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InterviewSolution
This section includes InterviewSolutions, each offering curated multiple-choice questions to sharpen your knowledge and support exam preparation. Choose a topic below to get started.
| 1. |
Buying and selling of goods with in the geographical limit of the company is known asA. External TradeB. Internal TradeC. Wholesale TradeD. Retail Trade. |
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Answer» Correct Answer - (B) Option (b) Internal trade is a correct answer. Internal Trade When buying and selling of goods and services takes place within the geographical limits of a country. It is known as internal trade. |
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| 2. |
On which date the Make in India project was launchedA. 15th August 2014B. 2nd October 2014C. 25the September 2014D. 8th November 2016 |
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Answer» Correct Answer - (C) Option (c) September 25, 2014 IS CORRECT WHEREPrime Minister Mr. Narendra Modi launched the Make In India campaign on September 25, 2014. The date of the launch was chosen to be of maximum advantage. |
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| 3. |
Ravina is good at stitiching clothes. She stitched some clothes for an exhibition she had planned Some of these clothes were donated by her to orphan children in her locality while other clothes were sold in the exhibition. How are the two activites different from each other? |
| Answer» Sold in Exhibition -Economic Activity. | |
| 4. |
Name the industries which provide support service to other industreis. |
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Answer» Tertiary industries. these industries provide service facilities and support services to primary and secondary industries. They may also be considered as a part of Commerce as they assist the activity of trade. Included in this category are transport, banking, insurance, warehousing, communication, packaging and advertising. |
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| 5. |
Explain with examples the various types of industries. |
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Answer» The following are the various types of industries. (a) Primary industries: These industries basically undertake activities related to the extraction and processing of natural resources. These industries directly use natural resources as their raw materials and convert them into a consumable form. Agriculture, mining, fishing, etc., are among the activities undertaken by primary industries. Based on the nature of the activities performed, primary industries can be classified as ‘extractive’ or ‘genetic’ industries. (i) Extractive industries: These industries deal with extraction and refinement of natural resources. The products of these industries serve as raw materials for other industries, which further process these products into useful goods. Agriculture, fisheries, mining, etc., are among the extractive industries. (ii) Genetic industries: These are the industries that undertake breeding of plants and animals which can be used for further reproduction. Seeds and nursery industries and poultry farming are examples of genetic industries. (b) Secondary industries: These industries, also known as manufacturing industries, acquire raw materials (i.e., the final products of primary industries) and convert them into final goods after further processing and value-addition. In other words, these industries aim at making the raw materials that they procure more readily consumable by the final consumer. Secondary industries can be further classified in the following manner. (i) Manufacturing industries: These industries further process raw materials or semi-finished goods into finished products that can be readily used by the final consumer. On the basis of the method of production used by manufacturing industries, they can be further divided into four main categories. 1. Analytical industries: These industries analyse a single product (raw material) and then refine and separate different elements from it to prepare their final products. For example, an oil refinery is an analytical industry in which different products are segregated from crude oil as petroleum, wax, paraffin, etc. 2. Synthetic industries: Synthetic industries combine different raw materials (which serve as ingredients) to produce a completely new product. For instance, a cosmetic cream industry combines various ingredients such as calamine and perfume extracts to produce a final product. 3. Processing industries: In processing industries, the raw material is processed and refined in various stages and converted into the final product. Among the prominent examples of processing industries are the sugar and paper industries. 4. Assembling industries: These type of industries combine various smaller components to form a new final product. As against synthetic industries that combine different raw materials to prepare a new product, assembling industries combine parts that are final products in themselves to produce a new product. The electronics goods industry is an example of an assembling industry. (ii) Construction industries: These industries are concerned with the construction and development of infrastructure such as buildings, bridges, dams and roads. (c) Tertiary industries: These industries are regarded as a lifeline of an economy and act as the basic facilitators for the operation of primary and secondary industries. Among the major services provided by tertiary industries , a few are banking and credit facilities, communication and transportation. These industries are not engaged in hardcore production activities but are basically service providers. |
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| 6. |
What are various types of industries? |
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Answer» The following are the different types of industries. (a) Primary industries: These industries basically undertake activities related to the extraction and processing of natural resources. These industries directly use natural resources as raw materials and convert them into a consumable form. Agriculture, mining, and fishing are some of the activities undertaken by primary industries. Based on the nature of the activities performed, primary industries can be classified into ‘extractive’ or ‘genetic’ industries. (b) Secondary industries: These industries (also known as manufacturing industries) acquire raw materials (which are the final products of primary industries) and convert them into final goods after further processing and value addition. These industries aim at making raw materials more readily consumable by the final consumer. For example, the Construction industries are concerned with the construction and development of infrastructures such as buildings, bridges, dams, and roads. (c) Tertiary industries : These industries are regarded as the lifeline of an economy and act as the basic facilitators for the operation of primary and secondary industries. Among the major services provided by the tertiary industries, a few are banking and credit facilities, communication and transportation. These industries are not engaged in hardcore production activities but are basically service providers. |
