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Business Communication


MCQs Practice Questions

1. A job application is similar to

(a) Sales letter

(b) Purchase letter

(c) Letter of order

(d) None of the above

2. A sales letter drafted for a large number of people is known as

(a) Sales Order

(b) Sales circular

(c) Sales manual

(d) Sales Enquiry

3. Office orders have a format similar to that of:

(a) Press Release

(b) Representation

(c) Advertisement

(d) Memorandum

4. Which of the following is not a form of intra-organisational communication.

(a) Representation

(b) Memorandum

(c) Press release

(d) Office Notes

5. Difference between a sales letter and sales circular is

(a) Subtitle (b) Salutation

(c) Introduction (d) Conclusion

6. Which of the following features specifically does not relate to advertisement

(a) Inviting tender

(b) Hike in prices

(c) Placing an order

(d) Recruitment of personnel

7. Which of the following is not the heading of a classified?

(a) Business offer

(b) Situation vacant

(c) Situation wanted

(d) Situation sale

8. What does OEM stands for?

(a) Outstated Equipment Manufactures

(b) Original Equipment Manufactures

(c) Ordinary Equipment Manufactures

(d) None of the above

9. Which type of letter is not goodwill letter.

(a) Thank you letter

(b) Condolence letter

(c) Letter of complaint

(d) Letter of sympathy

10. Which of these terms and conditions are not present in the letter of appointment?

(a) Place of operation (b) Remuneration

(c) Probation (d) None of these

11. Obituary notice is written to provide a news of:

(a) Some body’s death

(b) Some body’s promotion

(c) Some body’s termination

(d) None of these

12. The first step of a commercial transaction is __________.

(a) Making an order

(b) Making an enquiry

(c) Giving quotations

(d) None of these

13. In case of tender notices, EMD stands for:

(a) Electronic monetary deposit

(b) Earnest money department

(c) Earnest money division

(d) Earnest money deposit

14. Normally, in tender notices EMD is __________ of estimated value.

(a) 2% (b) 3%

(c) 4% (d) 5%

15. In case of tenders, contract is given based on the principle of:

(a) Lowest bid get the contract

(b) Highest bid get the contract

(c) Best bid will get the contract

(d) None of these

16. In case of order letters which of these is not placed under the head of terms and conditions:

(a) Price (b) Discount

(c) Credit terms (d) Despatch

17. What does “D” stands for in AIDAS plan ?

(a) Despatch (b) Discount

(c) Delivery (d) Desire

18. __________ is the biggest example of paid communication.

(a) Advertisement (b) Publicity

(c) Letters (d) All of these

19. Which of these is an essential feature required for advertisement ?

(a) Exposure (b) Perseverance

(c) Retention (d) All of these

20. Which of these is not a traditional method of approaching customers ?

(a) Handbills (b) Leaflets

(c) Brochures (d) Personal mails

21. __________ deals with all matters relating to staffing right from recruitment to retrenchment.

(a) Personnel department

(b) Marketing department

(c) Directing department

(d) Controlling department

22. __________ is a record of one’s personal and professional detail.

(a) Curriculum Vitae (b) Bio-data

(c) Data Sheet (d) All of the above.

23. __________ is based on emphasizing the skills and talents of the applicant

(a) Functional Experience

(b) Chronological Experience

(c) Both (a) & (b)

(d) None of the above.

24. __________ should contain information about the position applied for date, time and venue.

(a) Thank you letter (b) Interview letter

(c) Congratulatory letter (d) Condolence letter.

25. __________ is a combination of both resume and a bio-data.

(a) Data Sheet (b) Curriculum Vitae (c) Both (a) & (b) (d) None.

26. Initial intimation of appointment may be given through a brief

(a) Sympathy letter (b) Congratulatory letter (c) Provisional letter (d) Thank you letter.

27. Good News Letter are also called as __________

(a) Indirect approach letter (b) Direct approach letter (c) Both (a) & (b) (d) None of the above.

28. The first step of a commercial transaction is to make

(a) Replies (b) Estimates

(c) Enquiries (d) None of the above.

29. __________ may use technical jargon

(a) Replies (b) Enquiry

(c) Both (a) & (b) (d) Industrial Enquiry.

30. What does CIF stands for –

(a) Cost Insurance & Free (b) Call Insurance & Freight (c) Cost Insurance & Freight (d) None of the above.

31. __________ bid gets the contract

(a) Lowest (b) Highest

(c) Both (a) & (b) (d) None of the above.

32. __________ is used to identify contractors who would be allowed to tender for certain contracts.

(a) Tender (b) Estimate

(c) Pre-qualification (d) Reply.

33. __________ letter saves time and effort.

(a) Ready-to-send (b) Thank you (c) Sympathy (d) Condolence.

34. Select which from the following is not a type of advertisement.

(a) Hike in price

(b) Inviting tenders

(c) Stunts performed by actors

(d) Recruitment of personnel

35. What does not effect sales demand?

(a) Attention (b) Attraction (c) Interest (d) Desire.

