Mid-Term MGT211(Introduction to Business) Page 1 of 50

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1. Which of the following business type has longest life time?

a) Sole proprietorship
b) Partnership
c) Joint stock company
d) All of the given options

2. Which of the following must hold a statutory meeting?

a) Statutory companies
b) Private limited companies
c) Public limited companies
d) Chartered companies

3. Which of the following is NOT included in aids to trade?

a) Insurance
b) Warehousing
c) Transportation
d) Foreign trade

4. Election of the Board of Directors is done by Shareholders.

a) In annual general meeting
b) Through special resolution
c) In Special meeting
d) In statuary meeting

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5. The portion of capital kept at the winding up of a company for the payment of debts is
known as:
a) Reserve capital
b) Issued capital
c) Subscribed capital
d) Authorized capital

6. ___________ includes the rules and regulations, necessary to manage the

a) internal affairs of the company.
b) Article of Association
c) Memorandum of Association
d) Prospectus

7. Which of the following business type can avail some concessions from the government?
a) Sole proprietorship
b) Partnership
c) Joint Stock company
d) Cooperative society

8. According to Section 305 of Companies Ordinance, a company may wound up by court

under which of the following circumstances:
a) Fails to submit statutory report
b) Statutory Declaration
c) Expiry of Period
d) Appointment of Liquidators

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9. While making financial projections in a business plan, which of these would NOT form
part of the plan?
a) Source of loan
b) Audit
c) Net income or profit
d) Expected revenues

10. Which of the following is the source of acquiring of redeemable capital?

a) Modarba Certificate
b) Debentures
c) Participation Term Certificates
d) All of the given option

11. Which of the following are included in a business plan?

a) Financial information, production plans, personal policies.
b) Goals of the business and how they will be achieved.
c) Market analysis
d) All of the given options.

12. The following person cannot make a petition to the court to get an order for winding up
of a company.
a) Petition by debtor
b) Petition by creditor
c) Petition by contributory
d) All of the above

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13. Which of the following is not a reason for a business failure?

a) Managerial experience or inexperience
b) Effective control systems
c) Insufficient control system
d) None of the given options

14. In which of the following two or more organizations collaborate on a project for mutual
gain?
a) Limited partnership
b) Public corporation
c) Strategic alliance
d) None of the given options

15. Among different managerial styles, which of the following allows most rapid decision
making?
a) Autocratic styles
b) Democratic styles
c) Free rein style
d) None of the given option

16. ____________ is the process of motivating others to work to meet specific objectives.
a) Leadership
b) Motivation
c) Free rein style
d) Democratic style

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17. Which of the following represents the set of procedures involving both managers and
subordinates in setting goals and evaluating progress?
a) Participative Management and Empowerment
b) Management by Objectives (MBO)
c) Reinforcement/Behavior Modification Theory
d) None of the given option

18. The difference between a country's merchandise exports and its merchandise imports is
the:
a) Current account
b) Capital account
c) Balance of trade
d) Balance of payments

19. The MBTI is a personality test that has been used to select candidates who will more
likely engage in organizational citizenship behaviors at work. However, critics of this test
suggest that the results can change over time as a person's personality develops. Therefore
the MBTI personality test may be:
a) Legal but not valid
b) Valid but not reliable
c) Reliable but not valid
d) Reliable but not legal

20. The internal environment consists of the insides forces that influence marketing strategy
and decision making is/are as follows:

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a) Organization Policies
b) Product Policies
c) Management Structure
d) All of the given option

21. A specific communication task to be accomplished with a specific target audience during
a specific period of time is called as:
a) Advertising objective
b) Marketing Mix
c) Market segmentation
d) Marketing process

22. . According to Maslow's hierarchy of needs, a person who buys a motion

detector/burglar alarm for her house is motivated to do so in an attempt to fulfill the
following need:
a) Esteem
b) Security
c) Social
d) Self-actualization

23. Douglas McGregor is associated with which of the following?

a) Scientific management
b) Motivational factors
c) Theory X and theory Y
d) The Hawthorne studies