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| 7. |
Which one of the broad categoreis of industries covers oil refinery and sugar milis?A. PrimaryB. SecondaryC. TertiaryD. None of them |
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Answer» Correct Answer - (a) Option (a) primary is a correct answer. Industries covers oil refinery and sugar mills are covered under Extractive Industries under primary broad head. |
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| 8. |
Which of the following does not characterise business activity?A. Production of goods and servicesB. Presence of riskC. Sale or exchange of goods and servicesD. Salary of wages. |
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Answer» Correct Answer - (c) (c) presence of risk |
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| 9. |
The industries which provide support servies to other industries are known asA. Primary industriesB. Secondary industriesC. Commercial industriesD. Tertiary industries. |
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Answer» Correct Answer - (d) (d)Tertiary industries is a correct answer. |
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| 10. |
Business risk is not likely to arise due toA. Changes in government policyB. Good managementC. Employee dishonestyD. Power failure. |
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Answer» Correct Answer - (b) (b) Good management is a correct option. |
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| 11. |
ABC Ltd. Is planting trees on the roadside. Which objective is it trying to achieve? |
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Answer» Abc limited is trying to achieve "Social Objective" Social objective are those objectives of business, which are desired to be achieved for the benefit of the society. Since business operates in a society by utilizing its scarce resources, the society expects something in return for its welfare. No activity of the business should be aimed at giving any kind of trouble to the society. |
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| 12. |
What type of industry are poultry farms and dealing with saplings of plants? |
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Answer» Genetic industry. These industries remain engaged in breeding plants and animals for their use in further reproduction. Examples seeds and nursery companies, cattle breeding farms, poultry farms, and fish hatchery etc. |
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| 13. |
What is the base for differentiating the economic and non-economic activities? |
| Answer» The base for differentiating economic and non-economic activities is the end result. If end result is money income then it is economic, if end result is psychological satisfaction then it is noneconomic. | |
| 14. |
Planting samplings and plants is related to what type of industry.A. ManufacturingB. ConstructionC. GeneticD. Extractive. |
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Answer» Correct Answer - (d) Option (d) is a correct answer. Extractive industries: These industries extract or draw out products from natural sources. They supply some basic raw materials that are mostly products of the soil. Products of these industries are usually transformed into many other useful goods by manufacturing industries. Important extractive industries include farming, mining, lumbering, hunting and fishing operations. |
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| 15. |
Why does business nedd multiple objective? Explain any five such objectives. |
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Answer» Need for Multiple Objectives It is generally believed that profit earning is the primary objective of business. However, as per modem thinking, business needs to have several objectives. Consistent and sustainable profit can be earned only if the business performs useful services to society. Business requires multiple objectives since it has to balance a number of needs and goals related to various aspects of society. Following only one objective cannot lead business towards excellence. Objectives are needed in every area where performance and results affect the survival and prosperity of business. Five of the objectives of business are described below (i) Profit Maximisation Profit is defined as excess of revenue over cost. Profitability refers to profit in relation to capital investment Although, earning profit cannot be the only objective of business, its importance cannot be ignored. Every business makes an attempt to reap maximum profit as possible in the given market conditions. Profit may be regarded as an essential objective of business for various reasons (a) It is a source of income for business persons. (b) It can be a source of finance for meeting expansion requirements of business.It indicates the efficient working of business.(d) It can be taken as society’s approval of the utility of business. (e) It builds up the reputations of a business enterprise. (ii) Market Standing It refers to the position of an enterprise in relation to its competitors. A business enterprise must aim at standing on stronger footing in terms of offering competitive products to its customers and provide customer satisfaction. (iii) Innovation It is the introduction of new ideas or methods. There are two kinds of innovation in every business (a) Product Innovation In product innovation, a new product or service or an improved version of existing product is developed. (b) Process Innovation This involves innovation in the methods, skills and activities needed to produce or supply products. Product demand starts declining after a span of time. At time stage, the business must introduce a new innovation to create fresh demand for the existing product by introducing new features in it or bring out a new product to sustain in the market. (iv) Supply Good Quality Products Consumers generally prefer the products which are of satisfactory quality and are available at reasonable price. Thus, it is the duty of a businessman to produce and supply products of proper quality to satisfy the expectations of consumers. (v) Employee Welfare Employees are the valuable asset of an organisation. Because of their contribution, business can expect its success in future. Therefore, it is the duty of every employer to provide good working conditions, fair and just treatment, impressive wages to their employees. |
