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Classification of business - class-XI

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The industries which provide support services to other industries are known as ____________.

  1. Primary industries

  2. Secondary industries

  3. Commercial industries

  4. Tertiary industries


Correct Option: D
Explanation:

Tertiary industries: These industries provides support to primary and secondary industries . Tertiary industry consits of : banking, transportation warehousing etc services.

Which of the following is not a feature of an optimal capital structure?

  1. Safety

  2. Flexibility

  3. Control

  4. Solvency


Correct Option: B

Business risk is not likely to arise due to _____________.

  1. Change in government policy

  2. Good management

  3. Employee dishonesty

  4. Power failure


Correct Option: B
Explanation:

Business risks is the possibility that a company will have lower than anticipated profits in future or even experience a loss . If there is a good management in business there will be no chances of business risks.

Business activities are of ____________ types.

  1. One

  2. Two

  3. Three

  4. Four


Correct Option: B
Explanation:

The business activity are of two types :

1. Industry :
a) Primary industry

b) Secondary industry
c) Tertiary industry
2. Commerce :
a) Trade 
b) Auxillaries of trade.

The enumerators work under a _________.

  1. supervisor

  2. superior

  3. director

  4. manager


Correct Option: A
Explanation:

Enumerators are those persons who gather information by conducting a survey and they report to their higher authorities, who are known as Supervisors.

Economic activities may be classified into business, ___________ and employment.

  1. profession

  2. occupation

  3. vocation

  4. work


Correct Option: A
Explanation:

Profession is a type of paid occupation which involves training, utilization of skills for a prolonged period. Business, profession and employment all are considered economic activities because they consist of exchange of goods and/or services for money.

Which theory is considered as a comprehensive attempt at explaining consumer's behaviour?

  1. Group theory

  2. Howard-sheth theory

  3. Cognitive theory

  4. Field theory


Correct Option: B
Explanation:

Howard-Sheth theory explains how consumers behave while buying a product or rendering a service in the market. It assumes that consumer is rational while buying the product and how the consumer is getting affected through physical, symbolic and social characteristics of the product, through marketing and their need for the product or service. 

Which of the following is not an example of non-economic activity?

  1. Patriotism

  2. Teaching

  3. Sentiment

  4. Sympathy


Correct Option: B
Explanation:

Non-economic activities are those activities which do not generate any income or money while they are carried out. Patriotism, sentiment, sympathy are all emotions, feelings of an individual whereas teaching is an activity which involves money transfer after it is carried out (unless it is intentionally carried out without any pay). Because a teacher gets salary for teaching, it is not an example of non-economic activity.

The term 'relevant' in a business activity means ____________________.

  1. Pertinent to decision at hand

  2. Difference in cost between alternatives

  3. Both (A) and (B)

  4. None of the above


Correct Option: A
Explanation:

In day to day business activities, the term 'relevant' indicates at the applicability of a certain decision that are taken in an organisation. 


These relates to how efficient and effective the decisions are in an organisation and how well does it relates to the matter of the problems for which it is taken. 

A secretary is a custodian of __________.

  1. business information

  2. personal information

  3. secret information

  4. none of these


Correct Option: C
Explanation:

The duties of a secretary include keeping the secret information to itself. Hence a personal secretary is a custodian of secret information.

A person who acts as a confidential writer is a _________.

  1. worker

  2. secretary

  3. servant

  4. none of these


Correct Option: B
Explanation:

Secretary means an officer who is generally entrusted with the responsibilities of writing and exchanging letters, maintain documents and performing confidential activities on behalf of someone or any organization.

Secretary is a officer who performs many confidential and important functions for a person or for an organization

In ancient Indian literature, the post of secretary is referred as __________.

  1. Sachiva

  2. Scribae

  3. Secretaries

  4. None of these


Correct Option: A
Explanation:

In ancient Indian literature and historical documents the word 'Sachiva' was used for a secretary. Originally, the term 'secretary' was mainly related with the person who does writing work for his master.

A secretary can be a firm or a corporate body.

  1. True

  2. False


Correct Option: B
Explanation:
(i) The Oxford Dictionary defines a secretary as a "A person, whose work is to write for others, especially one who is employed to conduct correspondence, keep records and to transact various other businesses for another person or for a society, corporation or a public body. 

(ii) A secretary must be an individual who can write for others. 

(iii) A firm or a corporate body cannot write for others. 