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24. Which of the following generic terms is not a management function?

a) Leading
b) Systemizing
c) Planning
d) Organizing

25. What is potentially the biggest advantage of a small partnership over a sole
proprietorship?
a) Unlimited liability
b) Single tax filing
c) Difficult ownership resale
d) Raising capital

26. Which of the following is the oldest form of business organization?

a) Sole proprietorship
b) Partnership
c) Company
d) Cooperative society

27. Dividing a market into distance groups of buyers who have distinct needs,
characteristics, or behavior and who might require separate products or marketing mixes.
a) Market segmentation
b) Marketing Mix
c) Marketing Penetration
d) Marketing control

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28. The actors and forces outside marketing that affect marketing management’s ability to
build and maintain successful relationship with target customers are called as:
a) Marketing Environment
b) Market segmentation
c) Marketing Mix
d) Marketing Penetration

29. Which of the following is an advantage of a corporation that is not an advantage as a

limited partner in a partnership?
a) Limited liability
b) Easy transfer of ownership position
c) Double taxation
d) All of the given options

30. Examples of constructive industries include:

a) Canals
b) Fishery
c) Sugar mills
d) Plant nurseries

31. The set of controllable tactical marketing tools-product, price, place and promotion that
the firm blends to produce the response it wants in the target market.
a) Marketing Mix
b) Market segmentation
c) Marketing Penetration
d) Marketing Environment

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32. Motor cycle and car are very different from one another, but both fulfill the need for
transport is an example of:
a) Substitute product competition
b) Brand competition
c) International competition:
d) Market competition

33. Advertising strategies often depend on the product life cycle stage. Example in case of
introductory stage, which of the following advertising strategy is used:
a) Persuasive advertising
b) Comparative advertising
c) Informative advertising
d) Reminder advertising

34. ____________ is a promotional approach that encourages consumer demand, which

then exerts pressure on wholesalers and retailers to carry a product.
a) Pull strategy
b) Push strategy
c) Persuasive advertising
d) Sales Promotion

35. Which of the following statement shows the Trade Deficit process?
a) A process in which country imports are higher than the exports
b) A process in which country exports are equal to the exports

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c) A process in which country imports are less than the country exports
d) All of the given options

36. Hormel Foods Corporation in the USA allows the Danish company Tulip International
to produce and market SPAM for the UK market under its own name. What kind of market
entry strategy is Hormel using?
a) Licensing
b) Joint venturing
c) Contracting
d) Franchising

37. Which of the following is a disadvantage of partnership?

a) Distribution of work
b) Sufficient capital
c) Prime credit standing
d) Profit sharing

38. In partnership deed, profit and loss is distributed among the partners:
a) In equal percentage
b) As per percentage of capital invested
c) As per agreed ratio in partnership deed
d) None of the given options

39. _____________ includes rental or mortgage payments, insurance, and wages. Other cost
includes material handling and inventory control.

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a) Warehousing cost
b) Transportation cost
c) Distribution cost
d) Manufacturing cost

40. Personal selling task in which salespeople try to persuade buyers to purchase products
by providing information about their benefits is:
a) Order Processing
b) Creative Selling
c) Missionary Selling
d) None of the given option

41. Consumer promotion aimed at the _________ and Trade promotion aimed at
wholesalers and retailers.
a) Final consumer
b) Retailer
c) Wholesalers
d) All of the given option

42. The record of a country's imports and exports of goods and services is called its:
a) Visible trade balance.
b) Balance of payments
c) Balance of payments on current account.
d) Balance of trade.

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43. which of the following is the treaty designed to remove barriers to the free flow of goods,
services, and capital
between nations?
a) GATT
b) EU
c) WTO
d) NAFTA

44. Export subsidies are:

a) Maximum limits on the quantity of specific products imported to a nation.
b) Taxes placed on imported products.
c) Licensing requirements or unreasonable quality standards designed to reduce imports.
d) Government payments to domestic producers to reduce the price on exported goods.

