DATE:07/01/13

CODE:7001001

BATCH: 518

MARKS:50

COMPANY SECRETARIES
FOUNDATION BUSINESS ENVIRONMENT
SYLLABUS : CHPATER - 1 & 2

1.

Business may be understood as the ________ of an enterprise to supply consumers with goods and services for a profit. (a) Organized efforts (c) Normal efforts (b) (d) Unorganised efforts Commercial efforts

2.

Business organisation refers to all necessary arrangements required to ___________ (a) Run the organisation (c) Conduct a business (b) (d) Earn the profits Serve the society

3.

All businesses share one common purpose that is is _______________. (a) To produce and sell (c) To earn profits (b) (d) To earn goodwill To serve the society

4.

The arrangement which follows the process of organizing is called a ___________ (a) Business undertaking or organisation (c) Systematic efforts (b) (d) Organised efforts Legalised efforts

5.

It is understood that the role of business is crucial from the point of view of (a) Individual levels (c) Individuals and national society as well (b) (d) National levels Social levels

6.

is largely responsible for the success of an enterprise. (a) The size of business organisation (b) The right form of business organization (c) The products of the business organisation

(d) The motive of business organisation 7. Modern business is dynamic. If there is any single word that can best describe todays business, it is _______. (a) Dynamism
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(b)

Change
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(c) 8.

Status

(d)

None of the above

Limit of Liability : A business enterprise may be organized on the basis of either limited or unlimited liability. (a) Limited or unlimited liability (c) Unlimited liability (b) (d) Limited liability Social liability

9.

It is _________ that makes the companies spend substantially on Research and development (R&D) to survive in the market. (a) Change (c) Image (b) (d) Status All of the above

10.

Limited liability means that the liability of the owner as regards the debts of the business is limited only to the amount of_________ agreed to be contributed by him. (a) Profits (c) Capital (b) (d) Revenue Goodwill

11.

_________ refers to aliforces, which have a bearing on the functioning of business. (a) Growth (c) Goodwill and image building (b) (d) Reputation Environment

12.

Unlimited liability means that even the owners ______________ will be liable to be attached for the payment of the business debts. (a) Personal assets (c) Both (a) and (b) (b) (d) Business assets Other business assets

13.

The success of every business depends on adapting itself to the _________ within which it functions. (a) Society (c) Environment (b) (d) Norms Circumstances

14.

The term ownership refers to the right of an individual or a group of individuals to acquire legal title to assets or properties for the purpose of (a) Earning profits (c) Running the business (b) (d) Selling goods Serving the society .

15.

it is very necessary to have a clear understanding of the concept of _________________ and the nature of its various components. (a) Business environment (c) Geographical environment (b) National environment (d) Circumstantial environment
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16.

Every business enterprise must undertake such business which is _________. (a) Profitable (c) Both (a) and (b) (b) (d) Lawful Socially desirable

17.

Business environment includes________ (a) Both specific and general forces (c) Specific forces (b) (d) General forces None of the above

18.

Every business undertaking is engaged in the production and/or distribution of goods or services in _____________ (a) Anticipation of profits (c) Exchange of money (b) (d) Social services Exchange of goods/services

19.

Business environment is a relative concept since it differs from country to ________ . (a) Region to region (b) Country to country and even region to region (c) Country to country

(d) Society to society 20. Any unit having just one single operation or transaction is _____________ (a) Not a business unit (c) 21. Private arrangement (b) (d) Also a business unit Testing unit

There is a close and continuous interaction between the business and its _______________. (a) Employees (c) Government (b) (d) Competitors Environment

22.

Forms of business organization are ____________ in which a business enterprise may be organized and operated. (a) (c) Social forms Legal forms (b) (d) General forms Nationalised forms

23.

___________________ helps an enterprise to be the first to exploit them instead of losing them to competitors. (a) Opportunities (c) Early identification of opportunities (b) (d) Business environment All of the above

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24.

The individual who owns and runs the sole proprietorship business is called a ____________ (a) Sole proprietor or sole trader (c) Partnership (b) (d) Individual trader Single trader

25.

Identification of the competition. (a) Possible threats (c) Weakened areas

helps in taking corrective and improving measures to survive

(b) (d)

Opportunities Common problems

26.

pools and organizes the resources in a systematic way and controls the activities with the sole objective of earning profit. (a) A partner (c) A member (b) (d) A sole proprietor A coparcener

27.

