Business And Development General Knowledge Quiz!
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This is a business general knowledge quiz about production and development strategies as well as related fields. Are you continually brushing up your knowledge of business and development? If you think you are well aware of such things, then take this quiz and see for yourself.
Questions and Answers
- 1.
BSE Sensex is a market weighted stock market index of how many countries?
- A.
20
- B.
30
- C.
40
- D.
50
Correct Answer
B. 30Explanation
The BSE Sensex is a stock market index that represents the performance of a collection of stocks listed on the Bombay Stock Exchange (BSE) in India. It is not a market weighted index of multiple countries, but rather a reflection of the Indian stock market. Therefore, the correct answer is 1 country, which is India.Rate this question:
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- 2.
Dow Jones Index is the stock market index of which country?
- A.
UK
- B.
France
- C.
China
- D.
USA
Correct Answer
D. USAExplanation
The Dow Jones Index is a stock market index that represents the performance of 30 large publicly traded companies in the United States. It is one of the most widely recognized and followed stock market indices in the world.Rate this question:
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- 3.
Headquarters of Asian Development Bank is located in...
- A.
Beijing
- B.
Tokyo
- C.
Jakarta
- D.
Jakarta
- E.
Manila
Correct Answer
E. ManilaExplanation
The correct answer is Manila. The Asian Development Bank's headquarters is located in Manila.Rate this question:
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- 4.
Which countries currently constitute the permanent membership of the UN Security Council?
- A.
USA, China, India, France, Denmark
- B.
France, Russia, Sweden, South Africa, India
- C.
USA, UK, Germany, China, France
- D.
USA, China, France, Russia, UK
Correct Answer
D. USA, China, France, Russia, UKExplanation
The correct answer is USA, China, France, Russia, UK. These five countries currently constitute the permanent membership of the UN Security Council. Each of these countries has the power to veto any resolution brought before the council, giving them significant influence in international affairs. The permanent members were established when the United Nations was founded in 1945, and they are considered the most powerful and influential countries in global politics.Rate this question:
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- 5.
Who is known as the "Father of Economics?"
- A.
John Keynes
- B.
AC Pigou
- C.
Amartya Sen
- D.
Adam Smith
Correct Answer
C. Amartya Sen -
- 6.
Who Started “Green Revolution” in India?
- A.
Dr. APJ Abdul Kalam
- B.
Varghese Kurian
- C.
MS Swaminathan
- D.
B Chandrashekhar
Correct Answer
C. MS SwaminathanExplanation
MS Swaminathan is the correct answer because he is widely recognized as the "Father of the Green Revolution" in India. He played a crucial role in introducing and promoting high-yielding varieties of wheat and rice, along with modern agricultural techniques, which significantly increased food production in the country. Swaminathan's efforts in agricultural research and development have had a lasting impact on India's food security and agricultural productivity.Rate this question:
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- 7.
Who is called as “Metro Man Of India”?
- A.
B. Sridharan
- B.
Dr. APJ Abdul Kalam
- C.
Piyush Goyal
- D.
Nitish Kumar
Correct Answer
A. B. SridharanExplanation
B. Sridharan is called as "Metro Man Of India" because he is credited with the successful implementation of the Delhi Metro project. He served as the Chief Advisor of Delhi Metro Rail Corporation (DMRC) and played a crucial role in planning, designing, and executing the metro system in Delhi. His expertise and leadership in the field of metro rail transportation have earned him the title of "Metro Man Of India."Rate this question:
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- 8.
Which Country launched the world’s first 5G mobile network?
- A.
Japan
- B.
South Korea
- C.
China
- D.
Malaysia
Correct Answer
B. South KoreaExplanation
South Korea launched the world's first 5G mobile network. This means that South Korea was the first country to successfully implement and deploy a 5G network, which provides faster internet speeds and improved connectivity compared to previous generations of mobile networks. This achievement signifies South Korea's technological advancements and leadership in the telecommunications industry.Rate this question:
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- 9.
World Environment Day is celebrated on?
- A.
March 22nd
- B.
June 5th
- C.
May 1st
- D.
