary b.Primary c.Money d.Debt

22.___________is a way of selling securities privately to a small group of investors.

a.Public issue b.Right issue c.Private Placement d.None of these

23.commodities are raw materials typically mined.

a.Hard b.Soft c.Both d.None of these

24.___________are typically grown agricultural primary products such as wheat and sugar.
a.Hard commodities b.Soft commodities c.Capital market d.Financial market

25.A best efforts offering is sometimes used in connection with a of new, long-term securities.
a.Public issue b.Private Placement c.Privilleged subscription d.all of the above

26.Financial intermediaries
a.do not invest in new long-term securities
b.includes insurance companies and pension funds
c.includes the national and regional stock exchanges are usually underwriting syndicates

27.Capital markets provide funds for projects in areas.

a.backward b.rural c.urban d.none of these

28.Stock exchange speculation in shares.

a.does not allow b.discourage c.encourage d.prohibits

29.A cautious speculator is knows as

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a.Stag b.Bull c.Lame duck d.Bear

30.Primary market is concerned with
a.Increase in shares b.Decrease in shares c.Issue of New shares
d.None of these

31. Secondary market deals with traded in primary market.

a.Purchase of securities b.Sales of securities c.Resale of securities d.None of these

32.Second hand securities are traded in

a.Primary market b.Secondary market c.Commodity market d.Regulated market

33.There are regional stock exchanges in India.

a.15 b.18 c.20 d.21

34. Inclusion of securities in the official list of stock exchange is called

c

35.Pick the odd one out

a.Primary market b.Securities market c.Price d.Location

36.Pick the odd one out

a.Capital formation b.Mutual funds c.Industrial growth d.Foreign capital

37..Which of the following is not correctly method?

a.Venture Fund Institutions - SIDBI b.Mutual Funds - LIC
c.Factoring Institutions - Canara bank d.NSEI - 2000

38.Which of the following is not correctly method?

a.OTCET - Over the Counter Exchange of India.
b.NSEI - National Securities Exchange of India
c.SHCIL -Stock Holding Corporation of India Limited
d.NSDL - National Securities Depositories Limited

39.Choose the correct statement

I)The buying and selling is undertaken by participants such as individuals and institutions.
II)The participants of the capital market include individuals, corporate sectors and other
financial institutions.
III)Capital market provides a transaction platform for term financial assets.
a.(i) is correct b.(ii) is correct
c.(i) and (ii) are correct d.(i), (ii) and (iii) are correct

40.i)Secondary market, borrowers exchange new financial securities for long-term funds.
ii)Secondary market covers both stock exchange and over the counter market.
iii)Capital market has a crucial significance to capital formation.
a.(i) is correct b.(i) and (ii) is correct c.(ii) and (iii) are correct
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d.(i), (ii) and (iii) are correct.

42.i)Government has liberalised foreign Direct Investment (FDI) in the country.

ii)Commercial banks also investors to withdraw their deposits, and when they are in need
of funds.
iii)The period between 1947 and 1973 market the development of infrastructure for capital
market.
a.(i) is correct b.(i) and (ii) is correct
c.(ii) and (iii) are correct d.(i), (ii) and (iii) are correct

43.i)The factoring institutions collect the book debts for and on behalf of its clients.
ii)OTCEI address some specific problems of both investors and medium-size companies.
iii)NSEI was established in 1992 to function as a model stock exchange.
a.(i) is correct b.(ii) is correct c.(i) and (iii) are correct d.(i), (ii) and (iii) are correct
44. The capital market is also called as____________.
a) Securities Market b) Spot Market c) Primary Market d) None

45. The method of raising capital by new companies through sale of securities to the
public is known as___________.
a) Private Issue b) Right Issue c) Public Issue d) None

46. The Existing company raise additional capital by which one of the following
method?
a) Private Issue b) Right Issue c) Public Issue d) None
47. Credit Rating was introduced by _______.
a) SIDBI b)WTO c) TDICI d) SEBI

48. National Stock Exchange of India Limited was established in the year __________.
a) 1992 b) 1982 c) 1977 d) 1968

49. Which of the following are Hard Commodities?

a) Gold b) Oil c) Rubber d) All the above

50. The NSDL was set up in the year _____.

a) 1992 b) 1982 c) 1996 d) 1968

51. Money market where debt and stocks are traded and maturity period is more than a
year is classified as __________.
a) Global Market b) Capital Market c) Counter Market d) Long term market

52. Type of market in which securities with less than one year maturity are traded, is
classified as _____________.
a) Money Marekt b) Capital Market c) Counter Market d) Long term market

53. The short term financial instruments traded in money market is commonly called as___.
a) Bonds b) Commercial Papers c) Shares d) Debentures

54. Assertion (A): Marginal cost and differential cost do not convey the same meaning in all
the circumstances.
Reason (R): Differential cost increases or decreases due to change in fixed cost.
Codes:
(A) (A) is true but (R) is false (B) (A) is false but (R) is true
(C) (A) and (R) are correct and (R) is correct explanation of (A).
(D) Both (A) and (R) are correct, but (R) is not the correct explanation of (A).

55. Assertion (A): When a company earns profit prior to its incorporation, it is called capital
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profit.
Reason (R): Capital profit cannot be used for distribution as dividend to the shareholders.
In the context of the above statements, which one of the following is correct?
Codes:
(A) (A) is correct, but (R) is wrong. (B) Both (A) and (R) are correct. (C) (A) is wrong, but (R)
is\ correct. (D) Both (A) and (R) are wrong.

56. Assertion (A): Only the relevant costs should be taken into consideration for
Decision making.
Reason (R): All variable costs are relevant costs and all fixed costs are irrelevant
costs. In the above statements, which one alternative of the following is correct?
Codes:
(A) Both (A) and (R) are correct. (B) Only (A) is correct, but (R) is wrong.
(C) Only (R) is correct, but (A) is wrong. (D) Both (A) and (R) are wrong.

57. Statement I : Canbank Factors Limited collect the book debts for and on behalf of
its clients. Statement II. The factoring institutions provides financial accommodation on the
basis of assignment or sale of account receivable.
(A) (A) is true but (R) is false
(B) (A) is false but (R) is true
(C) (A) and (R) are correct and (R) is correct explanation of (A).
(D) Both (A) and (R) are correct, but (R) is not the correct explanation of (A).

58. Assertion (A): When the existing company wants to raise additional capital,
Securities are first offered to the existing shareholders.
Reason(R): Rights offer is a dividend of subscription rights to buy additional securities in a
company made to the company’s existing security holders.
(A) (A) is true but (R) is false (B) (A) is false but (R) is true
(C) (A) and (R) are correct and (R) is correct explanation of (A).
(D) Both (A) and (R) are correct, but (R) is not the correct explanation of (A).

59. Match the Following:

List I List II
a) NCDS i. Over the Counter Exchange of India
b) NSEI ii. Stock Holding Corporation of India Limited
c) SHCIL iii. National Stock Exchange of India Limited
d) OTCEI iv National Clearance and Depository System
a) b) c) d)
a) 4 3 1 2 b) 3 4 1 2 c) 3 2 1 4 d) 4 3 2 1

60. Match List I and List II

List I List II
a.WTO i. Provides loans to address short term BOP
b.RBI ii. multilateral trade negotiating body
c. IMF iii. facilitating lending and borrowing for reconstruction and development
d. IBRD iv. Central Bank of India
a) b) c) d)
a) 2 4 1 3 b) 4 3 2 1 c) 3 2 4 1 d) 1 2 3 4

61. Match List I and List II

List I List II
a. authorised capital i. A registered Capital
b. Issued Capital ii. Which is issued for public
c. SubscribedCapital iii. Which is purchased by the capital
d. Paid-up Capital iv. That part has been paid by the shareholders
a) b) c) d)
a) 1 2 3 4 b) 4 3 2 1 c) 1 3 4 1 d) 2 3 4 1
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V.M.G.RAJASEKARN-RAMANI SRI SARADA SAKTHI MAT.HR.SEC.SCHOOL

12th Commerce Lesson 6 – One Marks
Money market
Choose the correct answer:

1.The money invested in the call money market provides high liquidity with
a.Low Profitability b.High Profitability c.Limited Profitability d.Medium Profitability

2.A major player in the money market is the

a.Commercial Bank b.Reserve Bank of India c.State Bank of India d.Central Bank.

3.Money Market provides

a.Medium-term Funds b.Short-term Funds c.Long-term Funds d.Shares

4.Money market Institutions are

a.Investment Houses b.Mortage Banks c.Reserve Bank of India d.Commercial Banks and Discount
Houses

5.Risk in the Money Market is

a.High b.Market Risk c.Low Credit and Market Risk d.Medium Risk

6.Debt Instruments are issued by Corporate Houses are raising short-term financial resources from the money
market are called
a.Treasury Bills b.Commercial Paper c.Certificate of Deposit d.Government Securities

7.The market for buying and selling of Commercial Bills of Exchange is known as a
a.Commercial Paper Market b.Treasury bill Market c.Commercial Bill Market
d.Capital Market

8.A marketable document of title to a time deposit for a specified period may be referred to as a
a.Treasury bill b.Certificate of Deposit c.Commercial Bill d.Government Securities

9.Treasury Bills commands

a.High Liquidity b.Low Liquidity c.Medium Liquidity d.Limited Liquidity

10.Government Securities are issued by agencies such as

a.Central Government b.State Governments c.Semi-government Authorities
d.All of the above

11.Treasury bills and commercial bills are the examples of

a)Money market b)Capital market c)Equity market d)Debt market

12.Which market deals with shares and debentures?

a.Money market b.Capital market c.Debt market d.Primary market

13.A market for the purchase and sale of Treasury bills are known as
a.Treasury bills market b.Call loan market c.Bill market d.None of these

14.Certification of Deposits are issued in the form of usance

a.Bill of exchange b.Promissory notes c.Commercial bills d.None of these

15.The Issuers of certificate of Deposits are

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a.Drawer b.Treasure Bills c.Commercial banks d.Corporations

16.Bill that are accompanied by documents of title to goods are called

a.Foreign bills b.Indigeneous bills c.Documentry bills d.Demand bills

17.Liquidity status of certificate of deposit which is more negotiable is considered as

a.certified liquidity b.more liquid c.term liquid d.less liquid

18.Certificate of deposits which are usually negotiable are issued by banks

a.stock exchange b.business corporations c.financial market

19.Negotiable deposit certificate are traded in

a.primary markets b.direct markets c.indirect markets d.secondary markets

20.Type of market in which securities with less than one year maturity are traded is classified as
a.Money market b.Capital market c.Global market d.None of these

21.Maximum maturity days of holding commercial paper are

a.170 days b.270 days c.120 days d.100 days

22.Certificate of deposits which are usually negotiable are issued by

a.banks b.financial market c.stock exchange d.business corporations

23.Process of issuing treasury bills are classified as

a.Treasury trading action b.Treasury bills action c.Both d.None of these

24.Treasury bills have high liquidity because of extensive secondary markets

a.extensive primary markets b.premium money markets
c.discounted money markets

25.The short term financial instruments traded in money market is commonly called
a.Bonds b.Shares c.Notes d.Commercial papers

26.Commercial papers issued with low interest rate thus commercial paper are categorized as
a.payable rating b.commercial rating c.poor credit rating d.better credit ratings

27.Which of the following is not a characteristic of wholesale markets?

a.Firms deal with other firms b.Lending and borrowing is coordinated through banks
c.Borrowing and lending is not intermediated d.Very large quantities of money are at state A

28.Which of the following world stock exchanges were in the top five by value of transaction in 2009?
a.London Stock Exchange b.Shanghai Stock Exchange c.Amsterdam Stock Exchange
d.Hong Kong Exchange

29.Market is a market for purely short term funds.

a.Capital b.Money c.Financial d.Capital

30.Market is not a single homogenous market.

a.primary b.Secondary c.Money d.Capital

31.Are the nerve centre of the whole money market.

a.Commercial banks b.Reserve bank c.State bank d.Indian Overseas bank
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32.Days Treasury bills do not carry any fixed rate.

a.91 days b.182 days c.200 days d.364 days

33.Is an instrument drawn by a seller of goods on a buyer of goods.

a.Treasury bills b.Certificate of deposit c.Commercial bill d.None of these

34.A is one wherein no specific time of payment is mentioned.

a.Demand bill b.Documentary bill c.Foreign bill d.Indigeneous bill

35.________________are drawn without accompanying any document.

a.Demand bills b.Clean bills c.Documentary bills d.Indigenous bills

36.______-bills are those which do not arise out of genuine trade of transactions.
a.Inland b.Foreign c.Accommodation d.Clean

37.Plays a significant role in the Indian money market.

a.Treasury bills b.Certificate of deposits c.Government securities d.None of these

38. Pick the odd one out

a.Drawer b.Payee c.Acceptor d.Capital market

39.Pick the odd one out

a.Clean bills b.Indigenous bills c.Grooming d.Foreign bills

40.Which one of the following is not correctly matched?

a.Clean bills - Railways receipt b.Inland bills - Drawn and payable in India
c.Foreign bills - Drawn outside India d.Money market – Long term funds

41.Which one of the following is not correctly matched?

a.Treasury bills - Monetary Management
b.Certificate of Deposits - Foreign bills
c.Commercial bills - Endorser
d.Government securities - Gilt-Edged securities

42.choose the correct statement

i)Money marker deals with financial assets having a maturity period upto one year only.
ii)Money market is a single homogeneous market.
iii)Commercial banks generally play a dominant in this market.
a.(i) is correct b.(ii) is correct c.(i) and (ii) are correct d.(i) and (iii) are correct

43.i)The commercial banks serve as vital link between the central bank and the various segments of the money
market.
ii)Money market presupposes the existence of a large domestic and foreign trade.
iii)Money market deals with instruments like shares, debentures, government bonds.
a.(i) is correct b.(i) and (ii) is correct c.(i) and (iii) are correct d.(i), (ii) and (iii) are correct.

44.i)Certificate of Deposits are short-term deposit instruments issued by banks and financial institutions to raise
large sums of money.
ii)Certificate of deposits is a document of title to a time deposit.
iii)Certificate of deposits issued at discount to face value.
a.(i) is correct b.(i) and (iii) are correct c.(ii) is correct d.(i), (ii) and (iii) are correct s
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45. Commercial paper issued with low interest rate thus commercial paper is categorized
as________.
a) Payables rating b) Commercial rating c) Poor Credit Rating d) Better Credit rating

46. Maximum maturity days of holding commercial paper are ______

a) 180 days b) 91 days c) 270 days d) None of the above

47. Which of the following is a sub-market?

a) Acceptance Market b) Cash Market c) Primary Market d) None

48. Which of the following are the issuers of Certificate of Deposits?

a) Commercial Banks b) Financial Institutions c) Both (a) & (b) d) None

49. A Bill wherein no specific time of payment is mentioned is known as ________ .a)
Indigenous Bill b) Clean Bill c) Demand Bill d) Post Dated Bill

50. Assertion (A): Variance analysis is undertaken for planning and control of
costs. Reason (R): Future costs are taken into consideration in budgeting and
standardcosting. In the above statements, which one alternative of the following is correct?
Codes:
(A) Both (A) and (R) are correct and (R) is the Reason for (A).
(B) Both (A) and (R) are correct and (R) is not the Reason for (A).
(C) (A) is correct, but (R) is wrong. (D) (A) is wrong, but (R) is correct.

51. Assertion (A): The focus of working capital management revolves around managing the
operating cycle of the working capital.
Reason (R): It is because the concept is useful to ascertain the requirements ofcash to meet
the operating expenses of a going concern.
Codes:
(A) Both (A) and (R) are true, but (R) is not the explanation of working capital
management.
(B) Both (A) and (R) are false. (C) (A) is true, but (R) is false.
(D) (A) is false, but (R) is true.

52. Assertion (A): Treasury bills are issued to the public and other financial institutions for
meeting the short-term financial requirements.
Reason (R): Treasury bills are freely marketable and they can be bought and
sold at any time.
(A) (A) is true but (R) is false (B) (A) is false but (R) is true
(C) (A) and (R) are correct and (R) is correct explanation
of (A). (D) Both (A) and (R) are correct, but (R) is not the correct explanation of (A).

53. Assertion(A): Bills that are drawn outside India and are payable either in India or outside
India are called Foreign Bills.
Reason(R) : In case of foreign bills the Indian company always bears the loss of bank charges.
(A) (A) is true but (R) is false (B) (A) is false but (R) is true
(C) (A) and (R) are correct and (R) is correct
Explanation of (A). (D) Both (A) and (R) are correct, but (R) is not the
correct explanation of (A).

54. Assertion (A): Accounting information refers to only events which are concerned with
business firm.
Reason (R): Accounting information is presented in financial statements.
Codes:
(A) (A) is correct, but (R) is wrong. (B) Both (A) and (R) are correct.
(C) (A) is wrong, but (R) is correct. (D) Both (A) and (R) are wrong
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V.M.G.RAJASEKARN-RAMANI SRI SARADASAKTH I MAT.HR.SEC.SCHOOL

12th Commerce Lesson 7 – One Marks

Stock exchange
Choose the correct answer:
1.___________________-is the oldest stock exchange in the world.
a.London stock Exchange b.Bombay Stock Exchange c.National Stock Exchange
d.Amsterdam Stock Exchange

2 .There are stock exchange.

a)21 b)24 c)20 d)25

3.Stock exchanges deal in_________________

a.Goods b.Services c.Financial Securities d.Country’s Currency

4.Stock exchange allow trading in

a.All types of shares of any Company b.Bonds issued by the Govt
c.Listed Securities d.Unlisted Securities

5.Jobbers transact in a stock exchange

a.For their Clients b.For their Own Transactions c.For other Brokers d.For other
Members

6.A pessimistic speculator is

a.Stag b.Bear c.Bull d.Lame Duck

7.An optimistic speculator is

a.Bull b.Bear c.Stag d.Lame duck

8.A bull operator believes in

a.Increase in Prices b.Decreases in Prices c.Stability in Prices
d.No change in Prices

9.Means the price at which securities are bought and sold are recorded and made public.
a.Market Quotations b.Trade Quotations c.Business Quotations d.Buyers Quotations

10.The rules and regulations of Stock exchange is framed by guide lines.

a.RBI b.Central Government c.SEBI d.BSE

11.Amsterdam stock exchange was established in the year

A. 1602 B. 1604 C. 1666 D. 1680

12. Which of the following securities are bought and sold are recorded and mad public?
a.Protection to investors b.Capital formation c.Market quotations d.None of these

13.People like to invest in the shares of such companies which yield

a.goodwill b.good profits c.financial position high d.services

14. Stock exchange requires recognition from the

a.State government b.Central government c.Commercial bank d.Financial
institutions

15. Stock exchange encourages

a.Raising fund b.Capital formation c.Divert resources d.Bargainingstrength

16.Jobbers are also called as

a.Taravaniwalas b.Gambling c.Speculation d.Bear

17. The prices of different securities traded are shown on

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a.state boards b.central boards c.electronic boards d.none of these

18.Who act as intermediaries between buyers and sellers of securities?

a.Authorized clerks b.Brokers c.Jobbers d.speculation

19.Tejiwala is an
a.Pessimistic speculator b.Optimistic speculator c.Premium hunter d.Taravaniwalas

20. A bear is a
a.Premium hunter b.Optimistic speculator c.Pessimistic speculator d.Tejiwala

21.National stock exchange was incorporated in

a.November, 1992 b.October, 1992 c.November, 1996 d.October, 1996

22.The normal trading time for equity market is between

A. 8:30 a.m to 7:30 p.m B. 9:15 a.m to 3:30 p.m C. 6:00 a.m to 6:00 p.m
D. 7:30 a.m to 7:00 p.m

23. The right to sell security is called

a.Put option b.Call option c.Reference option d.None of these

24. The right to buy is called

a.Call option b.Put option c.Both d.none of these

25.Stock exchange allows trading in

a.All types of shares of any company b.Bonds issued by the Government
c.Listed Securities d.Unlisted Securities

26. Jobbers transact in a stock exchange

a.For their clients b.For their own transactions c.For other brokers
d.For other members

27.A stock exchange is a place to

a.Exchange one security for another b.Buy and sell financial securities
c.Float new issues d.Buy and sell stock of goods

28. _____________is one of the important constituents of capital market.

a.Stock exchange b.Primary market c.Share capital d.Equity capital

29.____________is on organized market for the purchase and sale of industrial and
financial security.
a.Securities b.SEBI c.Stock exchange d.None of these

30.______________is the most popular stock exchange in the world.

a.London stock exchange b.Bombay stock exchange
c.Amsterdam stock exchange d.tokyo stock exchange

31.______________is considered as the oldest stock exchange in the world.

a.Bombay stock exchange b.Amsterdam stock exchange
c.London stock exchange d.Tokyo stock exchange

32.______________is an integral part of stock exchange operations.

a.Capital formation b.Evaluation of securities c.Speculation
d.Business information

33.Stock exchange does not buy or sell any securities on its________account.

a.own b.current c.fixed d.recurring deposit
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34. Stock exchange regulates the activities.

a.Commercial b.Non –commercial c.trade d.non-trade

35.__________-Are not allowed to enter in the trading circles of the stock exchange.
a.Insiders b.Outsiders c.Workers d.Managers
36. Stock exchange is an market.
a.primary b.secondard c.commercial d.organised

37.Resources are thus diverted to efficiently run enterprises for better utilisation.
a.Scarc b.Natural c.Thermal d.Non-natural

38.The ISE has been promoted by regional stock exchanges in the country and is based
at Mumbai.
a.12 b.13 c.15 d.21

39. Brokers charge a from both the parties for their service.
a.wage b.Salary c.commission d.profit

40.Cannot deal on behalf of public and are barred from taking commission.
a.Authorized clerks b. Brokers c.Jobbers d.Gambling

41.Does not perform economic function.

a.Speculation b.Jobbers c.Brokers d.Gambling

42. _____is an operator who expects a rise in prices of securities in the future.
a.Bull b.Bear c.Stage d.Lame Duck

43.Usually presses its victim down to ground.

a.Bull b. Bear c.Lame Duck d.Stag

44.A_________is a cautious speculator in the stock exchange.

a.Lame Duck b.Bull c.Bear d.Stag

45.________Is a country wide, scree base online and order driven reading system.
a.NSE b.SHCIL c.NCDs d.STCI

46.Has revolutionised stock trading in India.

a.STCI b.NSE c.NCDs d.SHCIL

47.___________Is and index of the stock in BSE.

a.Sensex b.Nifty c.Options market d.Primary market

48. Options are a type of ________product.

a.consumer b.derivative c.both d.none

49.Are the employees of the members of a stock exchange.

a.Jobbers b.Brokers c.Authorised clerk d.Speculators

50.Pick the odd one out

a.London Stock Exchange b.Tokyo stock Exchange c.Remisers
c.Hong Kong Stock Exchange

51.Pick the odd one out

a.Bull b.Bear c.Authorized clerks d.TMX Group

52.Pickthe odd one out

a.NASDAQ b.TMX Group c.Lame Duck d.Bombay Stock Exchange

53.Which one of the following is not correctly matched?

a.Bull – Tajiwala b.Bear – Mandiwala c.Stag - Premium hunter
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d.Lame Duck – Cautious Speculators

54.Which one of the following is not correctly matched?

a.Lombard Street - City of London’s merchant b.Wall Street - Small business
c.Dalal Street - Bombay stock exchange d.Options market – Derivative product

55.Which one of the following is correctly matched?

a.NSE - National Securities Exchange b.SHCIL – Stock Holding Corporations
of India Ltd c.STCI – Short term Trading corporation of India d.NSDL – National
Stock Depository Limited

56.Which one of the following is correctly matched?

a)London Stock Exchange - $ 4.485 trillion
b)Hong Kong Stock Exchange - $ 3.321 trillion
c)Bombay Stock Exchange - $ 3.986 trillion
d)Tokyo Stock Exchange - $ 4,485 trillion

57.Brokers are commission agents, who acts as

i)Agent of the member of a stock exchange
ii)Employees of the member of a stock exchange
iii)Intermediaries between buyers and sellers of securities
iv)Security markets dealing’ in securities
(i) is correct (ii) is correct (iii) is correct (iv) is correct

58.i)Stock Exchange is one of the important constituents of capital market.

ii)Speculation is an integral part of stock exchange operations.
iii)Industrial growth and stability is reflected in the index of stock exchange.
a.(i) is correct b. (i) and (ii) are correct
c.(ii) and (iii) are correct d.(i), (ii) and (iii) are correct

