Edrona Exams | Complete examination management system

CA Economics Important Questions

Q1. The businesses draw their strategies to beat their competitors. BCK has adapted the term
“Strategy” from which of the following original discipline?
(a) Military
(b) Biology
(c) Chemistry
(d) None of the above

Q2. Consider the following table showing columns for the nature of economic occupation and the
corresponding characterization of income. And, then, choose the right solution option from the
alternatives given below the table.
(a) i-c; ii-d; iii-e; iv-a; v-b
(b) i-b; ii-c; iii-d; iv-e; v-a
(c) i-b; ii-e; iii-a; iv-d; v-c
(d) i-c; ii-d; iii-e; iv-a; v-b

Q3. The choice of an appropriate form of business organization largely depends upon:
(I) Ease of formation
(II) Continuity and stability
(III) Liability aspects
Correct option is –
(a) I and II
(b) II and III
(c) I and III
(d) I, II and III.

Q4. What is not a characteristic of business environment?
(a) Static
(b) Complex
(c) Far reaching
(d) Multi-faced

Q5. Which one of the following is not an advantage of Business Environment to the business?
(a) Determination of Opportunities & Threats
(b) Meeting Competition
(c) Image Building
(d) Identification of financial needs.

Q6. In relation to resources, “5M” represents:
(a) Men, Money, Method, Machine and Material
(b) Management,Motivation,Money, Machine and Material
(c) Morale, Money, Method, Machine and Material
(d) Mobility, Method, Management, Machine and Material.

Q7. Different organizations use different inputs & produce different outputs. The input-output
exchange activity is.
(a) Different for organizations
(b) A continuous process
(c) It calls for an active interaction with the external environment
(d) All of the above

Q8. The non-specific elements of the organisations surroundings that may affect its activities are;
(a) Customers, suppliers and employees
(b) Suppliers, owners, employees
(c) Owners, Board of Directors and Employees
(d) Customers, Intermediaries, Suppliers.


Q9. A Company Overview usually include:
(a) Introduction, History and core Management Team
(b) Portfolio of Business, Products and services
(c) Competitive scenario, Financial Position and Market Position
(d) All of the above

Q10. ICICI Bank was originally promoted in _________ by ICICI Limited, an Indian Financial
institution.
(a) 1991
(b) 1994
(c) 1995
(d) 1996

Q11. Which one of the following refineries, operated by BPCL, has the highest Capacity of 13
million metric tonnes per year?
(a) Mumbai Refinery
(b) Kochi Refineries
(c) Bina Refinery
(d) Numaligarh Refinery.


Q12. The equity shares of ICICI Bank are listed in :
(a) Bombay Stock Exchange
(b) National Stock Exchange
(c) Both (a) & (b)
(d) Neither (a) nor (b)

Q13. In 1974, _________ was renamed as ITC Limited.
(a) Imperial Tobacco Company Limited
(b) Imperial Tobacco Company of India Ltd.
(c) Indian Tobacco Company Limited
(d) Integral Tobacco Company Limited.

Q14. _________ has classified the inputs of political system into generic functional categories.
(a) Gabriel Almond
(b) Gabriel Solomon
(c) Richard David
(d) David Easton


Q15. Consider the following:
I. Problem Identification
II. Policy evaluation
III. Policy Adoption
IV. Policy Implementation
V. Policy Formulation
The Public Policy Process may be represented by:
(a) I, II, III, IV & V
(b) I, V, III, IV & II
(c) I, III, V, IV & II
(d) I, III, V, II & IV

Q16. The Conducive policies towards the development of Micro-Small- Medium Enterprises are
an example of _________ policy.
(a) Restrictive
(b) Regulatory
(c) Facilitating
(d) Liberal


Q17. The Government monopoly through BSNL and MTNL has been taken away by the private
sector plays like Airtel, Reliance Jio, Vodafone, etc. This type of privatization may be regarded
as _________.
(a) Displacement
(b) De-Centralization
(c) Delegation
(d) Ownership pattern policy

Q18. FDI in sectors/activities which do not require any prior approval either of the Government
or the Reserve Bank of India is identified as:
(a) Green Channel
(b) Priority route
(c) Non-Commercial Route
(d) Automatic Route
 

Q19. Which one of the following is the industry specific business facilitator?
(a) Insurance Regulatory and Development Authority
(b) Reserve Bank of India
(c) Securities & Exchange Board of India
(d) Ministry of Industry


Q20. Which of the following is not a function of RBI?
(a) Fiscal Policy
(b) Controller of Credit
(c) Monetary Policy
(d) Custodian of Foreign Exchange Reserves.