45. _________________ is a dimension of social responsibility that includes hiring minority

workers, making safe products, minimizing pollution, using energy wisely, and providing a
safe work environment.
a) Corporate philanthropy
b) Corporate policy
c) Corporate governance
d) Corporate responsibility

46. The MBTI is a personality test that has been used to select candidates who will more
likely engage in organizational citizenship behaviors at work. However, critics of this test
suggest that the results can change over time as a person's personality develops. Therefore
the MBTI personality test may be:
a) Legal but not valid

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b) Valid but not reliable

c) Reliable but not valid
d) Reliable but not legal

47. _____________ is the planning, organizing, directing, and controlling of all the activities
needed to get high-quality goods and services into the marketplace.
a) Total quality management (TQM)
b) Promotion strategy
c) Sales promotion
d) Management by objective (MBO)

48. A promotional tool in which information about a company or product is transmitted by

general mass media, which is free, but you have little or no control of the content and
delivery.
a) Public relation
b) Trade Promotion
c) Publicity
d) Consumer Promotion

49. Advertising strategy that tries to keep a product's name in the consumer's mind.
a) Persuasive advertising
b) Comparative advertising
c) Reminder advertising
d) Informative advertising

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50. Selection devices that are based upon physical condition of the candidates are known as:
a) Medical tests
b) Background investigations.
c) Aptitude tests
d) Application forms.

51. Which of the following chart shows turnover in an organization?

a) GANNT chart
b) Replacement chart
c) PERT chart
d) Bar chart

52. The Hawthorne Studies found:

a) That social and psychological factors could significantly affect productivity
b) That economic factors affect productivity
c) Money to be the primary motivator of female employees.
d) That workers were motivated to produce more when managers left them alone.

53. Brief history, Auditor’s report, shareholders’ equity and liabilities, share capital, etc are
mention in which of the document?
a) Charter of Company
b) Article of Association
c) Prospectus
d) None of the given option

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54. A joint stock company may be wound up voluntarily in which of

the following way:
a) Expiry of Period
b) Fails to submit statutory report
c) Fails to start its business within one year from the date of incorporation
d) All of the following

55. The process of tracking the demand and satisfaction of customers in an effort to develop
products they will want to buy on an ongoing basis is called ________.
a) Marketing
b) Business vision
c) Product development
d) Customer relationship management

56. All of the following except _________ are considered to be correct

statements about marketing research.
a) (It is a systematic search for information about customers' needs and how those needs differ
)
b) (Marketing research is geared to uncover unmet consumer needs )
c) (With market research, the chance product development will be able to create a product
consumers want to buy increases )
d) (Marketing research provides an inexpensive method for tracking consumer
behavior)

57. When a company targets a particular group of customers because of their need for its
product, it can be stated the company has identified its _________.

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a) Market differentiation
b) Market mission
c) Market segment
d) Marketing plan

58. Which type of product promotion is identified as being direct, face-to-face

communication by salespeople with existing and potential customers to promote a
company's products?
a) Sales promotion
b) Public relations
c) Personal selling
d) Advertising

59. The specific method a company uses to sell and deliver its products to customers is
known as its __________.
a) Retail intermediaries
b) Direct distribution
c) Distribution mix
d) Distribution channel

60. Company policy, administration, supervision, interpersonal relations, working

conditions, and salary are characterized as:
a) Growth factors
b) Hygiene factors
c) Esteem factors
d) Motivating factors

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61. Which of the following step is important to improve expectancy?

a) Deliver rewards as promised.
b) Observe and recognize performance.
c) Create the belief that effort is related to performance
d) Make the rewards meaningful.

62. Which of the following is NOT included as a basic idea in the definition of marketing
concepts?
a) Total company effort
b) Profit
c) Productivity
d) Customer satisfaction

63. Of the following distribution methods, which one is best identified as being that which
occurs when a company delivers and sells products straight to the final customer?
a) Independent wholesalers
b) Direct distribution
c) Company-owned distributors
d) Retail distributors

64. All of the following choices represent one of the four types of utility except:
a) Time
b) Form
c) Loyalty
d) Ownership

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65. ________ involves long-term, value-added relationships developed over time with
customers and suppliers:
a) Relationship Marketing
b) Marketing Era Marketing
c) Consumer Marketing
d) Exchange Marketing

66. An activity in which two or more parties give something of value to each other to satisfy
perceived needs is called:
a) Sales process
b) Exchange process
c) Relationship process
d) Production process

67. The different types of stakeholders involved in a business include

all of the following except:
a) Owners
b) creditors
c) couriers
d) employees

68. Which of the following statements is NOT true about services?

a) They are experienced, used or consumed.
b) They are often sold first, then consumed.

