Business Environment 2

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Objective Questions and Answers of MBA: Business Environment 2

Subject: Objective Questions and Answers of MBA: Business Environment 2

Part 2: Objective questions and answers of Business Environment


Q1. In which production India has attained self-sufficiency?

a) Fertilizers

b) Edible oil

c) Petroleum

d) Food grains


Q2. The largest share in India’s national income is from

a) Service sector

b) Agriculture sector

c) Manufacturing sector

d) Trade sector


Q3. Which of the following is not a fundamental right enshrined in the Indian constitution?

a) Right to freedom of religion

b) Right to equality

c) Right to equal pay for equal work for men as well as women

d) Right to freedom of thought and expression


Q4. Which of the following items is not included in a country’s balance of payments?

a) Shipping services

b) Interest received from abroad

c) Import and export duties

d) Tourists' expenditure


Q5. A situation where a country exports a product at a price below its cost of production

a) Full cost pricing

b) New protectionism

c) Dumping

d) Price skimming


Q6. Which of the following is not likely to be a benefit that host countries will obtain from mncs?

a) Technology transfer

b) Import substitution

c) The ability to impose high tax rates on them

d) Job creation


Q7. National income estimates in India is prepared by

a) Planning commission

b) RBI

c) Finance ministry

d) CSO


Q8. Black money in India

a) Raises domestic prices

b) Encourages lavish consumption

c) Causes loss of revenue to the exchequer

d) Effects all of the above


Q9. Inflation, in theory occurs

a) When prices of essential commodities outstrip income

b) When money supply grows at a higher rate than gdp in real terms

c) When exchange rate of domestic currency falls in foreign exchange markets

d) When fiscal deficit exceeds balance of payments deficit.


Q10. Which of the following regulates the working of stock markets in India?

a) Fema

b) Rbi

c) Sebi

d) Ministry of finance


Q11. The main watchdog of international trade is

a) Imf

b) World bank

c) Wto

d) Unctad


Q12. India is not a member of

a) G-15

b) Asean

c) Uno

d) Ilo


Q13. 'Level playing field' argument of industries requires

a) Mncs to be stopped from investing in India

b) Licence to mncs be given only in environment-friendly technologies

c) Mncs to be treated at par with the domestic industry

d) Domestic industry to be given preference over mncs.


Q14. Which two of the following arguments are most likely to be used to justify protectionism?

(a) to protect high cost domestic industries

(b) to protect strategically important industries

(c) to protect industries which are still immature

(d) to maximise government tax revenue

(e) to protect environmental standards

a) (d) and (e)

b) (a) and (b)

c) (c) and (d)

d) (b) and (c)


Q15. A situation where any advantage given by one member of the wto to another member must be extended to all wto members.

a) The excessive invoicing principle

b) The intra-regional principle

c) The trade diversion principle

d) The most favoured nation principle


Q16. Mncs are in a good position to vary their strategies in different phases of the product life cycle. For instance in the ______________ phase(s) they will usually ___________

a) Decline, maintain high prices

b) Launch, move production to low-cost countries

c) Growth and maturity, move production to low-cost countries

d) Growth, maintain high prices


Q17. Banking sector will fall under which of the following sectors?

a) Agricultural sector

b) Service sector

c) Manufacturing sector

d) Industrial sector


Q18. The new economic policy launched in 1991 consist of

(a) stabilization policy

(b) import control policy

(c) deficit financing

(d) structural adjustment policy

a) I. Only

b) I. Iii. And iv.

c) Ii. And iv.

d) I. And iv


Q19. Which two of the following are regarded as the main aims of the world trade organization (WTO)?

(a) to eliminate discrimination in world trade

(b) to provide financial assistance to countries with debt

(c) to reduce tariff barriers

(d) to make 'infant industry' protection illegal

(e) to help give preferences to smaller economies

a) (b) and (d)

b) (a) and (c)

c) (d) and (e)

d) (b) and (d)


Q20. India has

a) Parliamentary form of government

b) Presidential form of government

c) Both parliamentary and presidential form of government

d) None of these


Part 2: Objective questions and answers of Business Environment


Q1. Answer d


Q2. Answer a


Q3. Answer c


Q4. Answer c


Q5. Answer c


Q6. Answer a


Q7. Answer d


Q8. Answer d


Q9. Answer b


Q10. Answer c


Q11. Answer c


Q12. Answer b


Q13. Answer c


Q14. Answer d


Q15. Answer d


Q16. Answer c


Q17. Answer b


Q18. Answer d


Q19. Answer b


Q20. Answer a

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