(iv) Hence, a secretary cannot be a firm or a corporate body. 

The word 'Secretary' is derived Latin word _________ which mean confidential writer.

  1. Scribae

  2. Secretarius

  3. Amatya

  4. None of these


Correct Option: B

The State and Central government also have secretary for all departments functioning under the control of ministers in ___________.

  1. Stock Exchange

  2. Sachivalaya

  3. Capital Market

  4. None of these


Correct Option: B
Explanation:

Sachivalaya is responsible for the administration of the government of India. It facilitates smooth transaction of business of ministries of government by ensuring adherence of the rules . It assists in decision making in the government by ensuring inter-ministerial coordination. The state and central government also have secretary for all the departments functioning under the control of ministers in sachivalaya. 

Secretary should have the knowledge of ___________.

  1. accountancy

  2. civics

  3. science

  4. none of these


Correct Option: A
Explanation:

A secretary should  the knowledge of accountancy so as to make sure the correct maintenance of accounts and it also helps in the administration of the organisation. 

In the old Roman empire the secretary was referred to as __________.

  1. Scriba

  2. Chitnis

  3. Amatya

  4. None of these


Correct Option: A
Explanation:

The term secretary is derived from the Latin term 'Secretarius', which means a confidential officer (Writer). In the old Roman Empire a secretary was called 'Scriba', which means professional letter writer.

Duties required to be performed under various laws are ___________.

  1. administrative

  2. statutory

  3. co-ordinating

  4. none of these


Correct Option: B
Explanation:

The duties required to be performed under various laws are called the statutory duties. Statutory duties are those duties which are mentioned in law or statue, the breach of any statutory duty is liable to any criminal penalty imposed by the statue.

The term secretary means a ___________.

  1. confidential writer

  2. servant

  3. adviser

  4. none of these


Correct Option: A
Explanation:

Secretary means an officer who is generally entrusted with the responsibilities of writing and exchanging letters, maintain documents and performing confidential activities on behalf of someone or any organization.

Secretary is a officer who performs many confidential and important functions for a person or for an organization

Every business organization needs a secretary having a knowledge of recording ____________ transactions.

  1. financial

  2. private

  3. illegal

  4. none of these


Correct Option: A
Explanation:

Every business organisation needs a secretary having a knowledge of recording financial transaction as financial transaction are the main part of any organisation.

In Ancient Indian History, the person doing secretarial work was known as _________.

  1. Scribae

  2. Amatya

  3. Secretaries

  4. None of these


Correct Option: B
Explanation:

In ancient Indian literature and historical documents the words like 'Amatya', 'Sachiva', and 'Chitnis' were used for a secretary. Originally, the term 'secretary' was mainly related with the person who does writing work for his master.

A type of secretary appointed by an institution is called institutional secretary.

  1. True

  2. False


Correct Option: A
Explanation:

True, institutional secretary is a type of secretary which takes charges of the administration of the whole institution and helps the management in regard to the decision making for the institution.

"A secretary is an indispensable person in the office."

  1. True

  2. False


Correct Option: A
Explanation:

True , a secretary is an indispensable person in the office as he plays an essential part in the business administration and helps the management.

A personal secretary means a stenographer. 

  1. True

  2. False


Correct Option: B
Explanation:
(i) A personal secretary is one who is employed by a busy person to look after his private and personal work. 
(ii) A personal secretary is also known as a private secretary or a personal assistant 
(iii) Busy persons like industrialists, professionals, politicians, social workers, lawyers and top executives of companies and government departments need personal secretaries for performing their routine administrative duties.
(iv) A stenographer simply takes dictation from his employer/ boss and types the dictation taken. 
(v) Whereas, the knowledge of stenography is not essential fora personal secretary. 
(vi) A stenographer is given limited duties and responsibilities. 
(vii) A stenographer is not given authority to sign letters and documents on behalf of his employer. 
(viii) A stenographer is not entrusted with confidential matters. 
(ix) Hence, it cannot be said that a personal secretary means a stenographer. 

A personal secretary is also called a ______.

  1. Stenographer

  2. Personal Assistant (P.A.)

  3. Boss

  4. None of these


Correct Option: B
Explanation:

A personal secretary is also known as personal assistant and their main duty is to follow the orders of their ultimate superior and perform according to the standards set by their superiors. 

A secretary is the custodian of ______ information. 

