COMMERCE

1. What is the business called when goods are purchased and then resold without any modifications?

A) Manufacturing

B) Service

C) Trading ✔

D) Agriculture

Answer :- C) Trading

2.    What ratio measures a company's ability to pay off its short-term debts?

a) Solvency ratio 

b) Liquidity ratio ✔

c) Profitability ratio 

d) Activity ratio

correct answer :- b) Liquidity ratio 

Liquidity ratios = Short-term debt payment ability

Explanation:-

Liquidity ratios are a class of financial metrics used to determine a company's ability to pay off its short-term debt obligations. Short-term debts are those due within one year. Examples include the Current Ratio and Quick Ratio. A higher liquidity ratio generally indicates a company's financial health and its ability to cover its short-term liabilities.

3. Which law governs a Partnership firm?

A) Companies Act, 2013

B) Indian Contract Act, 1872

C) Indian Partnership Act, 1932   ✔

D) Trade Union Act

Correct Answer :- C) Indian Partnership Act, 1932

4. ‘Market Skimming’ strategy means

A) Attracting the mass market by setting a low price

B) Gradually reducing the prices over time

C) Setting a high price during the initial stage to earn maximum profits ✔

D) Distributing the products for free

Correct Answer:-

C) Setting a high price during the initial stage to earn maximum profits

Explanation:-

Market Skimming is a pricing strategy where a company sets a high initial price for a new or innovative product to "skim" the maximum profit from early adopters before gradually lowering the price to attract more price sensitive customers.

5.In marketing, what does “4Ps” mean?

A) Product, Price, Place, Promotion

B) Plan, Price, People, Profit

C) Product, People, Profit, Process

D) Plan, Place, Price, Promotion

Correct answer:- A) Product, Price, Place, Promotion

 

6. Where was the first Stock Exchange established and in which year?

A) London, 1700 

B) Amsterdam, 1602 

C) Paris, 1724 

D) New York, 1792

 

Correct Answer:- B) Amsterdam, 1602

7. The largest component of India’s imports is usually

a) Petroleum products

b) Machinery

c) Gems & Jewellery

d) Textiles

Correct Answer:- a) Petroleum products

8. The principle of “Caveat Emptor” means:

a) Let the buyer beware

b) Let the seller beware

c) No profit, no loss

d) Equal treatment of partners

Correct Answer:- a) Let the buyer beware

9. Which of the following is a money market instrument?

క్రిందివాటిలో ఏది మనీ మార్కెట్ ఇన్‌స్ట్రుమెంట్?

A) Shares (షేర్లు)

B) Debentures (డిబెంచర్లు)

C) Treasury Bills (ట్రెజరీ బిల్స్)

D) Bonds (బాండ్లు)

Correct Answer/సరైన సమాధానం:- C) Treasury Bills (ట్రెజరీ బిల్స్)

10.