59.i)Remisers acts as an agent of member of a stock exchange.

ii)Brokers charge a fees from both the parties for their service
iii)Jobbers are called Taravaniwalas.
(i) is correct (i) and (ii) are correct b.(i) and (iii) is correct c.(i), (ii) and (iii) are correct

60. Amsterdam Stock Exchange was established in the year ____.

a) 1602 b)1702 c) 1802 d) 1902

61. The first stock exchange was established in the year _______.
a) 1947 b) 1957 c) 1998 d) 1988

62. Most popular stock exchange in the world is _____________.

a) Tokyo Stock Exchange b) Singapore Stock Exchange
c) Dubai Stock Exchange d) London Stock Exchange

63. The prices at which securities are bought and sold and made public is
known as_____.
a) Market Quotations b) Skimming Price c) Market Prices d) None of the
above

64. The Interconnected Stock Exchange of India Limited has been

promoted by ____ regional stock exchanges in the country.
a) 20 b) 25 c) 45 d)15

65. ______ are the security merchants dealing in shares, debentures as

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independent operators.
a) Jobbers b) Brokers c) Both A & B d) None

66. A _____________ is a cautious speculator in the stock exchange.

a) Lame Duck b) Bull c) Bear d) Stag

67. Which of the following is correct?

a) Bull speculator is also known as Tejiwala b) Bear speculator is also
known as Mandiwala c) Both A & B d) None

68. The government of India enacted the Depositories Act in the year
_______
a) 1996 b) 1986 c) 1886 d) 1896

69. ______ is the index of the stocks in Bombay Stock Exchange.

a) SENSEX b) NIFTY c) STTI d) None

70. The literal translation of Dalal in Marathi is___.

a) Broker b) Intermediary c) Both A & B d) None

71. What is the full form of SENSEX?

a) Sensitivity Index b) Stock Index c) Securities Index d) None

72. Which stock exchange is also called as Big Board?

a) New York Stock Exchange b) Bombay Stock Exchange
c) Delhi Stock Exchange d) Tokyo Stock Exchange

75. Orders that are transacted at best available prices are classified as
______.
a) Post Order b) Available order c) Market order d) None

76. Which of the following might you see roaming a stock market?
a) Goats b) Cows c) Mice d) Bulls

77. Which of the following term is used to describe a payout made to

shareholders representing the share of a corporation’s profit?
a) Profit b) Interest c) Dividend d) None

78n options Market, the right to sell a security is called as _______.

a) Put Option b) Call Option c) Sell Option d) None

79. In options market, the right to buy a security is known as ________.

a) Put Option b) Call Option c) Sell Option d) None

80. Jobbers are also called as _______ in India.

a) Tejiwala b) Mandiwala c) Taravaniwala d) None

81. _______ does not perform economic function.

a) Speculation b) Gambling c) Both a & b d) None
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82. Assertion (A): When a company earns profit prior to its incorporation, it
is called capital profit.
Reason (R): Capital profit cannot be used for distribution as dividend to the
shareholders. In the context of the above statements, which one
of the following is correct?
Codes:
(A) (A) is correct, but (R) is wrong. (B) Both (A) and (R) are correct.
(C) (A) is wrong, but (R) is\ correct. (D) Both (A) and (R) are wrong

83. Assertion (A): Dividend paid out of pre-acquisition profit by the

subsidiary company to the holding company is deducted from the cost of
investment.
Reason (R): Dividend paid out of pre-acquisition profit by the subsidiary
company should be treated as a return of capital to the holding company.
Which one of the following is correct?
(A) Both (A) and (R) are correct. (B) (A) is correct, but (R) is wrong.
(C) (A) is wrong, but (R) is correct. (D) Both (A) and (R) are wrong.

84. Assertion (A): A company should pay minimum dividend to its

shareholders. Reason (R): Dividends are heavily taxed than capital gains.
Codes:
(A) Both (A) and (R) are correct. (B) Both (A) and (R) are incosrrect.
(C) (A) is not correct, but (R) is correct. (D) (A) is correct, but (R) is wrong.

85. Assertion (A): Stock exchange helps an investor to convert his shares
into cash quickly.
Reason(R): Stock Exchange is an organized market for the purchase and
sale of
Industrial and financial security.
Codes:
(A) Both (A) and (R) are correct. (B) Both (A) and (R) are incorrect.
(C) (A) is not correct, but (R) is correct. (D) (A) is correct, but (R) is wrong.

86. Assertion (A): Gold, Silver, Oil, Natural Gas Agriculture are tradable
commodities under commodity exchange.
Reason(R) : A commodity exchange is an exchange where commodities are
traded.
Codes:
(A) Both (A) and (R) are correct. (B) Both (A) and (R) are incorrect.
(C) (A) is not correct, but (R) is correct. (D) (A) is correct, but (R) is wrong.
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V.M.G.RAJASEKARN-RAMANI SRI SARADA SAKTHI MAT. HR.SEC.SCHOOL

12th Commerce Lesson 8 – One Marks
Securities exchange board of India
Choose the correct answer:
1.Securities exchange board of India was first established in the year
A. 1988 B. 1992 C. 1995 D. 1998

2.The headquarters of SEBI is

a.Calcutta b.Bombay c.Chennai d.Delhi

3.In which year SEBI was constituted as the regulator of capital markets in India?
A.1988 B. 1992 C. 2014 D. 2013

4.Registering and controlling the functioning of collective investment scheme as

a.Mutual Funds b.Listing c.Rematerialisation d.Dematerialisation

5.SEBI is empowered by the finance ministry to nominate members on the Governing

body of every stock exchange.
a.5 b.3 c.6 d.7

6.The process of converting physical shares into electronic form is called

a.Dematerialisation b.Delisting c.Materialisation d.Debarring

7.Trading is dematerialized shares commenced on the NSE is

a.January 1996 b.June 1998 c.December 1996 d.December 1998

8. was the first company to trade its shares in Demat form.

a.Tata industries b.Reliance Industries c.Infosys d.Birla Industries

9. enables small investors to participate in the investment on share capital of large

companies.
a.Mutual Funds b.Shares c.Debentures d.Fixed deposits

10.PAN stands for

a.Permanent Amount Number b.primary Account Number
c.Permanent Account Number d.Permanent Account Nominee

11.Which of the following is true ?

a.SEBI was first established in the year 1988 b.SEBI was given statutory powers in the
year 1992 c. SEBI has its headquarters in Mumbai d.SEBI encourage insider
trading in securities

12.Securities and exchange Board of India was first established in the year
A.1980 B. 1986 C. 1988 D. 1990

13.SEBI is an apex body that maintains and regulates our

a.capital market b.mutual funds c.share capital d.none of these

14.The capital market is meaningless in the absence of the

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a.Brokers b.Investors c.Owners d.employees

15.SEBI issues Guidelines and Instructions to business concerning
a.Credit Issues b.Capital issues c.Capital issues d.Share capital

16.Registering and controlling the functioning of collective investment schemes such as

a.mutual funds b.Securities c.bonds d.debentures

17.Stock exchange deals in

a.Goods b.services c.Financial Securities d.Country’s currency

18.Number of recognised stock exchange in India

a.20 b.21 c.22 d.24

19.SWBI is formed as per

a.Securities contract (Regulation) Act b.Companies Act c.Securities and Exchange
Board of India Act d.Indian Constitution

20.SEBI has the following numbers of members including chairman.

a.5 b.6 c.7 d.8

21.Which of the following statement is not correct about the SEBI?

a.At present is a non-statutory body b.At the present it is a statutory body
c.It got statutory powers by an ordinance in 1992 d.SEBI is managed by 6 members

22.Where is the headquarters of the SEBI?

a.Delhi b.Bengaluru c.Chennai d.Mumbai

23.Chairman of the SEBI is appointed for

a.for maximum 3 years b.for maximum 6 years
c.for maximum 5 years d.tenure not fixed

24.Stock market is also called

a.free market b.open market c.equity market d.sports market

25.SEBI has allowed celebs to endorse which products

a.stocks and shares b.Mutual funds c.Dividends d.Insurance

26.Which of the following words does not belong to the stock exchange?
a.NAV b.NSE c.IPO d.KPO

27.Legal document required by securities Exchange commission stating associated risks and
details descripotion of issues is classified as
a.Prospectus b. states document c. risk detailed document d.exchange commission
document

28.What is the meaning of “financing” in the financial market?

a.Advising an organization too raise charity funds b.Investing in the securities market
c.Sourcing funds d.Converting the assets into cash

29.Which of the following is not a characteristic of an exchange?

a.It allows securities to be listed on more than on exchange.
b.It allows exchange-listed issues to trade off the exchange floor with the aid of brokers.
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c.It provides liquidity to individuals who acquire

d.Stocks traded on an exchange must meet minimum listing requirements.

30.The exchange generating the largest volume in the United States is the:
a.American Stock b.New York Stock Exchange c.Chicago Stock Exchange
d.Pacific Stock Exchange

31.Initially SEBI was a without any statutory power.

a.Statutory b.Non-Statutory c.departmental d.none of these

32. affects the interest of the general investors and is essential to check this
tendency.
a.Regulation of stock exchange b.Insider trading c.Protection to the investors
d.control over brokers

33.Regulating and controlling the business on markets.

a.stockexchange b.capital c.share market d.none of these

34. conducts research and publishes information beneficial to all market players.
a.WTO b.HRM c.Demat d.SEBI

35. is done at the request of the investor.

a.Materialization b.Dematerialization c.Depository Participant
d.Demat account
36 Account holder can buy or sell any amounts of shares.
a.DEMAT b.Equity c.Cost D.Management

37. is the supervisory body established to regulate Indian Stock Market.

a.SEBI b.Mutual fund c.Primary market d.Secondary market

38. Account can be opened with no balance of shares.

a.Fixed b.Current c.Demat d.Recurring Deposit

39.Pick the odd one out:

a.PAN Card b.ID card c.Voter ID d.Social Order

40. Regulation of stock exchange

a.Jobbers b.Insider trading c.Control over d.brokers

41.Which of the following is correctly matched?

a.Mutual funds – Mumbai b.Dematerialisation – Demat account
c.Depository participant – supervising body d.materialisation – Governing Body

42.i) A demat account holds all the shares that are purchase in electronic or dematerialized
form.
ii)certain banks also permit holding of both equity and debit securities in a single account.
(iii). the lack of paper work enables quicker transactions and higher efficiency in trading.
a.(i) is correct b.(i) and (ii) are correct c.(ii) and (iii) are correct
d.(i), (ii) and (iii) are corect

43.(i). In case of the BSE dematerialization of shares commenced in the year December 1988.
(ii) Dematerialised shares do not have any distinctive numbers.
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(iii). SEBI is also empowered by the finance Ministry to nominate three members on the
Governing Body of every stock exchange.
a.(i) is correct b.(i) and (ii) are correct c.(ii) and (iii) are correct
d.(i), (ii) and (iii) are correct

44. Trading in dematerialized shares commenced on NSE in ____________.

a) December 1996 b) July 1996 c) December 1969 d) July 1969

45. Trading in dematerialized shares commenced on BSE in ___________.

a) December 1997 b) July 1997 c) December 1979 d) July 1997

46. ___________ Industries was the first company to trade its 100 shares in
demat form.
a) TATA b) Reliance c) Banking d) None

47. In the process of Demat the investors have to open an account with a
_________.
a) Depository Participant b) Joint account c) Online account d) None

48. _________ is the unique 10 – digit alphanumeric identity number.

a) PAN b) VAN c) LAN d) None

49. Assertion (A): Dividend paid out of pre- acquisition profit by the subsidiary
company to the holding company is deducted from the cost of investment.
Reason (R): Dividend paid out of pre- acquisition profit by the subsidiary
company should be treated as a return of capital to the holding company.
Which one of the following is correct?
(A) Both (A) and (R) are correct. (B) (A) is correct, but (R) is wrong.
(C) (A) is wrong, but (R) is correct. (D) (A) is correct, but (R) is wrong.

50. Which of the following statement is not correct about the SEBI?
a) At present it is a non statutory body
b) At present it is a statutory body c) It got statutory powers by an ordinance
in 1992 d) SEBI is managed by 6 members.

51. Assertion (A): SEBI regulates mergers and acquisitions as a way to protect
the interest of investors. Reason(R) : Registration of brokers and sub-brokers
is made mandatory and they have to abide by certain rules and regulations.
Which one of the following is correct?
(A) Both (A) and (R) are correct. (B) (A) is correct, but (R) is wrong.
(C) (A) is wrong, but (R) is correct. (D) (A) is correct, but (R) is wrong.

52. Assetion (A): SEBI is an apex body that maintains and regulate the capital
market. Reason (R): A apex body is a national organization which
concentrates on resources management.
(A) Both (A) and (R) are correct. (B) Both (A) and (R) are incorrect.
(C) (A) is not correct, but (R) is correct. (D) (A) is correct, but (R) is wrong.

53. Assertion (A): A demat account holds all the shares that are purchased in
electronic or dematerialized form.
Reason(R): Every share holder should have a dematerialized account for the
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purposeof transacting.
(A) Both (A) and (R) are correct. (B) Both (A) and (R) are incorrect.
(C) (A) is not correct, but (R) is correct. (D)s (A) is correct, but (R) is wrong.
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V.M.G.RAJASEKARN-RAMANI SRI SARADA SAKTHI MAT. HR.SEC.SCHOOL

Std:XII Chapter-9 Human resource management

choose the correct answer:
1.Human resource is a_________ Asset
a.tangible Intangible c.Fixed d.Current
2.Human resourcemanagement is both
a.science and art b.Theory an practice c.Historyand Geography d.None of
the above.

3.Planning is a function
a.selective b.pervasive c.both a and d.none of the above

4. Human resource management determines the relationship.

a.internal, external b.employer, employee c.owner, servant d.Principle,
Agent

5.Labour turnover is the rate at which employee’s the organisation.

a.enter b. leave c. salary d.none of the above

6.The human resource is the most important element in any organisation

a.Industry b.Commerce c.Business ANSWER: B

7.Human resource can work as a

a.Unity b.reliable c.team d.none of the above

8.Human resource management has

a.irrelevant b.universal relevance c.temporarily d.permanent

9.Human resource management helps improve

a.production b.productivity c.profit d.power

10.In modern scenario a company’s long term advantage lies in

a.technology b.business location c.new market d.human resource

11.Human resource management refers to

a.all managerial activities b.concepts and techniques
c.the management of people in organizations d.none of these

12.Human resources practices that support strategy includes

a.production scheduling b.staffing practices c.policies and procedures
d.all of these

13.The focus the Human resource management revolves around

a.Machine b.Money c.Men d.None of these

14.Human resource\management is primarily concerned with

a.sales b.dimensions of people c.external environment d.internal
environment

15.Human resource management function does not involve

a.retirement b.selection c.cost control d.training

16.Which one is not the specific goal of human resource management?

a.attracting applicants b.separating employees c.retaining employees
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d.none of these

17.The objectives of HRM are categorised as

a.personal objectives b .functional objectives c.organisational and social
objectives d.all of the above

18.Scope of the HRM includes

a.Retirement and separation of employees b.HR training and development
c.Industrial relation d.all of the above

19.The term used before the language of modern HRM was

a.labour relations b.personnel management c.industrial management d.all of
the above

20.Human resources exhibits and

a.innovation, creativity b.workers, employees c.both d.none of these

21.______ relations depend on human resource.

a.Industrial b.Business c.Technological d.all of these

22. includes the overall progress of the employee and the enterprise.
a.Human resource b.Human resource management c.psychological
management
d.organisational behaviour
23.___ focuses on people in an organisation.
a.Human resource management b.Human resource c.organisational behavior
d.none of these

24.The two sets of functions performed are and functions.

a.managerial, organizational b.operative, Psychological c.managerial, operative
d.none of these

25._______ needs in an organisation is very important as it is a form of investment.

a.Determination of manpower b.competitive advantage c.Employee attitude
d.none of these

26. helps the workforce to identify their level of performance.

a.Human resource b.Human resource management
c.Personal management d.none of these

27. is deciding what to do, how to do and who is to do it.

a.Planning b.Organising c.Directing d.Controlling

28. helps in the systematic operation of business.

a.Controlling b.Directing c.organising d.Planning

29. reduces the waste of time energy and money and early attainment of
organisational objectives.
a.Planning b.Organising c.Directing d.Controlling

30. is made possible through observation, supervision, reports, records and audit.
a.Directing b.Controlling c.Planning d.Organising

31.To be ethical and social towards needs of society is objective of HRM.

a.Societal b.Operational c.Functional d.all of these
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32.The characteristics of human resources are in nature.

a.Homogeneous b.Heterogeneous c.Ductility d.none of the above.

33.Managerial functions of HRM is must for of the organisations.

a.administration b.smoothing running c.financial stability d.none of the
above

34. functions are the HR functions that are the required to administrate the manpower in
the organisations.
a.Managerial b.Analytical c.Operational d.Research

35. states the way about what are the activities that need to be conducted, when it
is to be conducted and how to conducted it,
a.Planning b.Organising c.Decision making d.all of these

36.HRM is a staff functions.

a. a line functions b.a staff attendances c. line function and accounting
function d.all of the above

37.The scope of HRM does not include

a.retirement of employees b.manpower planning c.training of employees
d.maintenance of accounts
38.Features of human resource management
a.Universally relevant b.Goal oriented c.Minimum shares d.Dynamic activity

39. Function of Human resource management

a.Organising b.Motivation c.Directing d.Controlling

40. Which one of the following is not correctly matched?

a.Procurement – job analysis b.Development – Performance appraisal
c.Compensation – Social Security d.Integration - Personal Interest and
Organisational Interest

41.Odd one out:

a.Maintenance – Job satisfaction b.Retention – Health and safety
c.compensation – Bonus d.placement and Promotion

42. i)In an organisation the human resource are the employees who are inevitable for
the survival and success of the enterprise.
ii)Human resource created all other resources.
iii)Human resource exhibits innovation and creativity.
a.(i).is correct b.(ii). Is correct c.(i).and (ii). Are correct d.(i), (ii), and (iii) are
correct

43.(i). Human resources manages all other factors of production. (ii). Human
resources can utilised at top levels of management. (iii). Human resources are well
protected by legislative frameworks.
a.(i) is correct b.(i) and (ii) are correct c.(ii) is correct d.(i), (ii) and (iii) are
correct

44.(i). Honing of skills through training increases the effective use of the resource
procured. (ii). Human resources management is a tangible function which can be
measured only by results.
(iii). The number of men required to be identified accurately to optimise the cost.
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a.(i) is correct b.(i) and (iii) are correct c.(ii) and (iii) are correct d.(i), (ii) and
(iii) are correct

45. The features of human resources are___________ in nature.

a) Hetrogeneous b) Homogeneousc) Compliance d) None

46. Identify the managerial function out of the following functions of HR

managers.
a) Procurement b) Development c) Organizing d) None

47. Human resource management is normally__________ in nature.

a) Combative b) Reactive c) Proactive d) None

48. Human Resource process includes___________.

a) Role clarity b) Work Planning c) Better Communication d) All of the above

49. Mr.X a manager of the company delegates the responsibility of a project

to Mr.Y his subordinate. Mr.X involved in _________________ function of the
management process
a) Planning b) Organising c) Controlling d) All of the above

50. ___________ refers to the management of people in an organization.

a) HR b) HRM c) HRD d) All the above

51. The Operative functions are known as ____________ functions.

a) Management b) Administrative c) Advisory d) None
8. The human resource functions has social and ___________ objectives.
a) Informative b) Customer oriented c) Financial d) Ethical

52. HRM is the systematic approach to accomplish organizational goal

through most advantageous use of __________.
a) Technology b) Machines c) Skilled Employees d) Funds

53. The HR manager focuses his attention in providing and improving welfare
facilities for ____________.
a) Customers b) Stake Holders c) Employees d) All of the above

54. Assertion (A): One can not be sure about the quality of appraisal on the
basis of length of service.
Reasoning (R): Initial appraisal and promotional appraisal are done separately
and differently since the length of service is different.
(A) (R) is correct but (A) is not correct.
(B) (A) is correct but (R) is not correct.
(C) (A) and (R) both are correct.
(D) (A) and (R) both are not correct.

55. Statement (i): Labour always get a major share of productivity gains.
Statement (ii): Partial stoppage of work by workers amounts to strike.
(A) Statement (i) is true but (ii) is false. (B) Statement (ii) is true but (i) is
false.
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(C) Both statements are true. (D) Both statements are false.

56. Statement (I): Job evaluation is a technique of assessing the worth of each
job in comparison with others throughout an organization.
Statement (II): Job evaluation and job rating
are one and the same for employees’ appraisal purposes.
Codes:
(A) Statement (I) is correct, but Statement (II) is incorrect.
(B) Statement (II) is correct, but Statement (I) is incorrect.
(C) Both the Statements (I) and (II) are correct.
(D) Both the Statements (I) and (II) are incorrect.

57. Assertion (A): Merit rating of an employee is the process of evaluating the
employees performance on the job in terms of the requirements of the job.
Reason (R): Employees’ merit rating is a technique for fair and systematic
evaluation of an employee’s capacities and abilities and performance on the
specific job.
Codes:
(A) Both (A) and (R) are correct, and (R) is the right explanation of (A).
(B) Both (A) and (R) are correct, but (R) is not the right explanation of (A).
(C) Both (A) and (R) are incorrect.
(D) (R) is correct, but (A) is incorrect.

