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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-1 section-2

Each section contains 100 MCQs on Business and Commerce .
1
Equity shares were earlier known as __________.
Discuss
Answer & Solution
Answer: Option A
Solution:
Equity shares were earlier known as ordinary shares. Equity shares represent the ownership of a company and capital raised by the issue of such shares is known as ownership capital or owner's funds. They are the foundation for the creation of a company.
2
A ________ is an acknowledgement of a debt.
Discuss
Answer & Solution
Answer: Option B
Solution:
A debenture is an acknowledgement of a debt. An undertaking to repay a sum of money as a debt by a company which has been deposited with or lent to the body. They are usually secured by fixed charge and floating charge.
3
The debentures are not given any security on assets are called as ________ debentures.
Discuss
Answer & Solution
Answer: Option A
Solution:
The debentures are not given any security on assets are called as Unsecured debentures. Unsecured debenture does not carry any charge or security on the assets of the company.
4
The debentures are given a security on assets are called as ________ debentures.
Discuss
Answer & Solution
Answer: Option B
Solution:
The debentures are given a security on assets are called as Secured debentures. These are debentures that are secured against an asset/assets of the company. This means a charge is created on such an asset in case of default in repayment of such debentures.
5
The preference shares holders who have no claim for the arrears of dividend are _________ preference shares.
Discuss
Answer & Solution
Answer: Option B
Solution:
The preference shares holders who have no claim for the arrears of dividend are Non-cumulative preference shares. Non-cumulative preference shares are those type of preference shares, which have right to get fixed rate of dividend out of the profits of current year only. They do not carry the right to receive arrears of dividend.
6
The _________ co-operative societies are established for the benefit of small producers.
Discuss
Answer & Solution
Answer: Option B
Solution:
The Producers co-operative societies are established for the benefit of small producers. To protect the interest of small producers, these societies are set up. The co-operative society members may be farmers, landowners, owners of the fishing operations. To increase the marketing possibilities and production efficiency, producers decide to work together or as separate entities.
7
The _________ co-operatives are associations of producers for selling their products at remunerative prices.
Discuss
Answer & Solution
Answer: Option C
Solution:
The Marketing co-operatives are associations of producers for selling their products at remunerative prices. These are voluntary associations of independent producers who want to sell their output at remunerative prices.
8
Which co-operative societies are helpful to their members in purchasing land and constructing houses?
Discuss
Answer & Solution
Answer: Option D
Solution:
Housing co-operative societies are helpful to their members in purchasing land and constructing houses. These societies are formed to provide residential houses to members. They purchase land, develop it and construct houses or flats and allot the same to members. Some societies also provide loans at low rate of interest to members to construct their own houses.
9
_________ societies are voluntary associations of farmers framed to reap me benefits of large scale farming an scientific lines.
Discuss
Answer & Solution
Answer: Option A
Solution:
Co-operative farming societies are voluntary associations of farmers framed to reap me benefits of large scale farming an scientific lines.
10
Co-operative societies have _________ management.
Discuss
Answer & Solution
Answer: Option B
Solution:
Co-operative societies have Democratic management. The society is managed by a group known as “Board of Directors”. The members of the board of directors are the elected representatives of the society. The main purpose of a Co-operative Society is to provide service to its members.