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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-3 section-2

Each section contains 100 MCQs on Business and Commerce .
21
__________ is a social device for eliminating or reducing the loss of society from certain risk.
Discuss
Answer & Solution
Answer: Option C
Solution:
Insurance is a social device for eliminating or reducing the loss of society from certain risk. Insurance is a social device for division of financial losses which may fall on an individual or his family on the happening of some unforeseen events. When insured, the loss arising out of the events are shared by all the insured in the form of premium. Therefore the risk is transferred from one individual to a group.
22
Economic activities are related to ___________.
Discuss
Answer & Solution
Answer: Option A
Solution:
Economic activities are related to Production of wealth. The primary aim of the economic activity is the production of goods and services with a view to make them available to consumer.
23
Profession involves _________.
Discuss
Answer & Solution
Answer: Option A
Solution:
Profession involves rendering of personal service. The service is based on professional education, knowledge, training etc. This service is provided for a professional fees charged from the clients.
24
Which of the following is an economic activity?
Discuss
Answer & Solution
Answer: Option A
Solution:
A farmer in the field is an economic activity. Any action that involves producing, distributing, or consuming products or services is an economic activity.
25
The Insurer who grants a guarantee from the direct insurer is called as _________.
Discuss
Answer & Solution
Answer: Option C
Solution:
The Insurer who grants a guarantee from the direct insurer is called as Re-Insurer. A reinsurer is an insurance company that insures the risks of other insurance companies. A cedant is an insurer who transfers all or part of a risk to a reinsurer.
26
IRDA refers to_________.
Discuss
Answer & Solution
Answer: Option A
Solution:
IRDA refers to Insurance Regulatory Development Authority. The Insurance Regulatory and Development Authority (IRDA) was constituted to regulate and develop the insurance industry and was incorporated in April 2000.
27
The principle of prevention is better than cure refers to __________.
Discuss
Answer & Solution
Answer: Option B
Solution:
The principle of prevention is better than cure refers to Avoiding of risk.
28
Working capital means _________.
Discuss
Answer & Solution
Answer: Option B
Solution:
Working capital means Current asset minus current liability. Working capital represents a company's ability to pay its current liabilities with its current assets.
29
Dividends are payable to the _________.
Discuss
Answer & Solution
Answer: Option A
Solution:
Dividends are payable to the Share holders. Dividends payable are dividends that a company's board of directors has declared to be payable to its shareholders. Until such time as the company actually pays the shareholders, the cash amount of the dividend is recorded within a dividends payable account as a current liability.
30
A written agreement signed by all partners is called _______.
Discuss
Answer & Solution
Answer: Option A
Solution:
A written agreement signed by all partners is called Partnership Deed. Partnership deed should be duly signed by the partners, stamped & registered.