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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-7 section-1

Each section contains 100 MCQs on Business and Commerce .
61
Which of the following speculative activities is based on disparity in quoted prices in different markets?
Discuss
Answer & Solution
Answer: Option B
Solution:
Arbitrage speculative activities is based on disparity in quoted prices in different markets. Arbitrage has the effect of causing prices in different markets to converge.
62
When the name of the transferee is not filled in not filled in the transfer deed, without filling in the name of the transferee it is called _______.
Discuss
Answer & Solution
Answer: Option C
Solution:
A transfer signed by the transferor, but with a blank for the name of the transferee is called a blank transfer. In a blank transfer neither the transferee’s name and signature nor the date of sale are filed in the transfer form. The transferee is at liberty to sell it again without filling his name and signature to a subsequent buyer.
63
When a right to sell a security is acquired, it is known as __________.
Discuss
Answer & Solution
Answer: Option B
Solution:
When a right to sell a security is acquired, it is known as put option. In finance, a put or put option is a stock market device which gives the owner the right, but not the obligation, to sell an asset (the underlying), at a specified price (the strike), by a predetermined date (the expiry or maturity) to a given party (the seller of the put).
64
Stock exchange deals with the ___________.
Discuss
Answer & Solution
Answer: Option A
Solution:
Stock exchange deals with the second hand securities. In short it deals with existing or second hand securities and hence it is called secondary market. Allows dealings only in listed securities : In fact, stock exchanges maintain an official list of securities that could be purchased and sold on its floor.
65
Dividend and interest are _______.
Discuss
Answer & Solution
Answer: Option C
Solution:
Dividend and interest are debited to profit and loss account. Debentures interest is a business expensed and therefore, it is a charge against profit and as such profit and loss account is debited with the total amount of interest payable during the accounting year whether the company has earned the profit or not.
66
The price of a share quoted in the stock exchange is cum, dividend when _________.
Discuss
Answer & Solution
Answer: Option A
Solution:
The price of a share quoted in the stock exchange is cum, dividend when it is inclusive of dividend declared.
67
When SEBI came into force?
Discuss
Answer & Solution
Answer: Option A
Solution:
SEBI came into force in 1992. Securities and exchange Board of India (SEBI) was first established in the year 1988 as a non-statutory body for regulating the securities market. It became an autonomous body by The Government of India on 12 May 1992 and given statutory powers in 1992 with SEBI Act 1992 being passed by the Indian Parliament.
68
Indexing is an important ________.
Discuss
Answer & Solution
Answer: Option B
Solution:
Indexing is an important method of maintaining account books. Indexes are used to quickly locate data without having to search every row in a database table every time a database table is accessed.
69
A certain percentage of the sum assured is paid periodically according to the terms of policy is known as ________ .
Discuss
Answer & Solution
Answer: Option C
Solution:
A certain percentage of the sum assured is paid periodically according to the terms of policy is known as Money-Back Policy.
70
What is called to buying of shares by taking money from brokers?
Discuss
Answer & Solution
Answer: Option A
Solution:
Margin trading is called to buying of shares by taking money from brokers. Buying on margin means to borrow money from a broker (similar to a loan) to purchase stock. The investor can take position in the market by paying an initial margin of 50 per cent (your own money), while the broker could finance the balance 50 per cent.