Tag: business studies

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Questions Related to business studies

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

Which of the following is true?

  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
Reveal answer Fill a bubble to check yourself
C Correct answer
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.

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

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

  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
Reveal answer Fill a bubble to check yourself
C Correct answer
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.

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

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

  1. Joint venture

  2. Licensing

  3. Contract Manufacturing

  4. Wholly Owned Subsidiaries
Reveal answer Fill a bubble to check yourself
A Correct answer
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.

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

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

  1. Wholly Owned Subsidiaries

  2. Franchising

  3. Joint venture

  4. Contract manufacturing
Reveal answer Fill a bubble to check yourself
C Correct answer
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.

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

Benefits of joint ventures does not include ______________________.

  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
Reveal answer Fill a bubble to check yourself
D Correct answer
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.

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

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

  1. True

  2. False
Reveal answer Fill a bubble to check yourself
A Correct answer
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.

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

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

  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
Reveal answer Fill a bubble to check yourself
D Correct answer
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.

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

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

  1. Contract manufacturing

  2. Joint ventures

  3. Licensing

  4. Wholly Owned Subsidiaries
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Joint ventures allow companies to share resources, risks, and costs with a partner, which can facilitate growth without the need for external debt or equity financing.