Commerce MCQs

Zero-sum game is also known as?
A. Right issue
B. Bonus issue (Correct)
C. Private placement
D. Preferential Allotment

A company plans to create the largest possible total sales volume. It should use
A. Concentrated marketing
B. Differentiated marketing (Correct)
C. Homogeneous marketing
D. Undifferentiated marketing

Cost of capital from all the sources of funds is called
A. Specific cost
B. Composite cost (Correct)
C. Implicit cost
D. Simple Average cost

Composite cost of capital is a company’s cost to finance its business, determined by, and also referred to as “weighted average cost of capital” or WACC. The calculation involves multiplying the cost of each capital component by its proportional weight and taking the sum of the results.

DAGMAR approach in marketing is used to measure:
A. Public relations
B. Advertising results
C. Selling volume
D. Consumer satisfaction (Correct)

DAGMAR (defining advertising goals for measured advertising results) is a marketing model used to establish clear objectives for an advertising campaign and measure its success. The DAGMAR model was introduced by Russell Colley in a 1961 report to the Association of National Advertisers and was expanded upon in 1995 by Solomon Dutka.

Which one of the following statements is correct ?
(A) Audit of an educational institution is compulsory if it is run by a charitable trust
(B) A club is treated as a commercial establishment
(C) The accounts of a charitable trust can be audited by any person who belongs to the accountancy profession
(D) Audit of a charitable trust is not compulsory under law
Answer: Audit of an educational institution is compulsory if it is run by a charitable trust

Where does an auditor of a cooperative society submit the audit report?
(A) To the managing committee of the society only
(B) To the Registrar of Cooperative Societies of the State concerned only
(C) To the State Assembly concerned
(D) To the Registrar of Cooperative Societies of the State concerned and a copy to the society
Answer: To the Registrar of Cooperative Societies of the State concerned only

Which one of the following statements is correct?
(A) Internal audit and Management audit are the same
(B) Internal audit and statutory audit are the same
(C) Internal audit is compulsory in all cases
(D) Statutory audit of company accounts is compulsory
Answer: Statutory audit of company accounts is compulsory

What does management audit imply?
(A) Complete audit
(B) Detailed audit
(C) Efficiency audit
(D) Interim audit
Answer: Efficiency audit

Which of the following companies do not have the obligation to get its Articles of Association registered along with the Memorandum of Association ?
(A) Public Company limited by shares
(B) Unlimited companies
(C) Private companies limited by shares
(D) Companies limited by guarantee
Answer: Public Company limited by shares

According to the going concern concept, a business entity is assumed to have–
(A) A long life
(B) A small life
(C) A very short life
(D) A definite life
Answer: A long life