Tag: business studies

Questions Related to business studies

Which of the following is true?

business studies company companies act, 2013 - introduction and characteristics introduction to companies companies act, 2013

  1. The cost of retained earnings is always less than the cost of external equity

  2. The cost of external equity is always less than the cost of retained earnings

  3. The cost of retained earnings is lower than the cost of external equity in the presence of flotation costs

  4. In the presence of flotation costs the cost of external equity is less than the retained earnings

  5. None of the above

Show answer
Correct Option: C
Explanation:

Cost of external equity K'ee =required rate of return
f = cost of issue
Hence, in presence of floatation costs, the cost of retained earnings is less than the cost of external equity.

Which of the following is not a regulatory body?

business studies company companies act, 2013 - introduction and characteristics introduction to companies companies act, 2013

  1. SEBI

  2. RBI

  3. CCI

  4. SIDBI

Show answer
Correct Option: D

Which is true as far as a Joint Venture is concerned?

joint ventures private, public and global enterprises public sector, private sector and global enterprises organisation of commerce and management business studies

  1. The dual ownership arrangement may not lead to conflicts, resulting in battle for control between the investing firms.

  2. Foreign firms entering into joint ventures does not share the technology and trade secrets with local firms.

  3. Joint venture is a very common strategy for entering into foreign markets.

  4. All of the above

Show answer
Correct Option: C
Explanation:

A joint venture is a business entity created by two or more parties, generally characterized by shared ownership, shared returns and risks, and shared governance.

________ can also be described as any form of association which implies collaboration for more than a transitory period.

joint ventures private, public and global enterprises public sector, private sector and global enterprises organisation of commerce and management business studies

  1. Joint venture

  2. Licensing

  3. Contract Manufacturing

  4. Wholly Owned Subsidiaries

Show answer
Correct Option: A
Explanation:

A joint venture is a business entity created by two or more parties, generally characterised by shared ownership, shared returns and risks, and shared governance.

_____ makes it possible to execute large projects requiring huge capital outlays and manpower.

joint ventures private, public and global enterprises public sector, private sector and global enterprises organisation of commerce and management business studies

  1. Wholly Owned Subsidiaries

  2. Franchising

  3. Joint venture

  4. Contract manufacturing

Show answer
Correct Option: C
Explanation:

Since the joint venture is not a legal entity, it does not enter into contracts, hire employees, or have its own tax liabilities. These activities and obligations are handled through the co-venturers directly and are governed by contract.

Benefits of joint ventures does not include ______________________.

joint ventures private, public and global enterprises public sector, private sector and global enterprises organisation of commerce and management business studies

  1. access to new markets and distribution networks

  2. sharing of risks and costs with a partner

  3. access to greater resources, including specialized staff, technology and finance

  4. the partners have different objectives for the joint venture

Show answer
Correct Option: D
Explanation:

A joint venture is a temporary business association between two or more persons or organisations for profit without forming a permanent partnership, corporation, or other business entity. Members of the joint venture maintain their independence.

Success in a joint venture depends on comprehensive research and a detailed analysis of aims and objectives.

joint ventures private, public and global enterprises public sector, private sector and global enterprises organisation of commerce and management business studies

  1. True

  2. False

Show answer
Correct Option: A
Explanation:

  • Employee: If the risks of business ownership scare you and you lack an entrepreneurial spirit, business ownership is likely not for you, whether it be your own.

  • Creative entrepreneur: If you possess a creative mind that feels constricted by boundaries and models, starting your own business is likely your best bet.

  • Executive entrepreneur: If you are comfortable operating within a proven system and value support over autonomous freedom, franchising may be for you.

A joint ownership venture may be brought about in which of the following way(s)?

joint ventures private, public and global enterprises public sector, private sector and global enterprises organisation of commerce and management business studies

  1. Foreign investor buying an interest in a local company.

  2. Local firm acquiring an interest in an existing foreign firm.

  3. Both the foreign and local entrepreneurs jointly forming a new enterprise.

  4. All of the above

Show answer
Correct Option: D
Explanation:

A joint venture (JV) is a business entity created by two or more parties, generally characterised by shared ownership, shared returns and risks, and shared governance.Most joint ventures are incorporated, although some, as in the oil and gas industry, are "unincorporated" joint ventures that mimic a corporate entity.

_______ often enable growth without having to borrow funds or look for outside investors.

joint ventures private, public and global enterprises public sector, private sector and global enterprises organisation of commerce and management business studies

  1. Contract manufacturing

  2. Joint ventures

  3. Licensing

  4. Wholly Owned Subsidiaries

Show answer
Correct Option: B

Joint ventures are especially popular with businesses operating in different countries, eg within the transport and travel industries.

joint ventures private, public and global enterprises public sector, private sector and global enterprises organisation of commerce and management business studies

  1. True

  2. False

Show answer
Correct Option: B
Explanation:

It is in all the sectors including IT, MEDIA ,Food chains etc