58. Statement I : It is no better to pay employees for little than to pay too
much.Statement II. Competent employees will remain competent forever.
(A) Statement I is true, but II is false, (B) Statement II is true, but I is false.
(C) Both the Statements I and II are true (D) Both Statement I and II are false.
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V.M.G.RAJASEKARN-RAMANI SRI SARADA SAKTHI MAT. HR.SEC.SCHOOL

12th Commerce Lesson 10 – One Marks

Recruitment methods
Choose the correct answer:

1.Recruitment is the process of identifying

a.Right man for right job b.good performer c.right job d.All of the above

2.Recruitment bridges gap between and

a.Job seeker and job provider b.Job seeker and agent c.job provider and owner
d.owner and servant

3.Advertisement is a source of recruitment

a.internal b.external c.agent d.outsourcing

4.Transfer is an source of recruitment.

a.internal b.external c.outsourcing d.None of the above

5.E-recruitment is possible only through facility.

a.Computer b.Internet c.Broadband d.4G

6.Poaching is also called

a.Raiding b.Unsolicited application c.profession d.tutor ANSWER: A

7.Rate which is used to represent that Organization is successful at hiring condition is classified
as
a.selection rate b.yield rate c.acceptance rate d.success base rate

8.In recruitment cast, costs such as salaries of operating managers and public relation classified
as
a.direct cost b.Indirect cost c.both d.none of the above ANSWER: C

9.In recruitment costs, agency fees, recruitment advertisement and salaries of recruiters is
classified as
a.direct cost b.indirect cost c.both d.none of the above

10.Comparison between numbers of applications at each preceding stage of recruitment process

is classified as
a.Initialization ratio b.resultant ratio c.yield ratio d.application ratio ANSWER: C

11.The recruitment and selection process aimed at right kind of people

a.At right place b.At right time c.TO do right things d.all of the above

12.The following is a source of recruitment

a.Advertisement b.Reference c.Employment agency d.All of the above
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13.Which mode of recruitment is through advertisements, newspapers and want ads?

a.Direct b.Indirect c.Both d.None of the above

14.Identifying the right people in rival companies offering then better terms and luring them
away is popularly called as
a.Competition b.Acquisition c.Poaching d.None of the above

15.The following is concerned with developing a pool of candidates in line with the human
resources plan
a.Development b.Training c.Recruitment d.None of these
16.Rearrange the following steps of recruitment.
I) Searching II)Evaluation and control III)Planning IV)Screening
V)Strategy development
a.III, II, I, V, IV b.III, V, I, IV, II c.IV, V, III, I, II d.II, I, IV, V, III
17. is the process of finding suitable candidates for the various posts in an organisation.
a.Recruitment b.Selection c.Training d.Placement

18.__ acts as a link between job provider and job seeker.

a.Selection b.Training c.Motivation d.Recruitment

19.External sources can be classified into sources.

a.two b.three c.four d.five

20. has become inevitable external source of recruitment.

a.Campus recruitment b.Rival firms c.E-recruitment d.None of these ANSWER: C

21. connects the job provider and the job seeker by providing the relevant and required
information.
a.professional associations b.private employment agencies c.job portals
d.Deputation ANSWER: B

22.______ types of firms facilitate recruitment on behalf of client companies at cost.

a.professional associations b.Employment consultancies c.Deputation
d.Job portals

23.Recruitment or manpower selection process is the first step in the employment of___________

a.Labour b.Managment c.Both (A) and (B) d.None of the above ANSWER: A

24._______ is the process of searching for prospective employees and stimulating them to
apply for jobs in the organization.
a.Advertising b.Selection c.Recruitment d.Staffing

25.Promotion is a source recruitment

a.suitable b.higher c.internal d.external
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26.Campus selection is a source of recruitment.

a.internal b.external c.modern none of these

27.Pick the Odd one out

a.transfer b.Demotion c.Job rotation d.Tejiwala

28.Pick the odd one out

a.Advertisement b.stag c.walkins d.Rival firms

29.Which of the following is not correctly matched?

a.job rotation – single employee managed b.Retention - superannuation
c.Advertisements – Magazines d.Walkins – Chartered Accounts

30.a.Campus recruitment – Suitable candidates

b.e-recruitment – temporary unskilled employees
c.Rival firms – Charted accountant
d.private employment agencies – job provider and job seeker

31.a.Employment consultancies – Recruitment process outsourcing

b.Profession Associations – The institute of Engineers
c.Deputation - Long term Solution d.Job portals – Using Internet

32.(i). Organisations recruit unskilled and manual labourers through these contractors. (ii). the
organisations visit the educational institutions to identify and recruit suitable candidates.
(iii). usually permanent skilled employees are recruited by factory gate.
a.(i) is correct b.(i) and (ii) are correct b.(ii) and (iii) are correct
(i), (ii) and (iii) are correct

33.Selection is the process of finding suitable candidates for the various posts in an
organisation. Ii)Recruitment encourages the prospective employees to apply for the job. (iii).
External sources can be classified into three categories.
a.(i) is correct b.(ii) is correct c.(ii) and (iii) are correct d.(i), (ii) and (iii) are correct A

34. The primary aim of recruitment is to______________.

a) High labour turn over b) Hire the best individual c) both a & bd) None of the above

35. Recruitment is widely viewed as a _____ process.

a) Positive b) Negative c) Both a & b d) None of the above

36. The Recruitment process aimed at right kind of people_____________.

a) at right place b) at right time c) to do right things d) all of the above

37 .Recruitment process is the first step in the employment of ____________.

a) Labour b) Management c) Both a & b d) None of the above

38. Sources used for internal recruiting includes______________.

a) Organisational data base b) Job posting c) Job transfers d) All of the above
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39. ____________ is a process of searching for prospective employees and stimulating

them to apply for jobs.
a) Selection b) Induction c) Recruitment d) Orientation

40. Promotion is the _______ source of recruitment.

a) Suitable b) Internal c) External d) Hierarchy level

41. Speed of Hiring is an advantage of_________.

a) Internal Source of recruitment b) External Source of recruitmentc) Both a & b d) None of the above

42. ________ refers to the process of identifying and attracting job seekers so as
to build a pool of qualified job applicant.
a) Selection b) Training c) Recruitment d) Induction

43. How may stages does the recruitment process comprise of?
a) 2 b) 6 c) 9 d) 5

44. Which among the following are parts of job description?

i. Duties performed ii. Job summary iii. Job identification iv. Supervision given
v. Delegation of authority
(a) i ,ii,iii and iv (b) ii,iii,iv and v (c) i,iii,iv and v (d) I,ii,iii and v

45. Statement ‘A’ : Semi- skilled employees are selected amongst the unskilled employees.
Statement ‘B’ : In the telling method, lectures are delivered similar to the
Classroom session.
Code:
(A) Statement ‘A’ and statement ‘B’ both are true (B) Statement ‘A’ and statement ‘B’ both are
untrue (C) Statement ‘A’ is true but statement ‘B’ is not true (D) Statement ‘A’ is partially true but
statement ‘B’ is true

46. Statement ‘A’ : The Apprentice Act started from 1961.

Statement ‘B’ : This Act is meant to regulate and control the training of apprentices in
trades and matters connected therewith.
Code:
(A) Statement ‘A’ and statement ‘B’ both are true (B) Statement ‘A’ and statement ‘B’ both are not true
(C) Statement ‘A’ and ‘B’ both are true but statement‘B’ is reason of the statement ‘A’
(D) Statement ‘A’ and ‘B’ both are true but statement ‘B’ is not reason of the statement ‘A’

47. Statement ‘A’ : Human Resource Management is a Line Responsibility

Statement ‘B’ : Human Resource Management is a line manager’s Responsibility
but a staff function.
Code:
(A) Statement ‘A’ and statement ‘B’ both are true (B) Statement ‘A’ and statement ‘B’ both are
false (C) Statement ‘A’ is true but statement ‘B’ is false (D) Statement ‘A’ is false but statement ‘B’ is true

48. Statement (I): Job evaluation is a technique of assessing the worth of each job in comparison
with others throughout an organization. Statement (II): Job evaluation and job
rating are one and the same for employees’ appraisal purposes.
Codes:
(A) Statement (I) is correct, but Statement (II) is incorrect. (B) Statement (II) is correct, but
Statement (I) is incorrect. (C) Both the Statements (I) and (II) are correct. (D) Both the Statements (I)
and (II) are incorrect.
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V.M.G.RAJASEKARN-RAMANI SRI SARADA SAKTHI MAT. HR.SEC.SCHOOL

12th-Commerce-Lesson-11 – One Marks
Employee selection process
Choose the correct answer:
1.The recruitment and selection process aimed at right kind of people.
a.At right people b.At right time c.To do right thinks d.All of the above

2.The poor quality of selection will mean extra cost on and supervision
a.Training b.Recruitment c.work quality d.None of these.

3.Refers to the process of identifying and attracting job seekers so as to build a pool of qualified job
a.applicants. b.Selection c.Training d.RecruitmentInduction .

4.Selection is usually considered as a process

a.Positive b.Negative c.Natural d.None of these

5.Which of the following test is used to measure the various characteristics of the candidate?
a.Physical Test b.Psychological Test c.Attitude Test Proficiency tests
6.Which of the following orders is followed in a typical selection process.
a.Application form test and or interview, reference check and physical examination
b.Application form test and or interview, reference check, and physical examination
c.Reference check, application form, test and interview and physical examination
d.Physical examination test and on interview application term and reference check.
7.The purpose of an application blanks is to gather information about the
a.Company b.Candidate c.Questionnaire or Interview Schedule d.Competitors
8.Identify the test that acts as a instrument to discover the inherent ability of a candidate.
a.Aptitude Test b.Attitude Test c.Proficiency Test d.Physical Test
9.The process of eliminating unsuitable candidate is called
a.Selection b.Recruitment c.Interview d.Induction
10.Scrutiny of application process is the
a.Last step in Selection Process b.First step in selection process
c.Third step in Selection Process d.None of the above .
11.Selection process helps in
a.Locating candidates b.Determining the suitability of the candidates
c.Preparing employees for training d.None of these
12.The process of placing the right man on the right job is called
a.Training b.Placement c.Promotion d.Transfer
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13.Probation/Trial period signifies

a.one year to two years b.one year to three years
c.Two years to Four years d.None of the above
14.Job first man next is one of the principles of
a.Test b.Interview c.Training d.Placement
15.The main aim of selection process is to find out the suitable candidate for
a.more job b.higher salary c.specific job d.none of these
16.Which of the following test to measure suitability of the candidates for the post / role.
a.Verbal reasoning test b.Spatial reasoning test
c.Aptitude test d.Mechanical reasoning test.
17.Which of the following test provides information about candidate’s numerical aptitude?
a.Verbal reasoning test b.Numerical reasoning test
c.Mechanical reasoning test d.Diagrammatic reasoning test
18.Which test measure the candidate’s ability to find a logic in a series or pattern?
a.Number sequence test b.Vocabulary test
c.Mental arithmetic test d.Verbal reasoning test
19.The first modern intelligence test was developed in
a. 1961 b. 1911 c. 1904 d. 1857
20.Which tests assesses the reliability and innate characters of the candidate concerned?
a.Attitude test b.Interest tests c.Personality inventory test d.Interview

21.An atmosphere for fee and frank interaction is created in the

a.high salary b.earned money c.interview environment d.none of these

22.Where a group of people interview the candidate, it is called

a.Video conferencing interview b.Group interview c.Online interview
d.Panel interview

23.Which type of interview is conducted to test the temperament and emotional balance of the candidate
interviewed?
a.Stress interview b.Medical examination interview c.Group interview d.Telephone interview

24.Proper selection of candidates contributes to

a.low labour turnover b.good talent c.better efficiency d.job motivation

25.Proper selection of candidates reduces

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a.good talent b.labour turnover c.absenteeism d.none of these ANSWER: C

26.Recruitment and selection play a vital role in the

a.Human resource b.Human resource management c.Personal behaviour
d.Organisational behaviour

27.The process of selection of employees is usually influenced by

a.principles and programmes b.rules and regulations c.strategies and objectives
d. all of these

28.The process of eliminating unsuitable candidates is called

a.interview b.training c.recruitment d.selection

29.Kind of interview which creates anxiety among interviewees by putting pressure to see how applicant
respond is classified as
a.Panel interview b.stress interview c.directive interview d.online interview

30.Which type of interviews considers standardized question that must be asked to all applicants, short
listed for testing are classified as
a.Structure interviews b.Unstructure interviews cStress interview d.Panel interview

31.Procedure for choosing individuals who have all skills, abilities, and knowledge needed for a job is
classified as
a.costing b.selection c.training d.recruitment

32.Can range from a very simple process to a very complicated process.

a.Employee selection b.Training c.Placement d.Recruitment

33.Is the process of choosing the most suitable person for the vacant position in the organization?
a.Training b.Selection c.Recruitment d.Placement

34.Test is used to find the suitability of a candidate for a given job role.
a.Ability b.Personality c.Vocabulary d.Reasoning

35.Helps in predicting the ability and future performance of the candidate.

a.Aptitude test b.Achievement test c.Intelligence test d.Judgement test
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36.Test measures the engineering student ability of apply engineering concept in actual practice.
a.Numerical reasoning b.Verbal reasoning c.Mechanical reasoning d.Diagrammatic
reasoning
37. Tests the candidate’s basic numerical ability like addition and subtraction.
a.Number sequence test b.Vocabulary test c.Mental arithmetic test d.Situational judgement

38.Test measures a candidate’s capacity to candidate’s capacity to achieve in a particular field.

a.Aptitude test b.Achievement test c.Intelligence test d.Judgement test
39.____________ is also called proficiency test.
a.Judgement test b.Intelligence test c.Aptitude test d.Achievement test
40.___________ test is conducted before, during or after a learning experience.
a.Achievement test b.Aptitude test c.Judgement test d.Intelligence test
41._______conducted to test the presence of mind and reasoning capacity of the candidates.
a.Attitude test b.Personality test c.Mental test d.Judgement test
42.______________no right or wrong answer in the test.
a.Personality test b.Judgment test c.Mental test d.Aptitude test
43.Interview is conducted to know the general suitability of the candidates who have applied for the job.
a.Preliminary interview b.Planned interview c.Unstructed interview d.In depth interview
44.________ quite contrary to structured interview.
a.Panel interview b.Unstructured interview c.Stress Interview d.Guided interview
45.Ensure more reliability in the selection of the candidate.
a.Online interview b.Panel interview c.Preliminary interview d.Stress interview
46.Enables the interviewers to conduct interview with the candidates living in faraway places.
a.Group interview b.Online interview c.Telephone interview d.Physicalexamination
interview
47.___ is a good time saving type of interview.
a.Medical examination b.Online interview c.Group interview d.Video conferencing
interview
48.Interview is similar to face to face interview.
a.Telephone interview b.Online interview c.Group interview d.Video conferencing
interview
49.___________ done to know reliability and trust worthiness of the candidate.
a.Reference check b.Approval by higher authority c.Final selection
d.Contract by employment
50.Selection is usually considered as a process.
a.negative b.positive c.natural d.none of the above
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51.Can be defined as process of choosing the right person for the right-job.
a.Selection b.Recruitment c.Training d.None of these
52._________ is a selection test which judges the emotional ability which will help of judge work in
group?
a.Mental ability test b.Intelligence test c.Personality test d.Attitude test
53. The recruitment and selection process aimed at right kind of people.
a) At right people b) At right time c) To do right things d) All of the above

54. The poor quality of selection will mean extra cost on _______ and supervision.
a) Training b) Recruitment c) work Quality d) None of these

55. ___________ refers to the process of identifying and attracting job seekers so as
to
build a pool of qualified job applicants.
a) Selection b) Training c) Recruitment d) Induction
56. Selection is usually considered as a _____________ process
a) Positive b) Negative c) Natural d) None of the above

57. Which of the following test is used to measure the various characteristics of the
candidate?
a) Physical Test b) Psychological Test c) Attitude Test d) Proficiency tests

58. Which of the following order is followed in a typical selection process?

a) Application form test and or interview, references check and physical examination
b) Application form test and or interview, reference check, and physical examination
c) Reference check, application form, test and interview and physical examination
d) Physical examination test and on interview application term and reference check.

59.The purpose of an application blank is to gather information about the

a) Company b) Candidate c) Questionnaire or interview Schedule d) Competitors
60. Identifying the test that acts as an instrument to discover the inherent ability
of a candidate.
a) Aptitude Test b) Attitude Test c) Proficiency Test d) Physical Test

61. The process of eliminating unsuitable candidate is called

a) Selection b) Recruitment c) Interview d) Induction

62. Security of application process is the

a) Last step in selection process b) First step in selection process
c) Third step in selection process d) None of the above

63. Selection process helps in

a) Locating candidates b) Determining the suitability of the candidates.
c) Preparing employees for training d) None of these

64. The process of placing of the right man on the right job is called______
a) Training b) Placement c) Promotion d) Transfer

65. Probation/Trial period signifies

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a) One year to two years b) one year to three years

c) Two years to four years d) None of the above

66. Job first man next is one of the principles of __________________

a) Test b) Interview c) Training d) Placement
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V.M.G.RAJASEKARN-RAMANI SRI SARADA SAKTHI MAT. HR.SEC.SCHOOL

12th-Commerce-Lesson-12-One-Mark
Employee training method
Choose the correct answer:

1.Off the Job training is given

a.In the class room b.On off days c.Outside the factory d.In the playground

2.Vestibule training is provided

a.On the job b.In the class room
c.In a situation similar to actual working environment d.By the committee
3.Improve Skill Levels of employees to ensure better job performance
a.Training b.Selection c.Recruitment d.Performance appraisal
4.When trainees are trained by supervisor or by superior at the job is called
a.Vestibule training b.Refresher training c.Role play d.Apprenticeship training
5.Is useful to prevent skill obsolescence
a.Training b.Job analysis c.Selection d.Recruitment

6.Training methods can be classified into training training

a.Job rotation & Job enrichment b.On the Job and Off the Job
c.Job analysis & Job design d.Physical and mental

7.Case study method is type of trainee.

a.Only theoretical training b.Both theory and practical training
c.Hands on training d.Abservation Training

8.Elaborate discussion on specific topic comes under method of training.

a.Under study b.Coaching c.Conferences d.Counselling

9.A parson who is learning and practising the skills of particular job is called
a.trainee b.trainer’s c.training d.none of these

10.Which department should decide the level of training to be imparted to the employees?
a.Public b.Private c.Training d.All of these

11.Which method superior plays the role of coach or guide and an instructor?
a.Mentoring method b,Job rotation method
c.Apprenticeship method d.Coaching method
12.Which method gain more knowledge by observing and participating in decision making process?
a.Coaching method b.Committee Assignment method
c.Apprenticeship method d.Job rotation method

13.Which type of method participants are divided into various groups

a.Lecture method b.Case study method c.Group discussion method d.Role play method

14.Which type of method to use their theoretical knowledge and practical knowledge?
a.Case study method b.Lecture method c.Role play method d.Group discussion method
15.Doctor’s conference and salesman conference are the examples of
a.Role play method b.Coaching method c.Apprentice training method d.Seminar /
Conference method

16.Which type of training method is given to avoid any damage or loss to machinery in the actual
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places?
a.Programmed instruction method b.Demonstration training method
c.Vestibule training method d.Coaching method

17.Which type of training method is any time information can pass over the internet?
a.Programmed instruction method b.Demonstration training method c.E-learning method
d.Coaching method

18.Training done is guidance of instructor on one place and having trainees at different location is
classified as
a.tactile training b.distance training c.e-training d.classroom training

19.Which of the following is not true about training?

a.It is a short-duration exercise b.It is technical in nature
c.It is primarily for managers and executives d.It is concerned with specific job skills

20.In which type of analysis are corporate goals and plans compared with the existing manpower
inventory to determine the training needs?
a.Organisation analysis b.Operation analysis c.Individual analysis d.None of the above

21.Training concentrates on
a.coaching the members of an organization how to perform effectively in their
current jobs
b.expansion of the knowledge and skills of the members of an organization
c.preparing the employees to take on new responsibilities d.none of the above
22.The process of enhancing the technical skills of workers in a short period is called
a.training b.development c.education d.none of the above

23.
E-learning is all about
a.computers and computing b.electronics c.experience d.being – technology - driven

24.The planned use of networked information and communication technology for the delivery of
training is called
a.e-learning b.role playing c.case study d.Programmed learning

25.Which one of the following is a source of assessing training needs?

a.Performance evaluation b.Advisory panel c.Attitude survey d.All of the above

26.Laboratory training is also known by the name

a.Sensitivity training b.Job instruction training c.Apprenticeship training d.None of the
above

27.Help to improve the skill of an employee for doing a particular Job.

a.Readings b.Committee c.Workplace d.Training

28.Enables the employees to guide their behaviour.

a.Training b.Staffing c.Controlling d.Motivating

29.Helps to learn more knowledge regarding the latest technologies and techniques.
a.Planning b.Controlling c.Training d.Motivating

30.__________is a person who teaches skills to employee and prepare them for a job activity.
a.Training programme b.Training c.Trainers d.Trainee
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31.Level employees are given skill development training.

a.Top b.Middle c.Lower d.None of these

32._______is based on the principle of “Learning by Doing and Learning while earning”.
a.On the job training b.Off the job training c.Both ‘A’ and ‘B’ d.None of these

33._________is the process of sharing knowledge and experience of an employee

a.Coaching method b.Mentoring method c.Apprenticeship method d.Job rotation method

34.______________is mostly used for managerial employees.

a.Committee Assignment method b.Coaching method c.Mentoring method
d.Apprenticeship method

35.____________is an important method for broadening the knowledge of executives

a.Committee Assignment b.Job instruction techniques c.Coaching method d.Job rotation

36.____________training which is carried out away from the normal place of work.
a.On the job b.Off the job c.Both ‘a’ and ‘b’ d.None of these

37.Method were provided a particular issue for deliberation.

a.Lecture method b.Group discussion method c.Case study method d.Role play method

38.Method trainees are explained the situation and assigned roles.

a.Field trip b.E-learning method c.Vestibule training method d.Role play method

39.__________is one of the oldest method, but still a favourite training method?
a.Seminar / Conference method b.Vestibule training method c.Coaching method
d.Job rotation method

40.Methods are free to clarity their doubts from the organization exports.
a.Role play b.Seminar c.Field Trip d.None of these

41. Is also often referred to us online training or web based training.

a.E-learning b.E-publishing c.E-government d.None of these

42.Method is a visual display of how somethings works.

a.Job instruction b.Field trip c.E-learning d.Demonstration

43.Method, the subject matter to be learnt is presented in a series of units.

a.Programmed instruction method b.Demonstration method
c.E-learning d.Vestibule training

44.Method creates a situation that is as far as possible a replica of the real situation for imparting
training.
a.The programmed learning b. The simulation c.The case study d.The lecture

45. Which of the following persons are known as trainers?

a) Mentor b) Guide c) Guru d) All of the above

46. Sharing of knowledge and experience of an employee is known as _______.

a) Coaching b) Role play c) Mentoring d) None of the above

47. The following are the benefits of training

a) Increased productivity b) Reduced accidents c) Reduced supervision d) All of the above
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48. _________ is widely used for human relations and leadership training
a) Business games b) Role playing c) Case Study method d) Job rotation

49. __________ refers to the learning opportunities designed to help employees grow.
a) Training b) Development c) Education d) All of the above

50. Which of the following is a hindrance to effective training?

a) Career planning workshop b) Aggregate spending on training is inadequate
c) Mentoring d) Career counseling

51. _____________ are variable rewards granted to employees according to

Variations in their performance.
a) Remuneration b) Perks c) Fringe Benefits d) Incentives

52. Which one of the following is not the operative function of HRM?
a) Development b) Controlling c) Compensation d) Integration

53. Which one of the following is not in sequenceof personnel training procedure?
1. Instructor preparation 2. Present the task 3. Try out performance 4. Training performance
5. Follow up
a) 1,2,3,4,5 b) 2,1,4,3,5 c)1,4,2,3,5 d) 3,1,2,5,4

54. Assertion(A): Inevitable the firm must go to the external sources for lower entry
jobs. Reason(R): For positions where required qualification/experience are not met.
Codes:
a) Both A & B are not correct b) A is true, but B is false c) R is true, but A is false
d) Both A and R are correct.

55. Statement (A) : Training is for present jobs. Statement (B) : Development is for future
jobs. Statement (C) : Orientation is not enough for employee
Statement (D) : Training help employees to their present job
(A) Statement ‘A’, ‘B’ and ‘C’ are true (B) Statement ‘B’, ‘C’ and ‘D’ are true
(C) Statement ‘A’, ‘C’ and ‘D’ are true (D) statement ‘A’, ‘B’ ,‘C,’,’D’ is true

56. Assertion (A): Merit rating of an employee is the process of evaluating the employees
performance on the job in terms of the requirements of the job.
Reason (R): Employees’ merit rating is a technique for fair and systematic evaluation
of an employee’s capacities and abilities and performance on the specific job.
Codes:
(A) Both (A) and (R) are correct, and (R) is the right explanation of (A).
(B) Both (A) and (R) are correct, but (R) is not the right explanation of (A).
(C) Both (A) and (R) are incorrect. (D) (R) is correct, but (A) is incorrect.

57. Assertion (A): In the coaching method of training, the superior teaches or
guides the new employee. Reason (): The superior plays the role of
coach or guide and an instructor.
(A) Both (A) and (R) are correct, and (R) is the right explanation of (A).
(B) Both (A) and (R) are correct, but (R) is not theright explanation of (A).
(C) Both (A) and (R) are incorrect. (D) (R) is correct, but (A) is incorrect

58. Assertion(A): There is no prepared dialoguesin Role –Play method.Reason(R): Under

Role play method trainees are explained the situation and assigned roles.
(A) Both (A) and (R) are correct, and (R) is the right explanation of (A).
(B) Both (A) and (R) are correct, but (R) is not the right explanation of (A).
(C) Both (A) and (R) are incorrect. (D) (R) is correct, but (A) is incorrect

59. Statement (A) : Job analysis information provides the foundation of an organization’s
human resource information system. Statement (B) : The job analysis information
can be collected through interviews, juries of experts, mail questionnaires,employee
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logs, direct observation, or some combination of these techniques.