Aug 24th
Correct Answer
B. June 5thExplanation
World Environment Day is celebrated on June 5th. This day is observed globally to raise awareness about environmental issues and encourage people to take action to protect the environment. It provides an opportunity for individuals, communities, and organizations to come together and promote sustainable practices, conservation of natural resources, and biodiversity. Celebrating World Environment Day on June 5th allows for a unified effort worldwide to address environmental challenges and work towards a more sustainable future.Rate this question:
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- 10.
Who won Wimbledon Single Men in the year 2019?
- A.
Roger Federer
- B.
Dominic Thiem
- C.
Novak Djokovic
- D.
Rafael Nadal
Correct Answer
C. Novak DjokovicExplanation
Novak Djokovic won Wimbledon Single Men in the year 2019.Rate this question:
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- 11.
AIDA stands for Awareness, ______, Desire and _____
- A.
Interest; Action
- B.
Idea; Approach
- C.
Intensity; Appeal
- D.
Involvement; Appeal
Correct Answer
A. Interest; ActionExplanation
AIDA is a marketing model that outlines the stages a consumer goes through during the purchasing process. The correct answer is "Interest; Action" because after becoming aware of a product or service, the consumer develops an interest in it. This interest then leads to the final stage of the model, which is taking action, such as making a purchase or contacting the company.Rate this question:
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- 12.
Which of the following strategies is usually followed by B2C companies with respect to promotion strategy?
- A.
Push strategy
- B.
Pull strategy
- C.
Blocking strategy
- D.
Integrated strategy
Correct Answer
B. Pull strategyExplanation
B2C companies usually follow a pull strategy when it comes to their promotion strategy. This means that they focus on creating demand and attracting customers towards their products or services. They do this by implementing various marketing techniques such as advertising, public relations, and social media campaigns to generate interest and desire among consumers. The goal is to make the customers actively seek out the company's offerings, rather than the company pushing their products onto the customers.Rate this question:
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- 13.
The first step in time-series analysis is to
- A.
Perform preliminary regression calculations
- B.
Calculate a moving average
- C.
Plot the data on a graph
- D.
Identify relevant correlated variables
Correct Answer
C. Plot the data on a graphExplanation
The first step in time-series analysis is to plot the data on a graph. This allows us to visualize the patterns and trends in the data over time. By plotting the data, we can identify any seasonality, trends, or outliers that may be present. This visual representation helps in understanding the underlying patterns and can guide further analysis and modeling techniques. It also provides a starting point for identifying any relevant correlated variables that may need to be considered in the analysis.Rate this question:
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- 14.
Delphi method is used for
- A.
Judgemental forecast
- B.
Time series forecast
- C.
Associative model
- D.
All of the above
Correct Answer
A. Judgemental forecastExplanation
The Delphi method is a technique used for making judgemental forecasts. It involves gathering opinions and predictions from a group of experts, who provide their input anonymously. The responses are then analyzed and summarized, and the process is repeated until a consensus is reached. This method is commonly used in situations where there is a lack of historical data or when the future is uncertain. It allows for the integration of different perspectives and helps to reduce bias and groupthink. Therefore, the correct answer is judgemental forecast.Rate this question:
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- 15.
The additional amount of money consumers are willing to pay for a brand is known as
- A.
Brand loyalty
- B.
Brand association
- C.
Brand Equity
- D.
Brand awareness
Correct Answer
C. Brand EquityExplanation
Brand equity refers to the additional value or worth that a brand has in the eyes of consumers. It represents the extent to which consumers are willing to pay more for a particular brand compared to its competitors. Brand equity is built through various factors such as brand reputation, customer loyalty, brand awareness, and brand associations. Therefore, the additional amount of money consumers are willing to pay for a brand is known as brand equity.Rate this question:
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- 16.
Consumer promotion, trade promotion and ____ are the three forms of sales promotion
- A.
Media Promotion
- B.
Sales Force Promotion
- C.
Core Promotion
- D.