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c) They are perishable.

d) They are tangible.

69. Which of the following would generally have unlimited liability?

a) A limited partner in a partnership
b) A shareholder in a corporation
c) The owner of a sole proprietorship
d) A member in a limited liability company (LLC);

70. Which of the following enjoys limited liability?

a) A general partnership
b) A corporation
c) A sole proprietorship
d) None of the given options

71. A certificate of ownership of a business is a:

a) Bond
b) stock
c) mutual fund
d) contract

72. The following are possible forms of business ownership except:

a) Proprietorship
b) partnership
c) bureaucracy
d) corporation

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73. In which type of business entity the entire ownership interest is transferable most freely?
a) General partnership
b) Limited partnership
c) Corporation
d) Limited liability company

74. Which of the following is false?

a) One reason for failure of businesses is lack of managerial experience
b) One reason for failure of businesses is that most entrepreneurs are younger than 25 years
old
c) One reason for failure of businesses is to neglect
d) One reason for failure of businesses is weak control systems

75. A Pizza delivery service company generated after tax earnings of Rs. 800,000. With total
stockholder investments equaling Rs. 20,00,000. What was the company's return on equity?
a) 10%
b) 15%
c) 40%
d) 80%

76. Components of Business Plan include all of the following except

a) Marketing Component
b) Administrative Component
c) External Component

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d) Financial Component

77. Which one of the following statements about marketing is inaccurate?

a) The growing number of products in all categories has made it easier for marketers to
capture the attention of customers.
b) Marketing has to do with persuading customers a product meets their needs.
c) The mass market has fragmented into many different groups of customers.
d) Marketing is an organizational function and a set of processes for creating, communicating,
and delivering value to customers.

78. _______ is the typical sequence of changes in demand for a product that occurs over
time.
a) The business vision statement
b) The product life cycle
c) Marketing research
d) A customer-oriented approach

79. A firm’s ______ is measured by its stock price, which can be negatively affected by
unethical business practices:
a) bond rating
b) risk
c) value
d) return on investment

80. _____ conditions reflect the overall performance of the nation’s economy.

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a) Microeconomic
b) multieconomic
c) macroeconomic
d) all of the given options

81. The primary purpose of an industry business environmental assessment is to determine

the:
a) economic growth
b) degree of competition
c) inflation rate
d) population growth

82. Which of the following focuses on job content, environment, and conditions of
employment?
a) Job description
b) Human resource inventory report
c) Job analysis
d) None of the given options

83. In the marketing research process the 1st step is to define the problem followed by:
a) Collection of data
b) Develop recommendation
c) Develop the research design
d) Implement plan

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84. The function of business in which business man tries to find new techniques of
production is
a) Accounting
b) Management Function
c) Innovation
d) Quality improvement

85. Which of the following is an advantage of sole proprietorship?

a) Longest life
b) Availability of sufficient Capital
c) Direct contact with customer and workers
d) Separate Legal Entity

86. Which of the following is not among the benefits of Partnership Firm?
a) Satisfaction of Partners
b) Lack of Secrecy
c) Moral Promotion
d) Minority Protection

87. Which of the following is the least likely decision to be made by Operations Managers?
a) Deciding which market areas to manufacture products for
b) Designing and improving the jobs of the workforce
c) Selecting the location and layout of a facility
d) How to use quality techniques to reduce waste

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88. What kind of sales person are you most likely to find working in the pharmaceutical
industry?
a) Order taker
b) Order getter
c) Sales engineer
d) Missionary salesperson

89. ____________ includes all of the activities involved in the sale of products to final
customers.
a) Wholesaling
b) Retailing
c) Marketing
d) Distributing

90. Statutory meeting must be held not later than _____________from the date on which a
public company is entitled to commence business
a) 3 months
b) 6 months
c) 1 year
d) One month

91. The World Trade Organization (WTO):

a) Sets tariffs to balance international trade among nations.
b) Is the successor to NAFTA.
c) Rules on trade disputes between nations.
d) Sets exchange rates to balance international trade among nations.