Code:
(A) Statement ‘A’ and statement ‘B’ both are true
(B) Statement ‘A’ and statement ‘B’ both are untrue
(C) Statement ‘A’ true but statement ‘B’ is untrue
(D) Statement ‘B’ is untrue but statement ‘A’ is true
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V.M.G.RAJASEKARN-RAMANI SRI SARADA SAKTHI MAT. HR.SEC.SCHOOL

12th-Commerce-Lesson-13– One Marks
Concept of market and marketer
Choose the correct answer:
1.One who promotes (or) Exchange of goods or services for money is called as
a.Seller b.Marketer c.Customer d.Manager
2.The marketer initially wants to know in the marketing is
a.Qualification of the customer b.Quality of the product
c.Background of the customers d.Needs of the customers
3.The spot market is classified on the basis of
a.Commodity b.Transaction c.Regulation d.Time
4.Which one of the market deals in the purchase and sale of shares and debentures?
a.Stock Exchange Market b.Manufactured Goods Market
c.Local Market d.Family Market
5.Stock Exchange Market is also called
a.Spot market b.Local market c.Security market d.National Market
6.The word market is derived from the Latin word
a.Marks b.Marcatus c.Mars d.Marcus
7.Which market is regulated and controlled by certain rules?
a.Commodity market b.Produce exchange market
c.National market d.World market
8.Which type of market deals with the purchase or sale of gold and silver?
a.Capital market b.Commodity market c.Bullion market d.Perfect market
9.Which types of market where short term securities are exchanged?
a.Bullion markets b.Manufactured goods marke c.Money market d.Spot market
10.Which concept of marketing is product oriented?
a.Old concept of marketing b.Modern concept of marketing c.Entity concept of business
d.None of these
11.Sub-division of marketing is called as
a.Market segmentation b.decision of market
c.allowcation of market d.none of these
12.Provides short term and very short term finance to industries, banks and financial
intermediaries.
a.Money market b.Foreign exchange market c.Regulated market d.None of these
13._____________-is an international market
a.Money market b.Future market c.Regulated market d.Foreign exchange market
14._____________is also known as securities market.
a.Stock market b.National market c.International market d.Commodity market
15.____________-is the most valuable product that can be marketed today?
a.Persons b.Places. c.Information d.Ideas
16.Marketing refers to the
a.Sale of product b.goods distribution c.goods and services are exchanged to each other
d.all of these
17.The role of marketing in modern organisation in with marketing offers to lend a competitive edge
and marketing tasks to match the demand and supply.
a.integrative b.non-integrative c.responding d.all of these
18._______________is a medium for place to interact and exchange goods and services?
a.Commerce b.Industry c.Business d.Market
19.Marketers often used the term to cover various groupings of customers.
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a.buying power b.demographic segment c.market d.people

20. __________ are the form of human needs take as shaped by culture &
individual personality.
a) wants b) demands c) needs d) social needs

21. Marketing is a process which aims at _______.

a) Production b) Profit making c) satisfaction of customer needs
d) selling products

22. Marketers often use the term ______ to cover various groupings of
customers.
a) People b) buying power c) demographic segment d) market

23. Who suggested product, pricing, place, promotion all these in a company
represents “ Market Mix”
a) Philip Kotler b) Stephen Morse c) Neil Borden d) Neilsen

24. Assertion (A): Marketing is the performance of buying activities from

producer to ultimate user.
Reason (R): Selling is concerned with putting the goods into the hands of the
buyers.
a) Both A and R are individually true b) Both A and R are false
c) A is true but R is false d) A is false but R is true

25. Assertion(A): In barter system the goods are exchanged against goods,
without any other medium of exchange like money.
Reason(R): Customers’ importance was realized but only as a means of
disposing of goods produced.
a) A is true but R is false b) A is false but R is true
c) Both A and R are individually true and R is the correct explanation of A
d) Both A and R are individually true but R is not the correct explanation of A

26. Match the following in Column I and Column II with given codes:
Column I Column II
1. Consumer (i) Advantage
2. Product (ii) Profit
3. Earning (iii) Development
4. Competitive (iv) Satisfaction
a) 1-ii; 2- i; 3-iii; 4-iv b) 1-ii; 2-iii; 3-iv; 4-I c) 1-iv; 2-iii; 3-ii; 4-ii d) 1-iii; 2-I; 3-iv; 4-ii

27. Match the following in A and B from the given codes.

A B
1. Growth in (i) Goodwill
2.Creation of (ii) Customer loyalty
3.Sustaining (iii) Development
a) 1-ii; 2- i; 3-iii b) 1-ii; 2-iii; 3-I c) 1-ii; 2-iii; 3-ii d) 1-iii; 2-i; 3-ii

28. The marketing concepts involves______.

a) Production Orientationb) Sales Orientationc) Consumer Orientation d) All
of the above
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29. The role of the marketer includes _____.

a) Instigator b) Innovator c) Integrator d) All of the above
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V.M.G.RAJASEKARN-RAMANI SRI SARADA SAKTHI MAT. Hr.sec.school

12th-Commerce-Lesson-15-One-Marks
Recent trends in marketing
Choose the correct answer:
1.Selling goods/services through internet is
a.Green marketing b.E-business c.Social marketing d.Meta marketing

2.Which is gateway to internet?

a.portal b.CPU c.Modem d.Webinar
3.Which one respects a cluster of manufacturers, content provider and online retailers
organised around an activity?
a.Virtual mall b.Association c.Metomediary d.Portal
4.Social marketing deals with:
a.Society b.Social class c.Social change d.Social evil

5.Effective use of social media marketing increase conversion rates of

a.Customer to buyers b.Retailer to customers c.On buyer to another buyer’s
d.Direct contact of marketer

6.A company’s products and prices is visually represented by

a.Shopping cart b.Web portal c.Electronic catalogue d.revenue model

7.Green helter concept was introduced by group:

a.ACME b.Tata c.Reliance d.ICI

8.Pure play retailers are called

a.Market creators b.Transaction brokers c.Merchants d.Agents

9.The boundaries of nations are disappearing for exploiting the opportunities of

a.business b.industry c.commerce d.accounts ANSWER:A

10.All the business transaction carried out through internet and other online tools is called
a.E-Tailing b.E-Marketing c.E-Business d.E-Commerce

11.E-Tailing is also called

a.Online business b.Online trading c.Green marketing d.None of these

12.Green marketing is also known as

a.E-Tailing b.E-Marketing c.traditional market d.Environment marketing

13.The multilevel marketing is also called as

a.Electronic marketing b.Green marketing c.Referral marketing d.None of these

14.Which of the following describes e-commerce?

a.Doing business electronically b.Doing business c.Sale of goods d.All of the above

15.E-commerce involves the application of

a.Knowledge management systems b.product management systems
c.services management systems d.All of the above

16.Green marketing is a part of

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a.Social marketing b.Service marketing c.Relationship marketing d.Rural marketing

17. is well known that business is a branch of commerce.

a.E-commerce b.E-business c.E-marketing d.E-tailing

18. is a business to customer transaction model.

a.E-Tailing b.Green marketing c.Electronic commerce d.Traditional marketing

19. implies marketing environmentally friend’s products.

a.Ambush marketing b.Referral marketing c.Green marketing d.Online marketing

20. is a new marketing tool.

a.Social marketing b.Service marketing c.Rural marketing d.Environment marketing

21. helps to eradicate social evils that affects the society and quality of life.
a.service marketing b.Social marketing c.Niche marketing d.Viral marketing

22. is a specialised branch of marketing.

a.E-marketing b.E-tailing c.Social marketing dViral marketing ANSWER: D

23. is a method of building brands in convert ways.

a.Ambush marketing b.Guerrilla marketing c.Multilevel marketing d.None of these
24. is used to small companies.
a.Multilevel marketing b.Guerrilla marketing c.Social marketing d.Service marketing

25. are networks that connect people within a company to each other and to the company
network.
a.Intranets b.Extranets c.Internets d.None of these ANSWER: A

26.The type of website engages consumers in interactions that will move them closer to a
direct purchase is known as a website.
a.Customer Service b.Interactive c.Corporate d.marketing
27. Selling goods/ services through internet is
a. Green marketing b. E-business c. Social marketing d. Meta marketing
28. Which is gateway to internet?
a. Portal b. CPU c. Modem d. Webnaire
29. Which one represents a cluster of manufacturers, content providers and
online retailers organized around an activity?
a. Virtual mall b. Association c. Metomediary d. Portal
30. Social marketing deals with:
a. Society b. Social class c. Social change d. Social evil
31. Effective use of social media marketing increase conversion rates of _____
a. Customer to buyers b. Retailer to customers c. One buyer to another
buyer’s d. Direct contact of marketer
32. A company’s products and prices is visually represented by
a. Shopping cart b. Web portal c. Electronic catalogue d. Revenue model
33. Green shelter concept was introduced by group:
a. ACME b. Tata c. Reliance d. ICI
34. Pure play retailers are called
a. Market creators b. Transaction brokers c. Merchants d. Agents
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V.M.G.RAJASEKARN-RAMANI SRI SARADA SAKTHI MAT. HR.SEC.SCHOOL

12th Commerce Lesson 16 – One Marks
Choose the correct answer:
1.The term ‘consumerism’ came into existence in the year .
a. 1960 b. 1957 C. 1954 d. 1958

2.Who is the father of Consumer Movement?

a.Mahatma Gandhi b.Mr. Jhon F. Kennedy c.Ralph Nader d.Jawaharlal Nehru

3.Sale of Goods Act was passed in the year.

a. 1962 b. 1972 C. 1982 d. 1985

4.The main objective of all business enterprises is .

a.providing service b.Providing better standard of life c.Providing necessities to the society
d.Earn profit

5.The Consumer Protection Act came into force with effect from
A. 1.1.1986 B. 1.4.1986 C. 15.4.1987 D. 15.4.1990

6. of every year is declared as a Consumer Protection Day to educate the public about their rights
and responsibilities.
a.August 15 b.April 15 c.March 15 September 15

7.Any person who buys any goods or avails services for personal use, for a consideration is called as
a.Customer b.Consumer c.Buyer d.User

8.The General Assembly of United Nations passed resolution of consumer protection guide lines on
A. 1985 B. 1958 C. 1986 D. 1988

9.New Products appeared and consumer’s dependence of business.

a.increased b.decreased c.both d.None of these

10.Which causes heavy loss to the consumers?

a.Spurious goods b.warranty c.False advertisement d.Adulteration

11.The term consumerism in the early

A. 1950 B. 1954 C. 1956 D. 1960

12.Producers, sellers and service providers give importance to the

a.workers b.managers c.consumers d.owners

13.“Consumerism is an attempt to enhance the rights and powers by buyers in relation to sellers”-who
said these statement?
a.L.Massie b.William Stanton c.Richard d.James

14.Which has been very responsive to the consumer needs through legislative actions?
a.Private b.Government c.Financial institutions d.None of these

15.Caveat emptor means

a.Let the buyer beware b.Let the seller beware c.Both d.None of these

16.Caveat Venditor means

a.Let the buyer beware b.Let the seller beware c.Both d.None of these

17.The consumer protection Act is referred in short as

a.CPA b.COPRA c.CAT d.None of these
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18.Consumer protection Act is applicable to

.a.immovable goods b.movable goods c.specific goods and services d.all goods and services

19.The minimum age limit for being a member of district forum as per consumer protection act is
a.65 b.35 c.40 d.30

20.The consumer protection act 1986 extend to

a.The Whole India b.The whole India except Jammu and Kashmir c.The whole India
except Nagaland tribal area d.None of these

21.Which act provides safeguards and reliefs to the buyers of the goods in case the goods purchased
do not match with express or implied conditions or warranties?
a.Consumer protection Act, 1986 b.Sale of goods Act, 1930 c.The Indian contract Act 1872
d.None of these

22.What is the important of consumer protection from the point of view of a consumer?
a.Consumer awareness b.Protection against malpractices of sellers
c.Both ‘a’ and ‘b’ d.None of these

23.The Consumer Protection (Amendment) Act was passed in the year

A. 1994 B. 1990 C. 1993 D. 1998

24.Which of the following is Consumer Oriented Act?

a.Indian Companies Act 1966 b.Partnership Act 1932
c.Indian Income Tax Act 1961 d.Hire Purchase Act 1972

25.The Consumer Protection Act 1986 came into force with effect from
A. 1.1.1986 B. 1.4.86 C. 15.4.87 D. 15.4.90

26. and are the two sides of a coin.

a.Consumer dependency, Social responsibility b.Social activity, Consumer satisfaction
c.Consumer dependency, Business responsibility d.None of these

27. is the most exploited constituent in the business world.

a.Owners b.Marketers c.Managers d.Consumer

28.All business enterprises consider as their main objective.

a.Consumer’s satisfaction b.Profit c.Service d.None of these

29. refers to mixing of substituting undesirable material in food.

a.Duplicate b.Adulteration c.Scarcity d.Warranty

30. is quite common in food articles.

a.Adulteration b.Warranty c.Duplicate d.Scarcity

31. is a crime which cannot be pardoned as it spoils the very health of consumers.
a.Adulteration b.Duplicate goods c.False advertisements d.None of these

32. of popular products are illegally produced and sol.

a.Original products b.Duplicate products c.Consumer products d.None of these

33. service may not be extended to many parts of the product sold.
a.Warranty b.Guarantee c.Both d.None of these

34. is the social force protecting the consumer and aiding the consumer.
a.Consumerism b.Company law c.Sale of goods Act d.None of these
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35. refers to protest against business injustices and to efforts and correcting these injustices.
a.Consumerism b.Sale of goods c.Company Act(d) d.None of these

36.In the beginning of century industrial and economy reached a boom state.
a.17th b.18th c.19th d.20th

37. hit a cross roads between industry and consumer satisfaction.

a.America b.London c.Amsterdam d.Itally

38. people have less money at their disposal.

a.American b.China c.Indian d.None of these

39. is a king of the market.

a.Workers b.Consumer c.Producer d.Seller

40. discontent has been generated out of spiralling inflation.

a.Economic b.Social c.Politicalmd.Accounting

41. is considered to be the father of the consumer movement.

a.Ralph Nader b.Massie c.James d.Richard

42.There are parties involved in the sphere of business transactions.

a.three b.four c.five d.six

43. should assure an active role in safeguarding the consumers.

a.Government b.Private c.Financial institutions d.None of these

44. is applicable to public sector, financial and cooperative enterprises.

a.Consumer Protection Act b.Sale of Goods Actssss
c.Weights and Measures Act d.Trademark Act

45.The nature of society was and its needs were very limited.
a.monoistic b.optimistic c.both d.none of these ANSWER: A

46.The Sale of the Good Act was passed in the year .

A. 1930 B. 1956 C. 1985 D. 1991

47.An consumer is the need of every hour.

a.sleep b.working c.alert d.none of these

48.The loss claimed by the consumer must be loss based on some .

a.efficiency b.deficiency c.ability d.none of these

49.The consumer was referred to as “poor consumer” by .

a.Mahatma Gandhi b.Richard H. Bukirk c.Ralph Nader d.John F. Kennedy

50.The national consumer disputes redressal commission is a .

a.legislative machinery b.bureaucratic machinery c.quasi-judicial machinery
d.judicial machinery

51.Recently the consumers protection act was made applicable to .

a.co-operative enterprises b.medical services c.public – sector d.financial - services

52. In a consumer court cases are disposed of within _ .

a.reasonable time b.30/68 days c.90/150 days d.no-time limit is prescribed
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53. The consumer movement in India is in its ____________ stage.

a) Starting b) Growth c) Maturity d) Decline

54. Consumers became more sensitive to ___________ need.

a) Social and Environment b) Basic c) Both a & b d) None

55. Which of the following is correct?

1. Indian Contract Act - a) 1958 2. Agricultural products Act - b) 1955
3. Essential Commodities Act - c) 1937
4. Standards of Weights and Measures Act - d) 1982
a) 1-d;2-c;3-b;4-a b) 1-a;2-b;3-c;4-d c) 1-c;2-d;3-a;4-b d)1-b;2-c;3-a;4-d

56. The Indian Standard Institution is now known as _______

a) BIS b) AIS c) SBI d) IBS

56. Assertion (A): Consumer Protection Act does not create rights or
liabilities.
Reasons (R): CPA lays down rules for formation of consumer protection
councils in every district and state.
Codes:
(a) Both (A) and (R) are true and (R) is the correct explanation of (A).
(b) Both (A) and (R) are true, but (R) is incorrect explanation of (A).
(c) (A) is true, but (R) is false (d) (A) is false, but (R) is true.

57. If the customers are not satisfied the business will not be in the position
to generate_______.
a) Growth b) Loss c) Revenue d) None of these

58. Assertion(A): COPRA has District Forum, State Forum and National
Commission.
Reason(R) :COPRA Provides three-tier enforcement.
(a) Both (A) and (R) are true and (R) is the correct explanation of (A).
(b) Both (A) and (R) are true, but (R) is incorrect explanation of (A).
(c) (A) is true, but (R) is false (d) (A) is false, but (R) is true.

59. Assertion (A): Only the customer can fire us all.

Reason (R):Consumers determine which firms to survive and which to fail.
(a) Both (A) and (R) are true and (R) is the correct explanation of (A).
(b) Both (A) and (R) are true, but (R) is incorrect explanation of (A).
(c) (A) is true, but (R) is false (d) (A) is false, but (R) is true.

60. Having what consumers are likely to buy is a characteristic of a ______

orientation.
a) Manufacturing b) Marketing c) Selling d) All of the above

61. What is COPRA?

a) Consumer Operating Protection Regulation Authority
b) Consumer Protection Act
c) Consumer Protection Authority d) None of the above

62. Generally, consumer protection comes in the form of ______.

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a) malpractice trade activities b) government regulation

c) unfair trade d) None

63. The prevention of Food Adulteration Act was passed in the year
____________.
a) 1954 b) 1987 c) 1992 d) 1956

64. Assertion(A):Caveat emptor means ‘Let the Buyer Beware’

Reason(R):CaveatVenditor means ‘Let the Seller Beware’
Codes:
(a) Both statements are true. (b) Both statements are false.
(c) Statement I is true, but Statement II is false.
(d) Statement I is false, but Statement II is true

65. The right to be informed is an important component of ________.

a) Consumer protection b) Consumer rights
c) Consumer awareness d) None

66. Assertion (A): Consumer Awareness is the knowledge about consumers

own responsibility.
Reason(R): The consumers should not indulge in wasteful and unnecessary
consumption.
(a) Both (A) and (R) are true and (R) is the correct explanation of (A).
(b) Both (A) and (R) are true, but (R) is incorrect explanation of (A).
(c) (A) is true, but (R) is false (d) (A) is false, but (R) is true.
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V.M.G.RAJASEKARN-RAMANI SRI SARADA SAKTHI MAT. HR.SEC.SCHOOL

12th Commerce Lesson 17 – One Mark
Choose the correct answer:
1.The final aim of modern marketing is .
a.Maximum profit b.Minimum profit c.Consumer satisfaction d.Service to the society

2. is the king of modern marketing.

a.Consumer b.Wholesaler c.Producer d.Retailer

3.As the consumer is having the rights, they are also having .
a.Measures b.Promotion c.Responsibilities d.Duties

4.Which of the following is not a consumer right summed up by John F. Kennedy

a.Right to safety b.Right to choose c.Right to consumer d.Right to be informed

5.It is the responsibility of a consumer that he must obtain as a proof for the purchase of goods.
a.Cash receipt b.Warranty card c.Invoice d.All of these

6.Satisfaction of consumer needs is stated to be supreme objective of a

a. business b. industry c.commerce d.economics

7. Who cheat consumer by using unfair weight and measure?

a.Producers b.Employees c.Sellers d.Workers
8.The consumer should discharge his duties as responsible
a.citizen b.workers c.both d.none of these
9.The consumer must get cash receipt as a proof of goods purchased from the
a.buyer b.seller c.both d.none of these
10.The most important law is the
a.Consumer Protection Act, 1986 b.Sale of Goods Act, 1930
c.Weights and Measures Act, 1958 d.Trademark Act, 1999
11.Consumer satisfaction is the ultimate aim of
a.marketing b.business ethics c.modern marketing d.none of these
12.Consumerism has been defined as
a.environmental problems b.an improved quality of life
c.grievances of consumers d.none of these
13.“Consumer has the right to present before the appropriate forum or authorities all those matters
which effect his interests” – This right of consumer is termed as right to be
a.informed b.heard c.safety d.educated
14.Which of the following does not fall under consumer rights?
a.rights to the informed b.rights to choose
c.rights to seek government help d.rights to represent the consumer court
15.The total number of rights given to consumers as per consumer protection Act is
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a.5 b.4 c.6 d.8

16.The consumers right to be informed about the true benefits of a product has led to specific proposals
regarding
a.Bulk price b.Unit price c.Maximum retail price d.Pure price
17.Penalty for the violation of the orders of the forum commission is
a.A fine or imprisonment or both b.Imprisonment upto 3 year
c.Fine upto Rs. 50,000 d.Fine upto Rs. 15,000 ANSWER: A
18.The former president of the USA, Mr. John F. Kennedy summed up the basic consumer rights are
a.Right to Safety b.Right to be informed c.Right to Choose d.All of the above
19. should be conscious of his duties.
a.Worker b.Producer c.Consumer d.Wholesalers
20. should make purchase judiciously and should not misuse his rights.
a.Employers b.Consumer c.Retailers d.Wholesalers
21. should check the weights and balance of the product.
a.Manufacturers b.Retailers c.Wholesalers d.Consumer
22.Mostly are used to be very attractive and appealing to the senses.
a.advertisements b.salesmanship c.consumerism d.none of these
23. and are two sides of the same coin.
a.Duties, responsibilities b.Rights, responsibilities c.Powers, duties d.Powers, right
24.The best examples of kind are food additives, colours, and preservatives.
a.Right of safety b.Right to be informed c.Right to choose d.Right to seek redressal
25. and on the package should provide objective information to buyers.
a.Advertising, labeling b.Labelling, motivating c.Planning, labeling d.None of these
26. is the latest addition to consumer bill of rights.
a.Right to consumer production b.Right to choose
c.Right to seek redressal d.Right to basic needs
27. should be free from various modes of population.
a.Community life b.Quality product c.Quantity product d.None of these
28. refers to how consumers get rid of the product and packaging.
a.Purchase b.Consumption c.Disposal d.Exchange
29. provides the adequate and accurate information about quality, quantity, purity, standard and the
price of the goods and services.
a.Right to choose b.Right to be heard c.Right to be informed d.Right to consumer education
30. provides a fair settlement of genuine grievances relating to the performance, grade, quality etc
of goods and services.
a.Right to safety b.Right to consumer education
c.Right to consumer protection act d.Right to choose
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31. provides consumer associations, educational institutions and policy makers can play an
important part.
a.Right to safety b.Right to be heard c.Right to choose d.Right to consumer education
32. provides the consumer must be assured whenever possible access to a variety of goods and
services at competitive prices.
a.Right to consumer protection Act b.Right to choose
c.Right to safety d.Right to be heard
33. provides a safeguard for consumers against goods and services which are hazardous to health.
a.Right to choose b.Right to safety c.Right to be heard d.Right to be informed
34.The number of members in District Forum, State Commission and National Commission are
respectively.
a. 3,3,5 b. 3,3,3 c. 1,3,5 d. 3,2,4
35. of every year is celebrated as consumer’s day.
a.15th October b.15th March c.15th April d.15th August
36. Checking the BIS mark or Agmark on the goods is the __________ of the
consumer.
a) right b) Awareness c) Duty d) All the above

37. Being beware of misleading advertisements is the important ___________ of

the consumer.
a) Responsibility b) duties c) rights d) none

38. The sellers/producers often indulge in unfair trade practices and charge
high prices is the ____________ of the consumers.
a) weakness b) rights c) duties d) none

39. ________ provides a safeguard for consumers against goods and services
which are hazardous to health.
a) Right to Safety b) Right to choose c) Right to be informed d) Right to be
heard

40. ________ provides the consumer must be assured whenever possible

access to a variety of goods and services at competitive prices.
a) Right to consumer protection act b) Right to Choose c) Right to Safety
d) Right to be heard

41. Assertion (A): It is mandatory for the consumer to know the rights
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Reason(R): According to Consumer protection act everybody has to know the

rights towards the purchase of goods.
Codes:
a) Both statements are true. b) Both statements are false.
c) Statement I is true, but Statement II is false. d) Statement I is false, but
Statement II is true

42. Assertion(A): The consumer protection is applicable to all goods and

services.
Reason(R): The various rights of consumers are guaranteed under Consumer
Protection Act
a) Both (A) and (R) are true and (R) is the correct explanation of (A).
b) Both (A) and (R) are true, but (R) is incorrect explanation of (A).
c) (A) is true, but (R) is false d) (A) is false, but (R) is true.