  1. confidential

  2. government

  3. financial

  4. share holders


Correct Option: A
Explanation:

A secretary is a custodian of secret, confidential and important information of his organization. Since he is closely connected with a top management, he participates in the decision making, policy framing, planning etc. All such important decisions regarding business activities are required to be maintained at top confidential. A secretary keeps all such confidential decisions and executes them at a right time

The primary qualification required for a secretary of a government department is _____ . 

  1. Bachelor Degree

  2. Master Degree

  3. I.A.S

  4. I.E.S.


Correct Option: C
Explanation:

The primary qualification required for a secretary of a government department is I.A.S. ( Indian Administrative Service).

Personal secretary must be an individual. 

  1. True

  2. False


Correct Option: A
Explanation:
(i) A personal secretary is an individual who is appointed by busy persons like industrialists business men or professionals to conduct their correspondence and do their personal work 
(ii) Professionals like doctors, lawyers, engineers, chartered accountants or actors, minister appoint personal secretary due to their busy schedules in order to do their routine work. 
(iii) Therefore personal secretary is appointed by people who have to devote their time an energy to discharge more important and challenging duties. 
(iv) A personal secretary is also called personal assistant or private secretary.
(v) He is entrusted with confidential matters and his duties vary in nature. 
(vi) An individual only can perform all such wont of a personal secretary. 

A secretary of Government departments of the state is appointed by the ______ . 

  1. Chief Minister of that State

  2. Governor

  3. Prime Minister

  4. President


Correct Option: A

A company secretary is the mouth piece of the Board of Directors. 

  1. True

  2. False


Correct Option: A
Explanation:
(i) A company secretary needs sound general education. 
(ii) He must also have knowledge of correspondence, office organisation, book-keeping and accountancy. 
(iii) He must also have knowledge of secretarial work relating to the company meetings. 
(iv) He must have legal back-ground including the knowledge of Indian Companies Act and other laws like Income Tax Act and Factories Act. 
(v) A company secretary is normally appointed by the Board of Directors. 
(vi) He executes the decisions of the Board and carries out the instructions and orders of the board. 
(vii)  He acts as a confidential clerk of the Board. 
(viii) He has to help the directors in forming policies of the company and preparing progress report and other reports. 
(ix) A company secretary acts as a line of communication between the Board and the staff. 
(x) He acts as the mouth piece of the Board, as the Directors act only through the secretary 
(xi) Even grievances of the staff are communicated to the Directors through him. 
(xii) Hence, a company secretary is the mouth piece of the Board of Directors.

The functions of a secretary depend on ______ . 

  1. the nature of organisation

  2. the status of secretary

  3. the value of investment

  4. the number of share holders


Correct Option: A
Explanation:

The function of secretary depend on the nature of the organisation, different organisations have different works and requirements which changes the functions of a secretary.

The quality of a secretary which enables him to adjust to varying situation is qualities of head.

  1. True

  2. False


Correct Option: A
Explanation:

A company secretary is a representative of the company to the outside world. The main qualities of a secretary that helps them to adjust and adapt to the varying situation of the business environment is the quality to learn from continuous efforts which are also known as qualities of head. 

A personal secretary is appointed by the busy person.

  1. True

  2. False


Correct Option: A
Explanation:

True , a personal secretary is appointed by the busy person as he needs personal assistance in his daily work .

The functions of a personal secretary depend on the nature of work of his master.

  1. True

  2. False


Correct Option: A
Explanation:

True , a personal secretary is an administrative assistance who is hired to reduce the burden of the employer . The job of the secretary is to do clerical , administrative and management work for the employer . The functions of a personal secretary clearly depends upon the type of work and the functioning of the employer as personal secretary is suppose to do the daily functions on the behalf of the employer . A personal secretary is supposed to do the management of the schedules of the employer arrangement of the meetings , client coordination etc .

At the end of every year all directors retire.
  1. True

  2. False


Correct Option: B
Explanation:

False , A company's Article of Association may provide that one-third of the directors must retire by rotation at each annual general meeting. If two or more persons were originally appointed on the same day , those to retire should be between them or determined by lot.

State  the following statement is True of False:

The first auditor is appointed by the shareholders of the company.

  1. True

  2. False


Correct Option: B
Explanation:

According to the Company Act , 2013 , the first auditor is appointed by the shareholders of the company at the time of commencement . 