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92. In democratic style of leadership there is:

a) Upward communication
b) Upward and downward communication
c) Occasional communication
d) Downward communication

93. Advantages of cooperative societies does not include

a) Equal distribution of wealth
b) Interference of Government
c) No Monopoly
d) Open Membership

94. A major disadvantage of corporate organization is

a) Double Taxation of dividend
b) Inability of the firm to large sum of additional capital
c) Limited liability of share holders
d) Limited life of Cooperate firm

95. Wages are paid for

a) Long term
b) Short term
c) All of given options
d) None of the given

96. There are really only two ways to collect primary data for a marketing study:
a) Observation and asking questions

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b) Passive and remote observations

c) Through laboratory settings and onsite groups
d) With careful, selected shopper and specialized syndicated services

97. For the individual employee, MBO provides:

a) A way to keep the company accountable
b) Specific personal performance objectives
c) Increased monetary compensation
d) Communication between co-workers.

98. Examples of genetic industries include:

a) Poultry
b) Sugar mill
c) Plant nurseries
d) Canals

99. JIT aims at:

a) Avoid delays
b) Favorable cash flow of the organization
c) Reduction in non-value added activities
d) All of the given options

100. Consumer goods are purchased by:

a) Business users.
b) Ultimate consumers.

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c) Governments.
d) Families.

101. The liability of a sole trader is _________

a) limited Only to his investment in the business
b) Limited to the total resources of the business
c) Job Specification
d) Unlimited

102. Genetic industry means

a) Canal
b) Sugar mill
c) Poultry
d) Agriculture

103. Organization Generally, in a limited partnership:

a) All partners have limited liability.
b) The partners exist for a limited time period.
c) The limited partners do not participate in management of the company.
d) Not more than 75 partners may invest in the company at one time.

104. The “leading” function of management should be conducted in a manner that is

consistent with firm’s:
a) Competition
b) Strategic plan

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c) Industry demand
d) Labor union

105. In which of the following do two or more organizations collaborate on a project for
mutual gain?
a) Limited partnership
b) Joint venture
c) Public corporation
d) Strategic alliance

106. Which type of product promotion is identified as being direct, face-to-face

communication by salespeople with existing and potential customers to promote a
company's products?
a) Sales promotion
b) Public relations
c) Personal selling
d) Advertising

107. Auditors are generally appointed and their remuneration, fixed at the ______________
a) Extraordinary Meeting
b) Statutory Meeting
c) Director’s Meeting
d) Annual General Meeting

108. Which of the following is included in economic factors?

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a) Religion
b) Value system
c) Norms
d) Exchange rate

109. General information like Appointment, election and powers of directors,

voting rights and transfer of shares mention in ____________.
a) Charter of Company
b) Article of Association
c) Prospectus
d) None of the given option

111. Which of the following is the disadvantage of modified schedules and alternative
workplace?
a) Freedom in professional and personal life
b) More Job satisfaction
c) Complicated coordination
d) Suitable for self starter who require little direct supervision

112. Social interaction and acceptance by others are examples of:

a) Physiological needs
b) Safety needs
c) Affiliation needs
d) Esteem needs

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113. When firms delegate more authority to their employees, this strategy is
referred to as:
a) Empowerment
b) Merit system
c) Hygiene theory
d) Equity system

114. Products purchased by companies to produce other products are:

a) Consumer Goods
b) Industrial Goods
c) Services
d) Inventory

115. The formation of ___________does not require any legal formality like registration.
a) Company
b) Cooperative society
c) Partnership
d) Ans Sole proprietorship

116. Which of the following should be considered when designing a business plan?
a) Objectives of the business
b) Marketing components of the business
c) Financial components of the business
d) All of the given options

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117. A firm that acquires another firm as part of its overall business strategy is engaging in
__________.
a) A strategic acquisition
b) A financial acquisition
c) A two-tier tender offer
d) A shark repellent

118. The record of a country's imports and exports of goods and services is called its:
a) Visible trade balance.
b) Balance of payments
c) Balance of payments on current account.
d) Balance of trade.

