Commerce MCQ Questions and Answers
1- A process of reconstruction, which is carried out without liquidating the company and forming a new one is called:
(A) merger
(B) amalgamation
(C) external reconstruction
(D) internal reconstruction
2- When an existing company takes over the business of one or more existing companies, it is case of
(A) internal reconstruction
(B) external reconstruction
(C) absorption
(D) amalgamation
3- ___ cost is that whose total amount does NOT change with the change in output level.
(A) Fixed
(B) Variable
(C) Semi-variable
(D) Ordinary
4- Which of the following is correct formula to calculate reorder level of stock in an organisation?
(A) Maximum Consumption x Maximum Reorder period
(B) Minimum Consumption x Maximum Reorder period
(C) Minimum Consumption x Minimum Reorder period
(D) Maximum Consumption x Minimum Reorder period
5- Which of the following statements is FALSE?
(A) Flexible budget is prepared for only one level of activity
(B) Flexible budget is based on the assumption of changing business conditions
(C) Fixed budget is prepared for only one level of activity
(D) Fixed budget assumes static business conditions
6- The capital structure of a firm is referred to as:
(A) the total debt it has raised from the market till date
(B) the amount of dividend it pays to its shareholders
(C) a mixture of the debt and equity that make up its finances
(D) the way its share capital is allocated to the shareholders
7- A firm with a high operating leverage has:
(A) low variable costs
(B) high variable costs
(C) low fixed costs
(D) high fixed costs
8- The most widely used source of short term funding is:
(A) debentures
(B) factoring
(C) trade credit
(D) commercial banks
9- In inter-bank money market terms, ‘Notice Money’ is the money that is lent for ___ .
(A) 1 month or more but less than 3 months
(B) 15 days or more but less than 1 month
(C) period between 2 days and 14 days
(D) less than 1 day
10- What is the emphasis of the situational theory of leadership?
(A) Events
(B) Personality traits
(C) Environment
(D) Political situation
11- In which order do managers typically perform the managerial functions?
(A) Planning, organising, controlling, leading
(B) Planning, organising, leading, controlling
(C) Organising, leading, Planning, controlling
(D) Organising, Planning, controlling, leading
12- The first step in a ‘Stage Gate’ process is
(A) develop a product
(B) generate ideas and concepts
(C) demonstrate a plan
(D) initiate learning
ANSWERS:
1-(D), 2-(C), 3-(A), 4-(A), 5-(A), 6-(C), 7-(D), 8-(C), 9-(C), 10-(A), 11-(B), 12-(B)