Q21. SEBI drafts repletion in its ________ capacity whereas the rules and orders are passed in its
________ Capacity.
(a) Legislative, Judicial
(b) Legislative, Executive
(c) Judicial, Legislative
(d) Executive, Judicial

Q22. Competition law is a tool ________.
(a) To implement and enforce Competition policy
(b) To Prevent and punish anti-competitive business practices by firms
(c) To Prevent unnecessary Government interference in the market
(d) All of the above.

Q23. IRDAI role is to provide registration certification to life insurance compa-nies and
responsible for ________ of this registered certificate.
I. Renewal
II. Modification
III. Cancellation
IV. Suspension
(a) I
(b) I & II
(c) I, II and III
(d) I, II, III and IV

Q24. What is a bull market?
(a) A market in which the stock price are increasing consistently.
(b) A market in which the stock price are decreasing consistently.
(c) A market in which the stock price are stable over a long time.
(d) None of the above


Q25. What is a financial instrument?
(a) Anything that ranges from cash, deed, negotiable instrument, or for that matter any written
and authenticated evidence that shows the existence of a transaction or agreement.
(b) Is basically any security that is held with the government and has the highest possible rate
of interest.
(c) Is a contract where the borrower, who is also the purchaser, pays a series of in statements
that includes the interest of the principal amount
(d) None of the above

Q26. The rate of return earned on a bond, if it is called before its maturity date is called as:
(a) Yield to Maturity
(b) Yield to Call
(c) Yield to Earning
(d) Yield to Return.

Q27. When many consumers receive the same message from business and non-profit
organizations through mass media, such as broadcast television, radio and newspapers,
regardless of Consumer interest, it is called as __________.
(a) Block Marketing
(b) Mass Marketing
(c) General Marketing
(d) Media Marketing.

Q28. Which of the following statement is incorrect as regards organization’s response to its
environment?
(a) Organizations must have the capacity to monitor and make sense of their environments.
(b) Organizations must identify and attend to the environmental factors and features that all
closely related to goal achievement and performance.
(c) Organizations must have the interval capacity to develop effective responses.
(d) Organisation can function ignoring the environment.

Q29. The headquarters of Adani Ports and Special Economic Zone Limited is in:
(a) Ahmedabad
(b) Mumbai
(c) Kolkata
(d) New Delhi

Q30. Who is the ownership group of Bharat Petroleum Corporation Ltd.?
(a) Government of India
(b) Ministry of Oil and Refinery
(c) Maharashtra State Government
(d) Reliance group.

Q31. Which one of the following wholly owned subsidiary of Coal India Limited provides
exploration, planning and technical support to other production subsidiary companies?
(a) Central Coalfields Limited
(b) Central Mine Planning and Decision Institute Limited
(c) Northern Coal field Limited
(d) Bharat Coking Coal Limited.

Q32. Which one of the following pharmaceutical company does not fall in first three positions of
pharmaceutical company in India?
(a) Ranbaxy Ltd.
(b) Glaxo (India) Ltd.
(c) Reddy’s Lab. Ltd.
(d) Mankind

Q33. In 1983, Infosys Ltd. relocated its corporate headquarters from _________ to _________.
(a) Pune to Bengaluru
(b) Bengaluru to Pune
(c) Delhi to Bengaluru
(d) Mumbai to Bengaluru

Q34. In 1974, _________ was renamed as ITC Limited.
(a) Imperial Tobacco Company Limited
(b) Imperial Tobacco Company of India Ltd.
(c) Indian Tobacco Company Limited
(d) Integral Tobacco Company Limited.

