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Business and Commerce MCQ Questions and Solutions with Explanations | Commerce

Business and Commerce MCQ Questions and answers with easy and logical explanations. Commerce provides you all type of quantitative and competitive aptitude mcq questions with easy and logical explanations. Business and Commerce MCQ is important for exams like B.COM, M.COM, BBA, BBM, CA, CS, CMA, CPA, CFA, UPSC, NET, Banking and other commerce department exam. Page-2 section-2

Each section contains 100 MCQs on Business and Commerce .
11
_________ Debentures are to be redeemed on the expiry of a certain period.
Discuss
Answer & Solution
Answer: Option A
Solution:
Redeemable Debentures are to be redeemed on the expiry of a certain period. Debenture can be redeemed in various ways by a company. It can pay a lump sum on the date of maturity or may pay in annual installments. A company can also purchase it from the open market or convert to an equity share in case of convertible debentures. Innovative ways like call or put option can also be utilized.
12
When a transfer of shares takes place by the operation of law, it is known as ____________.
Discuss
Answer & Solution
Answer: Option B
Solution:
When a transfer of shares takes place by the operation of law, it is known as Transmission of shares. The transmission of shares occurs due to the operation of law i.e. in case if the member passes away or becomes insolvent/lunatic.
13
The return of shares to the company is known as ___________.
Discuss
Answer & Solution
Answer: Option A
Solution:
The return of shares to the company is known as Surrender of shares. Surrender of shares means the return of shares by the shareholder to the company for cancellation. Holder in this case voluntarily abandons all his shares in favour of the company.
14
The optimum point is an _________ size of a firm.
Discuss
Answer & Solution
Answer: Option A
Solution:
The optimum point is an Ideal size of a firm. The optimum firm refers to the best or ideal size of the firm. More specifically optimum or best firm is considered as one that has set up a plant with lowest possible cost and is also operating it at its lowest average cost point.
15
Which type of shareholders does not have voting rights?
Discuss
Answer & Solution
Answer: Option B
Solution:
Preference shareholders does not have voting rights. Most preference shares have a fixed dividend, while common stocks generally do not. Preferred stock shareholders also typically do not hold any voting rights, but common shareholders usually do.
16
Unsecured debentures are also called as _________.
Discuss
Answer & Solution
Answer: Option B
Solution:
Unsecured debentures are debentures that are not supported by a collateral security. No specific assets will be set aside against unsecured debentures. It is basically a loan with out any protection. They are backed only by the general credit worthiness of the issuer.
17
Secured debentures are also called as _________.
Discuss
Answer & Solution
Answer: Option A
Solution:
Secured debentures are also called as Mortgaged debentures. These debentures have some asset of the company as collateral security. Since the applicant's investment is protected against the asset of the company, it is called as a secured debenture.
18
_________ are the most important source of short term capital.
Discuss
Answer & Solution
Answer: Option A
Solution:
Commercial banks are the most important source of short term capital. The major portion of working capital loans are provided by commercial banks.
19
The first stock exchange in the world___________.
Discuss
Answer & Solution
Answer: Option C
Solution:
The first stock exchange in the world is London stock exchange. London Stock Exchange is one of the world's oldest stock exchanges and can trace its history back to 1571. London Stock Exchange Group was created in October 2007 when London Stock Exchange merged with Milan Stock Exchange, Borsa Italiana.
20
The industry which is concerned with the breeding of plants or animals, which are used in reproduction is termed as ___________.
Discuss
Answer & Solution
Answer: Option C
Solution:
The industry which is concerned with the breeding of plants or animals, which are used in reproduction is termed as Genetic Industry. Genetic industries are concerned mainly with producing - breeding or multiplying of certain species of plants or animals with the object of earning profits from their sale.