119. _________________ is a dimension of social responsibility that includes

hiring minority workers, making safe products, minimizing pollution, using energy wisely,
and providing a safe work environment
a) Corporate philanthropy
b) Corporate policy
c) Corporate governance
d) Corporate responsibility

120. Human resource planning is a dynamic planning process which involves ongoing
environmental scanning and an analysis of organizational objectives, strategies, and policies
aimed at deciding:
a) What business the organization should be in
b) The right quantity and quality of employees needed when and where
c) What physical resources the organization needs

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d) Who the organization’s main competitors are

121. The MBTI is a personality test that has been used to select candidates who will more
likely engage in organizational citizenship behaviors at work. However, critic of this test
suggest that the results can change over time as a person's personality develops. Therefore
the MBTI personality test may be:
a) Legal but not valid
b) Valid but not reliable
c) Reliable but not valid
d) Reliable but not legal

122. Which of the following chart shows turnover in an organization?

a) GANNT chart
b) Replacement chart
c) PERT chart
d) Bar chart

123. A ------------- is an economic system in which the production of goods and services is left
in the hands of private enterprise.
a) Totalitarian government
b) Representative democracy
c) Mixed Economy
d) Free Market Economy

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124. _________ are those persons who guarantee the company, to buy the remaining shares
if minimum requirement is not met.
a) Promoters
b) Brokers
c) Underwriters
d) Directors

125. Disadvantages associated with being an entrepreneur include all of the following except
___________.
a) Ensuring the business functions properly
b) Possibly incurring large losses
c) Possibly losing source of income
d) Having an increased amount of control

126. is considered a primary advantage to forming a business partnership.

a) Shared Profit
b) Increase Specialization
c) Shared Control
d) Unlimited Liability

127. Jahanzaib's restaurant was sued when a customer suffered a severe

allergic reaction. As sole proprietor of the establishment, Jahanzaib's will be personally
liable for any judgment against the restaurant due to __________.
a) Charter Laws
b) Unlimited Liability
c) erms of his property insurance
d) Limited Liability

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128. All of the following are considered crucial ingredients that are needed in
order for a business to be able to make a profit except --------------.
a) Land
b) Capital
c) Labor
d) Financial Counselors

129. Physical distribution is a channel to make availability of ___________ from producer

to consumer.
a) Finished goods
b) Work in process
c) Raw material
d) All of the given option

130. The powers of the Board of Directors to borrow from the bank are mentioned in:
a) Article of Association
b) Memorandum of Association
c) Special Resolution
d) None of the given options

131. The record of a country's imports and exports of goods and services is called
its:
a) Visible trade balance.
b) Balance of payments

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c) Balance of payments on current account.

d) Balance of trade.

132. _________________ is a dimension of social responsibility that includes

hiring minority workers, making safe products, minimizing pollution, using energy
wisely, and providing.
a) Corporate philanthropy
b) Corporate policy
c) Corporate governance
d) Corporate responsibility

133. In _________ of marketing, unsatisfied need of the customers are satisfied.

a) Social oriented stage
b) Product oriented stage
c) Marketing oriented stage
d) None of the given options

134. Pakistan is exporting

a) Sports Item
b) Agriculture Product
c) Textile Product
d) All of given options

135. Managers have ________ type of skills.

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a) 2
b) 3
c) 6
d) 5

136. The buying and selling of goods by way of electronic media, such as telephone is called
a) Digital age
b) E commerce
c) Enterprise resource planning
d) None of the above

