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Business EnvironmentCHAPTER-3&4 CSEET MCQ

Business Environment


1. Micro enterprises are the enterprises providing services, and where the investment in equipment exceeds 10 lakh rupees.

(a) True (b) False

(c) Partly true (d) Partly false

2. Scale of business involves determination of:

(a) Capital Requirement (b) Business size

(c) Business production (d) All of the above

3. Micro enterprises are :

(a) Labor intensive (b) Capital intensive

(c) Machine intensive (d) Both (b) and (c)

4. Traditional small industries provides:

(a) Full time employment (b) Part time employment

(c) No employment (d) All of the above

5. Handloom is an example of:

(a) Small scale enterprise (b) Modern small scale enterprise

(c) Micro enterprise (d) Traditional small scale enterprise

6. In 1979-80, modern small industries provided ………….. % of total employment.

(a) 33 (b) 43 (c) 22 (d) 13

7. For the goods having artistic features enterprise is preferred.

(a) Large scale (b) Small scale

(c) Micro (d) Very large scale

8. Large scale business provides economies.

(a) Internal (b) External

(c) Both internal and external (d) None of the above

9. “Public corporations are autonomous or semi- autonomous corporations and companies established, owned and controlled by the state and engaged in industrial and commercial undertaking.” This definition is given by :

(a) N.N. Malaya (b) A.H. Hansom

(c) O.L. Rehan (d) I.V. Starke

10. Public accountability and Government control are features of which type of enterprise:

(a) Micro (b) MNC

(c) Large scale (d) None of these

11. Which of the following is not a type of public sector enterprise?

(a) Departmental undertaking (b) Statutory corporation

(c) Subsidiary of public enterprise (d) Government company

12. HMT is an example of:

(a) Departmental undertaking (b) Government company

(c) Public corporation (d) None of the above

13. Foundation of public enterprises in India was laid down by:

(a) Indira Gandhi Λ (b) Jawahar Lai Nehru

(c) Dr. Rajendra Prasad (d) S. Radha Krishnan

14. PSU’s account for of India’s GNP

(a) 10% (b) 20%

(c) 30% (d) 40%

15. Government’s Industrial Policy was announced on

(a) 24 th July, 1990 (b) 24th July, 1997

(c) 24th July, 1991 (d) None of these

16. Which of the following is not a ‘Navratna’ ?

(a) GAIL (b) NTPC (c) LIC (d) BHEL

17. BIFR Means:

(a) Board for Indian financial Reserves

(b) Board for Industrial and Financial Resources

(c) Board for Industrial and Financial Reconstruction

(d) Board for International Fund Reserves

18. Following is/are the main characteristics of MNC’s :

(a) Large size

(b) Worldwide activities centrally controlled by parent Company.

(c) Both (a) and (b)

(d) None of the above

19. Which of the following is not a reason for MNC’s growth :

(a) Avoid trade barriers (b) Increased labour cost

(c) Reduced transport cost (d) None of the above

20. Advantages of MNC’s include:

(a) Employment Generation (b) Economic Growth

(c) Efficient Resource Utilisation (d) All of the above

21. Basis for classification of Industries are

(a) Size of Industry (b) Nature of Business (c) Choice of Business (d) Both (a) & (b).

22. Population engaged in Micro enterprises produces non-monetary wealth for

(a) Advertising (b) Serving society (c) Self consumption (d) Sale.

23. Source of finance for Micro sector are-

(a) Micro loan (b) Financial institution (c) Formal source (d) Informal source.

24. Capital requirement for Micro Enterprise should be (Service Producing)

(a) Equipment not exceeding 10 lakh.

(b) Equipment not exceeding 12 lakh.

(c) Equipment not exceeding 25 lakh.

(d) Equipment not exceeding 01 lakh.

25. Micro enterprise are _____ intensive therefore create .

(a) Capital, profit (b) Labour, job

(c) Technological, capital (d) Capital, job.

26. Initially, Small scale Industry were classified on basis of

(a) Number of employees (b) Amount of capital

(c) Profit generating ability (d) Power of production.

27. Small Scale Industries are classified into-

(a) Traditional, Modern (b) Traditional, Ancient (c) Modern, Ancient (d) None of above.

28. S.S.I contributes ‘ of the gross industrial value added in the Indian economy.

(a) 80% (b) 20%

(c) 90% (d) 40%.

29 Which of these is not an opportunity for SSI

(a) Less Capital Requirement (b) Finance & Subsidies (c) Export Promotion (d) State Control.

30. Increasing export potential for Indian products enabled our country to achieve

(a) Fashion Technology (b) Information Technology (c) Design Technology (d) All the above.

31. Which of the following is not the role of SSI in Indian Economy

(a) Employment Generation (b) Export Barrier

(c) Tooling & Testing Support (d) Improved Welfare Position.

32. Large Scale Industry comprises of

(a) Sophisticated Products (b) Engineering Product (c) Iron & Steel Industry (d) All of the above.

33. The public sector enterprises are owned by

(a) Government (b) Individual (c) Society (d) Public.

34. Most of the investment done in PSE are by

(a) Individual (b) Private Body

(c) Government (d) Non-Profit-organisation.

35. The enterprises which are under monopoly of state enterprises are

(a) Railway (b) Post & telegraph (c) Energy Production (d) All of above.

