Business Administration MCQ (Multiple Choice Questions)

21-A and B are partners sharing profits in the ratio 1:2. C is admitted and the new profit sharing ratio is 1:2:3. Sacrificing ratio is

(A) 1:3

(B) 2:1

(C) 3:1

(D) 1:2


22-It is sometimes referred to as scalar organization.

(A) Functional organization

(B) Line organizational

(C) Line and Staff organization

(D) Matrix organization


23-LIBOR is related to calculation of

(A) Reserves and Surplus

(B) Depreciation

(C) Amortisation

(D) International Based Interest Rates


24-CRR is related to

(A) Credit Rating Ratio

(B) Courier Representative Relationship

(C) Customer Repo Rate

(D) Controlling Liquidity Ratio


25-Principal of Unity of Command means

(A) The subordinate should receive orders and instructions from only one supervisor

(B) The flow of authority should flow one top to bottom

(C) There must be unity of purpose

(D) All activities must be co-ordinated effectively


26-Excess of average profit earned by the firm over and above its normal profit is

(A) Bumper profit

(B) Normal profit

(C) Super profit

(D) Excess profit


27-A complex set of forces affects the nature of organization; one of these is

(A) Structure

(B) Goals

(C) Interpersonal relationship

(D) Research


28-MIGA is related to

(A) Cargo insurance

(B) Life Insurance

(C) Non-Life Insurance

(D) FDI Insurance


29-Expectancy theory of motivation was developed by

(A) Victor Vroom

(B) Clayton Alderfer

(C) George Terry

(D) Douglas McGregor


30-Prime cost =

(A) Direct material + Direct labour + Indirect expenses

(B) Indirect labour + Direct expenses + selling expenses

(C) Direct material + Direct labour + Direct expenses

(D) Indirect Material + Direct labour + administrative expenses



21-(D), 22-(B), 23-(D), 24-(D), 25-(A), 26-(C), 27-(A), 28-(D), 29-(A), 30-(C)