Media Mix
Correct Answer
B. Sales Force PromotionExplanation
Consumer promotion, trade promotion, and sales force promotion are the three forms of sales promotion. Sales force promotion refers to activities aimed at motivating and incentivizing the sales force to increase sales and achieve targets. This can include providing training, offering bonuses or commissions, and implementing sales contests or recognition programs. Media promotion, on the other hand, refers to promotional activities through various media channels, while core promotion and media mix are not recognized forms of sales promotion.Rate this question:
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- 17.
Setting price that is below that of competition is called?
- A.
Penetration pricing
- B.
Skimming
- C.
Competitive pricing
- D.
None of the above
Correct Answer
A. Penetration pricingExplanation
Penetration pricing is the strategy of setting a lower price for a product or service compared to the prices offered by competitors. This approach is often used to attract customers and gain market share quickly. By offering a lower price, businesses aim to encourage customers to switch from competitors and try their product. This strategy can be effective in stimulating initial sales and creating brand awareness.Rate this question:
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- 18.
The promotion tool that may include coupons, contests, premiums, and other means of attracting consumer attention is best described as being which of the following?
- A.
Advertising
- B.
Personal selling
- C.
Public relations
- D.
Sales promotion
Correct Answer
D. Sales promotionExplanation
Sales promotion refers to the use of various promotional tools such as coupons, contests, premiums, and other means to attract consumer attention and stimulate immediate sales. Unlike advertising, personal selling, and public relations which focus on creating awareness and building long-term relationships, sales promotion is specifically designed to drive immediate sales and encourage consumers to make a purchase. Therefore, sales promotion is the best description for the promotion tool that includes coupons, contests, premiums, and other means of attracting consumer attention.Rate this question:
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- 19.
The content and context of a message contained in an advertisement is called?
- A.
Ad copy
- B.
Script
- C.
Body
- D.
Advertising appeal
Correct Answer
A. Ad copyExplanation
Ad copy refers to the content and context of a message contained in an advertisement. It includes the text, headlines, slogans, and any other written or verbal content that is used to convey the message and persuade the audience. Ad copy plays a crucial role in capturing the attention of the target audience and influencing their perception of the product or service being advertised. It is carefully crafted to be engaging, persuasive, and memorable, with the aim of driving consumer interest and ultimately leading to a desired action, such as making a purchase.Rate this question:
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- 20.
If EOQ = 360 units, order costs are $5 per order, and carrying costs are $.20 per unit, what is the usage in units?
- A.
129,600 units
- B.
2,592 units
- C.
25,920 units
- D.
18,720 units
Correct Answer
B. 2,592 unitsExplanation
The Economic Order Quantity (EOQ) formula is used to calculate the optimal order quantity that minimizes the total cost of ordering and carrying inventory. The formula is EOQ = √((2DS)/H), where D is the annual demand, S is the ordering cost per order, and H is the carrying cost per unit. In this question, the EOQ is given as 360 units, the ordering cost is $5 per order, and the carrying cost is $0.20 per unit. By rearranging the formula and substituting the given values, we can solve for the annual demand (usage). The calculation is (2 x 360 x 5) / 0.20 = 2,592 units. Therefore, the usage in units is 2,592.Rate this question:
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- 21.
Under the ABC system of inventory priorities a Class A item is
- A.
The 20% of high-value items that account for around 20% the total stock value
- B.
The 80% of high-value items that account for around 20% the total stock value
- C.
The 20% of high-value items that account for around 40% the total stock value
- D.
The 20% of high-value items that account for around 80% the total stock value
Correct Answer
D. The 20% of high-value items that account for around 80% the total stock valueExplanation
According to the ABC system of inventory priorities, a Class A item is the 20% of high-value items that account for around 80% of the total stock value. This means that these items are of high importance and should be closely monitored and managed to ensure efficient inventory control.Rate this question:
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- 22.
The Production Order Quantity model
- A.
Relaxes the assumption of known and constant demand
- B.
Uses Ordering Cost, not Setup Cost, in its formula
- C.
Is appropriate when units are sold/used as they are produced
- D.