43. The total number of rights to consumers as per consumer protection act is
______.
a) 5 b) 8 c) 6 d) 9
44. Which of the following is not included in the rights of a consumer?
a) Right to be informed b) Right to be heard c) Right to Choose
d) Right to be presented
45. The consumer has the right to present before the appropriate forum or
authorities all those matters which effect his interests.
This right of consumer is termed as right to be _________.
a) informed b) heard c) safety d) educated
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V.M.G.RAJASEKARN-RAMANI SRI SARADA SAKTHI MAT. HR.SEC.SCHOOL

12th Commerce Lesson 18 – One Marks
Choose the correct answer:

1.The Chairman of the National Consumer Disputes Redressal Council is

a.Serving or Retired judge of the Supreme Court of India
b.Prime Minister c.President of India d.None of the above

2.The Chairman of the State Consumer Protection Council is

a.Judge of a High Court b.Chief Minister c.Finance Minister d.None of the above

3.The Chairman of the District Forum is

a.District Judge b.High Court Judge c.Supreme Court Judge d.None of the above

4.The State Commission can entertain complaints where the value of the goods or services and the
compensation, if any claimed exceed
a.Rs. 2 lakhs but does not exceed Rs. 5 lakhs
b.Rs. 20 lakhs but does not exceed Rs. 1 crore
c.Rs. 3 lakhs but does not exceed Rs. 5 lakhs
d.Rs. 4 lakhs but does not exceed Rs. 20 lakhs

5.The National Consumer Disputes Redressal Commission has jurisdiction to entertain complaints
where the value of goods/services complained against and the compensation, if any, claimed is
a.Exceeding Rs. 1 crore b.Exceeding Rs. 10 lakhs
c.Exceeding Rs. 5 lakhs d.Exceeding Rs. 12 lakhs

6.The District Forum can entertain complaints where the value of goods or services and the
compensation if any claimed is less than
A. Below Rs. 10,00,000 B. Below Rs. 20,00,000
C. Below Rs. 40,00,000 D. Below Rs. 50,00,000

7.The International Organisation of Consumers Unions (IOCU) was first established in

A. 1960 B. 1965 C. 1967 D. 1987 ANSWER: A
8.Consumer awareness covers the following:
a.Consumer awareness about Maximum Retail Price (MRP)
b.Consumer awareness about Fair Price Shop
c.Consumer awareness about price, quality, and expiry date of the product
d.All of the above
9.Complaints can also be filed by the
a.Central Government b.State Government c.A group of consumers d.All of the above

10.A consumer has to be protected against

a.Defects of product b.Deficiencies of product c.Unfair and restrictive trade practices
d.All of the above

11.In a country like India there is shortage of many

a.Workers b.products c.skills d.none of these

12. Complaints can be filed with the forum by a

a.Consumer b.Channel of members c.Suppliers d.Competitors

13.The National Consumer Disputes Redressal Commission (NCDRC) at the apex is situated at
a.Calcutta b.New Delhi c.Bombay d.Chennai
14. For the District consumer Forum, is a value of upto
a.Rs. 20 lakhs b.Rs. 15 lakhs c.Rs. 25 lakhs d.Rs. 10 lakhs
15.For the State Commission, is a value above
a.Rs. 5 lakhs and Rs. 50 lakhs b.Rs. 20 lakhs and Rs. 1 crore
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c.Rs. 20 lakhs and Rs. 5 crore d.Rs. 10 lakhs and Rs. 1 crore

16.The state consumer protection council is also known as

a.National commission b.Consumer awareness Act c..Consumer Disputes Redressal
Commission d.All of the above.

17.The state commission may reverse or confirm the orders passed by the
a.National Commission b.District Forum c.Central commission d.None of these

18. In Organizations, employee dissatisfaction is indicated by

a.complaint b.employee ownership c.grievance arbitration d.grievance strike

19.Formal written complaint of employees is called

a.grievance arbitration b.grievance strike c.grievance d.employee ownership

20.The central consumer protection council shall consist of the following members
To minister in charge of consumer affairs in the central government, who shall be its chairman
Such member of other official or non official members representing such interest as may be prescribed
The chief justice of high court
Both A and B

21.Members of state consumer protection council should not exceed

a.two b.five c.ten d.three

22.The chairman of the district consumer protection council is

a.District Magistrate b.Collector of the District c.MP of the District
d.None of these

23.Which one of the following known as consumer disputes redressal agency?

a.District forum b.State Commission c.National Commission d.All the above

24.President of district forum is

a.Collector of the district b.A person who are qualified as advocate
c.A person who are qualified to be a district judge d.None of these ANSWER: C

25.Any person aggrieved by an order made by the District forum may prefer an appeal such order to
the state commission within
a.60 days b.90 days c.5 month d.30 days

26.President of the District forum shall be a person who has been, or is qualified to be a
a.District Judge b.District Collector c.High Court Judge d.Musif Court Judge

27.The number of official and non-official members in District consumer Protection council is
prescribed by
a.Central government b..State government c.Governor of the state d.State High court

28.In this modern world are the vital part of the business.
a.consumers b.suppliers c.producers d.competitors

29. has also taken necessary steps to save the consumers.

a.Producers b.competitors c.Government d.None of these

30.A few firms enjoy power in the market place.

a.Monopoly b.Oligopoly c.Monopsony d.None of these

31. can also be filed by the central or state government or by a group of consumers.
a.Complaints b.Order copy c.Specimen copy d.None of these
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32.The District council shall held meetings every year.

a.one b.three c.two d.four
33. The maximum age limit of a person who can be a member in National
commission is _______.
a) 65 b) 70 c) 35 d) 60

34. Among the following in which of the forum there is a compulsion that a female
should be a member?
a) District Forum b) State Commission c) National Commission d) All of the above
35. Any appeal against a forum must be done in a higher forum within __________
days.
a) 45 b) 30 c) 60 d) 90
36. Statement I: The State commission may reverse or confirm the orders passed by
the District Forum.
Statement II: The aggrieved party can prefer appeal against the order passed by
District Forum to the State Commission. Codes:
a) Both statements are true. b) Both statements are false.
c) Statement I is true, but Statement II is false. d) Statement I is false, but
Statement II is true
37. Assertion(A): A file can be filed by a complainant against the seller,
Manufacturer or dealer of goods, or against the provider of services.
Reason(R): Consumer Protection Act postulates the consumer to protect their
rights.
a) Both (A) and (R) are true and (R) is the correct explanation of (A).
b) Both (A) and (R) are true, but (R) is incorrectexplanation of (A).
c) (A) is true, but (R) is false d) (A) is false, but (R) is true.

38. There are _________ district forums areworking at present.

a) 260 b) 620 c) 340 d) 430

39. Assertion(A): Complaints can be registered within 2 years from the date on
which the cause of action has arisen, to the date on which the completion from the
deficiency in service.
Reason(R): Advocates are necessary for registering the complaints.
(a) Both (A) and (R) are true and (R) is the correct explanation of (A).
(b) Both (A) and (R) are true, but (R) is incorrect explanation of (A).
(c) (A) is true, but (R) is false (d) (A) is false, but (R) is true

40. The ‘defendant’ identified in the Consumer Protection Act 1987 includes which
of the following?
i) The Manufacturer ii) The importer iii) The Supplier iv) The marketer
a) i only b) ii,iii,iv c) i and iv d) All of the above

41. The chairman of the district consumer protection council is _________.

a) District magistrate b) Collector of the Districtc) MP of the district d) None of
these

42. The following is not a consumer ______.

a) The Insurance company b) A licensee to run a phone
c) A lottery ticket holder d) All of the above
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V.M.G.RAJASEKARN-RAMANI SRI SARADA SAKTHI MAT. HR.SEC.SCHOOL

Commerce Lesson 19 – One Marks

Choose the correct answer:

1. VUCA stands for , , , ,

a.Volatility, Uncertainty, Complexity and Ambiguity b.Value system, Uncertainty,

Company and Ambition c.Vison, Uncertainty, Corporate Governance and
Ambiguity d.Volatility, Uncertainty, Consumer and Ambiguity

2. GST stands for .

a.Goods and Supply Tax b.Government Sales Tax c.Goods and Services Tax

d.General Sales Tax

3. Factors within an organisation constitutes environment

a.External b.Internal c.Micro d.Macro

4. Macro Environment of business is a factor

a.Non-economic b.Economic c.Controllable d.Uncontrollable

5. The two major types of business environment are and .

a.Internal, External b.Micro, Macro c.Supplier, Competitors

d.Financial, Public

6. Environment includes weather and climate conditions.

a.Technological b.Geo-physical environment c.Socio-cultural

d.Global

7. The size and composition of the population is part of environment.

a.Global b.Technological c.Socio-Cultural d.Geo-physical

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8. A business is an integral part of the

a.social system b.economic system c.psychological system

d.none of these

9. The analysis of business environment helps a business to identify

a.new opportunities b.new employees c. profit maximisation

d.none of these

10. Internal environment factors can be changed or altered are known as

a.external factors b.controllable factors c.uncontrollable factors

d.none of these

11. The successes of an enterprise is solely dependent on its

a.manpower b. skills c.quality d.right attitude

12. Organisation have realised the importance of nurturing and maintaining good
relationship with the

a.competitors b.financier c.customers d.suppliers

13. The aim of any business is to satisfy the needs of its

a.customers b.suppliers c.financiers d.public

14. Customer relationship management aims at creating and sustaining cordial

relations with

a.suppliers b.customers c.financiers d.competitors

15. Business is a part of the

a.society b.economic activity c.both ‘a’ and ‘b’ d.none of these

16. The development in the IT and telecommunications has created a

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a.rural market b.global market c.urban market d.none of these

17. Every business has to take

a.strategic decisions b.dynamic decisions c.both d.none of these

18. Which provides a frame work for managing a company and achieving its
objetives?

a.Corporate governance b.Public corporation c.Both ‘a’ and ‘b’

d.None of these

19. External environment of business is

a.Physical b.Demographical c.Economic d.All of these

20. The economic environment of a business includes

a.Economic system b.Economic policies c.Economic conditions

d.All of these

21. An analysis of the external environment enables a firm to identify

a.Strengths and opportunities b.Strength and weakness

c.Weakness and threats d.Opportunities and threats

22. These are forces in company’s immediate environment that affect the
company’s performance.

a.Macro environment b.Micro environment c.Technological environment

d.Natural environment

23. In which of the following basic categories can business environment be

divided?

a.Legal and Regional b.Regional and National c.Internal and External

d.Financial and Non-Financial

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24. Micro environment is also called as

a.General environment b.Operating environment

c.Economics environment d.Political environment

25. ______ is an order to remain successful and competitive has to adopt to the
constantly changing environment

Industry

a.Commerce b.Business c.All of these

26. Helps the firms to identify threats which may affect the business.

a.Public image b.Environment scanning c.Business aids

d.All of these

27. Stimulates systematic monitoring of environment which helps business in

taking steps to cope with the rapid changes.

a.Environment scanning b.Public image c.Business aids d.Future planning

28. Refers to those factors within an organisation.

a.Internal environment b.External environment c.Both ‘a’ and ‘b’

d.None of these

29. Refers to the factors outside the business.

a.External environment b.Infernal environment c.Both ‘a’ and ‘b’

d.None of these

30. The success of an organisation depends upon the sharing of by all members.

a.Vision and objectives b.Internal power relations

c.Company image d.Values system

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31. The and of a business guides its operations and strategic decisions.

a.Values system, image b.Vision, objectives c.Internal power, external power

d.None of these

32. In any organisation the of raw materials and other inputs play a very vital role.

a.customers b.Financiers c.suppliers d.channel members

33. May be for the same product or for similar products.

a.Suppliers b.Customers c.Competitors d.Financiers

34. The group has the ability to make or man a business.

a.Competitors b.Public c.Private d.None of these

35. Is the general or overall environment in which the business operates?

a.Macro environment b.Micro environment c.Economic environment

d.None of these

36. Economy is a free enterprise market where individual ownership of wealth is

predominant.

a.Capitalistic b.Socialistic c.Mixed d.None of these

37. economy is a state controlled with a lot of restrictions on private sector.

a.Capitalistic b.Socialistic c. Mixed d.All of these

38. Economy is a combination of both state owned and private sector ownership.

a.Socialistic b.Capitalistic c.Mixed d.None of these

39. Refers to the sum total of factors of the society in which the business is
located.

a.Business environment b.Cultural environment

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c.Social environment d.Physical environment

40. _______ And environment of society affects the business.

a.Social, cultural b.Economic, non-economic c.Political, legal

d.Geo, physical

41. The framework for running a business is given by the and environment.

a.economic, non-economic b.social, cultural c.political, legal

d.technological, global

42. And are used as a platform for advertising and promoting the products /
services.

a.Data mining, data analytics b.Digital, social media

c.Digital, public media d.None of these

43. Governance is a set of rules and policies which governs a company.

a.Multiple b.Private c.Corporate d.None of these

44. GST is the tax levied on goods and services across the country.

a.direct b.indirect c.bothwrong d.none of these

45. Consists of economic conditions, economic policies, industrial policies and

economic system.

a.Business environment b.Economic environment c.Natural environment

d.None of these

46. Refers to an external forces that have a beating on the functioning of the
business.

a.Environment b.Culture c.Social d.All of these

47. Environment is within the control of the control of the business.

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a.Internal b.External c.Micro d.Macro

48. The two major types of business environment are and .

a.Internal, Externalcorrect b.Micro, Macro c.Supplier, Competitors

d.Financial, Public

49. Environment includes weather and climate conditions.

a.Technological b.Geo-physical environment c.Socio-cultural

d.Global

50. The size and composition of the population is part of environment.

a.Global b.Technologicalwrong c.Socio-Cultural d.Geo-physical

51. Economic environment refers to all forces which have _________
environment

a) Political b) Natural c) Economic d) Social

52. __________ environment is beyond the control of the business.

a) Internal b) External c) Micro d) Macro

53. Which is not included in national culture?

a) Language b) Internet c) Belief d) Attitude

54. Corporate values are the _________ of the corporate sector.

a) Shared Values b) Moral Beliefs c) Customer Satisfaction d) Goodwill

55. What are the main concepts concerning about business goals or objectives?
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a) Mission, Objectives b) Mission, Targets c) Mission, Objectives, Targets d)

None

56. All forces which have an economic impact is known as ________.

a) Political Environment b) Socio-Cultural Environment c) Legal Environment

d) Economic Environment

57. Match the following: Group A (Components of Business Environment)

Group B (Factors of Componenents)

a. Social Environment 1. Awareness of work ethics

b. Political Environment 2. Packaging

c. Economic Environment 3. Balance of Payment

d. RegulatorEnvironment 4. MRTP

Codes:

abcd

(A) 1 2 3 4

(B) 1 2 4 3

(C) 4 3 2 1

(D) 3 2 1 4

58. Assertion (A): Operating style of the international business can be spread to
the entire globe.

Reason (R): The style is limited to the internal economy only.

Codes:

(A) Both (A) and (R) are true. (B) (A) is true, but (R) is false.

(C) (A) is false, but (R) is true. (D) Both (A) and (R) are false.
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59. Assertion (A): Business Economics is tool centric facilitating decision

making in business.

Reason (R): It provides an analytical understanding of economic activities.

Codes:

(A) Both (A) and (R) are not correct. (B) Both (A) and (R) are correct.

(C) (A) is true, but (R) is false. (D) (R) is true, but (A) is false.

60. Assertion (A): Internal factors of business environment are controllable

factors.

Reason (R): The Company can alter or modify such factors to suit the
environment.

Codes:

(A) Both (A) and (R) are correct. (B) (A) is correct, but (R) is incorrect.

(C) Both (A) and (R) are incorrect. (D) (A) is incorrect.

61. Statement A: Micro environment is also

called as Operating environment.

Statement B: Macro environment is also

called as General environment

(a) Statement A and statement B both are true (b) Statement A is true but
statement B is not true

(c) Statement A is true but statement B is the reason of statement A

(d) Statement A and B are true, but statement B is not the reason of
statement A

62. Assertion(A): Internal environment is within the control of the business.

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Reason(R): Internal factors affecting a business environment are referred to

controllable factors.

(A) Both (A) and (R) are not correct. (B) Both (A) and (R) are correct.

(C) (A) is true, but (R) is false. (D) (R) is true, but (A) is false.

63. Assertion (A): Economic integration abolishes cross-national economic

discrimination. Reason (R): Geographical proximity is an important reason for
economic integration.

Codes:

(A) (R) does explain (A). (B) Both (A) and (R) are correct.

(C) Both (A) and (R) are not correct. (D) (A) is correct, but (R) is not
correct.

64. Assertion (A): A futures contract specifies in advance the exchange rate to
be used, but it is not as flexible as a forward contract.

Reason (R): A futures contract is for specific currency amount and a specific
maturity date.

Codes:

(A) (R) is a correct explanation of (A). (B) (R) is not a correct explanation
of (A).

(C) (A) and (R) are not related with each other. (D) (R) is irrelevant for (A).

65. Assertion (A): The Indian economy could survive in the recent global
recession due

to its strong banking system.

Reason (R): The Indian economy contains a large amount of black money.

Codes:

(A) Both (A) and (R) are correct and (R) is the explanation of (A).
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(B) Both (A) and (R) are correct, but (R) is not the correct explanation of
(A).

(C) (R) is correct, but (A) is not the appropriate assertion of (R). (D) Both (A) and
(R) are incorrect.
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V.M.G.RAJASEKARN-RAMANI SRI SARADA SAKTHI MAT. HR.SEC.SCHOOL

12th-Commerce-Lesson-20-One-Marks

Choose the correct answer:

1._________ is the result of New Industrial Policy which abolished the ‘Licence
System’.

a.Globalisation b.Privatisation c.Liberalisation d.None of these

2.means permitting the private sector to setup industries which were

previously reserved for public sector.

a.Liberalisation b.Privatisation c.Globalisation d.Public Enterprise

3.Ownership makes bold management decisions due to their strong

foundation in the international level.

a.Private b.Public c.Corporate d.MNC;s

4.Result from the removal of barriers between national economies to

encourage the flow of goods, services, capital and labour.

a.Privatisation b.Liberalisation c.Globalisation d.Foreign Trade

5.New Economic Policy was introduced in the year

a. 1980 b. 1991 c. 2013 d. 2015

6.India is one among such nations to commit itself to the New Economic
Policy in

a. 1991 b. 1995 c. 1990 d. 1986

7.Liberalization is the result of New Industrial policy which abolished the

a.Rules and regulations b.License System c.Panchayat System d.None

of these

8.Investment limit of the small scale industries have been raise to

a.Rs. 50 lakhs b.Rs. 25 lakhs c.Rs. 1 Cr d.Rs. 5 Cr

9.If a country liberalises its trade, it will make the country more attractive
for

a.inward investment b.exchange reserve c.consumption d.price

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10.The removal of tariff barriers can lead to lower prices for

a.suppliers b.consumers c.competitors d.none of these

11.Which of the following reduces the dependence on external commercial

borrowings by attracting more foreign investments.

a.Privatization b.Liberalization c.Globalization d.None of the above

12.The trade liberalisation often benefits developed countries rather than

developing

a.nations b.sector c.economies d.none of these

13.A number of multinational companies started operating worldwide

including

a.India b.China c.America d.London

14.Memorandum of understanding system was introduced in

a. 1990 b. 1991 c. 1992 d. 1994

15.Privatization is associated with improved efficiency due to the

a.service motive b.profit motive c.customer’s satisfaction d.higher

employment

16.Liberalisation, privatisation and globalisation are the aims of

a.Economic planning b.Socialistic pattern of society

c.Land reforms d.Economic reforms

17.Globalisation has posed major challenges for

a.big producers b.small producers c.rural poor d.none of these

18.Globalisation has created new opportunities of

a.employment b.emerging multinational c.providing services d.all of the

above

19.Removing barriers or restrictions set by the government is called

a.liberalisation b.privatisation c.disinvestment d.globalisation

20.One major factors that has stimulated the globalisation process is

a.effective utilisation of resources b.increase in income and wealth

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c.Willingness to cooperate d.rapid improvement in technology

21.By which act government checks restrictive trade?

a.Industrial Policy Act 1991 b.MRTP Acts c.FEMA Act d.None of these

22.Liberalization means

a.Reducing number of reserved industries from 17 to 18

b.Liberating the industry, trade and economy from unwanted

restrictions

c.Opening up of economy to the world by attaining international

competitiveness d.Free determination of interest rates

23.Globalization can create problems for business because

a.it can result in more competition b.it increases vulnerability to the

political risk and uncertainty when operating abroad

c.it means that they can increase price d.none of the above

24.Which of the following is not derived from globalisation?

a. fragmentation of consumer taste between countries b.The

competitive process c.The need to gain economics of scale d.none of these

25.Refers to laws or rules being liberalized or relaxed by a government.

a.Liberalization b.Privatization c.Globalization d.All of these

26.Currently, only industries are under compulsory licensing.

a.two b.three c.four d.five

27.Industry has been liberalised.

a.Drugs and pharmaceuticals b.Hazardous chemicals

c.Tobacco products d.Defence equipment

28.Often leads to a shift in the balance of an economy.

a.Trade liberalization b.Trade privatization c.Trade globalization d.None of

these

29.Means firms will face greater competition from abroad.

a.Impact liberalization b.Trade liberalization c.Globalization

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d.Privatization

30.Is the latest outcome of liberalization?

a.Exchange b.Increase in employment c.Foreign collaboration d.None of

these

31.Means permitting the private sector to set up industries which were

previously reserved for the Public Sector.

a.Liberalization b.Privatization c.Globalisation d.None of these

32.Started selling shares of PSUs to Public and Financial institution

a.Indian Government b.State Government c.Central Government d.None

of these

33.Ownership makes bold management decision due to their strong

foundation at international level.

a.Private b.Public c.Both d.None

34.Stands for the consolidation of the various economies of the world.

a.Privatisation b.Liberalisation c.Globalisation d.All of these

35.Means, to send or bring money back to one’s own country.

a.Trade policy b.Promotion c.Tariffs d.Repatriate

36.Brings an end to the difference between domestic and international

markets.

a.Liberalization b.Globalization c.Privatization d.None of these

37.Advancement paves way for a company to enter foreign market.

a.Technological b.Foreign exchange c.Brain drain d.Foreign institutions

38.Globalisation widens the gap between and .

a.employees, employees b.employment, unemployments

c.rich, poor d.Capitalism, socialism

39. The first every company privatized in India is ____________.

a) BALCO b) HZL c) ISL d) MUI

40. Which can be a method of privation?

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a) Denationalization b) Purchasing shares c) Takeover d) Merger.

41. In India liberalization and privatization began from____.

a) 1991 b) 1971 c) 1981 d) 1947

42. Industrial policy of 1948 aimed at ______.

a) Industrialization b) growth of agriculture

c) development of infrastructure d) development of service sector.

43. Who gave a practical shape to privatization?

a) MARGARAT THATCHER b) LOUIS PETER c) WILLIAMS d) FAYOL

44. Assertion (A): Most of the development banks in India have setup private
commercial banks after the introduction of capital adequacy norms.

Reason (R): Development banks in India have not adhered to their basic
objectives.

Codes:

(A) (A) and (R) both are correct, and (R) is correct explanation of(A).

(B) (A) and (R) both are correct, but (R) is not a correct explanation of (A).

(C) (A) is correct, but (R) is incorrect. (D) (R) is correct, but (A) is incorrect.

45. Assertion (A): Strategies necessarily need to be changed over time to suit
environmental changes.

Reason (R): To remain competitive, organizations develop those strategies

that create value for customers.

Codes:

(A) (A) is correct, but (R) is incorrect.

(B) Both (A) and (R) are correct. (C) (A) is incorrect, but (R) is correct. (D)
Both (A) and (R) are incorrect.