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| 16. |
Name the occupation in which people work for others and get remunerated in return. |
| Answer» Correct Answer - Employment. | |
| 17. |
Explain the concept of business. |
| Answer» Business refers to an activity wherein two parties enter into transaction of sale and purchase of goods and services with aim of earning money.Business is considered as an economic activity as it is done with aim of earning money and not out of love or sympathy.Every business requires some form of investment and enough customers to whom its output can be sold on a consistent basis in order to make a profit.Businesses can be privately owned, not-for-profit or state-owned | |
| 18. |
Rajiv wants to start a whole safe buisness of readymade garments, but he is hesitating as it involves various problems such as searching for customers, for moving goods from place of production to market , informing customers about new designs and varieties added every season, threat of risk loss by fire or accident, storing the excess stock of goods etc. He appraoches his friend sandeep who explained him about some branches of commerce, which can help Rajiv to over come his hesitation. (a) State the type of business Rajiv is planning to start. (b) State which dimension of business can help Rajiv to overcome these hindrances. (c) Specify different types of Auxiliaries to trade which can help Rajiv to overcome his problems. Quote the line for each type from above para. |
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Answer» (a) Trade-Whole sale Trade. (b) Commerce (c) (i) Searching for Customer -Trade (ii) Moving goods-Transportation (iii) Informing customers-Advertisement (iv) Threat of Risk -Insurance. |
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| 19. |
What role does profit play in a newly setup business organization? Write in brief. |
| Answer» Profit can be seen as the monetary reward to shareholders and owners of a business. In a capitalist economy, profit plays an important role in creating incentives for business and entrepreneurs. For an incumbent firm, the reward of higher profit will encourage them to try and cut costs and develop new products. | |
| 20. |
Canara Bank opened a new Branch in Banglore, it is fulfilling which of the following organisational objective.A. SurvivalB. ProfitC. ProcessingD. Assembly |
| Answer» option (b) profit is fulfilled. | |
| 21. |
Describe the different types of risks involved in Business transactions. |
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Answer» The following are some of the risks involved in business transactions. 1. Risks related to transactions : These risks can be further bifurcated in three types as follows.Customer denies making the order and denies paymentThe goods are no delivered or delivered at the wrong addressSeller does not receives the payment while the customer claims to have made the paymentSuch risks can be avoided by providing complete and true information by both the parties (customer and seller) before making the transaction. 2. Risks related to data storage and transmission : Data stored and transmitted is prone to hacking and threat of virus. Caution and appropriate measures must be taken to duly protect the data. 3. Risks related to privacy and intellectual property rights : Information available online is open to all, thereby is prone to piracy and copyright issues. Proper measures must be taken by business entities to protect themselves from such risks. |
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| 22. |
Modern concept of Business insist onA. Earning type profitB. Providing servicesC. Bearing riskD. Profit with service |
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Answer» Correct Answer - (d) (d) Profit with service option is correct. |
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| 23. |
What reward a businessman gets for bearing the risks? |
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Answer» The reward of bearing the risk is profit. A businessman willingly undertakes the risk involved in the business activities because for bearing the risk, businessman gets the reward of earning profit. ...The higher the risk, the more is the profit.Generally the project with which more risk is involved generate more profit as compared to less risk projects. |
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| 24. |
Piyush cooks food at his family whereas Rishab cooks food and sells it to others in restaurant , who is engaged in business activity? |
| Answer» Rishab is engaged in buisness activity as he is involved in sale of food in restaurant on regular basis. | |
| 25. |
Define Business. Distinguish it from profession and employment. |
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Answer» Business Business refers to those economic activities, which are connected with the production or purchase & sale of goods or supply of services with the main object of earning a profit. To earn income in the form of profit people engage themselves in business. Examples: fishing, mining, farming, manufacturing, wholesales etc. Professions Professions includes those activities, which require special knowledge & skill to be applied by individuals in their occupation. Those engaged in professions are known as professionals. Professionals are generally subjected to guidelines or codes of conduct laid down by professional bodies. Examples: lawyers are engaged in the legal profession, governed by the bar council of India & chartered accountants belonging to the accounting profession are subject to the regulations of the Institute of chartered accountants of India. Employment Getting remunerated in return for the work done for others refers to an employee. Employees are the people who are employed by others. Thus, people who work in factories, offices of banks, insurance companies or government department, etc at various posts are the employees of these organizations. They receive wages & salaries. Examples: working in offices, banks, insurance companies, shops, as a manager, clerk, peon, salesman etc. |
