LEVEL 1
What is the primary goal of business?
a. Profit maximization
b. Customer satisfaction
c. Social responsibility
d. Cost minimization
a. Profit maximization
What is the purpose of a business plan?
a. To forecast profits
b. To secure funding
c. To set business goals
d. All of the above
d. All of the above
What is the process of dividing the total market into distinct groups based on similar characteristics called?
a. Positioning
b. Targeting
c. Segmentation
d. Differentiation
c. Segmentation
What is the purpose of a marketing mix?
a. To set financial goals
b. To identify target customers
c. To manage production processes
d. To create a balanced marketing strategy
d. To create a balanced marketing strategy
What is the purpose of a cash flow statement?
a. To show the company's financial position
b. To provide information on revenue and expenses
c. To track the movement of cash in and out of the business
d. To analyze market trends
c. To track the movement of cash in and out of the business
Which form of business organization has unlimited liability for its owners?
a. Sole proprietorship
b. Partnership
c. Company
d. Cooperative
a. Sole proprietorship
Which market structure is characterized by a large number of sellers and buyers?
a. Monopoly
b. Oligopoly
c. Monopolistic competition
d. Perfect competition
c. Monopolistic competition
What is the term for the amount of money a business earns after deducting all expenses?
a. Revenue
b. Profit
c. Turnover
d. Capital
b. Profit
Which of the following is a non-economic objective of business?
a. Profit maximization
b. Employee satisfaction
c. Cost minimization
d. Market share expansion
b. Employee satisfaction
What is the main function of a trade union?
a. Maximizing profits for employers
b. Representing and protecting the interests of workers
c. Regulating competition in the market
d. Facilitating international trade
b. Representing and protecting the interests of workers
In which stage of the business cycle does the demand for goods and services decline?
a. Expansion
b. Peak
c. Recession
d. Trough
c. Recession
What does SWOT analysis stand for in business?
a. Strengths, Weaknesses, Opportunities, Threats
b. Sales, Workforce, Output, Technology
c. Strategies, Workflow, Objectives, Tactics
d. Systems, Workload, Organization, Teamwork
a. Strengths, Weaknesses, Opportunities, Threats
In which stage of the product life cycle do sales start to decline?
a. Introduction
b. Growth
c. Maturity
d. Decline
c. Maturity
What does ROI stand for in business?
a. Return on Investment
b. Rate of Interest
c. Revenue of Income
d. Results of Innovation
a. Return on Investment
What is the term for a situation where a business owes more money than its assets are worth?
a. Solvency
b. Insolvency
c. Liquidity
d. Profitability
b. Insolvency
What is the term for the process of converting raw materials into finished goods?
a. Production
b. Distribution
c. Marketing
d. Consumption
a. Production
What is the function of the Securities and Exchange Board of India (SEBI)?
a. Regulating stock exchanges
b. Promoting foreign trade
c. Controlling inflation
d. Managing public transport
a. Regulating stock exchanges
What is the role of a board of directors in a company?
a. Day-to-day operations
b. Setting strategic direction
c. Routine decision-making
d. Employee recruitment
b. Setting strategic direction
What is the term for the process of obtaining and maintaining customers over time?
a. Marketing
b. Sales
c. Customer retention
d. Distribution
c. Customer retention
Which type of market research involves collecting data firsthand for a specific research purpose?
a. Primary research
b. Secondary research
c. Exploratory research
d. Descriptive research
a. Primary research
Which of the following is an economic function of business?
a. Innovation
b. Profit-sharing
c. Social responsibility
d. Advertising
a. Innovation
Which financial statement provides a snapshot of a company's financial position at a specific point in time?
a. Income statement
b. Cash flow statement
c. Balance sheet
d. Statement of retained earnings
c. Balance sheet
Which pricing strategy involves setting a high initial price and then gradually lowering it over time?
a. Skimming pricing
b. Penetration pricing
c. Discount pricing
d. Competitive pricing
a. Skimming pricing
Which type of risk is associated with changes in government policies and regulations?
a. Operational risk
b. Financial risk
c. Political risk
d. Market risk
c. Political risk
What is the role of a brand in marketing?
a. Identifying competitors
b. Differentiating products
c. Managing finances
d. Controlling production processes
b. Differentiating products