46. _________ refers to relaxation of produce government restriction usually

in areas of social and economic policies.
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a) Privatisation b) Globalisation c) Disinvestment d) Liberalisation

47. Disinvestment means selling of a public investment to a ______.

a) Private enterprises b) Public enterprises c) Capital Market d)

Departmental enterprises

48. Privatisation can be achieved by ____________.

a) Leasing b) Franchising c) Contracting d) All of these

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Tamilnadu 12th-Commerce-Lesson-21– One Marks

Choose the correct answer:

1.
Sale of Goods Act was passed in the year
A. 1940
B. 1997
C. 1930
D. 1960
ANSWER: C

2.
Which of the below constitutes the essential element of contract of sale?
A. Two parties
B. Transfer of property
C. Price
D. All of the above
ANSWER: D

3.
Which of the below is not a good?
A. Stocks
B. Dividend due
C. Crops
D. Water
ANSWER: B

4.
In case of the sale, the has the right to sell
A. Buyer
B. Seller
C. Hirer
D. Consignee
ANSWER: B

5.
The property in the goods means the
A. Possession of goods
B. Custody of goods
C. Ownership of goods
D. Both (a) and (b
ANSWER: C

6.
Specific goods denote goods identified upon the time of of sale:
A. Agreement
B. Contract
C. Order

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D. Obligation
ANSWER: B

7.
In which of the following types, the ownership is immediately transferred to buyer?
A. When goods are ascertained
B. When goods are appropriate
C. Delivery to the carrier
D. Sale or return basis
ANSWER: C

8.
Is a stipulation which is collateral to main purpose of contract?
A. Warranty
B. Condition
C. Right
D. Agreement
ANSWER: A

9.
Unpaid seller can exercise his right of lien over the goods, where he is in possession of the
goods as
A. Owner of goods
B. Agent of buyer
C. Bailee for buyer
D. All of these
ANSWER: D

10.
The unpaid seller can exercise his right of stoppage of goods in transit where the buyer
A. Becomes insolvent
B. Refuses to pay price
C. Payment of price
D. Both (b) and (c)
ANSWER: A

11.
Sale of Goods Act was passed in the year
A. 1986
B. 1930
C. 1982
D. 1955
ANSWER: B

12.
A contract of sale involves
A.one parties
B. Three parties
C. two parties

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D. more than five parties

ANSWER: C

13.
The subject matter of contract if sale must be
A. goods
B. cash
C. credit
D. all of these
ANSWER: A

14.
The monetary consideration for the goods sold is called
A. Price
B. Goods
C. Both ‘a’ and ‘b’
D. None of these
ANSWER: A

15.
Which of the following determined with reference to the terms and condition of the contract?
A. Condition
B. Warranty
C. Both ‘a’ and ‘b’
D. None of these
ANSWER: B

16.
Section 2, the sale of Goods Acts is about
A. Principles
B. Definitions
C. Exceptions
D. None of above
ANSWER: B

17.
The voluntary transfer of possession from on person to another is called
A. Transfer
B. Change of possession
C. Delivery
D. None of these
ANSWER: C

18.
Definition of unpaid seller is provided in section of the sale of Goods Act, 1930.
A. 45
B. 46
C. 47

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 www.nammakalvi.com

D. None of these
ANSWER: A

19.
The possession of the finder of lost goods is that of:
A. Bailee
B. Bailor
C. Creditor
D. True owner
ANSWER: A

20.
According to sale of Goods Act, 1930, ‘seller’ means a person:
A. who only agrees to sell the goods
B. who sells or agrees to sell
C. who only sells the goods
D. who transfer the possession of the goods to the other party
ANSWER: B

21.
Where the transfer of the property in the goods is to take place of a future time or subject to
some condition, then such contract is called:
A. An agreement to sell
B. A contract to sale
C. Future contract
D. Condition contract
ANSWER: A

22.
Which of the following does not fall in the category of ‘goods”?
A. Stock and shares
B. Money and actionable claims
C. Growing crops and grass
D. None of these
ANSWER: A

23.
Which of the following is not the right of an unpaid seller under sale of Goods Act, 1930?
A. Right of lien on goods for the price while the goods are in possession of seller.
B. Right of stopping the goods in transit, in case of solvency of buyer
C. Right of resale as limited by the Act
D. Right of withholding delivery where the property in the goods has passed to the buyer
ANSWER: D

24.
A contract of sale may be made:
A. A in writing or by word of mouth

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B. Partly in writing of partly by word of mouth

C. By the implied conduct of parties
D. All of these
ANSWER: D

25.
Which of the following is not a subject matter in sale of goods Act?
A. Trade mark
B. Goodwin
C. Money
D. Water
ANSWER: C

26.
In case of sale the risk is associated with
A. money
B. goods
C. ownership
D. possession
ANSWER: C

27.
Existing goods can be classified as
A. Ascertained
B. Genetic
C. Both A and B
D. Nor a neither b
ANSWER: C

28.
is one of the most important Acts coming under special contract?
A. Sale of goods
B. Negotiable instrument
C. Both ‘a’ and ‘b’
D. None of these
ANSWER: A

29.
The term is utmost importance in the sale of goods.
A. Contract
B. ownership
C. goods
D. none of these
ANSWER: B

30.
Means buying the ownership of the goods from the seller for a price.
A. Purchase

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B. Sales
C. Purchase return
D. Sales return
ANSWER: A

31.
Has unlimited rights of the property purchased against the whole world.
A. Seller
B. Buyer
C. Both ‘a’ and ‘b’
D. None of these
ANSWER: B

32.
Excludes money, actionable claims and immovable property.
A. Assets
B. Liabilities
C. Funds
D. Goods
ANSWER: D

33.
Is an executed contract i.e, completed contract.
A. Sale
B. Agreement to Sell
C. Contract
D. None of these
ANSWER: A

34.
The can claim only rateable dividend.
A. buyer
B. seller
C. competitions
D. financier
ANSWER: B

35.
Denote goods identified and agreed upon at the time of contract of sale.
A. Ascertained goods
B. Specific goods
C. Generic goods
D. Unascertained goods
ANSWER: B

36.
The term is also used as similar in meaning to specific goods.

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 www.nammakalvi.com

A. Generic goods
B. Specific goods
C. Ascertained goods
D. Future goods
ANSWER: C

37.
goods represents undertrained goods.
A. Contingent
B. Generic
C. Future
D. Specific
ANSWER: D

38.
Goods are a part of future goods.
A. Contingent
B. Generic
C. Future
D. Specific
ANSWER: A

39.
Is a stipulation which is essential to the main purpose of the contract?
A. Warranty
B. Condition
C. Suit for price
D. Quiet possession
ANSWER: B

40.
Is of secondary importance to the contract.
A. Warranty
B. Condition
C. Quit Possession
D. Agreement
ANSWER: A

41.
Means that the goods must be saleable in the market under that denomination.
A. Sale by sample
B. Wholesomeness
C. Merchantability
D. None of these
ANSWER: C

42.
Is termed as consideration in a contract of sale:

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A. Exchange money
B. Barter money
C. Price
D. Reward
ANSWER: C

43.
The sale of goods Act deals only with goods which are in nature.
A. immovable
B. movable
C. specific
D. all of the above
ANSWER: B

44.
Is a stipulation which is collateral to purpose of contract?
A. Condition
B. Warranty
C. Guaranty
D. Collateral contract
ANSWER: B

45.
and are the two parties involved in contract of sale.
A. Customer, Salesman
B. Customer, Supplier
C. Seller, Buyer
D. Agent, Principle
ANSWER: C

46.
Sale under sale of goods Act is/an contract.
A. Executory
B. Executable
C. Executed
D. None of these
ANSWER: C

47.
The goods must be goods for transferring the poetry in the goods.
A. ascertained
B. future
C. specific
D. none of these
ANSWER: A

48.
Transfer on agree to transfer the of the goods is the purpose of sale of goods Act.

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A. property
B. possession
C. value
D. usage
ANSWER: B

49.
A sale is said to be completed when is transferred from one party to the other party.
A. Money
B. Goods
C. Interest
D. Ownership
ANSWER: D

50.
Ascertained goods is otherwise called as goods.
A. specific
B. generic
C. future
D. None of the above
ANSWER: A

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V.M.G.RAJASEKARN-RAMANI SRI SARADA SAKTHI MAT. HR.SEC.SCHOOL

12th Commerce-Lesson-22– One Marks

Choose the correct answer:

1.Negotiable instrument Act was passed in the year .
a.1981 b.1881 c. 1994 d. 1818
2.Negotiable Instrument is freely transferable by delivery if it is an instrument.
a.order b.bearer c.Both a & b d.None of the above
3.The transferee of a negotiable instrument is the one
a.Who transfer the instrument? b.On whose name it is transferred
c.Who enchases it d.Noe of the above
4.Number of parties in a bill of exchange are
a.2 b.6 c.3 d.4
5.Section 6 of negotiable instruments Act 1881 deals with
a.promissory note b.bills of exchange c.cheque d.none of the above
6._____cannot be a bearer instrument.
a.cheque b.promissory note c.bills of exchange d.none of the above
7.When crossing restrict further negotiation
a.Not negotiable crossing b.general crossing c.A/c payee crossing d.special crossing
8.Which endorsements relieves the endorser from incurring liability in the event of dishonour
a.Restrictive b.Facultative c.Sana recourse d.Conditional
9.A cheque will become stale after months of its date:
a.3 b.4 c.5 d.1
10.Document of title to the goods exclude
a.Lorry receipt b.Railway receipt c.Airway bill d.Invoice
11.The law relating to negotiable instruments is dealt in the
a.sale of contract Act 1930 b.Indian contract Act 1872
c.Negotiable instruments Act 1881 d.none of these
12.The cheque is to be signed by the
a.drawee b.banker c.drawer d.none of these
13.Promissory Note, bill of exchange or cheque is payable to order is called
a.Bearer Instrument b.Order Instrument
c.Inland Instrument d.Foreign Instrument
14.An instrument which is not inland instrument is called
a.Foreign instrument b.Bearer instrument
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c.Inland instrument d.Ambiguous instrument

15.Negotiable instrument means a promissory note, bill of exchange or cheque, payable to
a.bearer b.order c.either to bearer or order d.neither bearer nor order
16.When an instrument has been lost it is presumed that it was
a.expired b.duly stamped c.stolen d.misplaced
17.The number of parties to a bill of exchange is
a.2 b.4 c.6 d.3
18.The number of parties to a promissory note is
a.2 b.4 c.3 d.6
19.Section 4 of negotiable instrument Act 1880 deals with
a.Promissory note b.Bills of exchange c.cheque d.none of the above
20.In the case pf bill of exchange drawee is the
a.maker b.payee c.acceptor d.none of these
21.When the loss of cheque is intimated to the bank. It is advisable to get the cheque.
a.dishonoured b.cancelled c.staled d.countermanded
22.Holder of an instrument is a person who holds the instrument
a.for a longer period b.before maturity c.after maturity d.on behalf of the owner
23.A written document by which some legal rights are created in favour of some person.
a.Endorsement b.Instrument c.Promissory note d.Negotiation
24.The word means transferable from one person to another in return for consideration.
a.Negotiable b.Instrument c.cheque d.Endorsements
25.The word means a written document by which a right is created in favour of certain
person.
a.Negotiable b.Instrument c.both ‘a’ and ‘b’ d,none of these
26. _______is the unique characteristics of a negotiable instrument.
a.negotiability b.Assignability c.both ‘a’ and ‘b’ d.None of these
27. _____refers to the transferability of personal properties and rights from one person to another as
gift or sale or as security.
a.Negotiability b.Assignability c.both ‘a’ and ‘b’ d.None of these

28._____is payable on demand or on the expiry of a certain period.

a.bill of exchange b.cheque c.Endorsement d.Document
29.______is to be made on the face of the instrument or on its back.
a.cheque b.bill of exchange c.Endorsement d.none of these

30._______is usually made on the back of a negotiable instrument.

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a.Endorsement b.Bill of exchange c.cheque d.All of the above

31.Endorsement does not operate as a negotiation of the instrument.

a.Restrictive b.sans recourse c.Facultative d.Partial
32.An instrument means as instrument which can be constructed either as a promissory note or
a bill exchange.
a.Inchoate b.Ambiguous c.Time d.clean bill
33._______means an incomplete instrument in some respect.
a.Ambiguous instrument b.Time instrument
c.Inchoate instrument d.Documentary bill
34._____is defined as an instrument which is payable sometime in future.
a.Ambiguous instrument b.Inchoate instrument
c.Time instrument bill d.Inland instrument
35._______means the bill to which no document of title to the goods is attached.
a.Documentary bill b.clean bill c.Time instrument d.None of these

36._____is found at the bottom of the cheque.

a.MICR code b.Bearer cheque c.Crossed cheque d.none of these
37. IFSC is a character code.
a.10 b.11 c.12 d.13

38.A negotiable instrument is freely transferable, by delivery if it is a/an instrument.

a.order b.bearer c.both ‘a’ and ‘b’ d.none of these
39.____is an instrument in writing containing an unconditional undertaking signed by the maker to
pay a certain sum of money.
a.Promissory note b.Bill of exchange c.cheque d.None of these
40.Acceptance is in case of bill of exchange.
a.Compulsory b.Optional c.Not compulsory d.None of these
41._____is an order to pay the third party.
a.promissory note b.Bill of exchange c.cheque d.None of these
42.If the instrument is not ‘on demand’
a.7 b.5 c.3 d.4
43. What does section 6 deals with in Negotiable Instruments Act?
a) Cheque b) Drawee c) Dishonoring of cheque d) None
44. Drawee is defined in which section ofNegotiableInstruments Act _________.
a) Section 5 b) Section 8c) Section 9 d) Section 7
45. An order in writing directing a person to pay a sum of money to a specified person
is called _________.
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a) Crossed Cheque b) Bearer Cheque c) Bill of Exchange d) None

46. The Bill of Exchange is prepared by____________.
a) The Creditor b) The Debtor c) The Surety d) The Buyer
47. The difference between the Promissorynote and the cheque is ___________.
a) The Cheque has limited validity b) Cheques are drawn on a specific bank
c) Cheques can be crossed for safety purpose d) All of the above
48. __________ is a bill to which the document of title to the goods and other documents
are attached.
a) Attached Bills b) Documentary Bills c) Both (a) and (b) d) None
49. ________ is a bond, deed, or other document kept in the custody of a third party
and taking effect only when a specified condition has been fulfuilled.
a) Escrow b) Custody Bill c) Bill in Sets d) None
50. In case of Cheque as Negotiable Instrument, the Payer’s (who prepares to cheque) bank
is called as ____________.
a) Drawer b) Drawee c) Indorser d) None of the above
51. In case of Cheque as Negotiable Instrument, the Person, one whose name the cheque is drawn to
pay the dues is called as _________.
a) Drawer b) Drawee c) Payer d) Payee
52. The Negotiable Instrument may be dishonoured either by __________.
a) Non acceptance of Negotiable Instrument (Bill of Exchange)
b) Non Payment of mentioned value (Pronote/Cheque)
c) Both a & b d) None
53. The Negotiable Instrument while drafting (writing), becomes faulty, it is called as __.
a) Faulty Bill b) Ambiguous Bill c) Dishonored Bill d) Escrow Bill
54. “ Pay to the order of R” – This statement comes under the category of the following
instrument _________.
a) Bearer Instrument b) Order Instrument c) Foreign Instrument d) None of the above
55. Which of the following provisions of RBI are not affected by the Negotiable Instrument?
a) Sec.31 and Sec 32 b) Sec 23 and Sec 25 c) Both a & b d) None
56. Which of the following is the example of Documentary Bill?
a) Lorry receipt b) Bill of Lading c) Railway Receipt d) All of the above
57. IFSC had ____________ character code.
a) 12 b) 6 c) 11 d) 10
58. Statement (I): When the endorsement seeks to transfer only a part of the amount
payable under the instrument, it is partial endorsement.
Statement (II). Partial endorsement does not operate as a negotiation of the instrument.
Codes:
(A) Both (I) and (II) are correct and (II) is correct explanation of (I).
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(B) Both (I) and (R) are correct, but (II) is not a correct explanation of (I).
(C) (I) is correct, but (II) is incorrect. (D) (I) is incorrect, but (II) is correct
59. Statement (I): If the endorser wrote “Noice of dishonour waived” at the
time of endorsing it is called facultative endorsement.
Statement (II): To make an endorser liable on the instrument , notice of dishonour
must be given to him.

(A) Both (I) and (II) are correct and (II) is correct
explanation of (I). (B) Both (I) and (R) are correct, but (II) is not a correct explanation of (I).
(C) (I) is correct, but (II) is incorrect. (D) (I) is incorrect, but (II) is correct
60. Assertion (A): Signing in block letters does not constitute regular endorsement.
Reason(R): The prefix or suffix added to the names of the payee or endorsee should be omitted in
endorsement.
(A) (A) is true but (R) is false (B) (A) is false but (R) is true
(C) (A) and (R) are correct and (R) is correct explanation of (A).
(D) Both (A) and (R) are correct, but (R) is not the correct explanation of (A).
61. Statement (I): Any holder can convert a blank endorsement into special
Endorsement by writing above the signature of the endorser.
Statement (II): The endorsement in full orspecial endorsement allows the additions
to the signature of the endorser.
(A) (A) is true but (R) is false (B) (A) is false but (R) is true
(C) (A) and (R) are correct and (R) is correct explanationof (A).
(D) Both (A) and (R) are correct, but (R) is not the correct explanation of (A).
62. Statement (I): If the payee is an illiterate person, the affixing of thumb impression
on the instrument is allowed.
Statement (II): The above instrument should be duly attested by somebody who
should give full address there on.
Codes:
(A) Both (I) and (II) are correct. (B) Only (I) is correct, but (II) is wrong.
(C) Only (II) is correct, but (I) is wrong. (D) Both (I) and (II) are wrong
63. Match the following
List I List II
Negotiable Instrument 1. After 3 months of its date
Cheque 2. No liability
Facultative endorsement 3. Bill of Exchange
Stale of cheque 4. Transferrable from one person to another
a) b) c) d)
a) 4 3 1 2
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b) 3 4 1 2
c) 3 2 1 4
d) 4 3 2 1
64. Match the following
List I List II
Bill of Exchange 1.Section 123 of NI act 1881
Endorsement 2.Section 15 of NI act 1881
General Crossing 3.Section 5 of NI act 1881
Special Crossing 4.Section 124 of NI act 1881
a) b) c) d)
a) 4 3 1 2
b) 3 4 1 2
c) 3 2 1 4
d) 4 3 2 1
65. Match the following:
List I List II
Pay to R or bearer 1. Foreign Instrument
Pay to the order of R 2. Inland Instrument
Bill drawn in Delhi andpayable in London 3. Order Instrument

The Negotiable Instruments Act 1930 Bill drawn in Delhi on a merchant in London and payable in
London 4. Bearer Instrument
a) b) c) d)
a) 4 3 1 2
b) 3 4 1 2
c) 3 2 1 4
d) 4 3 2 1
66. Find the odd one out
a) Promissory Note b) Bill of Exchange c) Cheque d) Invoice
Reason : Except invoice(d) all the above three are instruments which is used to transfer money.
67. Find the odd one out:
a) Lorry Receipt b) Bill of Lading c) Railway receipt d) Cheque
Reason: except cheque all the others are document bills.
ANSWERS
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V.M.G.RAJASEKARN-RAMANI SRI SARADA SAKTHI

MAT.HR.SEC.SCHOOL

12th-Commerce-Lesson-23-One-Marks

Choose the correct answer:

1.Which of the below is a factor of production?

a.Land b.Labour c.Entrepreneurship d.All of the above

2.Entrepreneur is not classified as

a.Risk Bearer b.Innovator c.Employee d.Organizer

3.What are the characteristics of an entrepreneur?

a.Spirit of enterprise b.Flexibility c.Self-confidence d.All of the above

4.Which of the below is not classified into managerial functions?

a.Planning b.Marketing c.organizing d.Controlling

5.Which of the below is a commercial function?

a.Accounting b.Coordination c.Discovery of idea d.Planning

6.The person who establishes business is termed as

a.Entrepreneur b.Intrapreneur c.Promoter d.Manager

7.The output of an entrepreneurial process ends up in establishing an

a.environment b.enterprise c.organisation d.none of these

8.An Irishman described the entrepreneur to be a person who assume

risk inherent in the venture started by him - who said these words?

a.Jean Baptize b.Knight c.Schumpete d.Richard Cantillon

9.Entrepreneurship is essentially a creative activity” – who said these

words?

a.Schumpeter b.Richard c.Knight d.Jean Baptize

10.Women entrepreneurship is gaining importance in India in the wake

of economic

a.Liberalisation b.Globalisation c.(a) or (b) d.(a) and (b)

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11.Women who innovate, imitate or adopt a business activity are known

as women entrepreneurs”.

a.Jean Baptize b.Knight c.Richard d.Schumpeter

12.CWEI was registered as a civil society in the year

a. 1990 b. 1992 c.1996 d. 1998

13.The first and foremost function of entrepreneur is

a.idea generation b.determination c.investigationd.preparation of

business plan

14.Name the institution which was set up in 1982 to promote integrated

rural development.

a.NSIC b.NABARD c.SIDBI d.NCEUS

15.Name the institution which is setup as an apex bank to provide

dire3ct or indirect financial assistance under difference scheme.

a.SIDBI b.NSIC c.NABARD d.CWEI

16.A women entrepreneur is supposed to have a minimum financial

interest in share capital of entrepreneur’s enterprise:

a.35 percent b.51 percent c.25 percent d.None of these

17.______defines an entrepreneur as the director or a manager of a

musical institution.

a.American Dictionary b.London Dictionary c.Oxford Dictionary

d.None of these

18.Entrepreneurs are classified into groups.

a.two b.three c.four d.five

19.Entrepreneur should have a in order to achieve high goals in the

business.

a.Spirit of enterprise b.self-confidence c.flexibility d.innovation

20.Entrepreneur should have a to visualise future business

environment.

a.leadership b.ability c.foresight d.decision making

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21.___is dependent on the entrepreneur.

a.Intrepreneur b.manager c.consumer d.organisation

22.______does not share in profits of venture.

a.Entrepreneur b.intrepreneur c.promoter d.manager

23._______is a salaries employee in the entity set up for carrying on the

venture.

a.Owner b.Entrepreneur c.Manager d.None of these

24.Women constitute of the economic enterprise.

a.one third b.Two third c.one fourth d.two fourth

25._____is accredited by Government of India.

a.STEP b.CWEI c.DIC d.TREAD

26._____reduces the efficiency of operating the business successfully.

a.Problem of finance b.Limited mobility c.Lack of education d.stiff

competition

27.____are more prone to a variety of emotions.

a.men b.women c.children d.none of these

28._____was the founder of Reliance industries.

a.Dhirubhai Ambani b.Anil Ambani c.Mukesh Ambani d.Ratna

29._____is famously referred to as India’s Bill Gates at a result.

a.Anil Ambani b.Premji c.Birla d.Dilip Shangavi

30.The term entrepreneur has been derived from the language.

a.Latin b.French c.English d.All of these

31. An Entrepreneur’s primary motivation for

starting a business is _________.
a) To make money b) To be independent c) To be famous d) To be powerful

32. Entrepreneurs are _________.

a) Moderate risk taker b) High Risk Taker c) Avoidance d) Both b& C

33. According to the view of Bankers most of the businesses fail because of
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the ________ inability to plan properly.

a) Investors b) Marketers c) Entrepreneurs d) Consultants

34. In __________ , the death of entrepreneur results in the termination of

venture.
a) Proprietorship b) Limited Company c) Limited Partnership
d) Corporation

35. The notion of an entrepreneur as an innovator was established in the

___ century.
a) 17th Century b) 19th Century c) 20th Century d) 18th Centruy

36. Automated stock replenishment, electronic selling and processing of

customers orders and payments are examples of :
a) E-Business b) E-Commerce c) E-Trading d) E-Transaction

37. ______ is the process of an entrepreneur conducting business activities

across national boundaries.
a) National entrepreneurship b) International entrepreneurship
c) Both a and b d) None of the above

38. Money or property owned or used in a business is known as _______.

a) Wage b) Capital c) Loan d) All the above

39. A micro enterprise that permits its owners to follow a desired pattern of
living, such as supporting costs or vacations _______.
a) Entrepreneur b) Life Style business c) Social Business d)
Microenterprise

40. Which of the following is the business activity that avoid harm to the
environment or help to protect it is some way _______.
a) free-enterprise system b) Social Entrepreneurship
c) Green Entrepreneurship d) None

41. An entrepreneur is someone who assumes the major risks of a new

business by committing which of the following?
a) Equity b) Time c) Career d) All of the above
42. It is estimated that approximately _____ percent of small businesses fail
within the first five years.
a) 10 b) 25 c) 50 d) 75

43. Who said that the job of the entrepreneur is “Creative Destruction”
a) Peter Drucker b) Pierre Trudeau c) Joseph Schumpeter d) None

44. People who own, operate, and take risk of a business venture is
___________.
a) Aptitude b) Employee c) Entrepreneurs d) Entrepreneurship

45. If you own your own business you will need to know how to calculate
your profit. Which one is a calculation of profit?
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a) Sales in a year b) Sales – expenses c) sales in a month d) none of the

above

46. Assertion(A) : A person who is tasked with the developing person creates
innovative idea.
Reason(R): Dreamers who do, those who take hands-on responsibility for
turning an idea into a profitable finished
Product through assertive risk taking and innovation
is known as Intrapreneur.
Codes:
(A) Both (A) and (R) are correct and (R) is correct
explanation of (A).
(B) Both (A) and (R) are correct, but (R) is not a
correct explanation of (A).
(C) (A) is correct, but (R) is incorrect.
(D) (A) is incorrect, but (R) is correct.