______All types of enterprises are facing increasingly _____________.

(a) High competition (c) 28. General threats

(b) (d)

Dynamic environment External pressures

Sole proprietorship can be defined as a business enterprise exclusively owned, managed and controlled by a _________ with all authority, responsibility and risk. (a) Number of person (c) Employees (b) (d) Single person Members of the firms

29.

The enterprises that continuously monitor their environment and adopt suitable business practices are the ones which not only improve their present performance but also continue to succeed in the market for a (a) Longer period (c) Normal period (b) (d) . Shorter period Uncertain period

30.

The business of the sole proprietor comes to an end at the will of the owner or upon _______ (a) His death (c) His becoming unsound mind (b) (d) His insolvency His acquiring an enemy character

31.

The vision and mission not only guides the course of the business and its employees, it also is paramount in marketing your ______________________. (a) Goodwill (b) Brand to your customers
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(c) 32.

Image

(d)

Products

The capital required by a_____________ form of business organisation is totally arranged by the sole proprietor. (a) Partnership (c) Sole proprietorship (b) (d) Company Family managed

33.

describes the desired future position of the company. (a) A Vision Statement (c) Both (a) and (b) (b) (d) A mission statement Goals

34.

The controlling power in a sole proprietorship business always remains with the . (a) Owner (c) Member (b) (d) Partner Coparcener

35. those objectives.

defines the companys business, its objectives and its approach to reach

(a) A vision statement (c) 36. Both (a) and (b)

(b) (d)

A Mission Statement Goals

The liability of the sole proprietor is ________. (a) Limited (b) Unlimited (c) Sometimes limited and sometimes unlimited

(d) Restricted 37. Elements of _______________________ are often combined to provide a statement of the purposes, goals and values of the company. (a) Mission statement (c) 38. Mission and Vision Statements (b) (d) Vision statement Goals

The formation and operation of a sole proprietorship form of business organisation requires ____________________ (a) Almost no legal formalities (c) General formalities (b) (d) Large formalities Careful formalities

39.

Your ___________ is where you want your business to reach at. (a) Vision statement (c) Both (a) and (b) (b) (d) Mission statement Goals
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40.

A sole proprietorship form of business is very _________ (a) Easy to form (c) Time consuming (b) (d) Difficult to form Small

41. Disney to make people happy Sony we invite new thinking, so even more fantastic ideas can evolve. We take chances. We exceed expectations. We help dreamers dream. ICSI to be a global leader in promoting good corporate governance.

The above are the examples of (a) Vision statement (c) 42. Both (a) and (b) (b) (d) Mission statement None of the above.

Just like formation it is also very _____ to wind up the business. (a) Difficult (c) Easy (b) (d) Not so easy Not so difficult

43. Nike to bring inspiration and innovation to eveiy athlete in the world. Face book to give people the power to share and make the world more open and connected. Google to organize the worlds information and make it universally accessible and useful. ICSI to develop high caliber professionals facilitating good corporate governance.

The above are the examples of (a) Vision statement (c) 44. Both (a) and (b) (b) (d) Mission statement None of the above.

The profits earned belong to the sole proprietor alone and bears the risk of losses as well. Thus, there is a direct link between ________ (a) Reward and ownership (c) Employer and employee (b) (d) Effort and reward Employee and society

45.

The human resource is the important factor for any organization as it contributes to the ____________ of any organization.

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(a) Strengths (c) 46. Strength and weakness

(b) (d)

Weaknesses Goodwill and image

In sole proprietorship business the______ has full control over each and every activity of the business. (a) Partner (c) Proprietor (b) (d) Member Relatives

47.

The availability of plant and machinery is dependent on technological development of the country and the governments approach towards ____________ . (a) Foreign technical collaboration (c) Technical collaboration (b) (d) Foreign collaboration National collaboration

48.

enables the sole proprietor to know the individual likes, dislikes and tastes of the customers. (a) Direct contact (c) Personal contact (b) (d) Indirect contact Group contact

49.

A firm working in ______, needs to have a fast reaction time because its competitors are introducing new products all the time. (a) technical environment (c) Foreign environment (b) (d) High technological environment Uncertain environment

50.

The sole proprietor is free to change the nature and scope of ____________ as and when required as per his decision. (a) Business operations (c) Social environment (b) (d) Business environment General operations

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