Results in larger average inventory than an equivalent EOQ model
Correct Answer
C. Is appropriate when units are sold/used as they are producedExplanation
The Production Order Quantity model is appropriate when units are sold/used as they are produced because it allows for production and sales to happen simultaneously. This means that as soon as a unit is produced, it can be sold or used, reducing the need for inventory storage. This model is suitable for situations where demand is uncertain or fluctuates, as it allows for flexibility in adjusting production quantities based on actual demand. Compared to the Economic Order Quantity (EOQ) model, the Production Order Quantity model typically results in larger average inventory levels because it does not aim to minimize holding costs like the EOQ model does.Rate this question:
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- 23.
Which of the following is not a cause of the bullwhip effect?
- A.
Order batching
- B.
Aligning incentives across the supply chain
- C.
Price fluctuations
- D.
Long lead time
Correct Answer
D. Long lead timeExplanation
Long lead time refers to the time it takes for an order to be fulfilled from the moment it is placed. This can cause the bullwhip effect, as delays in the supply chain can lead to exaggerated fluctuations in demand. However, the question asks for the option that is NOT a cause of the bullwhip effect. Therefore, the correct answer is long lead time, as it is indeed a cause of the bullwhip effect.Rate this question:
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- 24.
"Kanban is"
- A.
Quality Improvement tool
- B.
Visual signalling tool
- C.
Problem solving tool
- D.
None of the above
Correct Answer
B. Visual signalling toolExplanation
Kanban is a visual signalling tool that is used to manage and control the flow of work in a system. It helps teams to visualize their work, limit work in progress, and improve overall efficiency. Kanban uses visual cues such as cards or sticky notes to represent work items and their status, making it easier for team members to understand the flow of work and identify bottlenecks. By using Kanban, teams can improve communication, collaboration, and productivity.Rate this question:
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- 25.
What are the two basic types of production systems?
- A.
Automated and manual
- B.
Intermittent and non-intermittent process
- C.
Normal and continuous process
- D.
Continuous process and batch
Correct Answer
B. Intermittent and non-intermittent processExplanation
The two basic types of production systems are intermittent and non-intermittent process. Intermittent process refers to a production system where the production is done in small batches or lots, with frequent changes in the type of product being produced. On the other hand, non-intermittent process, also known as continuous process, refers to a production system where the production is done continuously without any breaks or interruptions. These two types of production systems differ in terms of their production methods and requirements.Rate this question:
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- 26.
Which one of the following layout type is also called line layout?
- A.
Fixed Position Layout
- B.
Process layout
- C.
Product layout
- D.
Cellular layout
Correct Answer
C. Product layoutExplanation
Product layout is also called line layout because it involves arranging the machines and workstations in a sequential order to form a production line. This layout is commonly used in manufacturing industries where a large volume of standardized products is produced. In a product layout, each workstation is dedicated to performing a specific task in the production process, and the products move from one workstation to another in a linear fashion. This layout helps to achieve a smooth and efficient flow of materials and minimizes the need for transportation and handling.Rate this question:
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- 27.
ABC analysis divides on-hand inventory into three classes, generally based upon
- A.
Unit price
- B.
Number of units on hand
- C.
Annual demand
- D.
Annual dollar volume
Correct Answer
D. Annual dollar volumeExplanation
ABC analysis is a method used to categorize inventory items based on their annual dollar volume. It helps in identifying the items that contribute the most to the overall value of inventory. By classifying items into classes A, B, and C, businesses can prioritize their inventory management efforts. Class A items have the highest annual dollar volume and require close monitoring and control, while class C items have the lowest value and can be managed with less attention. This classification allows businesses to focus on optimizing the management of high-value items and reducing costs for low-value items.Rate this question:
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- 28.
All of the following decisions fall within the scope of operations management except for
- A.
Financial analysis
- B.
Design of products and processes
- C.
Location of facilities
- D.
Quality management
Correct Answer
A. Financial analysisExplanation
Operations management primarily focuses on the planning, organizing, and controlling of activities that are involved in the production of goods and services. It includes decisions related to designing products and processes, determining the location of facilities, and managing the quality of products or services. Financial analysis, on the other hand, is a part of financial management which deals with analyzing the financial health and performance of a company. While financial analysis is important for overall business management, it is not directly related to the operational aspects of production and service delivery, hence it falls outside the scope of operations management.Rate this question:
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- 29.