47. Statement (A) : An Entrepreneur is a risk bearer.

Statement (R): An Entrepreneur is an innovator
(A) (R) is correct but (A) is not correct.
(B) (A) is correct but (R) is not correct.
(C) Both (A) and (R) are correct.
(D) Both (A) and (R) are not correct.

48. Assertion (A): Entrepreneur should have the capability to mobilize both
tangible and intangible inputs.
Reason(R): Entrepreneurship is a function of gap filling and input
completion.
Codes:
(A) Both (A) and (R) are correct and (R) is correct
explanation of (A).
(B) Both (A) and (R) are correct, but (R) is not a
correct explanation of (A).
(C) (A) is correct, but (R) is incorrect.
(D) (A) is incorrect, but (R) is correct.

49. Assertion(A): Lack of education reduces the efficiency of operating the

business successfully.
Reason(R) : Illiterature and Semi-literature women entrepreneurs encounter
a lot of challenges in their entrepreneurial journey.
Codes:
(A) Both (A) and (R) are correct and (R) is correct
explanation of (A).
(B) Both (A) and (R) are correct, but (R) is not a
correct explanation of (A). (C) (A) is correct, but (R) is incorrect.
(D) (A) is incorrect, but (R) is correct.

50. Assertion(A): An entrepreneur should carry the research on product

planning and development, standardization, packaging,
pricing, warehousing and promotional activities.
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Reason(R) : The very success of the marketing

function is linked with selection of appropriate marketing mix.
Codes:
(A) Both (A) and (R) are correct and (R) is correct
explanation of (A).
(B) Both (A) and (R) are correct, but (R) is not a
correct explanation of (A).
(C) (A) is correct, but (R) is incorrect. (D) (A) is incorrect, but (R) is correct.
51. Match the following:
List I List II
Production Manpower
Marketing Profit and Loss
Accounting Consumer Research
Human Resource
Management Design and Layout
a) b) c) d)
a) 4 3 1 2
b) 3 4 1 2
c) 3 2 1 4
d) 4 3 2 1
52. Find the odd one out:
a) Risk bearer b) Organiser c) Innovator d) Leader
Reason : Except leader all the others are the classification
of entrepreneurs.
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V.M.G.RAJASEKARN-RAMANI SRI SARADA SAKTHI MAT.HR.SEC.SCHOOL

Tamilnadu 12th-Commerce-Lesson-24– One Marks

Choose the correct answer:

1.Choose the type of entrepreneur that isn’t based on function:

a.Innovative b.Classical c.Fabian d.Drone

2.Choose the type of entrepreneur that is not based on Motivation:

a.Pure b.Corporate c.Spontaneous d.Induced

3.Which of the following is the activity of a business Entrepreneur?

a.Production b.marketing c.Operation d.All of the above

4.Find the odd one out in context of Trading Entrepreneur.

a.Selling b.Commission c.Buying d.Manufacturing

5.Corporate Entrepreneur is also called as

a.Entrepreneur b.Promoter c.Manager d.Shareholder

6.Poultry, flowers, fruits etc. are called allied products of entrepreneur.

a.Corporate b.Retail c.Tradings d.Agricultural
7.Entrepreneur supply services unlike
a.Hoteliers b.Banking c.airlines d.Livestock
8.Motive of a pure Entrepreneur is
a.Rendering service b.Earing profit c.Attaining status d.Both b & c
9. Which of these is based on Technology?
a.Modern b.professional c.Corporate d.Industrial
10. Which of the below is not a characteristic of a Fabian Entrepreneur?
a.Conservative b.Risk averse c.Sceptical d.Adaptive
11. Which of the following entrepreneur is simply imitates existing skill,
knowledge or technology already in place in advanced countries?
a.Fabian entrepreneur b.Innovative entrepreneur c.Imitative
entrepreneur d.Drone entrepreneur

12.Nurses coffee is an example of

a.Innovative entrepreneur b.Imitative entrepreneur c.Fabian
entrepreneur d.Drone entrepreneur
13.Gopal Tooth power is an example of
a.Fabian entrepreneur b.Drone entrepreneur c.Corporate
entrepreneur d.Retail entrepreneur

14.Business entrepreneur is called

a.Solo entrepreneur b.Trading entrepreneur c.Industrial entrepreneur
d.Agriculturalentreprenur

15.Which of the following entrepreneurs who restrict themselves to buying

and selling finished goods?
a.Business entrepreneur b.Trading entrepreneur c.Industrial
entrepreneur d.Innovative entrepreneur
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16.Corporate entrepreneur is called

a.Promoter b.Buyer c.Founder d.None of these

17.Which of the following entrepreneur demonstrates their creative talents by producing innovative
products?
a.Technical entrepreneur b.Innovative entrepreneur c.Imitative
entrepreneur d.Fabian entrepreneur

18.Which of the following entrepreneur are those motivated to take up

venture by the desire for self-fulfillment?
a.Motivated b.Spontaneous c.Classical d.Modern
19.Which of the following entrepreneur starts his own venture as a family
business?
a.Agricultural entrepreneur b.Fabian entrepreneur
c.Droneentrepreneur d.Classical entrepreneur
20.Entrepreneurs from the business families are called
a.State entrepreneurship b.Joint entrepreneurship c.Urban
entrepreneur d.Classical entrepreneur
21.Rural entrepreneur are start a business in
a.rural locations b.towns c.cities d.none of the above

22.Is one who is always focussed on introducing a new project or introducing

something new in the venture already started?
a.Innovative entrepreneur b.Imitative entrepreneur c.Fabian
entrepreneur
d.Drone entrepreneur
23.Entrepreneurs are said to be conservatives and sceptical about
plasticising any change in their organisation.
a.Drone b.Fabian c.Imitative d.Innovative
24.Entrepreneurs are those who are totally opposed to changes unfolding
in the environment.
a.Technical b.Pure c.Fabian d.Drone
25.Used to operate in the niche market.
a.Drone entrepreneur b.Agricultural entrepreneur c.Rural
entrepreneur
d.Urban entrepreneur
26.Takes up production, operations and pursues marketing activities.
a.Business entrepreneur b.Industrial entrepreneur c.Trading
entrepreneur
d.Agricultural entrepreneur
27.May be engaged in domestic and international trade.
a.Service entrepreneur b.Technical entrepreneur c.Trading
entrepreneur
d.None of these
28.Get their income by way of commission and marketing
a.Business entrepreneur b.Industrial entrepreneur c.Service
entrepreneur
d.Trading entrepreneur
29.Entrepreneurs mobilise the resources of various types and create an
entity to manufacture the products or service.
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a.Industrial b.Drone c.Fabian d.Business

30.Takes initiative necessary to start an entity under corporate format.
a.Retail entrepreneur b.Agricultural entrepreneur c.Corporate
entrepreneur d.All of these
31.Install a team of experts to manage the entity on a day to day basis.
a.Agricultural entrepreneur b.Corporate entrepreneur
c.Innovative entrepreneur d.Imitative entrepreneur
32.Entrepreneur are those entrepreneurs who raise from products and
market them.
a.Technical b.Rural c.Agricultural d.Urban
33.Entrepreneurs enter into the venture of supplying service products to end
consumers.
a.Rural b.Urban c.Agricultural d.Service
34.Keep on conceiving new ideas to develop alternative projects.
a.Pure entrepreneur b.Motivated entrepreneur c.Professional
entrepreneur d. Induced entrepreneur
35.Entrepreneurs are individuals who are propelled to enter into venture by
psychological and economic motives.
a.Pure b.Induced c.Motivated d.All of these
36.Entrepreneurs have natural inclination to start venture.
a.Modern b.Motivated c.Spontaneous d.Classical
37.Are supposed to be bold, optimistic and enterprising persons.
a.Private entrepreneur b.Spontaneous entrepreneur c.Joint
entrepreneurship d.Rural entrepreneur
38. Are self-made entrepreneur
a.First generation entrepreneur b.Modern entrepreneur
c.Motivated entrepreneur d.None of these
39.Engage in business as a matter of routines.
a.Classical entrepreneur b.First generation entrepreneur
c.Private entrepreneur d.Public entrepreneur
40. In terms of chronological age most entrepreneurs initiate their
entrepreneurial carrier between ages of ____________.
a) 15 and 22 b) 22 and 45 c) 45 and 57 d) 57 and 63

41. Entrepreneurial success has been significant because of the culture and
the political and economic system in ____________
a) European Countries b) Asian Countries c) Transition economies d) Middle
east

42. Which of the following are the balance points of Entrepreneurship?

a) Means of social changes b) Increase in employment opportunities
c) Optimum utilization of resources d) All of the above

43. Which is the part of concept of Entrepreneurship?

a) High Achievement capacity b) Organization Building
c) Group level reaction d) All of the above

44. Individuals who help the entrepreneur in business activities are called
_______.
a) Role Models b) Moral Support networks
c) Professional support networks d) None of these
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45. Which of the following are included in the functions of entrepreneurship?

a) Establishing the enterprise b) Project Planning
c) Initiation and risk taking d) All of the above

46. Which of the following organizations support entrepreneurs?

a) National Entrepreneurship Development Board
b) Export Promotion Council c) Small Industry Service Institute
d) All of the above

47. The one who is always focused on introducing a new project or

introducing
something new in the venture already started.
a) Innovative Entrepreneur b) Drone Entrepreneur
c) Fabian Entrepreneur d) Private entrepreneur

48. The risk averse type of entrepreneurs are known as ________.

a) Innovative Entrepreneur b) Drone Entrepreneur
c) Fabian Entrepreneur d) Private entrepreneur

49. A person who is inspired to take up entrepreneurial

activity is known as ______.
a) Pure Entrepreneur b) Spontaneous Entrepreneur
c) Motivated Entrepreneur d) Induced Entrepreneur

50. Assertion (A): The spontaneous entrepreneur has passion for meeting the
challenges.
Reason(R): The inner urge and inborn traits drive the entrepreneurs to
commence their ventures.
Codes:
(A) Both (A) and (R) are correct and (R) is correct explanation of (A).
(B) Both (A) and (R) are correct, but (R) is not a correct explanation of (A).
(C) (A) is correct, but (R) is incorrect. (D) (A) is incorrect, but (R) is correct.

51. Assertion (A): The technical entrepreneurs demonstrates their creative

talents by producing innovative products.
Reason(R): The technical entrepreneur’s strength lies in skill or knowledge of
producingspecialised product.
(A) (R) is correct but (A) is not correct. (B) (A) is correct but (R) is not correct.
(C) Both (A) and (R) are correct. (D) Both (A) and (R) are not correct.

52. Statement (A) : Corporate Entrepreneur is called Promoter

Statement (B) : Business Entrepreneur is called Solo Entrepreneur
Codes:
(A) Both (A) and (R) are true. (B) (A) is true, but (R) is false.
(C) (A) is false, but (R) is true. (D) Both (A) and (R) are false.

53. Statement (A) : Infosys and Wipro are come under the category of pure
entrpreneurship.
Statement (B): Pure entrepreneurs apply their knowledge, skill and insight in
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making their venture a great success in order to earn maximum profit out of
the venture.
Codes:
(A) Both (A) and (R) are correct and (R) is correct explanation of (A).
(B) Both (A) and (R) are correct, but (R) is not a correct explanation of (A).
(C) (A) is correct, but (R) is incorrect. (D) (A) is incorrect, but (R) is correct.

54. Assertion(A): The innovative entrepreneur observe the environment

around them
Reason (R): The innovative entrepreneur is always focused on introducing a
new project or introducing something new in the venture already started.
Codes:
(A) Both (A) and (R) are correct and (R) is correct explanation of (A).
(B) Both (A) and (R) are correct, but (R) is not a correct explanation of (A).
(C) (A) is correct, but (R) is incorrect. (D) (A) is incorrect, but (R) is correct.

55. Match the Following

List I List II
Business entrepreneur Raises farm products
Corporate entrepreneur Buying and selling offinished goods
Agricultural entrepreneur Promoter
Trading entrepreneur Solo Entrepreneur
a) b) c) d)
a) 4 3 1 2
b) 3 4 1 2
c) 3 2 1 4
d) 4 3 2 1
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V.M.G.RAJASEKARN-RAMANI SRI SARADA SAKTHI MAT.HR.SEC.SCHOOL

12th Commerce Lesson 25 – One Marks

Choose the correct answer:

1.The initiative was launched to modernize the Indian economy to make all governments
services available electronically.

a.Standup India b.Startup India c.Digital India d.Make in India

2. is designed to transform India to a global design and manufacturing hub.

a.Digital India b.Make in India c.Startup India d.Design India

3. is the Government of India’s endeavour to promote culture of innovation and

entrepreneurship

a.AIM b.STEP c.SEED d.AIC

4. should cover aspects like sources of finance, technical know-how, source of labour and
raw material, market potential and profitability.

a.Technical Report b.Finance Report c.Project Report d.Progress Report

5. has to include the mechanism for managing venture in the project report.

a.Banker b.Government c.Lending Institutions d.Entrepreneur

6.Make in India initiative was launched in

a.April 2014 b.September 2014 c.May 2014 d.None of these

7.Stand-up India was launched in

a.2015 b.2016 c.2017 d.2018

8.National Skill Development Mission was unveiled in

a.March 2014 b.September 2014 c.March 2015 d.July 2015

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9.Entrepreneur has to include the mechanism for managing the venture in the

a.Project report b.Statutory license c.Both ‘a’ and ‘b’ d.None of these

10.Entrepreneur has to apply for

a.Statutory license b.Project report c.Provisional Registration Certificate

d.Permanent Registration Certificate

11. is a foremost challenge facing India.

a.New programmes b.Innovation c.Job Creation d.None of these

12. has to choose suitable plot of accommodating his venture.

a.Entrepreneur b.Intrapreneur c.Manager d.Promoter

13. has to determine the source of finance for funding the venture.

a.Intrapreneur b.Manager c.Entrepreneur d.Promoter

14.Entrepreneur has to obtain from the authority concerned.

a.Municipal License b.Project report c.Provisional registration certificate

d.None of these

15.Entrepreneur requires types of finance.

a.two b.three c.four d.six

16. Which of the following schemes has an impact on women empowerment?
a) ICDS b) ASIDE c) Swadhar d) Ujjawala
17. Select the correct answer using the codes given below:
a) 1,2, and 3 only b) 1,3 and 4 only c) 2,3 and 4 only d) 1,2,3,4
18. Under the Sukanya Samriddhi Yojana, the government has cut the
minimum annual deposit requirement for accounts to ___________ from
Rs.1,000 earlier.
a) Rs.500 b) Rs.350 c) Rs.250 d) Rs.750
19. Which of the following is not a pillar of recently launched “Women
Entrepreneurship Platform”(WEP) by NITI Aayog?
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a) Ichha Shakti b) Gyan Shakti c) Karma Shakti d) Vichar Shakti

20. Which one of the following is the process of entrepreneur developing new
products that over time make current products obsolete?
a) New business model b) Anatomization c) Creative Destruction d) None of
the above
21. Which of the following institution helps to set up a network of technical
consultancy organizations in the country.
a) TCO b) ITC c) EGB d) None of the above
22. Name the institution which was set up in 1982 to promote integrated
rural development?
a) NSIC b) NABARD c) SIDBI d) None of the above
23. The largest industry group which is receiving venture capital funding is
_____.
a) Computer Software b) Medical industry c) Computer Hardware d) None of
the above
24. Finance companies comprises of _______.
a) Money market intermediaries b) Borrow in large amount, but lend in small
amounts c) virtually unregulated d) All of the above
25. Schumpeter considered that innovativeentrepreneurs
would ______.
a) Thrive b) Disappear c) Be absorbed within large innovative firms
d) Be absorbed within non-innovative firms
26. Under which of the following scheme the tenders are issued at free of
cost?
a) M-SIPS b) New Gen IEDC c) SPRS d) AIC
27. Statement (A): Start up India is an initiative of the Government of India
Statement (R) : The campaign was first announced by Indian Prime Minister,
M. Narendira Modi
(A) Both (A) and (R) are true. (B) (A) is true, but (R) is false.
(C) (A) is false, but (R) is true. (D) Both (A) and (R) are false.
28. Assertion (A): A Project report should include Provisional Registration
Certificate and Permanent Registration Certificate.
Reason (R): Projects needs to be prepared according to the format prescribed
in the loan application form .
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Codes:
(A) Both (A) and (R) are correct and (R) is correct explanation of (A).
(B) Both (A) and (R) are correct, but (R) is not a correct explanation of (A).
(C) (A) is correct, but (R) is incorrect. (D) (A) is incorrect, but (R) is correct.

29. Assertion (A) : Entrepreneur has to decide the source of finance for
funding the venture.
Reason(R): A company that is heavily financed by debt has a more aggressive
capital structure.
Codes:
(A) Both (A) and (R) are correct and (R) is correct explanation of (A).
(B) Both (A) and (R) are correct, but (R) is not a correct explanation of (A).
(C) (A) is correct, but (R) is incorrect. (D) (A) is incorrect, but (R) is correct.
30. Statement I: Single Point Registrationscheme is for Micro and Small
enterprises. Statement II: Under SPR tenders are issued
at free of cost.
Codes:
(A) Both (I) and (II) are true. (B) (I) is true, but (II) is false.
(C) (I) is false, but (II) is true. (D) Both (I) and (II) are false.
31. Statement I : Technology Hardware, Green Technology and Nano
Technology are comes under SEED.
Statement II: SEEDS aims to provide opportunities
to motivated scientists and field level workers.
Codes:
(A) Both (I) and (II) are correct and (II) is correctexplanation of (I).
(B) Both (I) and (R) are correct, but (II) is not a correct explanation of (I).
(C) (I) is correct, but (II) is incorrect. (D) (I) is incorrect, but (II) is correct.
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V.M.G.RAJASEKARN-RAMANI SRI SARADA SAKTHI

MAT.HR.SEC.SCHOOL

Tamilnadu 12th Commerce Lesson 26 – One Marks

Choose the correct answer:

1.The Company will have to issue the notice of situation of Registered Office to
the Registrar of Companies within days from the date of incorporation.
a.14 days b.21 days c.30 Days d.60 Days
2.How does a person who envisages the idea to form a company called?
a.Director b.Company Secretary c.Registrar d.Promoter
3.For which type of capital a company pays the prescribed fees at the time of
registration?
a.Subscribed Capital b.Authorised Capital c.Paid-up Capital d.Issued Capital
4.Which of the following types of shares are issued by a company to raise capital
from the existing shareholders?
a.Equity Shares b.Rights Shares c.Preference Shares d.Bonus Shares
5.Specify the type of resolution to be passed to choose the location of Registered
Office of the company within the town or village or city.
a.Ordinary b.Special c.Either Ordinary or Special d.Board
6.Who can issue stock?
a.Public b.Private c.One Person d.Small
7.Specify the document which comes under the Negotiable Instrument Act.
a.Share Certificate b.Share c.Share Warrant d.Stock
8.The shares which are offered to the existing shareholder at free of cost is known
as .
a.Bonus Share b.Equity Share c.Right Share d.Preference Share
9.The shares which are offered first to the existing shareholder at reduced price is
known as
a.Bonus Share b.Equity Share c.Right Share d.Preference Share
10.The Companies Act 2013 Prohibits the issue of shares at to the public.
a.Premium b.Par c.Discount d.Both at par and Premium
11.Which company shares can be freely transferable?
a.Private company b.Public company c.Both ‘a’ and ‘b’ d.None of these
12.Minimum number of members required to apply for incorporation certificate in
a Public Ltd company is
a.3 b.2 c.7 d.50
13.The second stage in the formation of the company is
a. promotion b. registration c. capital subscription d. commencement of
business
14.The second most important document which is required at the time of
registration is
a.Memorandum of Association b.Prospectus c.Articles of Association d.None
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of these
15.A debenture, in which no specific time is specified by the companies to pay
back the money is called an
a.Registered debentures b.Bearer debentures c.Irredeemable debentures d.None
of these
16. The articles of association needs to be signed by
a.all proposed directors b. registrar c.subscribers of memorandum d.none of
the above
17. The person who envisages the idea is called a
a.Promoter b.Manager c.Director d.Member ANSWER: A

18.If minimum subscription is not received application money should be refunded

with in days.
a.20 b.25 c.30 d.10
19.Minimum subscription should be received with in days.
A. 130 B. 125 C. 120 D. 150

20.The is the charter of a company.

a. Memorandum of Association b. Articles of Association
c.Both ‘a’ and ‘b’ d.None of the above
21.The address of the registered office of the company must be notified to the
registrar within
days of registration, if it is not done at the time of incorporation.
a.15 b.30 c.60 d.45

22.If the proposed nominal capital is more than Rs. 25 lakhs at the time of
incorporation then the company needs to submit along with the application.
a.statement of capital b.certificate of incorporation
c.certificate of capital d.none of these

23._______________is created form fully paid shares by passing an ordinary

resolution the general meeting.
a.Stock b.Shares c.Debentures d.Preference shares
24._____________is issued under the common seal of the company
acknowledging the receipt of money.
a.Shares b.Stock c.Debentures d.Preference shares

25.______________instruments retain the debt character and cannot be converted

into equity shares.
a.Partly convertible debentures b.Non convertible debentures
c.Fully convertible debentures d.Optionally convertible debentures ANSWER:
B

26._____________is normally decided at the time of subscription.

a.Fully convertible debentures b.Optionally convertible debentures
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c.Non convertible debentures d.Partly convertible debenture

27.______________instruments are secured by a charge on the fixed assets of the

issuer company.
a.Secured debentures b.Unsecured debenture c.Redeemable debentures
d.Perpetual debentures ANSWER: A

28.A copy of the must accompany each from of application for shares offered to
the public.
a.Memorandum of Association b.Prospectus c.Articles of association
d.None of the above

29.Par value of shares means the value of the shares.

a.Actual b.face c.market d.dividend

30._____________share capital has priority both in repayment of dividend as

well as capital.
a.Equity b.Non preference c.Preference d.All of the above

31.For example par value is Rs. 10 and it is issued at Rs. 15 then Rs. 5 is the
amount.
a.profit b.dividend c.market value d.premium
32. The companies act,2013 has _________ sections/clause.
a) 420 b) 490 c) 470 d) 560
33. A company is not a citizen but it has ____.
a) Nationality b) Domicile c) both a & b d) None

34. The Company bill, received the assent of the Resident of India
on __________.
a) 29.08.2013 b) 1.1.2018 c) 08.12.2018 d) None

35. Associate Company is defined in section _________ of the

companies act 2013.
a) 5(2) b) 2(6) c) 6(2) d) None
36. A private company has a maximum number of ________
members, as per companies act, 2013.
a) 400 b) 200 c) 600 d) Unlimited

37. In a Government company the government shareholding must

not be less than ___________.
a) 50 % b) 40% c) 51% d) None of the above

38. Which of the following is a Statutory Company?

a) RBI b) NABARD c) SBI d) All the above
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39. Companies Act 2013, has how many chapters?

a) 32 b) 23 c) 29 d) 46
40. There are _________ schedules in Companies act 2013.
a) 5 b) 7 c) 43 d) 10
41. Which of the following section deals with Incorporation of
Companies Act 1956?
a) 12 b) 34 c) 21 d) None

42. The number of documents to be submitted by a public limited

company to the registrar while applying for incorporation of the
company is _______.
a) 3 b) 2 c) 7 d) 50

43. A person who envisage the idea to form a company is known as

_______.
a) Promoter b) Owner c) Director d) None
44. The person who take the procedural steps to set up a company
and who make business preparations for the company are
called as ___________.
a) Promoter b) Owner c) Director d) None

45. If a person wants to form a new company, which of the

following documents must be acknowledged with the Registrar of
Companies?
a) Memorandum of Associations b) Application form for registration
c) Statement of Compliance d) All of the above

46. Shares issues without any special rights attached

to them are known as _____.
a) Preferrence Shares b) Capital Shares c) Ordinary Shares d)
None

47. The preference shares which can be claimed

after a fixed period is known as ______.
a) Redeemable Preference Shares b) Convertible Preference
Sharesc) Cumulative Preference Shares d) Participating Preference
Shares

48. __________ shares are primarily issued to the existing equity

shareholders through a letter of an issue, on pro rata basis.
a) Equity Shares b) Share Warrant c) Right Shares d) Bonus
Shares
49. Which of the following are included in the concept of
debenture?
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a) Debenture Stock b) Bonds c) other instruments evidencing a

debt
d) All of the above
50. In general cases Bonus shall be paid with in ______.
a) 6 months b) 7 months c) 8 months d) None of these

51. The companies which are formed underCompanies Act 1956.

They will be called as________.
a) Chartered Companies b) Statutory Companies
c) Registered Companies d) None

52. Assertion (A): Issue of shares to employees or directors at lower

price for cash or other than cash is known as sweat equity shares.
Reason(R) : Sweat equity is an input to aproject or enterprise in
form of effort and labour.
Codes:
(A) Both (A) and (R) are correct and (R) is correct
explanation of (A).
(B) Both (A) and (R) are correct, but (R) is not a correct explanation
of (A). (C) (A) is correct, but (R) is incorrect. (D) (A) is incorrect, but
(R) is correct

53. Statement (I): Right shares are the shares which are issued by
the company to the existing shareholders on pro-rate basis.
Reason(R): Right issues must be authorized by Articles of
Association
Codes:
(A) Both (A) and (R) are correct. (B) Only (A) is correct, but (R) is
wrong. (C) Only (R) is correct, but (A) is wrong. (D) Both (A) and (R)
are wrong

54. Statement (A): A share warrant is alsoknown as a document of

title Statement (R): Prior approval of the CG is required for Share
Warrant.
Codes:
(A) Both (A) and (R) are correct. (B) Only (A) is correct, but (R) is
wrong. (C) Only (R) is correct, but (A) is wrong. (D) Both (A) and (R)
are wrong

55. Assertion(A): It is not possible for a company to make original

issue of stock.
Reason(R): The conversion of fully paid up shares of a member into
a single fund is known as stock
Codes:
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(A) Both (A) and (R) are correct and (R) is correct explanation
of (A).
(B) Both (A) and (R) are correct, but (R) is not a correct explanation
of (A).
(C) (A) is correct, but (R) is incorrect. (D) (A) is incorrect, but (R) is
correct
56. Assertion(A): The securities premium account
cannot be treated as a revenue reserve for distributing dividends.
Reason(R) : As per the act under section 78 Securities Premium
account is in capital nature and can only be utilised for the
Purposes specified.
Codes:
(A) Both (A) and (R) are correct and (R) is correct
explanation of (A).
(B) Both (A) and (R) are correct, but (R) is not a
correct explanation of (A). (C) (A) is correct, but (R) is incorrect.
(D) (A) is incorrect, but (R) is correct
57. Match the following:
List I List II
Share i.Pro rata basis
Equity Shares ii.Shares issued to employees or directors
Sweat Equityshares iii. Which are not preferential
Right Shares iv. Portion of Capital
a) b) c) d)
a) 4 3 1 2
b) 3 4 1 2
c) 3 2 1 4
d) 4 3 2 1
58. Match the following
List I List II
Royal Charter i. Registration in India
Joint Stock Company Act ii. England
English Joint Stock Companies Act iii. East India
Indian Companies act iv Protect and preserve the rights of
shareholders
a) b) c) d)
a) 4 3 1 2
b) 3 4 1 2
c) 3 2 1 4
d) 4 3 2 1
59. Match the Following
List I List II
Royal Charter i.2013
English Joint Stock Company ii.1913
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Indian Companies act iii.1850

d. New Companies Act iv. 1844
a) b) c) d)
a) 4 3 1 2
b) 3 4 1 2
c) 3 2 1 4
d) 4 3 2 1
60. Find the odd one out:
a) Promotion b) Registration
c) Capital Subscription d) Amalgamation
Reason: Except amalgamation all the above three
are the stages in the formation of a company.