Auditor is a person appointed by the company to execute audit. auditing is done by the auditor to check the accuracy of the accounts .  The first auditor is appointed by shareholders.

State the following statement is True or False.

Annual Report is prepared by members.

  1. True

  2. False


Correct Option: B
Explanation:

This statement is False because of the following reasons : 

(i) The Board of Director is the authority who convene this meeting. 
(ii) This authority is delegated to the secretary in Board Meeting.
(iii) The secretary has to ensure the preparation of annual report and annual accounts. 
(iv) These reports and financial statement need to be approved by the board and the auditors.
(v) The secretary presents the Annual Accounts to the directors for approval and obtains signature. 
(vi) He also sends Annual Accounts to the auditor for audit.
(vii) The secretary then drafts the Directors' Report. This report presents the performance of the company during the year.
Hence, it is the secretary and not the members who prepare annual report.

State the following statement is True or False.

The Secretary of the meeting has to draft the minutes of the meeting.

  1. True

  2. False


Correct Option: A
Explanation:

This statement is True because of the following reasons : 

(i) Minutes are brief summary of the business transacted at a meeting.
(ii) A secretary has to make entries in the minutes book within 30 days of every meeting.
(iii) The minutes of general meetings and board meetings must be recorded within 30 days of such meeting.
(iv) The secretary should show the minutes to the chairman immediately after drafting and get them approved from the chairman.
(v) Minutes cannot be altered once approved and signed by the chairman.
(vi) The secretary should draft the minutes after going through the agenda and the notes taken down by him during the course of the meeting.
(vii) Minutes should be complete in all respects i.e. all resolutions and decisions taken must be incorporated in the minutes.
(viii) Minutes should be divided into suitable paragraphs.
(ix) Minutes should be drafted in an affirmative manner.
(x) Hence, the secretary of the meeting has to draft the minutes of the meeting.

State the following statement is True or False.

A notice of meeting must be sent to all members in case of General Meeting.

  1. True

  2. False


Correct Option: A
Explanation:

This statements is True because of the following reason:

(i) The Board of Director is the authority  who convene this meeting and delegate the authority to the secretary.
(ii) Atleast 21 days advance notice from the date the meeting must be given to all the member at their registered addresses.
(iii) The notice,admit card,etc. atleast 21 days before the date of holding of such meeting.

Only special business is transacted at Annual General Meeting.

  1. True

  2. False


Correct Option: B
Explanation:

False , Annual General Meeting is a mandatory yearly gathering of company's interested shareholders . At the meeting the directors of the company present an annual report containing information for the shareholders about the company's performance and strategy. Shareholders with voting rights vote on current issues such as appointment of board of directors , executive compensation, divident payment and selection of auditors.

State the following statement is True or False.

21 clear days notice should be given is case of Board Meeting.

  1. True

  2. False


Correct Option: B
Explanation:

This statement is False because of the following reasons:

(i) Notice refers to a formal invitation in writing indicating the day,date ,time and place attend meeting.
(ii) The chairman of the board is the proper authority to convene Board Meeting.
(iii)To conduct Board Meeting, a notice of reasonable period should be given.
(iv) However, the company 's Article of Association can provide a definite period of notice case of board meeting.
Thus, there is no need to serve 21 clear days notice in case of Board Meeting.

State the following statements is True or False:

The meeting of shareholders which is held in between two consecutive Annual General Meetings is Extra Ordinary General meeting.

  1. True

  2. False


Correct Option: A
Explanation:

True, the meeting which is held between two consecutive Annual General Meetings is called Extraordinary General Meeting . It is a sort notice meeting o members and the shareholders especially to consider a particular matter. 

The general meeting held after the completion of the financial year is the Annual General Meeting .
  1. True

  2. False


Correct Option: A
Explanation:

True , the general meeting held after the completion of the financial year is the Annual General Meeting . Annual General Meeting is a meeting conducted annually f or the members or shareholders for holding elections or reporting on theyear's events.

The general meeting held only once in the life of the company is the statutory meeting.
  1. True

  2. False


Correct Option: A
Explanation:

true, statutory meeting is the first meeting of the shareholders of a company. It must be held within a period of less than one month not more than six months from the date at which the company is entitled to the commencement of business . it is only held once in a lifetime of a company.

President of National Company Law Tribunal cannot be re-appointed on expiry of his term.