137. Which of the following is excluded from factors that can affect the business?
a) Demographic Factors
b) Economic factors
c) Act of God
d) None of the above

138. If Trade Receipts are grater then Trade Payments then Balance of Payments is _______
a) Favorable
b) Unfavorable
c) Deficit
d) None of above

139. The company may raise its capital through which of the following sources:
a) By Issuing Shares

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b) By Issuing Debentures
c) By Savings
d) All of the given options

140. WTO was organized on _____________

a) July 15, 1998
b) January 01, 1990
c) August 25, 1995
d) January 01, 1995

141. To call the extraordinary meeting, how many days’ notice is required?
a) 21 days
b) 7 days
c) 15 days
d) 30 days

142. The first stage Evolution business is?

a) Industry revolution
b) Globalization
c) Entrepreneurship
d) Marketing era

143. The four functions of management:

a) Must be enacted in the proper sequence
b) Must be integrated

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c) Are stand alone, independent functions

d) Can not be performed by one individual

144. An item consumed in one or a few uses is called a:

a) Consumer good
b) Commodity
c) Durable good
d) Nondurable good

145. Skyscrapers, pop-ups, and banners are all types of __________ advertising
a) Television
b) Radio
c) Outdoor
d) Internet

146. This management level is concerned with long-range planning for the organization.
a) Supervisory
b) Middle-managerial
c) Stockholder
d) Top-managerial

147. The two major sources of raising funds or financing a business are:
a) Owner’s capital & borrowed funds
b) Short term and long term loans
c) Debentures and drafts

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d) Assets and long term loans

148. Sources of marketing information are categorized into two groups - what are they?
a) Macro environmental sources; micro environmental sources.
b) External sources; internal sources.
c) Causal resources.
d) All of the given options

149. A product is:

a) Everything the customer receives in an exchange
b) The physical object the customer receives in an exchange
c) The service that is rendered to a customer
d) The idea that the customer receives in an exchange

150. Political and legal barriers to trade include:

a) Tariffs
b) Quotas
c) All of the above options
d) None of the given options

151. DSS stands for:

a) Decision support system
b) Data support system
c) Data supervision system
d) None of the given options

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152. The method of interviews where questions can be changed or adapted to meet the
respondent's intelligence and understanding is called:
a) Unstructured interviews
b) Structured interviews
c) All of the given options
d) None of the given options

153. Which of the following is not the disadvantage of cooperative society?

a) Lack of secrecy
b) No profit incentive
c) Untrained supervision
d) Protection of mutual interest

154. The situation when a country imports less than it exports is:
a) A trade surplus.
b) A recession.
c) An expansion.
d) A trade deficit

155. Which of the following is included in job specification?

a) Working environment
b) Experience
c) Job title
d) Job location

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156. When a company targets a particular group of customers because of their need for its
product, it can be stated the company has identified its _________.
a) Market differentiation
b) Market mission
c) Market segment
d) Marketing plan

157. different segments as part of its product strategy?

a. Introduction
b. Growth
c. Maturity
d. Decline

158. The sole trader and his business exist:

a) Independently
b) Together
c) For others
d) None of the above

159. A major disadvantage of the corporate form of organization is the __________.

a) Double taxation of dividends
b) Inability of the firm to raise large sums of additional capital
c) Limited liability of shareholders
d) Limited life of the corporate form

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160. Demographic segmentation divides the market by:

a) Age, gender, marital status, social class, religion and education
b) Perceptions, beliefs and values
c) Lifestyle, personality and self-image
d) Location or region

161. People in business and government face important ethical issues and decisions.
a) Only in the United States
b) Primarily in capitalist countries
c) Primarily in communist countries
d) In many different countries around the world

162. Possession utility is provided when:

a) A good or service is obtained and there is a right to use or consume it
b) A product is available where someone wants it
c) Someone performs a task for someone else
d) None of the given options

163. Many organizations provide guidelines of behavior to employees through a code of:
a) Cartel arrangements
b) Kickback agreements
c) Production manuals
d) Responsibility and ethics

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164. The law elating to Joint Stock Companies has been laid in companies Ordinance:
a) 1984
b) 1980
c) 1932
d) none of the above

165. The term tariff, as used in international trade, refers to:

a) The price of goods when they leave the producing country.
b) A tax on imports.
c) A limit on the quantity of a good that can be imported into a country
d) A government payment to encourage exports.