36. Characteristic of public enterprise to be responsible for nation denotes

(a) Public Accountability (b) Government Accountability (c) Owner Accountability (d) Ethics Accountability.

37. Arranging day to day finance is the characteristic of

(a) Private enterprise (b) Public enterprise

(c) MNC (d) Small scale industries.

38. Statutory corporation is not created by Act of Government

(a) False (b) Partly True (c) True (d) Both.

39. Government company refer to the company in which 51 % of is held by the Government?

(a) Control (b) Paid up capital

(c) Called up capital (d) Unpaid capital

40. Departmental enterprises comprises of

(a) Railway, Telegraph, Defence (b) Telecom, Railway, Defence

(c) Transport, Railway, Defence (d) Network, Transport, Railway.

41. Person responsible for the collection of taxes on behalf of the Government are

(a) Cashier (b) Exchequer

(c) Manager (d) Controller.

42. Which of them is a Navratna’s of Government ?

(a) IOD (b) LOC

(c) IOC (d) BOC.

43. Which of them is not among the Navratna’s?



44. LDC, stand for

(a) Local development country (b) Less developments company (c) Lack of developed company (d) Less developed country.

45. Which of them is not a merit of MNCs

(a) Optimum utilization of resources (b) Charge heavy fees

(c) Break monopolies (d) Transfer of technologies.

46. MNCs have their head quarters in more than country/countries

(a) 1 (b) 2

(c) 4 (d) 6.

47. An enterprise engaged in production is a micro enterprise if the investment in Plant & Machinery does not exceed

(a) 25 lakhs (b) 1 Crore

(c) 50 lakhs (d) None of the above

48. In India, a large scale enterprise refers to an enterprise in which Investment in fixed assets is more than

(a) 100 million (b) 500 million

(c) 250 million (d) 1000 million

49. How many PSU’s are currently operating in India?

(a) 247 (b) 300

(c) 259 (d) 350

50. How many companies in India are included in Miniratna’s?

(a) 45 (b) 60

(c) 100 (d) 110

 51. Which of the following is not an advantage of MNC’s

(a) It helps in generating tax revenues for the host

(b) It helps in generating employment opportunities

(c) Providing high quality goods

(d) Helps in development of backward areas

52. BIFR stands for

(a) Board for Industrial and Financial Reconstruction

(b) Board for Industrial and Financial Retransformation

(c) Board for International Finance

(d) None of the above and Revenue

53. BHEL, HPCL, NTPC, ONGC, SAIL are the examples of

(a) Navratnas (b) Miniratnas

(c) Swarnratnas (d) Kohinoors

54. The contribution of PSU’s in the total national savings is

(a) 4% (b) 6%

(c) 1% (d) 5%

55. The number of people currently employed in PSU’s in India are around

(a) 1.9 million (b) 3 million (c). 4.8 million (d) 5 million

56. Which of the following statements is not true in respect of PSU’s?

(a) It has played a significant role in the Indian Economy

(b) The rate of return in high

(c) The total saving rate in PSU’s is nearly 35%

(d) The overall performance of most of the PSU’s is not satisfactory

57. Which of the following statement is true?

(a) The traditional small scale industries are labour intensive

(b) Modern small scale industries use highly sophisticated machinery and equipments

(c) Neither (a) nor (b)

(d) Both (a) and (b)

58. A corporate body created by Parliament or state legislature by a special Act defining its powers i.e. functions etc. is called.

(a) Departmental undertaking (b) Government company

(c) Statutory corporation (d) Public company

59. An organisation established for providing essential services like railway, postal services, broadcasting etc. is called

(a) Statutory Corporation (b) Departmental undertaking (c) Public Company (d) Government company

60. A government company refers to a company in which is held by the central or state government

(a) 51% of authorised capital (b) 51% of Subscribed capital

(c) 51% of nominal capital (d) 51% of the paid up capital

61. Life Insurance Corporation, State Trading Corporation etc. are the examples of

(a) Statutory corporation (b) Government company

(c) Departmental undertaking (d) Public company

62. Which of the following requires registration under the Companies Act, 1956

(a) Departmental undertaking (b) Statutory corporation

(c) Government company (d) None of the above

63. ONGC, BHEL, Hindustan Machine Tools Limited etc are the examples of

(a) Statutory corporation (b) Government company

(c) Departmental undertaking (d) None of the above

64. The country in which the headquarters of MNC are located is called

(a) Host country (b) Home country (c) Principle country d) None of the above


65. The foreign country in which the MNC operates its business is called as

(a) Host Country (b) Home Country

(c) Foreign country (d) None of the above

66. Bringing credits savings and other essential services to the poor is called

(a) Poor Finance (b) Micro Credit

(c) Micro Finance (d) Both (b) & (c)

67. The agreement entered into by two countries in order to facilitate trade and removing restrictions is called

(a) Liberal agreement (b) Mutual agreement

(c) Co-operative agreement (d) Bilateral agreement

68. The advantages of MNC’s to the Home country include.

(a) Inflow of foreign exchange (b) Promoting bilateral trade relations

(c) Both (a) and (b) (d) Neither (a) nor (b)


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

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

13 (b) 14 (b) 15 (c) 16 (c) 17 (c) 18 (c)

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

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

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

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

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

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

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

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

67 (d) 68 (c)

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