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Business environment MCQs - Cseet

Q.1 The _______ is being driven by the demand and supply of products and services.

a) Market economy

b) Capitalist economy

c) Both a & B

d) Socialist Economy

Ans -c

Q.2 India is the best example of<1>a) Market Economy

b) Capitalist economy

c) Mixed Economy

d) Socialist Economy

Ans- c

Q. 3Which of the following is not only a part of ethics but statutory compliance?

a) Preserving Natural resources

b) Development of Roads

c) Fair Product & Prices

d) Disclosure of Financial Statement

Ans –d

Q.4 Which of the following attitude is result of religion?

a) Attitude towards work

b) Purchasing Behaviour

c) None of the both

d) Both A & B

Ans- D

Q. 5 Commitment, competence and consistency are three distinct characteristics that result in ______________

a. Culture building

b. Values

c. Organizational socialization

d. Attitudes

Ans- a

Q.6 The practices of a company for which it is accountable in relation to other parties is called ____________

a. Social responsibility

b. Code of Ethics

c. Values

d. Culture

Ans: (a)

Q. 7 National culture is based on ______________

a. Language

b. The territory of the state

c. The sense of belonging of a people

d. The nation-state.

Ans: (c)

Q. 8 Corporate governance is a form of

a. External regulation

b. Self regulation

c. Government control

d. Charitable action

Ans: (b)

Q. 9 CSR & corporate governance represent a -------- between business and society.

a. Social climate

b. Special contract

c. Special climate

d. Social contract

Ans: (d)

Q.10 Corporate governance is concerned with the formation of …………… term objective

a. Very short

b. Short

c. Medium

d. Long

Ans: (d)

Q .11 The Current System of International Finance is a<1>a) gold standard

b) Fixed Exchange rate system

c) Floating exchange rate system

d) Managed Float Exchange rate system

Ans- d

Q. 12 More expansion of foreign direct investment can boost __________ .

A) Money circulation

B) Demand

C) Employment

D) Unemployment

Answer: C

Q13. More expansion of foreign direct investment can boost<1>a) Money Circulation

b) Demand

c) Employment

d) Unemployment

Ans - c

Q,14 The union government adopted new definition of FDI and FPI in 2014. Which of the given below is incorrect in this regard

a) The new definition considers 5% investment in capital of an unlisted company as FPI.

b) The new definition considers 5% investment in capital of an unlisted company as FDI.

c) The new definition considers 5% investment in capital of an listed company as FPI.

d) None of the above

Ans- a

Q.15 Government has raised FDI level in Brownfield pharma to what percent under the automatic route to attract capital and technologies in the pharmaceutical sector?

a) 74

b) 49

c) 50

d) 56

Ans- 74

Q. 16 OLI Theory is also known as

a) The transaction cost approach

b) The Eclectic Paradigm

c) The strategic linkage theory

d) Perfect market hypothesis

Ans- b

Q.17 Which country leads the inflow of FDI in India?

a) Mauritius

b) France

c) USA

d) UK

Ans-a

Q 18 In which of the following sectors does the Government of India allow more than 50% FDI?

a) Insurance

b) Print media

c) Telecommunications

d) Infrastructure

e) Both A & C

Ans- e

Q.19 In which of the following sectors does the Government of India allow more than 50% FDI?

a) Joint venture

b) Strategic alliance

c) Acquisition

d) Merger

Ans- b

Q. 20 Which of the following theories explains the behaviour of late entrants to catch up with the competition?

a) OLI theory

b) Transition Cost approach

c) The Leapfrogging theory

d) The perfect market Hypothesis

Ans- c

Q. 21 Which of the following types of FDI includes creation of new assets and production facilities in the host country?

a) Brownfield investment

b) Mergers & Acquisition

c) Strategic Alliance

d) Greenfield investment

Ans- d

Q. 22 Both foreign direct investment (FDI) and foreign institutional investment (FII) are related to investment in a country. Which of the following is incorrect regarding FDI and FII?

a) Both FII and FDI bring capital into the economy.

b) FII invests in technology-oriented enterprises, whereas FDI invests in traditional business set ups.

c) The restrictions on the entry of FDI are lower than that on FII.

d) FDI is considered to be more stable thna FII. FII can be withdrawn even at a short notice.

Answer : b

Q. 23 : Which of the following statements is/are correct regarding FDI under automatic route?

1. FDI in India under the automatic route does not require prior approval either by the Government of India or the Reserve Bank of India.

2. Investors are only required to notify the concerned regional office of the RBI before receipt of inward remittances and file required documents with that office before the issue of shares to foreign investors.

Select the correct answer using the codes given below.

a) 1 only

b) 2 only

c) Both 1 and 2

d) Neither 1 nor 2

Ans : c

Q 24: Which of the following are the components of foreign capital?

1. Grants and loans

2. External commercial borrowings

3. Foreign direct investment

4. Deposits from non-residents

Select the correct answer using the codes given below.

a) 1, 2, 3, and 4

b)1, 2, and 4 only

c) 1 and 2 only

d) 3 and 4 only

Ans : a

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