166. 5) Portion of the undistributed profit transferred to which of the following?

a) General Reserve
b) Retained Earning
c) Appropriation account
d) All of the given options

167. Which of the following is/are the component/s of business?

a) Industry
b) Commerce
c) Both industry and commerce
d) Trade and aids to trade

168. Profit sharing, gain sharing and pay-for-knowledge plans are examples of:

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a) Individual incentives
b) Company-wide incentives
c) Cafeteria benefit plans
d) Merit salary systems

169. Consumer goods are classified as convenience, shopping, and:

a) Durable.
b) Nondurable.
c) Consumer.
d) Specialty.

170. Setting the highest initial price is called price:

a) Penetration
b) Gouging
c) Parity
d) Skimming

171. The activities and processes used in making both tangible and intangible products is
known as _____________.
a) Operations.
b) None of the given options
c) Making
d) Production.

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172. Under which cost flow assumption is the ending inventory composed of the earliest
purchased merchandise?
a) FIFO
b) LIFO
c) Average cost
d) Specific identification

173. he financial statement which shows cash activity (receipts and disbursements) during
the accounting period is called a(n):
a) Bank statement.
b) Income statement.
c) Statement of cash flows.
d) Bank reconciliation.

174. The situation when a country imports more than its exports is:
a) A trade surplus.
b) A recession.
c) A trade deficit.
d) An expansion.

175. The marketing environment is BEST described as being

a) Composed of controllable variables.
b) Composed of variables independent of one another.
c) An indirect influence on marketing activity.
d) Dynamic and changing.

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176. The three major categories of influences that are believed to influence the consumer
buying decision process are personal, psychological, and:
a) Person-specific
b) Social
c) Demographic
d) Situational

177. A fruit and vegetable wholesaler buys a loaded truck of strawberries from a
local farmer and then divides them into 10 kg baskets to sell to grocery stores.
This sorting function is called:
a) Allocation.
b) assorting.
c) accumulation.
d) sorting out.

178. Which of the following is considered as the pillar of quality?

a) Quality is free
b) Doing it right the first time
c) Process improvement
d) None of the given options

179. Flow of communication from top to bottom is known as_______

a) Downward communication
b) Upward communication

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c) Combination of Downward and upward communication

d) None of the given options

180. Assets which can not be physically touched are termed as___________
a) Intangible assets
b) Tangible assets
c) Good will
d) None of the given options

181. Profit and loss account is also termed as ___________

a) Income statement
b) Balance sheet
c) Trial Balance
d) None of the given options

182. A plan or an estimate for future expenses and revenues is termed as_________
a) Budgeting
b) Balance sheet
c) Income statement
d) None of the given options

183. A training technique in which trainees act out as parts in a realistic management
situation is known as:
a) Business Games
b) Role Play

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c) Vestibule Training
d) None of the given options

184. All of the following statements are true regarding a partnership except __________.
a) Partners pay personal income tax on their share of the partnership's income
b) A new partnership agreement is required whenever a new partner enters or leaves
the partnership
c) Mutual agency creates personal obligations for each partner
d) Each partner's liability is limited to the amount he or she contributed to the partnership

185. The most important step in understanding business ethics is

a) Establishing codes of ethics
b) Learning to recognize ethical issues
c) Having efficient operations
d) Implementing a strategic plan

186. An agreement between two parties in which one party passes on the right to other party
is called:
a) Franchising agreement
b) Joint venture
c) Merger
d) Reconsolidation

187. Capital is required for the purchase of land, machines, wages and raw materials. A
businessman can generate its capital from:

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a) Debt
b) Equity
c) None of the above
d) All of the given option

188. Cooperative Societies are not formed for:

a) The serving of the orphans and widows
b) The help of poor people
c) For the earning of profit
d) Social welfare

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