Which of the following statements about the northwest corner rule is false?
- A.
One must exhaust the supply for each row before moving down to the next row
- B.
One must exhaust the demand requirements of each column before moving to the next column
- C.
When moving to a new row or column, one must select the cell with the lowest cost
- D.
One must check that all supply and demand constraints are met
Correct Answer
C. When moving to a new row or column, one must select the cell with the lowest costExplanation
The northwest corner rule does not require selecting the cell with the lowest cost when moving to a new row or column. Instead, it selects the cell in the top left corner of the tableau and fills as much supply or demand as possible before moving to the next row or column. The cell selection is based on the availability of supply and demand, not on the cost.Rate this question:
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- 30.
The wages under the Minimum Wages Act, 1948 shall include _______
- A.
CTC
- B.
Basic rate of wages and dearness allowance variable according to cost of living
- C.
Basic rate of wages, DA, HRA and CCA
- D.
A consolidated amount decided by the employer
Correct Answer
B. Basic rate of wages and dearness allowance variable according to cost of livingExplanation
The correct answer is "Basic rate of wages and dearness allowance variable according to cost of living." According to the Minimum Wages Act, 1948, the wages shall include the basic rate of wages and dearness allowance, which can vary based on the cost of living. This means that the minimum wages should be adjusted periodically to account for changes in the cost of living, ensuring that workers are paid a fair wage that reflects the current economic conditions. The other options, such as including HRA and CCA or a consolidated amount decided by the employer, are not mentioned in the act as part of the minimum wages.Rate this question:
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- 31.
Statement I: Employee orientation provides new employees with basic background information they need to perform their jobs satisfactorily Statement II: Orientation is actually part of the employer’s new employee socialization process
- A.
Statement I is correct
- B.
Statement II is correct
- C.
Both Statements are correct
- D.
Both Statements are incorrect
Correct Answer
C. Both Statements are correctExplanation
Both statements are correct. Statement I states that employee orientation provides new employees with basic background information they need to perform their jobs satisfactorily. This is true as orientation programs typically include information about company policies, procedures, and expectations. Statement II states that orientation is part of the employer's new employee socialization process, which is also true. Orientation helps new employees become familiar with the company culture, values, and norms, and helps them integrate into the organization.Rate this question:
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- 32.
Select the correct sequence of steps followed in the development of an induction programme. (a) Identify the audience (b) Define the new employee notification process (c) Seek feedback (d) Identify the objectives of the induction program (e) Design the induction programme content and mode of delivery
- A.
B, d, a, e and c
- B.
A, b, d, e and c
- C.
E, a, b, d and c
- D.
A, b, c, d and e
Correct Answer
A. B, d, a, e and cExplanation
The correct sequence of steps followed in the development of an induction programme is to first define the new employee notification process (b), then identify the objectives of the induction program (d), followed by identifying the audience (a), designing the induction programme content and mode of delivery (e), and finally seeking feedback (c). This sequence ensures that the necessary processes and objectives are established before creating the content and mode of delivery, and feedback is sought at the end to make any necessary improvements.Rate this question:
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- 33.
Under the recent amendment of The Maternity Benefit Amendment Act the duration of paid maternity leave available for women employees is
- A.
26 weeks
- B.
22 weeks
- C.
18 weeks
- D.
12 weeks
Correct Answer
A. 26 weeksExplanation
Under the recent amendment of The Maternity Benefit Amendment Act, the duration of paid maternity leave available for women employees has been increased to 26 weeks. This means that women employees are now entitled to 26 weeks of paid leave after childbirth, allowing them more time to recover and bond with their newborn. This amendment aims to support working women and promote gender equality by providing them with adequate time off for maternity purposes.Rate this question:
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- 34.
Eligibility under ESI Act has been amended in 2016 for those with a monthly wage limit up to
- A.
Rs 26000
- B.
Rs 21000
- C.
Rs 15000
- D.