36. One word for a sentence “fail to fulfil a promise”.

(a) Burdensome (b) Revenge (c) Penury (d) Tedious.

37. In case of letter of enquiry __________ may also be given, especially in case the intention is to have credit and when it is the first transaction.

(a) Name of the company

(b) Credit reference (c) Phone No.

(d) None of the above.

38. __________ only mentions the quantity and type of goods.

(a) Invoice (b) Performa Invoice

(c) Delivery Challan (d) None of the above

39. A note sent by a seller to buyer to rectify an undercharge in the original invoice

(a) Credit note (b) Debit Note

(c) Warrant (d) None of the above

40. Which of the following is not a banking service:

(a) Policy Renewal (b) Overdraft limit

(c) Term loan (d) Status Enquiries

41. The following is an example of which type of letter.

Dear Sir.

Please refer to our statement of a/c for the period ending Dec 2011, which was Mailed to you on 5 Jan, 2012 and the telephonic reminder letter. We regret to enforce that we have still not received that Payment.

We will agree that delayed payments may affect schedule and cause avoidable inconvenience to both the parties.

We shall be grateful if you remit the outstanding amount on the receipt of this letter.

(a) Collection Letter (b) Reminder Letter

(c) Staffment of Account (d) Final Reminder

42. A commercial transaction is a __________ process.

(a) Simple (b) Chain

(c) Complex (d) None of the above

43. The Policy may be declared __________ if the Insurer detects under insurance.

(a) Policy renewal (b) Null and void Policies

(c) Overdraft limit (d) None

44. Which of the following is a type of insurance correspondence letter ?

(a) Reporting loss (b) Overdraft limit

(c) Both (a) & (b) (d) C Form

45. The first collection letter should be written in __________ manner

(a) Firm (b) Polite

(c) Strict (d) None of the above.

46. The __________ is calculated in percentage term say 2 paise per hundred rupees for fire insurance.

(a) Restricted loss (b) Sum Assured

(c) Maturity value (d) Premium

47. It is advisable to send a copy of __________ showing arrears of payment to the companies before sending the collection letter.

(a) Statement of Account

(b) Statement of Affair

(c) Statement showing Balance Sheet

(d) All of the above

48. Which feature of banking services should be used when the payee reports that he has not received the instrument.

(a) Change of signatories (b) Overdraft limit

(c) Status Enquiries (d) Stop payment

49. The term is used for the introduction of new technologies like CAM in manufacturing of existing products.

(a) Overdraft (b) Loan

(c) Money order (d) None

50. Sanction letter is required in which type of loan?

(a) Term loan (b) Overdraft

(c) Cash credit (d) All of the above

51. __________ facility shall be used by corporate houses relating to postal department

(a) Letter posting (b) Post Box facility

(c) Money order (d) None of the above

52. To challenge defaulter some steps should be followed like

(a) Suspension of supplies

(b) Cancellation of credit

(c) A stricter tone and style

(d) All of the above

53. Full form of AAR

(a) Against all risk (b) All against risk

(c) All against refund (d) All against recovery

54. Full form of E & OE

(a) Error and Omission Eluded

(b) Error and Omission Excepted

(c) Error and Omission Eradicated

(d) Error and Omission Established

55. __________ is the document which gives full information of the goods being Shipped and sent to the importer.

(a) Proforma invoice (b) Delivery Challan

(c) Invoice (d) Debit Note

56. In which Legal Condition, a person or business has liabilities exceeding the assets and the debtor is unable to pay the amount.

(a) Winding up process

(b) Incorporation

(c) Bankruptcy

(d) None

57. Proforma Invoice is used for which purposes:

(a) Helps the company for calculation of duties and taxes Payable

(b) Used as quotation

(c) Both (a) & (b)

(d) None of the above.

58. Full form of SCM

(a) Sales Cost Management

(b) Supply Chain Management

(c) Supply Cost Management (d) None of the above.

59. A letter in stricter tone and style is written for __________.

(a) Suspension (b) Reminder Letter

(c) Cancellation (d) Final Reminder.

60. Insurance is a contract between the company, called the__________ & the client known as __________.

(a) Contractor contractee (b) Insurer, Insured (c) Insured, Insurer (d) None of the above.

61. Banking require letter writing for following service.

(a) Over draft limit (b) Dividend

(c) Postal authorities (d) Policy renewal

62. Plural form of memorandum

(a) Memorand (b) Memoranda

(c) Both (a) & (b) (d) None of the above

63. Memos may relate to

(a) Show Cause Notice (b) Charge – sheet

(c) Both (a) & (b) (d) None of the above

64. ………. is a note or record for future use

(a) Office circulars (b) Office Orders

(c) Memo (d) Memorandum

65. What does Office Order do not include?

(a) Order No (b) Subject

(c) Date (d) Under Signed

66. What does a circular do not include?

(a) Circular No (b) CC:

(c) Date (d) Under Signed

67. ………. is used for disseminating information to a large number of employees.