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| 26. |
Compare business with profession and employment. |
| Answer» Comparison of Business, Profession and Employment. Business refers to those economic activities, which are connected with the production or purchase and sale of goods or supply of services with the main object of earning profit. People engaged in business earn income in the form of profit. | |
| 27. |
Give an explicit example of each of the following: (a) Any professional body and its associated profession (b) Extractive industry (c) Pure business risk (d) Entrepot trade |
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Answer» (a) Medical Council of India Profession-Medical/Doctors (b) Mining (c) Loss by fire (d) Export from China and Importing to U.S. |
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| 28. |
"Earning of profit cannot be the objective of business any more than the eating is the objective of living" Do you agree weith this statement? Give reasons to support your answer. |
| Answer» Yes, I agre with this statement, like eating is essential for survival of any human being. Same way profit is essential for survival of any human being, same way profit is essential and a must for survival of any business. But a person cannot survive for a long time and cannot lead a healthy life only by eating A person has to perform other activites also sole motive of earning profit cannot survive for a long time. to capture a big share in market and to create the goodwill businessman must have social and individual objective along with economic objective of earning profit. the common social and individual objectives of business are (Explain Social and individual objective of business on page no 24-25). | |
| 29. |
Name the reward which Businessman get to bear the risk:A. Market StandingB. GoodwillC. ProjectD. More Business |
| Answer» Option (b) goodwill is a correct answer. A businessman willingly undertakes the risk involved in the business activities because for bearing the risk,businessman gets the reward of earning profit. Risk is the price paid for getting profit. The higher the risk, the more is the profit. Generally the project with which more risk is involved generate more profit as compared to less risk projects. | |
| 30. |
Earthquake comes under which type of risk:A. Natural cause riskB. Human cause riskC. Economic cause riskD. Physical cause risk |
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Answer» Correct Answer - (a) option (a) Natural cause risk is a correct answer. |
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| 31. |
Identify the following as traits of business, profession and employment. (a) Hari sells mobile phones on behalf of his employer. (b) It requires minimum academic and other qualification. (c) A hawker csells toys for children outside a function. (d) V sanjay is an advocate of High Court. (e) Dhruv is the manager of a mobile company. (f) A person reparis scooters on roadside. (g) Shyam works as a Sales Executive in a mobile company. |
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Answer» (a) Employment (b) Profession (c) Business (d) Profession (e) Employment (f) Business (g) Employment. |
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| 32. |
Why is business considered an economic activity? |
| Answer» BUSINESS is considered an economic activity as in a buisness several transactions like selling or purchasing of goods take place which contains exchange of money. | |
| 33. |
How do traders remove hindrance of persons? |
| Answer» Traders act as link between consumers and producers. Traders remove hindrance of persons by making goods available to consumer from producers. | |
| 34. |
Name the tertiary industry which removes hindrance of knowledge. |
| Answer» Correct Answer - Advertising. | |
| 35. |
How would you classify business activites? |
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Answer» Business activities can be classified into the following two broad categories. (a) Industry: It refers to economic activities in which raw materials are processed and converted into final products. During the process, value addition to the raw materials takes place, and the final products have a higher value compared with the raw materials. For instance, a piece of cloth has a higher value than the cotton from which it is produced. Therefore, we can say that industries produce goods that are readily consumable by the final consumers. Among the major activities that are performed by an industry are production, processing and manufacturing. Industries are classified into the three categories—primary, secondary and tertiary. (b) Commerce: Unlike industry, commerce does not involve manufacturing or production. It basically involves trading and its related activities. Commerce includes exchange of goods and services. It primarily aims at the circulation of these goods and services so as to keep them within the reach of the final consumers. The major commercial activities are transportation, advertisement, packaging, warehousing, banking, communication, etc. Hence, it can be said that commerce bridges the gap between the producers and the consumers. Trade can be further classified into two—internal and external trade. |
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| 36. |
Explain any two business activites which are auxiliaries to trade. |
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Answer» Auxiliaries to trade are the activities which help to facilitate the trade. Following are two of the auxiliaries of trade. 1. BANKING AND FINANCE: Business activities cannot be performed without the availability of funds for the purchase of raw material and meeting other expenses. Banks provide credit for the business, thus acting as auxiliary to trade. 2. ADVERTISING: Advertising helps the businessmen to outreach a large number of potential buyers. That is why, it is one of the most important instrument of increasing the sales of a product. |
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| 37. |
Name the service which is related to the following cases: (i) The service which helps in removing hindrance of knowledge (ii) The service which helps in removing hindrance of exchange (iii) The service which helps in removing hindrance of place (iv) The service which helps in removing hindrance of time (v) The service which helps in removing hindrance of risk . |
| Answer» (i) Advertising (ii) Banking (iii) Transport (iv) Warehousing (v) Insurance. | |