Rs 12000
Correct Answer
C. Rs 15000Explanation
The correct answer is Rs 15000. The eligibility under the ESI Act was amended in 2016 to include individuals with a monthly wage limit of up to Rs 15000. This means that individuals earning a monthly wage of Rs 15000 or less are eligible for benefits under the ESI Act.Rate this question:
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- 35.
Sequence the following in the order which they are practised. (i) Promotion (ii) Performance appraisal (iii) Recruitment (iv) Training and Development
- A.
C,b,d,a
- B.
C,b,a,d
- C.
C,a,d,b
- D.
C,d,b,a
Correct Answer
D. C,d,b,aExplanation
The correct sequence is c,d,b,a. First, recruitment is practiced to find suitable candidates for a job. Then, training and development is conducted to enhance the skills and knowledge of the employees. After that, performance appraisal is done to evaluate the performance of the employees. Finally, promotion is practiced to reward and promote employees based on their performance and potential.Rate this question:
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- 36.
Match the following types of incentives with respective incentive schemes 1 Earnings vary in the same proportion as output A High Piece rate 2 Earnings vary less proportionately than output B Merrick Differential Piece rate 3 Earnings vary more proportionately than output C Standard hour 4 Earnings differ at different levels of output D Barth scheme
- A.
1-C,2-D,3-A,4-B
- B.
1-D,2-C,3-A,4-B
- C.
1-C,2-D,3-B,4-A
- D.
1-B,2-C,3-D,4-A
Correct Answer
A. 1-C,2-D,3-A,4-BExplanation
The correct answer is 1-C, 2-D, 3-A, 4-B. In this matching exercise, the types of incentives are matched with their respective incentive schemes. The first type of incentive, where earnings vary in the same proportion as output, is matched with the incentive scheme C, which is the Standard hour. The second type of incentive, where earnings vary less proportionately than output, is matched with the incentive scheme D, which is the Barth scheme. The third type of incentive, where earnings vary more proportionately than output, is matched with the incentive scheme A, which is the High Piece rate. And finally, the fourth type of incentive, where earnings differ at different levels of output, is matched with the incentive scheme B, which is the Merrick Differential Piece rate.Rate this question:
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- 37.
Employees abroad supply services or having outside vendors that company's own employees previously did in-house is known as
- A.
Outsourcing
- B.
Offshoring
- C.
Alternative staffing
- D.
None of above
Correct Answer
B. OffshoringExplanation
Offshoring refers to the practice of a company hiring employees abroad to perform services or tasks that were previously done in-house by the company's own employees. This can involve outsourcing the work to a foreign vendor or setting up a subsidiary or branch office in another country. Offshoring is a common strategy used by companies to reduce costs, access a larger talent pool, or take advantage of favorable business conditions in other countries. Alternative staffing refers to the practice of using non-traditional employment arrangements, such as temporary workers or independent contractors, while outsourcing refers to the practice of contracting out specific tasks or services to external vendors.Rate this question:
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- 38.
Managers subscribing to ______ assumptions attempt to structure, control and closely supervise their employees
- A.
Theory X
- B.
Theory Y
- C.
Both
- D.
Neither
Correct Answer
A. Theory XExplanation
Managers subscribing to Theory X assumptions believe that employees are inherently lazy and dislike work. Therefore, they attempt to structure, control, and closely supervise their employees in order to ensure that work is completed. This theory assumes that employees need to be coerced and controlled in order to be productive.Rate this question:
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- 39.
Under Alderfer’s ERG theory, the three core needs are
- A.
Emotional, Relational, and Growth
- B.
Emotional, Rational and Growth
- C.
Existence, Reliability and Gain
- D.
Existence, Relatedness and Growth
Correct Answer
D. Existence, Relatedness and GrowthExplanation
Alderfer's ERG theory proposes that individuals have three core needs: existence, relatedness, and growth. Existence refers to the need for basic material and physiological well-being. Relatedness refers to the need for positive relationships with others and a sense of belonging. Growth refers to the need for personal development and self-actualization. This theory suggests that individuals are motivated by these three needs, and their satisfaction or frustration can impact their motivation and behavior in the workplace.Rate this question:
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- 40.
