Business Studies MCQ – Questions and Answers

Business Studies MCQ – Questions and Answers

1-Regarding specifications limits and control limits for quality it can be said that:

(A) both are one and the same

(B) control limits are wider than the specification limits

(C) specification limits are wider than control limits

(D) None of the above


2-Assemble line balancing aims to achieve desired production rate accompanied by

(A) maximum utilization of the plant and machinery

(B) maximum utilization of the workforce

(C) minimum inventories of raw materials and work in progress

(D) None of the above


3-The main characteristic of functional organization is:

(A) Its structure is based on specialization

(B) Line officers act on the advice of specialists

(C) Orders flow in a line from top to bottom

(D) The ultimate responsibility of all tasks is held by a top officer


4-Management By Objectives (MBO) is:

(A) Result Oriented Philosophy

(B) Concept of leadership

(C) Bureaucratic Approach

(D) A process of determination of objectives


5-Main functions of financial management is/are

(A) Financial planning

(B) Procurement of funds

(C) Allocation of net profits

(D) All of these


6-As per quantitative concept working capital means:

(A) Total of current assets

(B) Difference of current assets and current liabilities

(C) Excess of current Assets over current liabilities

(D) All the above


7- ________ is/are fixed working capital

(A) Minimum stock of raw materials

(B) Minimum stock of finished goods

(C) Minimum bank balance

(D) All the above


8-Essential elements of a business plan include

(A) Description of the product or service

(B) Details of the management

(C) Financial projections

(D) All of the above


9-Requirement of ________ working capital changes due to fluctuation in demand.

(A) fixed

(B) variable

(C) circulating

(D) operating


10-Capital budgeting is a part of

(A) Receivable management

(B) Investment decision

(C) Dividend decision

(D) Capital Structure


11-________ entrepreneur neither introduce new changes nor adopt new methods innovated by others

(A) Technical

(B) Fabian

(C) Induced

(D) Business


12-Special Economic Zone (SEZ) concept was first introduced in

(A) China

(B) Japan

(C) India

(D) England


13-Aggregate production planning involves:

(A) defining objectives of the organization and setting priorities to attain these

(B) studying strength, weakness, opportunities of and threats to the organization and planning the system accordingly

(C) Both (A) and (B)

(D) None of the above


14-Forward scheduling and backward scheduling are:

(A) finite loading systems

(B) infinite loading systems

(C) short – intervals scheduling techniques

(D) techniques used for planning production in MRP system


15-The following is not the principle of organization

(A) Principle of strategy

(B) Principle of coordination

(C) Principle of ultimate responsibility

(D) Principle of delegation



1-(C), 2-(B), 3-(A), 4-(A), 5-(D), 6-(A), 7-(D), 8-(D), 9-(B), 10-(B), 11-(B), 12-(A), 13-(D), 14-(A), 15-(A)