Q35. As a part of series of measures taken towards liberalizing foreign investment, permission
was grouted to _________ to invest up to 100 percent capital in priorities sectors.
(a) Non-Resident Indians
(b) Overseas Corporate Bodies
(c) Both (a) & (b)
(d) 100 percent Capital is never allowed.

Q36. Which, one of the following is a “Point of Contact” Business facilitator?
(a) Freight Forwarder
(b) Business Incubator
(c) Financial Consultant.
(d) All of the above

Q37. The Reserve Bank of India being the Central Bank of India performs all the central banking
functions. Which one of the following is not the Functions of RBI?
(a) Issue of currency
(b) Banker to the Government
(c) Watchdog of the unethical competition in the market
(d) Custodian of the nation’s foreign exchange reserves

Q38. Competition law is a tool ________.
(a) To implement and enforce Competition policy
(b) To Prevent and punish anti-competitive business practices by firms
(c) To Prevent unnecessary Government interference in the market
(d) All of the above.

Q39. The preamble to the Competition Act does not include:
(a) Prevent practices having adverse effect on competition
(b) To Promote and sustain competition in markets
(c) To Protect the interests of producers
(d) To ensure freedom of trade carried on by other participants in markets.

Q40. NABARD is also known for its:
(a) SHG Bank Linkage Programme
(b) AKG Bank Linkage Programme
(c) CBG Bank Linkage Programme
(d) BHG Bank Linkage Programme

Q41. ________ focuses on training the trainers in entrepreneurship development.
(a) NIESBUD
(b) NISBUD
(c) EDI
(d) None of the above.

Q42. The number of units of given currency that can be purchased for one unit of another
currency is called __________.
(a) Current Ratio
(b) Exchange Ratio
(c) Equity
(d) Dividend

Q43. Risk is a probable chance that investments’ actual returns will be __________ than as
calculated.
(a) Increased
(b) Reduced
(c) Equal
(d) None of the above

Q44. Financially sound companies with paid dividend is known as?
(a) Blue chip
(b) Bonds
(c) Debenture
(d) None of the above.

Q45. __________ is a strategy which involves setting low prices in order to discourage or deter
potential new extranets to the supplier’s market.
(a) Pre-Emptive Pricing
(b) Low Pricing
(c) Cut-throat Pricing
(d) Bargaining Pricing.

Q46. The information and communication technology has introduced several terms in the lexicon
of BCK e.g. 24 X 7, B2B, B2C, etc. The impact of this evolution is the decline and demise of old
businesses and newer ways of doing the business. On this basis, it can be said that BCK is.
(a) Vast
(b) Multi-disciplinary
(c) Eclectic
(d) Even-evolving and expanding.

Q47. Economic, Activities are driven cause of ________?
(a) Self-Interest
(b) Self-less motive
(c) Human welfare
(d) Self satisfaction

Q48. Which of the following statements distinguishes business from entrepreneurship?
(a) Entrepreneurs are the business owners too
(b) All business owners are entrepreneurs too
(c) Entrepreneurs seek out new opportunities and pursue innovative business ideas
(d) (a) and (b)

Q49. Which of the following is correct?
(a) Max. No. of members is 50 in case of private limited company.
(b) Freely transferable shares in case of private limited company.
(c) Max. No. of members-200 in case of private limited company.
(d) None of the above.

Q50. In 1992, some of the Public Sec-tor Enterprises were first corporatized and process was
started to sold a large chunk of shares to public. This process may be regarded as:
(a) Merger
(b) Disinvestment
(c) Globalization
(d) Sell-off

 

Answers

 

1.

d

2.

c

3.

c

4.

d

5.

c

6.

d

7.

a

8.

b

9.

c

10.

a

11.

d

12.

a

13.

b

14.

c

15.

b

16.

c

17.

d

18.

a

19.

b

20.

d

21.

d

22.

b

23.

a

24.

a

25.

c

26.

b

27.

c

28.

a

29.

a

30.

b

31.

c

32.

a

33.

d

34.

c

35.

b

36.

b

37.

a

38.

d

39.

a

40.

b

41.

c

42.

d

43.

d

44.

a

45.

b

46.

b

47.

a

48.

d

49.

a

50.

a