Business Environment Online MCQ Set 15

QN01. The objectives of import duty is/are

  1. To raise income for the government
  2. To restrict imports
  3. To encourage exports
  4. To raise income and restrict imports
Answer

(D)To raise income and restrict imports

QN02. The following benefit is not expected from globalisation

  1. Reaping the benefits of free trade
  2. Better quality of life through choice of product
  3. Better knowledge through compulsory education
  4. Dissemination of information through new information technology
Answer

(C)Better knowledge through compulsory education

QN03. The cultural environment of a country is best defined by which characteristics?

  1. Degree of nationalism and economic community membership
  2. Production process and standards of measurement
  3. Standard of living and stage of economic development
  4. Values, attitudes, heroes, myths and symbols
Answer

(D)Values, attitudes, heroes, myths and symbols

QN04. Which of the following are positive reasons for internationalization?

  1. Market diversification
  2. Economies of scale
  3. International competitiveness
  4. All of the above
Answer

(D)All of the above

QN05. Profit may be defined as

  1. the difference between total wage costs and total sales revenue
  2. total revenue from sales
  3. the difference between total production costs and total sales revenue
  4. the amount of money paid to shareholders as dividends
Answer

(C)the difference between total production costs and total sales revenue

QN06. Which type of organization structure is characterized by departments or units dealing with specialized tasks?

  1. Matrix
  2. Divisional
  3. Hierarchical
  4. Functional
Answer

(D)Functional

QN07. The goods and the services produced, priced and distributed by the government is

  1. Market economy
  2. Secular economy
  3. Command economy
  4. Mixed economy
Answer

(C)Command economy

QN08. The transfer of the ownership of state property into the hands of the private individuals by the sale of state assets through auction is

  1. Privatization
  2. Liberalization
  3. Globalization
  4. Domestication
Answer

(A)Privatization

QN09. The focus on increasing profitability and profit growth by reaping the cost reduction that come from economies of scale is

  1. global standardization strategy
  2. localization strategy
  3. transnational strategy
  4. international strategy
Answer

(A)global standardization strategy

QN10. The entry mode that allow firms to export their process know- how to countries where FDI is prohibited, thereby enabling the firm earn greater return from this assets is ______________.

  1. licensing
  2. consultancy exports
  3. project exports
  4. turnkey projects
Answer

(D)turnkey projects

QN11. Terrorism in the host country is a ______________.

  1. ownership risk
  2. operating risk
  3. transfer risk
  4. general risk
Answer

(B)operating risk

QN12. A mixed economy is necessarily a ______________.

  1. controlled
  2. planned
  3. organized
  4. planned, organized and controlled
Answer

(D)planned, organized and controlled

QN13. What are the important external factors that constitute the economic environment of business?

  1. economic condition
  2. economic policy
  3. economic system
  4. economic condition, policy and system
Answer

(D)economic condition, policy and system

QN14. The purpose of a SWOT analysis is to analyse ______________.

  1. The business environment in which an organisation operates
  2. The strategic capability of an organisation
  3. The business environment and the strategic capability of an organisation relative to its competitors
  4. External and organisational environments
Answer

(C)The business environment and the strategic capability of an organisation relative to its competitors

QN15. The cultural frames of reference include ______________.

  1. National; organisational field; competitors
  2. National; organisational; organisational field and functional/divisional
  3. Unions; organisational; industrial
  4. Organisational; colleagues; organisational field
Answer

(B)National; organisational; organisational field and functional/divisional

QN16. The largest oil- exporting country in the world is ______________.

  1. Norway
  2. Saudi Arabia
  3. Russia
  4. Great Britain
Answer

(B)Saudi Arabia

QN17. The Clean Water Act was passed in the year.

  1. 1960
  2. 1970
  3. 1980
  4. 1990
Answer

(B)1970

QN18. Uneven distribution of natural resources

  1. is the only cause for international business
  2. is the major factor for international business
  3. is among the major factors for international business
  4. is not a cause for international business
Answer

(C)is among the major factors for international business

QN19. A firm investing in a foreign country to distribute the products there in creation of

  1. Asset seeking FDI
  2. Backward vertical FDI
  3. Forward vertical FDI
  4. Distribution FDI
Answer

(C)Forward vertical FDI

QN20. Social mobility is measured by

  1. The extent to which an individual can move the strata to which he/she belongs
  2. The promptness with which an individual accepts foreign assignments
  3. The extent to which inter- caste marriage is encouraged by the society
  4. The extent to which the society as a whole shifts its habitat
Answer

(A)The extent to which an individual can move the strata to which he/she belongs

QN21. A country in the stage of traditional society is characterized by

  1. existence of traditional rule
  2. non existence of industries
  3. predominance of agriculture
  4. complete absence of literacy
Answer