If current assets are Rs 6,00,000 and Current liabilities are 4,50,000’ then working capital would be:
- A.
10,50,000
- B.
1,50,000
- C.
2,50,000
- D.
6,00,000
Correct Answer
B. 1,50,000Explanation
Working capital is calculated by subtracting current liabilities from current assets. In this case, the current assets are Rs 6,00,000 and the current liabilities are Rs 4,50,000. Therefore, the working capital would be Rs 1,50,000.Rate this question:
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- 41.
If Cost of goods sold = Rs. 40,000 GP Margin = 20% of sales Calculate the Gross profit margin.
- A.
Rs. 32,000
- B.
Rs. 48,000
- C.
Rs. 8,000
- D.
Rs.10,000
Correct Answer
D. Rs.10,000Explanation
The gross profit margin can be calculated by subtracting the cost of goods sold from the gross profit and then dividing the result by the sales. In this case, the cost of goods sold is given as Rs. 40,000 and the gross profit margin is 20% of the sales. Therefore, the gross profit can be calculated as Rs. 40,000 * 20% = Rs. 8,000. The sales can be calculated by adding the cost of goods sold and the gross profit, which is Rs. 40,000 + Rs. 8,000 = Rs. 48,000. Finally, the gross profit margin can be calculated as Rs. 8,000 / Rs. 48,000 = Rs. 10,000.Rate this question:
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- 42.
The symptom of large inventory accumulated in anticipation of price rise in future will be indicated by?
- A.
Asset turnover ratio
- B.
Working capital ratio
- C.
Inventory turnover ratio
- D.
Liquidity ratio
Correct Answer
C. Inventory turnover ratioExplanation
The inventory turnover ratio measures how quickly a company sells its inventory and replaces it with new stock. A high inventory turnover ratio indicates that inventory is being sold quickly, which suggests that there is not a large accumulation of inventory. On the other hand, a low inventory turnover ratio suggests that inventory is not being sold quickly, which could indicate a large accumulation of inventory in anticipation of a future price rise. Therefore, the symptom of large inventory accumulated in anticipation of price rise in the future will be indicated by a low inventory turnover ratio.Rate this question:
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- 43.
Which of the following will not be used in calculation of Earnings per Share (EPS)?
- A.
Profit after Tax
- B.
Preference Dividend
- C.
PBIT
- D.
Number of equity shares
Correct Answer
C. PBITExplanation
PBIT (Profit Before Interest and Taxes) will not be used in the calculation of Earnings per Share (EPS). EPS is calculated by dividing the Profit after Tax by the Number of equity shares. PBIT is a measure of a company's operating profit before deducting interest and taxes, and it does not take into account the tax expenses or the preference dividend. Therefore, it is not relevant for calculating EPS.Rate this question:
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- 44.
In cash flow statement, which of these is an outflow
- A.
Decrease in Inventory
- B.
Decrease in creditors
- C.
Share capital issued
- D.
Dividend income received
Correct Answer
B. Decrease in creditorsExplanation
A decrease in creditors is considered an outflow in the cash flow statement because it represents a reduction in the amount owed to suppliers or creditors. When a company pays off its debts or reduces its outstanding liabilities, it uses cash to settle these obligations, resulting in a decrease in the cash balance. Therefore, a decrease in creditors is recorded as a cash outflow in the cash flow statement.Rate this question:
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- 45.
The cost per unit of a product manufactured in a factory amounts to Rs. 160 (75% variable) when the production is 10,000 units. When production increases by 25%, the cost of production will be Rs. per unit.
- A.
Rs. 145
- B.
Rs. 150
- C.
Rs. 152
- D.
Rs. 140
Correct Answer
C. Rs. 152Explanation
When the production increases by 25%, the total cost of production will also increase by 25% because the variable cost is directly proportional to the number of units produced. Therefore, the new cost per unit can be calculated by adding 25% of the original cost per unit to the original cost per unit. 25% of Rs. 160 is Rs. 40, so the new cost per unit will be Rs. 160 + Rs. 40 = Rs. 200. However, since only 75% of the cost is variable, the actual increase in the cost per unit will be 75% of Rs. 40, which is Rs. 30. Therefore, the new cost per unit will be Rs. 160 + Rs. 30 = Rs. 190. Since none of the given options are Rs. 190, the closest option is Rs. 152.Rate this question:
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- 46.