  1. True

  2. False


Correct Option: B
Explanation:
Section 10FE, Companies Act, talks about the "term of office of president and members."
The President and every other Member of the Tribunal shall hold office as such for a term of three years from the date
on which he enters upon his office but shall be eligible for re-appointment :
Provided that no President or other Member shall hold office as such after he has attained, -
(a) in the case of the President, the age of sixty-seven years ;
(b) in the case of any other Member, the age of sixty-five years :
Provided further that the President or other Member may retain his lien with his parent cadre or Ministry or
Department, as the case may be, while holding office as such.
Appointment of the Auditors is made at the Annual General Meeting.
  1. True

  2. False


Correct Option: A
Explanation:

True , the appointment of the auditor is made at Annual General Meeting . Every company shall appoint an auditor at it's first annual general meeting who shall hold its first office from conclusion of that meeting to its sixth annual general meeting

The written record of the proceedings at the meeting are the minutes.
  1. True

  2. False


Correct Option: A
Explanation:

Minutes also known as minutes of meeting are instant records. They typically describe the events of the meeting and may include a list of attendees, a statement of the issues considered by the participants and related responses or the decision of the issue.

Registrar of Companies is appointed by State Government.

  1. True

  2. False


Correct Option: A
Explanation:

True

 the Registrar of Companies is appointed by state government under the Ministry of Corporate Affairs that deals with the administration of Company act 2013 ...

The gap between two general meetings should not be more than _______ months. 
  1. five

  2. ten

  3. fifteen

  4. twenty


Correct Option: C
The first general meeting of the company is the statutory meeting.
  1. True

  2. False


Correct Option: A
Explanation:

Statutory meeting is the first meeting of the shareholders of the company. it must not be held only once in a lifetime of a company . Hence the first general meeting of the company is the statutory meeting. 

Select the correct option:

______ is the proposal put before the meeting for discussion and decision.

  1. Resolution

  2. Motion

  3. Amendment

  4. All of above


Correct Option: B
Explanation:

A motion is a topic or subject proposed as a basis of dis­cussion. Since a member at a meeting formally introduces or moves a subject for discussion it is called a motion. With the permission of the chairman a motion is moved by an individual. He ‘secures the floor’, addresses the chairman and makes a short speech in support of the motion.

Immediately after that another member stands up and ‘seconds’ it. A motion when seconded is called a proposal and it is before the meeting. If no one seconds a motion, it ‘falls to the ground’ and no discussion takes place on it. A formal motion like ‘point of order’ or a motion by the chairman does not require seconding.

Minimum number of members to remain present for a valid meeting is the quorum.
  1. True

  2. False


Correct Option: A
Explanation:

True, the minimum number of members to remain present for a valid meeting is the quorum. It is the minimum acceptable level of individuals with a vested interest in a company needed to make the proceedings of the meeting valid.

Meeting must be duly convened and properly constituted.
  1. True

  2. False


Correct Option: A
Explanation:

True, the general meeting is under the control of the chairman , who must concentrate on the punctilious conduct of the meeting. 

It is vital that the general meeting must be properly convened, constituted and conducted.T
he administrative arrangement for a meeting should be carefully planned.

List of things to be done at the meeting is the agenda.
  1. True

  2. False


Correct Option: A
Explanation:

True, an agenda is the list of meeting activities in the order in which they are to be taken up , beginning with the call to order and ending with adjournment. It usually includes one or more specific items of business to be acted upon.

The directors are agents, trustees and managing partners of a company.
  1. True

  2. False


Correct Option: A
Explanation:

True, Directors are appointed or elected member who has the responsibility for determining and implementing the company's policies . They are agents, trustees and managing partners of a company. 

All resolutions must be registered with registrar of Companies. 

  1. True

  2. False


Correct Option: B
Explanation:
Section 192 of Companies Act, 1956, talks about "Registration of certain resolutions and agreements."

(1) A copy of every resolution (together with a copy of the statement of material facts annexed under section 173 to the notice of the meeting in which such resolution has been passed) or agreement to which this section applies shall, within thirty days after the passing or making thereof, be printed or typewritten and duly certified under the signature of an officer of the company and filed with the Registrar who shall record the same.

(2) Where articles have been registered, a copy of every resolution referred to in sub-section (1) which has the effect of altering the articles and a copy of every agreement referred to in that sub-section for the time being in force shall be embodied in or annexed to every copy of the articles issued after the passing of the resolution or the making of the agreement.

