Business Awareness problems
- 1. Regulatory policies protect consumers by
Options- A. controlling the supply of money
- B. providing public assistance programs
- C. overseeing and limiting businesses
- D. deciding how to tax and spend money Also asked in: AIEEE, Bank Exams, CAT, Analyst, Bank Clerk, Bank PO
Correct Answer: overseeing and limiting businesses
- 2. Final goods and services refer to
Options- A. goods and services purchased by ultimate users, rather than for resale or further processing
- B. goods and services whose value has been adjusted for changes in the price level
- C. the excess of U.S. exports over U.S. imports
- D. goods and services that are unsold and therefore added to inventories Also asked in: AIEEE, Bank Exams, CAT, Analyst, Bank Clerk, Bank PO
Correct Answer: goods and services purchased by ultimate users, rather than for resale or further processing
Explanation:
Final goods and services refer to goods and services that have been purchased for final use and that cannot be resaled.
- 3. Quality assurance is an example of which process?
Options- A. Testing
- B. Manufacturing
- C. Delivering
- D. None of the above Also asked in: AIEEE, Bank Exams, CAT, Analyst, Bank Clerk, Bank PO
Correct Answer: Testing
Explanation:
Quality assurance (QA) is a way of preventing mistakes and defects in manufactured products and avoiding problems when delivering solutions or services to customers.
- 4. An increase in the price of a good will
Options- A. decrease demand
- B. increase quantity demanded
- C. increase demand
- D. decrease quantity demanded Also asked in: AIEEE, Bank Exams, CAT, Analyst, Bank Clerk, Bank PO
Correct Answer: decrease quantity demanded
Explanation:
In economics we study that, if the price of a good increases the demand in its quantity decreases or the demand for its complimentary good increases.
For example, if the rice of a good increased by 5%, the demand in its quantity decreases by 10% approximately.
- 5. The purpose of safety stock is to
Options- A. eliminate the possibility of a stockout
- B. control the likelihood of a stockout due to the variability of demand during lead time
- C. replace failed units with good ones
- D. eliminate the likelihood of a stockout due to erroneous inventory tally Also asked in: AIEEE, Bank Exams, CAT, Analyst, Bank Clerk, Bank PO
Correct Answer: control the likelihood of a stockout due to the variability of demand during lead time
Explanation:
The purpose of safety stock is to control the likelihood of a stockout due to the variability of demand during lead time. Stockouts contribute to the direct loss of any type of business.
- 6. Fixed cost per unit increases when
Options- A. variable cost per unit decreases
- B. production volume decreases
- C. variable cost per unit increases
- D. production volume increases Also asked in: AIEEE, Bank Exams, CAT, Analyst, Bank Clerk, Bank PO
Correct Answer: production volume decreases
Explanation:
Fixed cost per unit increases when production volume decreases. The fixed cost per unit does not always remain the same. Fixed cost per unit increases when production volume decreases and vice versa.
- 7. Sales promotions include all of the following except
Options- A. Online Ads
- B. Coupons
- C. Free Samples
- D. Rebates Also asked in: AIEEE, Bank Exams, CAT, Analyst, Bank Clerk, Bank PO
Correct Answer: Online Ads
Explanation:
Sales promotion uses both media and non-media marketing communications for a pre-determined, limited time to increase consumer demand, stimulate market demand or improve product availability.
Sales promotions include Coupons, Rebates, Free Samples, etc... Online Ads come under advertising form.
- 8. Equivalent units of production are equal to
Options- A. number of whole units that could have been completed if all work of the period had been used to produce whole units
- B. identifiable units existing at the end of the period in a production department
- C. units completed by a production department in the period
- D. number of units worked on during the period by a production department Also asked in: AIEEE, Bank Exams, CAT, Analyst, Bank Clerk, Bank PO
Correct Answer: number of whole units that could have been completed if all work of the period had been used to produce whole units
Explanation:
Equivalent units of production are equal to number of whole units that could have been completed if all work of the period had been used to produce whole units.
- 9. Which of the following does not motivate entrepreneurs?
Options- A. Security
- B. Profit
- C. Freedom
- D. Innovation Also asked in: AIEEE, Bank Exams, CAT, Analyst, Bank Clerk, Bank PO
Correct Answer: Security
Explanation:
Security in a business does not motivate entrepreneurs. An entrepreneurs primary motivation to start a business is to be independent.
- 10. The Business Entity concept means that Also asked in: Analyst, Bank Clerk, Bank PO
Correct Answer: The Business Entity concept is also called as Separate Entity or Economic Entity concept This concept states that the transactions and all the balances related or associated with a business must be recorded or accounted separately from other businesses or the individual personal transactions
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