Information concerning A Ltd.'s single product is as follows: Selling price - Rs. 6 per unit Variable production cost - RS. 1.20 per unit Variable selling cost - Rs. 0.40 per unit Fixed production cost - Rs. 4 per unit Fixed selling cost - Rs. 0.80 per unit. Budgeted production and sales for the year are 10,000 units. What is the company's breakeven point?
- A.
8000 units
- B.
8333 units
- C.
10000 units
- D.
10909 units
Correct Answer
D. 10909 unitsExplanation
The breakeven point is the level of sales at which a company's total revenue equals its total costs, resulting in neither profit nor loss. To calculate the breakeven point, we need to determine the total fixed costs and the contribution margin per unit. In this case, the fixed costs are the sum of the fixed production cost and the fixed selling cost, which is Rs. 4 + Rs. 0.80 = Rs. 4.80 per unit. The contribution margin per unit is the difference between the selling price and the variable costs, which is Rs. 6 - Rs. 1.20 - Rs. 0.40 = Rs. 4.40 per unit. Dividing the fixed costs by the contribution margin per unit gives us the breakeven point of 10909 units.Rate this question:
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- 47.
Information concerning A Ltd.'s single product is as follows: Selling price - Rs. 6 per unit Variable production cost - RS. 1.20 per unit Variable selling cost - Rs. 0.40 per unit Fixed production cost - Rs. 4 per unit Fixed selling cost - Rs. 0.80 per unit. Budgeted production and sales for the year are 10,000 units. How many units must be sold if company wants to achieve a profit of Rs. 11,000 for the year?
- A.
2500 units
- B.
9833 units
- C.
10,625 units
- D.
13,409 units
Correct Answer
D. 13,409 unitsExplanation
To calculate the number of units that must be sold to achieve a profit of Rs. 11,000 for the year, we need to consider the contribution margin per unit. The contribution margin is the selling price minus the variable production cost and the variable selling cost. In this case, the contribution margin per unit is Rs. 6 - Rs. 1.20 - Rs. 0.40 = Rs. 4.40.
To achieve a profit of Rs. 11,000, we can divide this amount by the contribution margin per unit: Rs. 11,000 / Rs. 4.40 = 2,500 units.
However, this only covers the fixed production cost and does not include the fixed selling cost. To cover both fixed costs and achieve a profit of Rs. 11,000, we need to divide the total profit by the contribution margin per unit and then add the budgeted production and sales: (Rs. 11,000 + (10,000 units * Rs. 4)) / Rs. 4.40 = 13,409 units. Therefore, the correct answer is 13,409 units.Rate this question:
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- 48.
For a profitable firm, total sources of funds will always total uses of funds
- A.
Be equal to
- B.
Be greater than
- C.
Be less than
- D.
Have no consistent relationship to
Correct Answer
A. Be equal toExplanation
A profitable firm's total sources of funds will always be equal to its total uses of funds because a profitable firm generates enough revenue to cover all its expenses and investments. This means that the firm's sources of funds, such as sales revenue, loans, and investments, will match its uses of funds, such as operating expenses, capital expenditures, and debt repayments. This balance ensures that the firm remains financially stable and able to continue its operations and growth.Rate this question:
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- 49.
When n = 1, this interest factor equals one for any positive rate of interest
- A.
PVIF
- B.
FVIF
- C.
PVIFA
- D.
FVIFA
Correct Answer
D. FVIFAExplanation
When n = 1, the interest factor for FVIFA (Future Value Interest Factor of an Annuity) equals one for any positive rate of interest. This means that if the time period is only one year, the future value of an annuity will be equal to the present value of the annuity. In other words, there will be no compounding of interest over multiple periods since there is only one period.Rate this question:
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Mar 19, 2023Quiz Edited by
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Feb 02, 2021Quiz Created by
Alfredhook3
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