Business Communication CHAPTER 8 COMMON BUSINESS TERMINOLOGIES CSEET MCQ

Business Communication 

CHAPTER 8 COMMON BUSINESS TERMINOLOGIES

MCQs

PRACTICE QUESTIONS

1. An economic resource that is expected to be of benefit in future is called:

(a) Asset (b) Liability

(c) Capital (d) Loan

2. The lowest price at which an owner is willing to sell his security is:

(a) Ask (b) Call

(c) Put (d) Book value

3. Market situation where stock price are falling consistently:

(a) Stag (b) Bear (c) Bull (d) Badla

4. Market situation where one expects a rise in price so that he can later sell at a high price:

(a) Stag (b) Bear

(c) Bull (d) Balia

5. The riskiness inherited in firm’s operations if it uses no debt:

(a) Business risk (b) Beta (c) Market risk (d) Zero risk

6. Option to buy a security is:

(a) Call option (b) Put option

(c) Hedging (d) Arbitrage

7. Commercial papers are:

(a) A type of long term promissory note

(b) Transferable certificate of ownership of investment

(c) Bond that pays no annual interest but sold at discount and redeemed at par

(d) Unsecured, short term promissory note of large firms usually issued in denominations of Rs. 1,00,000 or more

8. Business combination of two or more entities that occurs when the entities transfer all their net assets to a new entity created for that purpose:

(a) Demerger (b) Consolidation

(c) Joint Venture (d) None of these

9. Stock that provides constant dividends and stable earnings over a period of economic down turn also:

(a) Aggressive stock (b) Debenture

(c) Defensive stock (d) Bond

10. Security whose price is derived from one or more underlying assets:

(a) Shares (b) Debentures

(c) Bonds (d) Derivatives

11. Company’s first issue of shares to general public:

(a) FPO (b) IPO

(c) Liquidation (d) Internet trading

12. P/E ratio is calculated as:

(a) MPS -r EPS (b) EPS MPS

(c) Earning No. of shares (d) Any of these

13. Price at which the holder of an option can buy or sell the security they hold when the option is executed:

(a) Premium amount (b) Strike Price

(c) Face Value (d) Market Price

14. Rate of return earned on a bond if it is called before maturity:

(a) YTM (b) MTM

(c) Dividend (d) Capital gain

15. A reduction in the price of goods given to encourage sale on cash basis:

(a) Trade Discount (b) Commission

(c) Cash Discount (d) Sales Discount

16. A marketing activity directed from one business to another:

(a) B2B (b) B2C

(c) C 2 B (d) C 2 2

17. Company that has control over a certain market:

(a) Market leader (b) Market Follower (c) Mass marketing (d) Market segment

18. 4 P’s of marketing:

(a) Price, Plan, Place, Product

(b) People, Planet, Plant, Product

(c) Price, Product, People, Promotion

(d) Product, Price, Place, Promotion

19. Pricing strategy that involves setting lower prices in order to discourage potential new entrants to suppliers market: (a) Penetration Policy (b) Skimming

(c) Pre-Emptive Pricing (d) Market Price

20. A skill, resource or other advantage that firm has relative to its competitors that is important to serving the needs of customer in market place:

(a) Strength (b) Weakness

(c) Opportunity (d) Threat

21. Limitation or lack of skills in effective performance: (a) Strength (b) Weakness

(c) Opportunity (d) Threat

22. Limit that regulates the increase or decrease in the rate of interest and installment of an adjustable rate mortgage:

(a) Cap (b) Floor

(c) Collar (d) Shoe

23. Creator of trust who takes the responsibility of repayment of loan:

(a) Investor (b) Guarantor

(c) Borrower (d) Cashier

24. Economic insolvency, where in person’s assets are liquidated: (a) Bankruptcy (b) Amalgamation

(c) Demerger (d) Bad debt

25. PESTLE stands for:

(a) Political, Economic, Social, Technological, Legal, Environmental.

(b) Political, Ecological, Structural, Technical, Legal, Environmental.

(c) Policy, Environment, Social, Teamwork, Legal, Environmental.

26. Malfide means:

(a) In good faith

(b) In bad faith

(c) In utmost good faith

(d) Man of faith

Answer

1 (a) 2 (a) 3 (b) 4 (c) 5 (a) 6 (a)

7 (d) 8 (b) 9 (c) 10 (d) 11 (b) 12 (a)

13 (b) 14 (a) 15 (c) 16 (a) 17 (a) 18 (d)

19 (c) 20 (a) 21 (b) 22 (a) 23 (b) 24 (a)

25 (a) 26 (b)