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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-8 section-1

Each section contains 100 MCQs on Business and Commerce .
71
The primary aim of co-operative is to ________.
Discuss
Answer & Solution
Answer: Option B
Solution:
The primary aim of co-operative is to serve the members. The main purpose of a Co-operative Society is to provide service to its members. It also provides better quality goods to its members and the general public.
72
A sleeping partner is one who __________.
Discuss
Answer & Solution
Answer: Option A
Solution:
A sleeping partner is one who contributes capital. A sleeping partner is a partner who 'sleeps', that is, he does not take active part in the management of the business. Such a partner only contributes to the share capital of the firm, is bound by the activities of other partners, and shares the profits and losses of the business.
73
The principle of indemnity does not apply to __________.
Discuss
Answer & Solution
Answer: Option D
Solution:
The principle of indemnity does not apply to Life and Personal Accident insurance. According to the principle of indemnity, the purpose of an insurance contract is to bring back the insured to the same financial position as he or she was before the loss occurred to him or her (because of a mishap). But in case of life insurance, life of a person can not be brought back.
74
In vertical filing system, files or folders are kept ________.
Discuss
Answer & Solution
Answer: Option B
Solution:
In vertical filing system, files or folders are kept in standing upright position.
75
The primary function of an office is _______.
Discuss
Answer & Solution
Answer: Option A
Solution:
The primary function of an office is making, using and preserving records. Processing and arranging information It is the most significant function of an office. The information collected and recorded cannot be readily used for the decision making and other purposes in the organization. Therefore it must be processes and arranged.
76
Decentralization of authority means _________.
Discuss
Answer & Solution
Answer: Option D
Solution:
Decentralization of authority means departmentalizing activities. Departmentalization involves dividing an organization into different departments, which perform tasks according to the departments' specializations in the organization. Departmentalization as a means of structuring an organization can be found in both public and private organizations.
77
Which of the following methods of filing do you recommend for a large size undertaking?
Discuss
Answer & Solution
Answer: Option D
Solution:
Vertical filing methods are recommend for a large size undertaking. Vertical filing indicates the vertical position of the files. The files are kept in a standing position under this method. Vertical filing method is developed to overcome the difficulties of horizontal filing.
78
Planning and control are _________ functions of an office.
Discuss
Answer & Solution
Answer: Option B
Solution:
Planning and control are administrative functions of an office. Organizing the office on modem lines involves performing the management functions of planning, organizing, directing and controlling. In other words, the office work must be properly planned, organized and then executed according to the plan.
79
_________ is an important consideration for setting up an office.
Discuss
Answer & Solution
Answer: Option B
Solution:
Office location is an important consideration for setting up an office. Various factors should be considered while selecting the location for office. Nature of business, nearness, infrastructure, cost, law etc, are the main factors that affect selection of office location.
80
Guarantee for employer for the loss out of employee's dishonest is__________.
Discuss
Answer & Solution
Answer: Option B
Solution:
Guarantee for employer for the loss out of employee's dishonest is Fidelity insurance. A Fidelity Insurance policy covers losses sustained by the employer as a result of an act of forgery, fraud or dishonesty from an employee.