Tag: fundamentals of business activities

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Questions Related to fundamentals of business activities

Multiple choice elements of business fundamentals of business activities factors affecting business interrelationship between industry, commerce and trade other aspects of a business

An organisation has production, purchase, marketing, finance and human resource departments. All of them working together to achieve organisational goals.
From your point of view, the value which is reflected here is "Co-Operation, Co ordination, do work with the help of each other".

  1. True

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

An organisation consists of several departments who work together to achieve a common goal. If they do not work together the activities will not be carried out efficiently and effectively and the goal will not be accomplished. 


Hence, the values such as co-operation, co-ordination and work with the help of each other are essential for all departments to work together and achieve the objective.

Multiple choice elements of business fundamentals of business activities factors affecting business interrelationship between industry, commerce and trade other aspects of a business

Environment is a _________.

  1. complex phenomenon

  2. comprehensive phenomenon

  3. economic phenomenon

  4. non-economic phenomenon
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Environment is dynamic in nature. It consists of various factor like trends, preferences and other factors which directly and indirectly affect the business.

It is a complex phenomenon as it cannot be directly controlled but its affect is directly applicable on business.

Multiple choice elements of business fundamentals of business activities factors affecting business interrelationship between industry, commerce and trade other aspects of a business

Which of the following is an important factor of success in a goods production company?

  1. Customers

  2. Marketing intermediates

  3. Workers

  4. Low cost of production of goods
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

A goods production company runs on manufacturing and supply of the manufactured goods, for this kind of a company to be a successful, it has to consider the factor of low cost of production as important to manufacture more goods at low cost and earn profits.

Multiple choice elements of business fundamentals of business activities factors affecting business interrelationship between industry, commerce and trade other aspects of a business

The business environmental factors are _________.

  1. static

  2. dynamic

  3. both (A) and (B)

  4. none of these
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Business environment is a mixture of many factors and changes in some or the other factors continue to take place. Therefore, it is said that business environment is dynamic.

Multiple choice elements of business fundamentals of business activities factors affecting business interrelationship between industry, commerce and trade other aspects of a business

Stimulus response theories based on the processes of.

  1. Drive

  2. Cue

  3. Response and reinforcement

  4. All the above
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Stimulus-response theories in psychology, particularly behaviorism, emphasize that learning occurs through the association of stimuli, drives, cues, responses, and reinforcements.

Multiple choice elements of business fundamentals of business activities factors affecting business interrelationship between industry, commerce and trade other aspects of a business
Before the Annual General Meeting the secretary has to draft the annual/directors report.

  1. True

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

True, the duties of the secretary before the annual general meeting is to prepare the annual report of all the directors in consultation with the chairman .

Multiple choice elements of business fundamentals of business activities factors affecting business interrelationship between industry, commerce and trade other aspects of a business

Which of the following does not characterise business activity?

  1. Production of goods and services

  2. Presence of risk

  3. Sale or exchange of goods and services

  4. Salary or wages
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Business activity is an activity which is an engaged in primary purpose of making a profit, salary and wages are expenses to a business. Hence it is not a primary business activity. 

Multiple choice elements of business fundamentals of business activities factors affecting business interrelationship between industry, commerce and trade other aspects of a business

_________ is the statement which defines the goals of company.

  1. Mission

  2. Vision

  3. Business Module

  4. None of the above
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Vision statement is a statement that defines what company is and what it does whereas the main purpose of mission statement is to get across the ambitions of an organisation in short.

Multiple choice elements of business fundamentals of business activities factors affecting business interrelationship between industry, commerce and trade other aspects of a business

A __________ is also essential if a new venture is a manufacturing concern. 

  1. market analysis

  2. operation plan

  3. bank loan

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

If a new venture is an manufacturing concern it should have operational plan because operational plan consists of raw material requirement, manufacturing requirement , output and all things related to manufacturing.


Multiple choice elements of business fundamentals of business activities factors affecting business interrelationship between industry, commerce and trade other aspects of a business

Establishment of management by objectives presupposes ___________________.

  1. That limits of authority are not defined

  2. That employees are provided with result expected

  3. Unlimited freedom to operate in the assigned task

  4. Unlimited freedom to set golas
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Management by Objectives (MBO) is a strategic management model that aims to improve the performance of an organization by clearly defining objectives that are agreed to by both management and employees.