(3) Where articles have not been registered, a printed copy of every resolution or agreement referred to in sub-section (1) shall be forwarded to any member at his request, on payment of one rupee.

(4) This section shall apply to

(a) special resolutions ;

(b) resolutions which have been agreed to by all the members of a company, but which, if not so agreed to, would not have been effective for their purpose unless they had been passed as special resolutions ;

(c) any resolution of the Board of directors of a company or agreement executed by a company, relating to the appointment, re-appointment or renewal of the appointment, or variation of the terms of appointment, of a managing director ;

(e) resolutions or agreements which have been agreed to by all the members of any class of shareholders but which, if not so agreed to, would not have been effective for their purpose unless they had been passed by some particular majority or otherwise in some particular manner ; and all resolutions or agreements which effectively bind all the members of any class of shareholders though not agreed to by all those members ;

(ee) resolutions passed by a company

(i) according consent to the exercise by its Board of directors of any of the powers under clause (a), clause (d) and clause (e) of sub-section (1) of section 293 ;

(ii) approving the appointment of sole selling agents under section 294 or section 294AA ;

(f) resolutions requiring a company to be wound up voluntarily passed in pursuance of sub-section (1) of section 484 ; and

(g) copies of the terms and conditions of appointment of a sole selling agent appointed under section 294 or of a sole selling agent or other person appointed under section 294AA.

(5) If default is made in complying with sub-section (1), the company, and every officer of the company who is in default, shall be punishable with fine which may extend to two hundred rupees for every day during which the default continues.

(6) If default is made in complying with sub-section (2) or (3), the company, and every officer of the company who is in default, shall be punishable with fine which may extend to one hundred rupees for each copy in respect of which default is made.

(7) For the purposes of sub-sections (5) and (6), the liquidator of a company shall be deemed to be an officer of the company.

State the following statement is True or False:

Under Companies Act,1956 a director need not disclose  information to the board about his directorship in other companies.

  1. True

  2. False


Correct Option: B
Explanation:

This statements is False because of the following reasons:

(i) Under section 275 of the Companies Act,1956 a person cannot hold offices as a directors in more than 15 companies at the same time.

(ii) If a director holds office as a directors in more than fifteen companies at the same time , he shall be punishable with a fine extending upto Rs 5,000/- for each directorship in excess of 15 companies.

(iii) Under section 159 of the Companies Act,1956,every company has to file Annual Returns to the Registrar of Companies.

(iv) All details of the directors have to be stand in the Annual Return.

(v) For this, the secretary has to collect this information from every directors of the company.

(vi) Therefore, every director is required to disclosed details of information of other companies in which they act as directors. 
However some of the provisions are amended according to Companies Act,2013.

State the following statement is True or False:

A director must acquire qualification shares within three months from the date of being appointed as a director in a company.

  1. True

  2. False


Correct Option: B
Explanation:

This statement is False, due to the following reasons:

(i) The directors occupy a very important position in the company management.
(ii) They are elected representatives of the shareholder.
(iii) Directors are responsible for decision making , policy farming  and determination of plans.
(iv) Directions exercise their powers and authorities collectively as a' Board'.
(v) Under Section 270 of the Companies Act 1956, every person  who desire to become a director of the company must purchase qualification shares within a period of 2 months from the date of his appointed.
(vi) However, the nominal value of such share should not exceed Rs.5,000/- 
(vii) The secretary has to correspond in this connection.
(ix) Whenever a Director is appointed,it is the duty of the Secretary to remind him that he has to purchase the qualification share and inform the company accordingly.
So, the Director has to purchase qualification shares within two months and not three months,from the date of his appointment.

What is the second stage of socialisation process?

  1. Metamorphosis stage

  2. Pre-arrival stage

  3. Outcome

  4. Encounter stage


Correct Option: D

Income of a businessman is called ________.

  1. wage

  2. salary

  3. fee

  4. profit


Correct Option: D
Explanation:

A business is an activity of making money by producing and buying and selling products. It is an entity which is established for earning profit which is the basic motive. Thus the income of the businessman is called profit.

____ Sector Skill Councils (SSG) approved in services, manufacturing, agriculture & allied services, and informal sectors. Sectors include 19 of 20 high priority sectors identified by the Government and _ of the sectors under Make in India initiative.