61. Find the odd one out:

a) Memorandum of Association b) Articles of Association
c) Certificate of Incorporation d) Power of attorney
Reason: Power of attorney is a document which
is prepared to carry out the instructions stipulated
by the registrar.
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V.M.G.RAJASEKARN-RAMANI SRI SARADA SAKTHI MAT.HR.SEC.SCHOOL

Tamilnadu 12th Commerce Lesson 27 – One Marks

Choose the correct answer:

1.A person Shall hold office as a director in companies as per the Companies Act, 2013.
A. 5 companies b.10 companies c.20 companies d.15 companies

2.Which Director is appointed by a Financial institution.

A. Nominee b.Additional c.Women d.Shadow
3.A Private Company shall have a minimum of .
A. Seven directors b.Five directors c.Three directors d.Two directors
4.A Public Company shall have a minimum of Directors.
A. Twelve B.Seven c.Three d.Two
5.A Public Company having a paid up Share Capital of Rs. or more may have a
Director, elected by such small shareholders.
a.One b.Three c.Five d.Seven
6.Under the companies Act, which one of the following powers can be exercised by the Board
of Directors?
A. Power to sell the company’s undertakings b.Power to make call
c.Power to borrow money in excess of the paid up capital d.Power to reappoint an auditor
7.Which director need not hold qualifying shares.
a.Directors appointed to Central Government b.Directors appointed to Shareholders
c.Directors appointed to Managing Director d.Directors appointed to Board of Directors

8.What is the statue of Directors will regulate money of the company.

a.Banker b.Holder c.Agent d.Trustees
9.According to Companies Act, the Directors must be appointed by the.
a.Central Government b.Company Law Tribunal
c.Company in General Meeting d.Board of Directors

10.The Board of Directors can exercise the power to appoint directors in the case of.
a.Additional Directors b.Filling up the Casual vacancy c.Alternate Directors
d.All the above

11.The group of human beings who undertake the responsibility to run the business of the
company are known as
a.Board of Directors b.Shareholders c.Debenture holders d.None of these

12.The overall performance of any company is vested with the

a.debenture holders b.directors c.Both ‘a’ and ‘b’ d.None of these
13.The directors are expected to act in
a.utmost care b.good faith c.delegate work d.none of these
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14.The directors should conduct their work with

a.good faith b.utmost care c.delegate work d.None of these

15.The definition of the term key managerial personnel contained in

a.Sectgion 2(13) b.Section 2(18) c.Section 2(50) d.Section 2(51)
16.The Governing body of a company incorporated under companies Act called
a.Board b.Policy c.MOA d.AOA
17.Public companies which have paid-up share capital
a.Rs. 5 Crores b.Rs. 10 Crores or more c.Rs. 50 Crores d.Rs. 25 Crores

18.Public companies which have Turnover

a.Rs. 25 Crores b.Rs. 50 Crores c.Rs. 75 Crores d.Rs. 100 Crores or more

.
19.The alternative director is not a representative or agent ot
a.Original director b.Shadow director c.Additional director d.Nominee director
20.The minimum requirement of Director is
a.two b.three c.four d.five
21.The power of the company to borrow is exercised by its
a.directors b.members c.shareholders d.manager

22.According to provisions of the act the borrowings of the company does not exceed
a.total paid up share capital b.total free reserves c.authorised capital
d.total paid up capital and free reserves

23.The most important document of a company is

a.Prospectus b.Annual report c.Memorandum of Association d.Articles of
Association
24.How many directors of a public company, unless the articles provide otherwise, must be
appointed by the company in general meeting?
a.One half of the directors b.Two-thirds of the directors c.Three-fourths of the directors
d.None of these

25.Maximum directors of a public ltd company are

a.7 b.10 c.12 d.15
26.Which of the following company must have at least one women director in their board?
a.Every listed company b.A public company having paid up capital of Rs. 100 Crores
or more c.A public company having turnover of Rs. 300 Crores or more
d.All the above
ANSWER: A

27.Disqualifications of a director are mentioned in section

a. 164 b. 161 c.. 168 d. 177

28.Which of the following is not the specific powers of the directors?

a.to make calls on shares b.to borrow moneys
c.to issue debentures d.to sell part of the undertaking
29.The first auditor of a company are appointed by
a.Board of directors b.Members c.Central government d.State government
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30.Auditors act as agent of

a.Share holders b.Directors c.Promoter d.Debenture holder

31.A____ is a person for a Board of Directors who leads or supervises the functioning of a
company.
a.Member b.Director c.Cardholders d.Shareholders ANSWER: B

32.A company can appoint maximum directors.

a.15 b.20 c.25 d.50
33.Every company should appoint a director who has stayed in India for total period of not
less than days in the previous calendar year.
a.180 b.182 c.190 d. 196
34.__________ can appoint a single director in a listed company.
a.Independent director b.Small shareholders
c.Nominee director d.Additional directors
35.Any individual can be appointed as by a company.
a.Alternate directors b.Shadow director c.Additional directors d.None of these

36.The constitute the top administrative organ of the company.

a.general manager b.Shareholders c.body of directors d.advisory panel

37.A/an may become a director of a company.

a.partnership firm b.person of unsound mind c.individual d.body corporate
38.The first board meeting should be held within days of the date of incorporation.
a.30 b.45 c.60 d.75

39. The companies act 2013 section ______ defines the appointment of
director.
a) 2(34) b) 4(24) c) 3(24) d) None of the above

40. The public company shall have a minimum number ______ directors.
a) 3 b) 2 c) 6 d) None of the above

41. What is the notice period for the annual general meeting of a public
company?
a) 21 days b) 21 days unless the articles provide for a longer period
c) 14 days d) 14 days unless the articles provide for a longer period

42. Maximum rate of discount that can be allowed on issue of shares _______.
a) 5 % b) 10% c) 15% d) 20%

43. In case of Non-Profit making companies notice of general meeting should

be given within ___ days
a) 14 b) 15 c) 21 d) 22

44. Which of the following relationship is shared by the directors with the
company?
a) Agent b) Principal c) Both (a) & (b) d) None of the above

45. Which of the following statements about the directors are true?
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a) The directors enjoy the rights and privileges of an agent.

b) There is no personal liability on any contracts entered by them except the
powers stated in the memorandum and articles of the company.
c) They are appointed to lead the company in relation to third parties.
d) All the above

46. ___________ mean those directors who hold office from the date of
incorporation of the company.
a) Nominee directors b) Alternate director c) First Director d) Officer Director

47. A director can be removed from his office by which way of the following?
a) By the Shareholders b) By the Central Government c) By the Company Law
Board d) All the above

48. The removal of the director by the shareholder is given in section

________
of Companies Act, 2013.
a) 169 b) 187 c) 168 d) 190
49. Expand DIN______
a) Domain Identification Number b) Director Identification Number
c) Directors’ Indian Number d) Directors’ International Number

50. The primary stakeholders of a company are ______.

a) Customers b) Suppliers c) Shareholders d) None of the above

51. The board of the directors and CEO should be the leaders with _______.
a) Vision and the problem solving skills b) Motivating ability
c) Profit earning capacity d) All of the above

52. The market price of a share is determined by ________.

a) The board of directors of the company b) The stock exchanges
c) The CEO of the company d) individual buy and sell shares

53. A Company’s ________ are potentially the most effective instrument of

goodCorporate governance.
a) Common Stock Shareholders b) Board of Directors
c) Top Executive Officers d) All of the above

54. Assertion (A): Mr.A is known as Residential Director because he stayed in

India for a period of 240 days in the previous year.
Reason(R): Section 149(3) of Companies act allowed a person to be called as a
Residential director, who has stayed in India for a total period of not less
than 182 days in the previous calendar year.
Codes:
(A) Both (A) and (R) are correct and (R) is correct explanation of (A).
(B) Both (A) and (R) are correct, but (R) is not a correct explanation of (A).
(C) (A) is correct, but (R) is incorrect. (D) (A) is incorrect, but (R) is correct

55. Assertion (A): KMP covers the traditional roles of managing director and
whole time director.
Reason (R): Section 2(51) of the companies act, 2013 explains the key
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managerial functions of directors.

Codes:
(A) Both (A) and (R) are correct and (R) is correct explanation of (A).
(B) Both (A) and (R) are correct, but (R) is not a correct explanation of (A).
(C) (A) is correct, but (R) is incorrect. (D) (A) is incorrect, but (R) is correct

56. Statement (I): A person who is not the member of board but has some
power to run is known shadow director.
Statement (II) : The shadow director can be appointed as per their wish.
Codes:
(A) Both (A) and (R) are correct. (B) Only (A) is correct, but (R) is wrong.
(C) Only (R) is correct, but (A) is wrong. (D) Both (A) and (R) are wrong

57. Assertion (A): A person can hold the position of Directorship in different
Companies up to maximum of 20.
Reason (R): Section 165 of the companies’ act 2013 describes the
appointment of directors.
Codes:
(A) Both (A) and (R) are correct.
(B) Only (A) is correct, but (R) is wrong. (C) Only (R) is correct, but (A) is
wrong. (D) Both (A) and (R) are wrong

58. Statement (I): Manager allocates the work to the subordinates according
to their nature of appointment and job.
Statement (II) : Director implements policies and provides fundamental
Guidelines to carry out a job.
Codes:
(A) Both (A) and (R) are correct. (B) Only (A) is correct, but (R) is wrong.
(C) Only (R) is correct, but (A) is wrong. (D) Both (A) and (R) are wrong
21. Match the following:
List I List II
Whole time director i. Substitute for board of director
Managing director ii. responsible for taking decisions
Executive director iii. substantial powers of management
Alternate director iv. devotes whole of his time
a) b) c) d)
a) 4 3 1 2
b) 3 4 1 2
c) 3 2 1 4
d) 4 3 2 1
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V.M.G.RAJASEKARN-RAMANI SRI SARADA SAKTHI MAT.HR.SEC.SCHOOL

Tamilnadu 12th Commerce Lesson 28 – One Marks

Choose the correct answer:

1.Mention the status of a Company Secretary in a company.

a.A member b.A director c.An independent d.An employee contractor

2.Who can become a secretary for a company?

a.Individual person b.Partnership firm c.Co-operative societies
d.Trade unions

3.Which meeting will be held only once in the life time of the company?
a.Statutory b.Annual General c.Extra – ordinary d.Class General

4.Board Meetings to be conducted minimum times in a year.

a.2 b.3 c.4 d.5
5.Who is not entitled to speak at the annual general meeting of the company.
a.Auditor b.Shareholder c.Proxy d.Directors

6.Mention the company which need not convene the Statutory Meeting.
a.Widely held public b.Private Limited c.Public Limited d.Guarantee having a share
capital
7.From the date of its incorporation the First Annual General Meeting is to be conducted within
months.
a.Twelve b.Fifteen c. Eighteen d.Twenty one

8.What percentage of shareholders is needed to pass special resolution?

a.It must be unanimous b.Not less than 90% c.Not less than 75% d.More than 50%
9.A special resolution must be filed with the Registrar within
a.7 days b.14 days c.30 days d.60 days
10.A special resolution is required to
a.redeem the debentures b.declare dividend c.appoint directors d.appoint auditor A
11.The person who is responsible for the general performance of an organization is called
a.Company secretary b.Resolution c.Voting d.Poll

12.The word secretary has originated in

a.French b.Latin c.Tamil d.None of these
13.The Latin word secretaries which means
a.Secretary b.Sector c.Secret d.None of these
14.Some information should be kept very confidential in all the
a.Companies b.Private institutions c.Industries d.Owners
15.Every unlisted company and every private company having a paid up capital of
a.Rs. 3 crore b.Rs. 50 lakhs c.Rs. 5 crore d.more than Rs. 10 crore
16.To deliver share certificate of allotment within
a.30 days b.2 months c.3 months d.5 months ANSWER: B
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17.The company secretary must serve in the best interests of the

a.Board of directors b.Debenture holders c.ShareholdersAll of the above ANSWER: C
18.The meeting held with the shareholders of the company is called
a.Board meetin b.Committees meetings c.Shareholders meeting d.None of these
19.First general meeting of the Public company is called the
a.Statutory meeting b.Annual general meeting c.Committee meetings
d.Board meetings

20.Which of the following meeting is held to transact the ordinary business of the company?
a.Statutory meeting b.Annual general meeting c.Board meeting d.Committee
meeting
21.Meetings of directors are called
a.Special meetings b.Board meetings c.Committee meetings d.None of these

22.The decisions taken at a meeting are called

a.resolutions b.voting c.poll d.all of the above ANSWER: A
23.Director is acting as
a.agent of the company b.trustee of the company c.chief executive officer of the
company d.all of these
24.A company secretary is appointed by
a.Government b.The Institute of Company Secretaries of India
c.The Board of Directors d.Shareholders in Annual General Meetings

25.Which of the following must hold a statutory meeting?

a.Statutory Companies b.Private Limited Companies c.Public Limited Companies
d.Chartered Companies

26.The interval between two annual general meetings shall not exceed.
a.15 months b.12 months c.18 months d.20 months

27.Who can call Extraordinary General meeting?

a.Company Law Tribunal
b.Board of Directors on its own or on the requisition of members
c.By the requisitionists themselves on Board’s failure to convene d.all of these
28.The company is managed by the group of persons known as:
a.Board of directors b.Group of members c.None d.Team of shareholders
29.______________ are not enough to become a company secretary.
a.Statutory qualifications b.Non-statutory qualifications
c.Special resolutions d.General resolutions
30.________ maintains all important correspondence, files, documents and records in the
board office.
a.Directors b.Managers c.Agents d.Chairman
31.The is the kingpin of the whole corporate machinery.
a.Secretary b.Directors c.Members d.Chairperson

32. is responsible for smooth functioning of the office work.

a.Managing Director b.Company Secretary c.Manager d.General Manager
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33._______________ is a high level officer.

a.Company Secretary b.General Manager c.Managing Directors d.Chair person

34.________ meeting is conducted only once in the lifetime of the company.

a.Annual general b.Statutory c.Board d.Committee
35.The company gives the circular to share holders before days of the meeting.
a.10 b.18 c.21 d.25
36.Company is bound to invite the first general meeting within months from the date of its
registration.
a.twelve b.fifteen c.eighteen d.twenty

37.___________ should be conducted by both private and public ltd companies.

a.Statutory meeting b.Board meeting c.Committee meeting d.Annual general
meeting
38.Both statutory meeting and annual general meetings are called as meetings of a
company.
a.ordinary b.board c.committee d.none of these
39.A special resolution is the one which is passed by a not less than % of majority.
a.25 b.52 c.65 d.75
40.________ types of voting has no secrecy as the all the members assembled can seen voting.
a.Open procedure b.Secret procedure c.Both ‘a’ and ‘b’ d.None of these
41.___________ is an unscientific method.
a.Voice voting b.Show of hands c.Both ‘a’ and ‘b’ d.None of these
42._________ procedure is adopted is decide certain vital issues.
a.Open procedure b.Secret procedure c.Both ‘a’ and ‘b’ d.None of these
43.Statutory meeting must be held not later than _ and not earlier than from the date on
which a public company is entitled to commence business.
a.5 months, 1 month b.6 months, 2 months c.6 months, 1 month
d.none of these

44.A statutory report must be sent to every member of the company at least days before
the meeting is to be held.
a.21 b.25 c.30 d.more than 50
45.Auditors are generally appointed and their remuneration, fixed at the meeting.
a.Annual General b.Statutory c.Articles of Association d.none of these ANSWER: A
46.Any resolution passed by a simple majority is an .
a.Ordinary resolution b.Special resolution c.Resolution requiring special notice
d.none of these

47.Name the person, who is entrusted with substantial powers of management in a company.
a.Managing Director b.General Manger c.Manager d.Company Secretary

48.Any resolution passed with 51% of votes cast in favour of the resolution is .
a.Special resolution b.Ordinary resolution c.Minute d.Quorum
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49.When a proposal placed before the meeting is passed by the meeting, it becomes a .
a.Agenda b.Minute c.Resolution d.Quorum
50.The liabilities of Directors to third parties come under .
a.criminal liabilities b.civil liabilities c.both ‘a’ and ‘b’ d.none of these
51.The total managerial remuneration payable by a public limited company to its director or
manager should not exceed of the net profits of that financial year.
a.3% b.5% c.9% d.11%
52.The statutory report must be corrected by atleast directors.
a.2 b.3 c.5 d.6

53.The quorum for a general meeting of members of public company is .

a.5 b.7 c.10 d.15
54.A person who is authorised by a member for the purpose of attending a meeting is called
.
a.an agent b.a proxy c.quorum d.none of these
55.Subsequent directors are elected by shareholder at the .
a.Annual General Meetings b.Memorandum of Association
c.Statutory Meetings d.Company Meetings

56.To prepare minutes of every general and Board meeting or meetings of every committee of
the Board within days.
a.30 b.60 c.90 d. 100

57.An abstract of receipts and payments upto a date within days of the report.
a.3 b.4 c.5 d.7
58.The first annual general meeting must be held within a period of months from the
date of its incorporation.
a.12 b.15 c.18 d.21
59.Any meeting other than the statutory meeting and the annual general meeting of the
company is called .
a.extraordinary general meeting b.general meeting c.annual meeting
d.statutory meeting
60. A company secretary is considered tobe____________.
a) A member of the company b) A director of the Company
c) An independent contractor d) An employee of the company

61. The word secretary has originated from___________.

a) Latin b) French c) Spanish d) None

62. Companies Secretary’s Qualification Rules was established in the

year___________.
a) 1975 b) 1965 c) 2006 d) 2015

63. Company Secretary should have a thorough knowledge on ____________.

a) Company Law b) Mercantile Law c) Labour Law d) All of the above

64. A Meeting held to transact the ordinary business of the company is known
as _________.
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a) Annual General Meeting b) Statutory Meeting

c) Board Meeting d) None

65. First meeting of directors should be convened within ______ days from the
date of incorporation of the company
a) 15 b) 30 c) 45 d) 90

66. The audit committee should meet at least ________ times in a year.
a) Two b) Five c) Nine d) Four

67. A resolution which is passed by a not less than 75% of the majority is
known
as ____.
a) Ordinary resolution b) Special resolution c) Resolution requiring Special
Notice d) None of the above

68. The word ‘Vote’ is originated from the Latin word ____________.
a) Votum b) Votus c) Voture d) None

69. ________ means tendering or offering vote by ballot to a specially

appointed officer.
a) Resolution b) Poll c) Pull d) None

70. Assertion (A): The first general meeting of the public company is called
Statutory meeting.
Reason(R): A private company or a public company having not share capital
need not conduct a statutory meeting.
Codes:
(A) Both (A) and (R) are correct.
(B) Only (A) is correct, but (R) is wrong. (C) Only (R) is correct, but (A) is
wrong.
(D) Both (A) and (R) are wrong.
71. Assertion (A): The company secretary is responsible for deduction of
income
tax from salaries, dividends and interest payable.
Reason(R) : The company secretary should be comply with the MWA & ESIA.
Codes:
(A) Both (A) and (R) are correct and (R) is correct explanation of (A).
(B) Both (A) and (R) are correct, but (R) is not a correct explanation of (A).
(C) (A) is correct, but (R) is incorrect. (D) (A) is incorrect, but (R) is correct

72. Assertion(A): The AGM should be held once in a year.

Reason(R): The difference between two general meeting should not exceed
fifteen months.
Codes:
(A) Both (A) and (R) are correct and (R) is correct explanation of (A).
(B) Both (A) and (R) are correct, but (R) is not a correct explanation of (A).
(C) (A) is correct, but (R) is incorrect. (D) (A) is incorrect, but (R) is correct

73. Statement (A): Meeting of the directors are called as Board Meetings.
Statement (R): First Board meeting of directors should be convened with 30
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days from the date of incorporation of the company.

(A) Both (A) and (R) are false (B) (A) is true, but (R) is false.
(C) (A) is false, but (R) is true. (D) Both (A) and (R) are true

74. Statement (A): Committee meeting should be done at least four times in a
year.
Statement (II): The audit meetings are also known as committee meetings.
Codes:
(A) Both (A) and (R) are correct and (R) is correctexplanation of (A).
(B) Both (A) and (R) are correct, but (R) is not a
correct explanation of (A).
(C) (A) is correct, but (R) is incorrect. (D) (A) is incorrect, but (R) is correct

75. Match the following:

List I List II
a. Income tax act i. Tax-returns to sales tax authorities
b. Indian stamp act ii. Welfare measures
c. Sales tax act iii. TDS
d. Employee state
insurance act iv. Proper stamps are affixed
a) b) c) d)
b) 3 4 1 2
a) 4 3 1 2
b) 3 4 1 2
c) 3 2 1 4
d) 4 3 2 1

76. Match the List

List I List II
a. Annual general meeting i. meeting between twoAGM
b. Board Meeting ii. Special meeting
c. Bond holders meeting iii. Meetings of the
Director
d.Extra-ordinary general meeting iv. Meetings of shareholder
a) b) c) d)
a) 4 3 1 2
b) 3 4 1 2
c) 3 2 1 4
d) 4 3 2 1