Tag: organisation of commerce and management

Quizzes (188) Questions (1057)

Questions Related to organisation of commerce and management

Multiple choice organisation of commerce and management marketing mix elements of marketing mix middlemen physical distribution and channels

Choose the product related factor(s) that affect the choice of channels of distribution.

  1. Adoption of newer channels.

  2. Whether the product is perishable or a non-perishable.

  3. Financial strength of the company.

  4. Management want to have greater control on the channel members.
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Perishability is a key product-related factor. Perishable goods require shorter channels to ensure they reach the consumer before spoiling, whereas non-perishables can use longer channels.

Multiple choice organisation of commerce and management marketing mix elements of marketing mix middlemen physical distribution and channels
Which option is incorrect among the following?
Functional wholesalers are classified into _______.

  1. brokers

  2. service wholesalers

  3. commission men

  4. selling agents
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Functional wholesalers include merchant wholesalers who take title to goods. The categories are brokers, commission merchants, and selling agents (all of whom facilitate without taking title), and service wholesalers who take title and provide services. The question asks for the incorrect option.

Multiple choice organisation of commerce and management marketing mix elements of marketing mix middlemen physical distribution and channels

Manufacturer- Agent- Wholesaler- Retailer- Consumer. This is the ________ channel of distribution. 

  1. Zero level

  2. One level

  3. Two level

  4. Three level
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Channels of distribution is a chain of business or intermediaries through which goods or services until it reaches the end customer .

Manufacturer-Agents-Wholesaler-Retailer-Consumer . This is the three level channel of distribution.

Multiple choice organisation of commerce and management sources of business finance - 2 debentures / bonds debentures non-institutional sources - long-term

Arpana Pvt Ltd provide following information:
Sales = 10,00,000
Variable cost = 7,00,000
Fixed cost = 2,00,000
Debentures at $10\%$ = 5,00,000
What is the operating leverage of the company? 

  1. 2

  2. 3

  3. 4

  4. 5
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Operating leverage = $\frac{Contribution}{EBIT}$
=  $\frac{Rs.3,00,000}{Rs.1,00,000}$
= 3

Multiple choice organisation of commerce and management sources of business finance - 2 debentures / bonds debentures non-institutional sources - long-term

Debentures are preferred by investors who want _______ income at __________ risk.

  1. fluctuating, lesser

  2. fixed, lesser

  3. fixed, higher

  4. fluctuating, higher
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation
The difference between the face value of the debenture and its purchase price is the return to the investor. Hence it is preferred by investors who want fixed income at lesser risk. There is a greater risk when the earnings of the company fluctuate.
Multiple choice organisation of commerce and management sources of business finance - 2 debentures / bonds debentures non-institutional sources - long-term

Public issue of debentures requires that the issue be rated by a credit rating agency like _____.

  1. SBI

  2. RBI

  3. SEBI

  4. CRISIL
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Public issue of debentures requires that the issue be rated by a credit rating agency like CRISIL. CRISIL is a global company which mainly provdes ratings to the companies.

Multiple choice organisation of commerce and management sources of business finance - 2 debentures / bonds debentures non-institutional sources - long-term

_______ issued by a company is an acknowledgment that the company has borrowed a certain amount of money,which it promises to repay at a future date.

  1. Interest Certificate

  2. Share Certificate

  3. Debenture

  4. Demat Certificate
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Debenture issued by a company is an acknowledgment that the company has borrowed a certain amount of money,which it promises to repay at a future date. It is a long term security. Fixed interest is earned by issuing the debentures.