Business Environment and International Business MCQ Questions and Solutions with Explanations

1

There is acute shortage of electricity in some of the states in India. This reflects a problem in which type of business environment?

A) Economic B) Demographic C) Politico-legal D) Socio-cultural

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Answer & Solution

Answer: Option A

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2

Examine the following statements and choose the correct answer:
Statement (I): Companies with Low cash reserves normally prefer Licensing mode rather than Foreign Direct Investment.
Statement (II): Cash rich firms normally prefer Foreign Direct Investment.

A) Both (I) and (II) are correct B) Both (I) and (II) are wrong C) (I) is correct but (II) is wrong D) (I) is not correct but (II) is correct

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Answer & Solution

Answer: Option A

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3

Bretton Woods Conference resulted into the establishment of which of the following?

A) IMF and IDA B) IBRD and IFC C) IDA and ADB D) IMF and IBRD

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Answer & Solution

Answer: Option D

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4

Which of the following are the outcomes of the Sixth Ministerial Conference of WTO which was held at Hong Kong in December 2005?
1. Resolve to complete the Doha Work Programme fully and to conclude negotiations in 2006.
2. Amendments to TRIPS agreement reaffirmed to address public health concerns of developing countries.
3. To continue export subsidies in agriculture upto 2018.
4. Duty free, quota free market access for all LDC's products to all developed countries.

A) 1, 2 and 4 B) 1, 2, 3 and 4 C) Both 1 and 3 D) Both 2 and 4

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Answer & Solution

Answer: Option A

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5

Which one of the following is not correct relating to competition policy and law?

A) Collusion and dominance have potential for unfair competition B) The appeal against decisions of competition commission of India can be made to the Competition Appellate Tribunal C) State monopolies, government's business policies and functioning of Regulatory Authorities cannot be scrutinised under this law D) Abuse of dominance rather than dominance should be the key for competition policy law

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Answer & Solution

Answer: Option C

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6

The major outcome of the Bretton Woods Conference was

A) Establishment of IMF and IFC B) Establishment of IBRD and IFC C) Establishment of IBRD and ADB D) Establishment of IMF and IBRD

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Answer & Solution

Answer: Option D

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7

Match List-I with List-II and select the correct answer:

List-I	List-II
a. Comparative cost theory of international trade	1. Gottfried Haberler
b. International trade theory of opportunity cost	2. J. S. Mill
c. Factor endownment theory of international trade	3. David Ricardo
d. Doctrine of reciprocal demand	4. Hecksher Ohlin

A) a-3, b-2, c-4, d-1 B) a-1, b-3, c-2, d-4 C) a-3, b-1, c-4, d-2 D) a-2, b-1, c-4, d-3

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Answer & Solution

Answer: Option C

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8

Assertion (A): Under FEMA, the receiver of laundered money is to be made culpable, instead of sender/distributor.
Reason (R): FEMA differs from the earlier Exchange Regulation Act FERA with regard to penalties and punishment in case of violation of the act.

A) (A) is correct, but (R) is not correct B) Both (A) and (R) are correct, but (R) is not the correct explanation of (A) C) Both (A) and (R) are correct and (R) is the correct explanation of (A) D) Both A and R are incorrect

Discuss

Answer & Solution

Answer: Option C

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9

Match the items of List-I with the items of List-II and select the correct answer:

List I	List II
a. Political and Legal Environment	1. Important for industries directly depending on imports or exports
b. Demographic Environment	2. Close relationship with the economic system and economic policy
c. Economic Environment	3. Related to natural resources
d. Geographical and Ecological Environment	4. Occupational and spatial mobilities of population having implications for business

A) a-2, b-4, c-3, d-1 B) a-2, b-4, c-1, d-3 C) a-1, b-2, c-3, d-4 D) a-1, b-2, c-4, d-3

Discuss

Answer & Solution

Answer: Option B

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10

Consider the following statements.
Assertion (A): The industrial growth in India has been hampered by the burden of many controls and regulations.
Reason (R): The New Industrial Policy seeks to liberate the industry from the shackles of Licensing System

A) Assertion (A) is correct, but Reason (R) is not correct B) Assertion (A) is correct and Reason (R) is right explanation of (A) C) Both Assertion (A) and Reason (R) are correct D) Both Assertion (A) and Reason (R) are incorrect

Discuss

Answer & Solution

Answer: Option A

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Business Environment and International Business MCQ Questions and Solutions with Explanations | Commerce