Business Administration Paper – 2001
(1) Most preferred stock pays a fixed dividend at regular intervals.
(a) True
(b) False
(2) Any increase in an asset item is a source of funds.
(a) True
(b) False
(3) Depreciation is a book-keeping entry that allocates the cost of assets against income but
does not involve any movement of capital.
(a) True
(b) False
(4) The maturity of a security relates to the owner‟s ability to convert it into cash on short
notice:
(a) True
(b) False
(5) The credit period represents the period of time during which a cash discount can be taken
on short notice.
(a) True
(b) False
(6) Which ratio is computed with the help of the following? Cost of goods sold/Inventory
(a) Receivable turnover
(b) Times interest earned
(c) Inventory Turnover
(d) None of these
(7) is the right that is delegated to an individual or a department to control
specific processes, practices, policies and other matters relating to activities undertaken by
person in other departments.
(a) Line authority
(b) Functional Authority
(c) Line and Staff Authority
(d) None of these
(8) Decentralization is the tendency to disperse decision making in an organized structure:
(a) True
(b) False
(9) Programmes are plans which are general statements or understandings that guide or channel
thinking in decision making:
(a) True
(b) False
(10) is that part of managing that involves establishing an international s
tructure of roles for people to fill in an organization:
(a) Leading
(b) Controlling
(c) Planning
(d) None of these (Organizing)
(11) Henri Fayol applied the principle of „Division of Work‟ to all kinds of work, managerial
as well as technical.
(a) True
(b) False
(12) spell out specific required actions or non-actions, allowing no discretion:
(a) Procedures
(b) Budgets
(c) Rules
(d) None of these
(13) Business buyers are as geographically dispersed as final consumers.
(a) True
(b) False
(14) The distribution between a consumer good and an industrial good is based on the purpose for
which product is purchased:
(a) True
(b) False
(15) Intensive distribution occurs when the product is stocked in as many outlets as possible.
(a) True
(b) False
(16) Merchant wholesalers are independently owned business that do not own (take title to) the
goods they sell:
(a) True
(b) False
(17) Which of the following elements in a compensation package provides the greatest amount of
incentive for salespersons?
(a) Salary
(b) Fringe Benefits
(c) Commissions
(d) Use of Company Vehicle
(18) The process whereby the seller distinguishes between market segments, selects one or more
of these segments, and develops products and marketing-mixes tailored to each segment is called
marketing.
(a) Mass
(b) Target
(c) Product Variety
(d) Service
(19) Goods that the consumer, in the process of selection and purchase, characteristically
compares on such bases as suitability, quality, price and style are called goods.
(a) Shopping
(b) Specialty
(c) Unsought
(d) Convenience
(20) Product is a period of rapid market acceptance and increasing profits.
(a) Development
(b) Introduction
(c) Growth
(d) Maturity
