MCQ for CA Foundation ECONOMICS - PART 2 - BUSINESS AND COMMERCIAL KNOWLEDGE - Chapter 6 ORGANIZATIONS FACILITATING BUSINESS

Sample Multiple Choice Questions (MCQ's) for CA Foundation - Paper 4 - Business Economics and Business and Commercial Knowledge - PART 2 - BUSINESS AND COMMERCIAL KNOWLEDGE - Chapter 6: COMMON BUSINESS TERMINOLOGIES - For Practice relevant for Dec 22 and May/June 23 Examinations

Q:1 The exploitation of comparatively small market segments by businesses that decide to concentrate their efforts is called: 

  1. Niche marketing
  2. Mass marketing
  3. Market segmentation
  4. Market positioning

Answer: 1

Q:2 Carrying forward of transaction form one settlement period to the next without effecting delivery or payment is called _________. 

  1. Badla
  2. Beta
  3. Blue chips
  4. Basket trading

Answer: 1

Q:3 The number of units of given currency that can be purchased for one unit of another currency is called ___________. 

  1. Current ratio
  2. Exchange rate
  3. Equity
  4. dividend

Answer: 2

Q:4 What is a financial instrument? 

  1. anything that ranges from cash, deed, negotiable instrument, or for that matter any written and authenticated evidence that shows the existence of a transaction or agreement.
  2. is basically any security that is held with the government and has the highest possible rate of interest.
  3. is a contract where the borrower, who is also the purchaser, pays a series of installments that includes the interest of the principal amount
  4. None of the above.

Answer: 1

Q:5 ____________ is the simultaneous purchase and sale of two identical commodities or instruments. This simultaneous sale and purchase is done in order to take advantage of the price variations in two different markets. 

  1. Cap
  2. Term insurance
  3. Arbitrage
  4. Hedge

Answer: 3

Q:6 Marketing mix includes 4 Ps and 4Cs. Match the following and prepare the proper combinations:
4 P's                              4 C's
Product                    Convenience
Price                        Communication
Promotion                Cost
Place                       Customers' satisfaction 

  1. Product-Communication, Price-Cost, Promotion- Customers satisfaction, Place-Convenience
  2. Product-Customer's satisfaction, Price-Cost, Promotion- Convenience, Place- Communication
  3. Product-Convenience, Price-Cost, Promotion-Communication, Place- Customer's satisfaction
  4. Product-Customer's satisfaction, Price-Cost, Promotion-Communication, Place-Convenience

Answer: 4

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