  1. 38; 25

  2. 83; 52

  3. 33; 22

  4. 22; 33


Correct Option: A

Which of the following occupations involve maximum risk?

  1. Employment

  2. Business

  3. Profession

  4. Teaching


Correct Option: B
Explanation:

Business involves maximum risk as it has some external and internal environment factors which are not in the control of business and creates various types of business risks. Employment, profession and teaching does not not involves as they get fixed remuneration.

Which of the following is not a business activity?

  1. A housewife selling old newspapers

  2. A person selling vegetables in your locality

  3. A teacher teaching his daughter at home

  4. A painter painting houses of others


Correct Option: A

White-collar workers are _________.

  1. Working on machines and engaged in loading, unloading

  2. Clerical employees

  3. Mining labourers

  4. None of the above


Correct Option: B
Explanation:

White collar refers to employees whose job entails largely on clerical work such as in a office. It refers to the job of officials who performs managerial or professional work for the organisation and get a fixed salary as remuneration at the end of each month.

Which of the following professional degree is given by a private institute?

  1. Chartered Accountant

  2. Cost Accountant

  3. Chartered Secretary

  4. Chartered Financial Analyst


Correct Option: D
Explanation:

The Chartered Financial Analyst (CFA) Program is a professional credential offered internationally by the American based CFA Institute (formerly the Association for Investment Management and Research, or AIMR) to investment and financial professionals.

Blue-collar workers are ________.

  1. working on machines and engaged in loading, unloading

  2. clerical employees

  3. executive employees

  4. contract employees


Correct Option: A
Explanation:

The blue collar refers to a type of employment. Blue collar jobs are typically classified as involving manual labour and compensation by an hourly wage. Some fields that fall into this category include construction, manufacturing, maintenance and mining.

Which of the following can be classified as "internal forces"?

  1. Economic forces

  2. Changes in employee attitudes, feelings and aspirations

  3. Political forces

  4. All of above


Correct Option: B

Employees relate to which of the following?

  1. Work all day all night

  2. Do not work

  3. Work hard

  4. Work smart


Correct Option: C

The income of a profession is called ________.

  1. wage

  2. salary

  3. fee

  4. profit


Correct Option: C
Explanation:

Fee- a payment made to a professional person or to a professional or public body in exchange for advice or services

Capital rationing is applied in a situation where ________________________.

  1. It is difficult to bring in required amount of capital

  2. Financial institutions are doubtful or not sure of the viability of the project

  3. A large number of investment proposals compete for limited funds

  4. The dividend is converted into capital for completion of a new project


Correct Option: C

If stock turnover ratio is $4$ times and the collection period is $30$ days, the operating cycle would be _________.

  1. 30 days

  2. 60 days

  3. 90 days

  4. 120 days


Correct Option: A

The profession of a secretary is one of the oldest professions in the world.

  1. True

  2. False


Correct Option: A
Explanation:

The profession of a secretary is one of the oldest profession in the world. In ancient times important persons like Kings, Emperors, Businessmen etc. appoint the secretary to carry out their routine work like letter writing and keeping records of important events, matters etc. In addition to this certain confidential duties also were assigned to him.

(i) The term secretary is derived from the Latin word `Secretarius' which means a confidential writer. 
(ii) In the old Roman empire a secretary was called `Scribae' which means professional letter writer. 
(iii) In ancient Indian literature and historical documents the words like 'Amatya!, `Sachiva' and 'Chitnis' were used for a secretary. 
(iv) In ancient times, important persons like kings, emperors, businessmen, etc. appointed Vazirs to carry out their routine work like letter writing and keeping records of important events, matters and confidential matters. 
(v) It is as old as the human civilization. 
(vi) Thus, the profession of a secretary is one of the oldest professions in the world. 

A __________ secretary is the oldest type of secretary.

  1. Company

  2. Personal

  3. Government

  4. Private


Correct Option: B
Explanation:

A personal secretary is the oldest type of secretary as old as human civilization

A person who does writing work for his boss is a ____________.

  1. secretary

  2. board of directors

  3. managing committee

  4. none of these


Correct Option: A
Explanation:

The term secretary means a person who writes secret on behalf of his superior or for his/her boss.

The time limit beyond which if goods are not returned, the capital goods sent for job work shall be treated as supply

  1. One year

  2. Five years

  3. Three Years

  4. Seven years


Correct Option: C
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