(a) Office Circulars (b) Office Order

(c) Office Notice (d) None of the above

68. ………. are preferred when one needs to convey information in writing.

(a) Office Order (b) Office Circular

(c) Office Note (d) Memorandum

69. ………. is devoid of solution.

(a) Office Order (b) Memo Report

(c) Office Note (d) Office Circular

70. ………. carry a bold, underlined heading to help us identify them.

(a) Office Note (b) Office Orders

(c) Office Circulars (d) Memo Report

71. Passive verb is preferred in which type of Inter – department communication?

(a) Office Order (b) Memo Report

(c) Office Note (d) Office Circular

72. Format of ………. differ from company to company

(a) Office Order (b) Memo Report

(c) Office Note (d) Office Circular

73. ………. does not have salutation and complimentary close

(a) Memo (b) Office Order

(c) Office Note (d) None of the above

74. ………. is not a type of intra- organizational communication

(a) Advertisement (b) Office Order

(c) Office Note (d) Office Circular

75. ………. letters are necessary to be written on a letter head

(a) Office Notes

(b) Representation to Management

(c) Correspondence with Regional Office

(d) Office Orders

76. __________ are used commonly for issuing instructions to the staff.

(a) Memos (b) Office notes

(c) Office order (d) None of these

77. Office notes are exchange between __________ different departments.

(a) Three (b) Four

(c) Five (d) Two

78. Representation to management does not includes:

(a) Individual Preference (b) Special holidays

(c) Suggestions for transfers (d) Both (a) & ( b)

79. __________ have a format similar to that of memorandums:

(a) Office notes (b) Office circulars (c) Office orders (d) None of the above

80. Replies to representation can be:

(a) Management could accept respect

(b) May give an oral replay (c) Could issue an office order (d) All of the above.

81. Disseminate means:

(a) To cause faster or greater activity

(b) Respectful request

(c) Capable of being perceived

(d) To scatter or spread widely

82. The testing or a trial of a person’s conduct, character, qualifications or the like means:

(a) Bipartive (b) Meritorious

(c) Probation (d) Inter office

83. Memo, report, office, circulars, staff news letters, fax etc. are the form of

(a) Non-verbal communication

(b) Written communication

(c) Oral communication

(d) Audio-visual communication

84. Business letters should be concise.

(a) True

(b) False

85. Which of these must be avoided in business letters?

(a) Polite words

(b) Formal words

(c) Abbreviations

(d) Clear details

86. The mode of payment must be stated in business letters.

(a) True

(b) False

87. Which of these must not be mentioned in a business letter?

(a) Information of the quality of the order

(b) Name of the firm

(c) The mode of payment

(d) With regards

88. Where should the name of the firm be mentioned?

(a) Right of the page

(b) Below the address of the writer

(c) Above the address of the writer

(d) On the last page of the letter

89. Which of these is not a mode of address for any letter?

(a) To a tradesman

(b) To a child

(c) To a firm

(d) To professional men

90. Which of these is not used to conclude a business letter?

(a) Yours faithfully

(b) Yours truly

(c) Yours sincerely

(d) With kind regards

91. Which of these should not be present in a business letter?

(a) The name of firm or businessman

(b) The date

(c) Business jargon

(d) Courteous leave-taking

92. The space to be left from the top is ___

(a) 5 cms

(b) 2.5 cms

(c) 4 cms

(d) 2 cms

93. Where are the details of enclosures mentioned?

(a) Beginning of the letter

(b) Below the signature column

(c) Right-hand side of the letter

(d) Main body of the letter


1 (a) 2 (b) 3 (d) 4 (c) 5 (a) 6 (c)

7 (d) 8 (b) 9 (c) 10 (d) 11 (a) 12 (b)

13 (d) 14 (a) 15 (a) 16 (c) 17 (d) 18 (a)

19 (d) 20 (d) 21 (a) 22 (d) 23 (a) 24 (b)

25 (b) 26 (c) 27 (b) 28 (c) 29 (d) 30 (c)

31 (a) 32 (c) 33 (a) 34 (c) 35 (b) 36 (b)

37 (b) 38 (c) 39 (b) 40 (a) 41 (b) 42 (c)

43 (b) 44 (a) 45 (b) 46 (d) 47 (a) 48 (d)

49 (b) 50 (d) 51 (b) 52 (d) 53 (a) 54 (b)

55 (c) 56 (c) 57 (c) 58 (b) 59 (d) 60 (b)

61 (a) 62 (b) 63 (c) 64 (d) 65 (b) 66 (b)

67 (a) 68 (d) 69 (d) 70 (b) 71 (a) 72 (c)

73 (a) 74 (a) 75 (c) 76 (a) 77 (d) 78 (a)

79 (c) 80 (d) 81 (d) 82 (c) 83 (b) 84 (a)

85 (c) 86 (a) 87 (d) 88 (b) 89 (b) 90 (c)

91 (c) 92 (a) 93 (b)


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