(C)predominance of agriculture

QN22. The five forces that affect the level of competition in an industry are

  1. Threat of entrants; power of buyers; power of suppliers; threat of substitutes; competitive rivalry
  2. Threat of buyers; power of entry; power of substitutes; threat of suppliers; threat of recession
  3. Threat of recession; power of buyers; power of suppliers; threat of management failure; competitive rivalry
  4. Threat of entry; power of buyers; power of suppliers; threat of substitutes; government action
Answer

(A)Threat of entrants; power of buyers; power of suppliers; threat of substitutes; competitive rivalry

QN23. This legal system relies on precedent and conventions

  1. Statute law
  2. Code law
  3. Civil law
  4. Common law
Answer

(D)Common law

QN24. Approximately what per cent of the world income is found outside the United States of America?

  1. 30 per cent
  2. 40 per cent
  3. 75 per cent
  4. 90 per cent
Answer

(C)75 per cent

QN25. Which of the following options contains the correct order from the lowest to highest level of economic integration?

  1. from economic area to customs union to common market to free trade area
  2. from customs union to economic union to free trade area to common market
  3. from free trade area to customs union to common market to economic union
  4. from common market to free trade area to economic union to customs union
Answer

(D)from common market to free trade area to economic union to customs union

QN26. In international business cheaper alternatives to litigation is/ are

  1. Conciliation
  2. Arbitration
  3. Negotiations
  4. Conciliation and arbitration
Answer

(D)Conciliation and arbitration

QN27. Import tariff benefits

  1. the consumers
  2. domestic producers
  3. overseas suppliers
  4. the overseas producers
Answer

(B)domestic producers

QN28. Outsourcing of components is an example of globalisation of

  1. Production
  2. Marketing
  3. Purchase
  4. Production and marketing
Answer

(A)Production

QN29. Which of the following is not true about high- context cultures?

  1. lawyers are less important
  2. Negotiations are lengthy
  3. People make a big deal out of private space
  4. Competitive bidding is less important
Answer

(C)People make a big deal out of private space

QN30. Strong exchange rates can

  1. help predict change in lifestyle across Europe
  2. predict the evolution of sales for particular brands
  3. help estimate consumer purchasing power
  4. drive imports to become cheaper
Answer

(D)help estimate consumer purchasing power

QN31. How can a marketer use the age distribution of the population in a market?

  1. the marketer can use it to identify the purchasing power of the population in each country
  2. the marketer can use it to identify the potential number of customers in various age groups
  3. the marketer can use it to identify behavioural patterns within each age group
  4. the marketer can use it to identify lifestyle patterns within various age groups
Answer

(B)the marketer can use it to identify the potential number of customers in various age groups

QN32. The idea that consumers are in charge of the economic system because their preferences drive business decisions about what to produce is referred to as

  1. consumer activism
  2. consumer sovereignty
  3. consumerism
  4. consumer therapy
Answer

(B)consumer sovereignty

QN33. The taking over of a private firm by the host country government to be run it as a government unit is

  1. expropriation
  2. confiscation
  3. nationalization
  4. domestication
Answer

(C)nationalization

QN34. A entitlement establishing a firm that is jointly owned by two or more otherwise independent firms ______________.

  1. franchising
  2. licensing
  3. joint venture
  4. strategic alliances
Answer

(C)joint venture

QN35. The social guidelines and rules that prescribe appropriate behavior in particular situation is ______________.

  1. norms
  2. values
  3. attitude
  4. belief
Answer

(A)norms

QN36. Case law is the other name for ______________.

  1. code law
  2. common law
  3. civil law
  4. criminal law
Answer

(B)common law

QN37. What is the growth rate of the industrial output in the last four decades?

  1. 4.5 % per annum
  2. 5 % annum
  3. 6 % per annum
  4. 5.5 % per annum
Answer

(D)5.5 % per annum

QN38. When was the first Five year Plan?

  1. 1950
  2. 1951
  3. 1952
  4. 1953
Answer

(B)1951

QN39. SWOT should be ______________.

  1. A general list of issues under each heading
  2. Focused on key issues and as specific as possible
  3. Completed when an analysis of the external environment has been conducted
  4. SWOT analysis is the best strategic management framework for analysing the competitive positioning of an organization
Answer

(B)Focused on key issues and as specific as possible

QN40. An organisational field is a ______________.

  1. Definition of the competitive structure of an industry
  2. Set of assumptions held in common within an industry
  3. Set of benchmarks which organisations should achieve in order to be successful
  4. Community of organisations with a common meaning system and which interact more frequently with each other than with those outside the field
Answer

(D)Community of organisations with a common meaning system and which interact more frequently with each other than with those outside the field

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