Commerce Question Bank

Commerce Question Bank

1. In order to reduce the risk of heavy insurance the insurer passes on some business to the other company, it is called–
(A) Reinsurance (B) Double Insurance
(C) Joint Insurance Policy (D) Separate Insurance
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2. Contents of Marine Insurance include–
(A) Insurance of Cargo only (B) Insurance of Freight only
(C) Insurance of Hull only (D) Insurance of Cargo, Freight & Hull
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3. The object of ‘Agenda’ is to inform–
(A) About the profitability and activity
(B) About the progress of company
(C) About the matter in sequence to be discussed in the meeting
(D) About the routine matters
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4. The Branch of Accounting which is concerned with the processing and presenting data for decision making is known as–
(A) Common Dollar Accounting (B) Social Accounting
(C) Cost Accounting (D) Management Accounting
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5. Final accounts prepared in narrative style are in–
(A) Horizontal form (B) Accounts form
(C) Vertical form (D) None of the above
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6. If super profit is Rs. 4‚000 and normal rate of return is 8 per cent, the amount of goodwill will be–
(A) Rs. 40‚000 (B) Rs. 50‚000
(C) Rs. 4‚00‚000 (D) Rs. 5‚000
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7. Goodwill, Copyright and Trademarks should be classified as–
(A) Tangible assets (B) Intangible assets
(C) Current assets (D) Fictitious assets
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8. The portion of share capital which can be called up only on the winding up of a company is known as–
(A) Called up capital (B) Paid up capital
(C) Authorised capital (D) Reserve capital
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9. Which one of the following is called backbone of auditing ?
(A) Routine checking (B) Vouching
(C) Internal check (D) Internal control
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10. Internal Audit is provided for in the–
(A) Companies Act (B) Partnership Act
(C) Both (A) and (B) (D) Neither (A) or (B)
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11. What is the maximum limit of remuneration for a whole time manager in a company ?
(A) 3% of net annual profit (B) 5% of net annual profit
(C) 7% of net annual profit (D) None of the above
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12. Which among the following documents defines the relationship between a company and outsiders ?
(A) Memorandum of Association (B) Articles of Association
(C) Prospectus (D) None of the above
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13. Registration is not essential in case of a–
(A) Company (B) Co-operative organisation
(C) Co-operative Societies (D) Business of Joint Hindu Family
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14. The Meeting of Board of Directors must be called at least once–
(A) In four months (B) In three months
(C) In two months (D) In one month
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15. The Secretary of a Company should file copies of Special Resolution passed at Extraordinary General Meeting to the Registrar of Companies within–
(A) 7 days (B) 14 days
(C) 21 days (D) 30 days
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16. To which one of the following aspects does an established pattern of relationships among the components of an organization refer ?
(A) Organization strategy (B) Organization structure
(C) Organization process (D) Organization policy
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17. Consider the following statements–
1. Authority in an organization is the formal or institutional right to command stemming from official delegation of position.
2. Legitimate power is the right to manage derived from delegation based on ownership or property rights.
Which of the statements given above is/are correct ?
(A) 1 only (B) 2 only
(C) Both 1 and 2 (D) Neither 1 nor 2
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18. Which one of the following is not correct in respect of the Theory X?
(A) It emphasizes that most average human beings avoid to be led, want to lead
(B) According to the theory X, the Managers tend to be autocratic
(C) The theory X assumes that most human beings must be directly controlled in order to achieve organizational goals
(D) The theory X assumes that most individuals have little ambition and want security
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19. When Maslow's need hierarchy is compared with Herzberg's two-factor theory of motivation, which of the following statements are correct ?
1. Maslow's psychological needs; security, safety and affiliation or acceptance represent almost the same meanings as Herzberg's maintenance factor.
2. Esteem or status is also a part of maintenance factor.
3. Self-actualization can be compared as a component of motivators as in Herzberg's theory.
Select the correct answer using the code given below–
(A) 1, 2 and 3 (B) 1 and 2 only
(C) 2 and 3 only (D) 1 and 3 only
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20. Which one of the following is not an element of direction ?
(A) Planning and organizing various resources for doing work
(B) Continuous training activity in which subordinates are instructed to carry out a particular assignment
(C) Motivation of subordinates to try to meet the expectations of manager
(D) Maintaining discipline and rewarding those who perform properly
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