Introduction To Business MCQs | MGT211 MCQs | Set 5
Introduction To Business MCQs | MGT211 MCQs | Set 5
MCQs (Multiple Choice Questions)
1) A firm that acquires another firm as part of its overall business strategy is engaging in:
a) A strategic acquisition
b) A financial acquisition
c) A two-tier tender offer
d) A shark repellent
Correct Answer:
The correct answer is 'a'.
Explanation:
A strategic acquisition is an acquisition that is made to achieve specific strategic goals, such as expanding into new markets, gaining access to new technologies, or reducing competition. A financial acquisition is an acquisition that is made to generate financial returns, such as by increasing the acquirer's profits or shareholder value. A two-tier tender offer is a type of tender offer in which the acquirer makes a lower offer to all shareholders of the target company, and a higher offer to shareholders who tender their shares before a specified deadline. A shark repellent is a tactic used by a target company to make it more difficult for an acquirer to take it over, such as by issuing more shares or adopting a poison pill provision.
______________________________
2) The record of a country's imports and exports of goods and services is called its:
a) Visible trade balance.
b) Balance of payments
c) Balance of payments on current account.
d) Balance of trade.
Correct Answer:
The correct answer is 'd'.
Explanation:
The balance of trade is the difference between a country's exports and imports of goods and services. It is a measure of the net flow of goods and services between a country and the rest of the world. A positive balance of trade means that the country is exporting more goods and services than it is importing. A negative balance of trade means that the country is importing more goods and services than it is exporting.
The visible trade balance is the difference between a country's exports and imports of goods. It does not include services. The balance of payments is a broader measure of a country's international transactions. It includes the balance of trade, as well as other flows of money, such as investment and tourism. The balance of payments on current account is the sum of the balance of trade and other current account transactions, such as income from investments and payments for services.
Therefore, the record of a country's imports and exports of goods and services is called its balance of trade.
______________________________
3) which of the following is the treaty designed to remove barriers to the free flow of goods, services and capital between nations?
a) GATT
b) EU
c) WTO
d) NAFTA
Correct Answer:
The correct answer is 'c'.
Explanation:
GATT stands for General Agreement on Tariffs and Trade. It is a multilateral agreement that was established in 1947 to promote trade between countries. The GATT was replaced by the World Trade Organization (WTO) in 1995, but the GATT rules and principles continue to form the basis of the WTO's trading system.
The GATT (and the WTO) aims to remove barriers to trade, such as tariffs, quotas, and subsidies. It also aims to ensure that trade is conducted fairly and that all countries have equal access to markets.
The EU, NAFTA, and other free trade agreements are also designed to remove barriers to trade, but they are more limited in scope than the GATT. The EU, for example, is a political and economic union, while NAFTA is a free trade agreement between the United States, Canada, and Mexico.
Therefore, the treaty designed to remove barriers to the free flow of goods, services and capital between nations is the GATT.
______________________________
4) Export subsidies are:
a) Maximum limits on the quantity of specific products imported to a nation.
b) Taxes placed on imported products.
c) Licensing requirements or unreasonable quality standards designed to reduce imports.
d) Government payments to domestic producers to reduce the price on exported goods.
Correct Answer:
The correct answer is 'd'.
Explanation:
An export subsidy is a government policy to encourage export of goods and discourage sale of goods on the domestic market through direct payments, low-cost loans, tax relief for exporters, or government-financed international advertising. An export subsidy reduces the price paid by foreign importers, which means domestic consumers pay more than foreign consumers.
Maximum limits on the quantity of specific products imported to a nation are called import quotas. Taxes placed on imported products are called tariffs. Licensing requirements or unreasonable quality standards designed to reduce imports are called non-tariff barriers.
Therefore, export subsidies are government payments to domestic producers to reduce the price on exported goods.
______________________________
5) If a very successful fast food restaurant has been ignoring customers' concerns about the small war toys and toy guns included in their Kids Meals, then managers should begin focusing on improving the firm's:
a) Ethics
b) Profitability
c) Productivity
d) Game plan
Correct Answer:
The correct answer is 'a'.
Explanation:
Ignoring customers' concerns about the small war toys and toy guns included in their Kids Meals is an unethical business practice. It shows that the restaurant is not concerned about the welfare of its customers, especially children. This could damage the restaurant's reputation and hurt its business in the long run.
Profitability, productivity, and game plan are all important for a business, but they are not as important as ethics. A business that is ethical is more likely to be successful in the long run, even if it sacrifices some profits in the short term.
Therefore, if a very successful fast food restaurant has been ignoring customers' concerns about the small war toys and toy guns included in their Kids Meals, then managers should begin focusing on improving the firm's ethics.
______________________________
6) Which of the following chart shows turnover in an organization?
a) GANNT chart
b) Replacement chart
c) PERT chart
d) Bar chart
Correct Answer:
The correct answer is 'b'.
Explanation:
A replacement chart is a type of chart that shows the number of employees who have left an organization over a period of time. It can be used to track turnover rates and identify trends. The chart can be displayed as a line graph, bar graph, or pie chart.
A GANTT chart is a type of chart that shows the tasks that need to be completed in a project and the time frame for each task.
A PERT chart is a type of chart that shows the tasks that need to be completed in a project and the dependencies between tasks.
A bar chart is a type of chart that shows the values of different variables along a horizontal axis and the frequencies of those values along a vertical axis.
Therefore, the chart that shows turnover in an organization is the replacement chart.
______________________________
7) Which of the following step is important to improve expectancy?
a) Deliver rewards as promised.
b) Observe and recognize performance.
c) Create the belief that effort is related to performance.
d) Make the rewards meaningful
Correct Answer:
The correct answer is 'd'.
Explanation:
Expectancy theory is a motivation theory that states that people are motivated to act in a certain way if they believe that their effort will lead to performance, and that performance will lead to a desired outcome. The three key elements of expectancy theory are:
Expectancy: The belief that effort will lead to performance.
Instrumentality: The belief that performance will lead to a desired outcome.
Valence: The value that the individual places on the desired outcome.
To improve expectancy, it is important to make the rewards meaningful to the individual. This means that the rewards should be something that the individual values and wants. For example, if an employee is motivated by money, then the rewards should be monetary. If an employee is motivated by recognition, then the rewards should be something that recognizes their accomplishments.
______________________________
8) The term "Job Rotation":
a) Is another term for employee empowerment Involves allocating a wider range of similar tasks to individuals
b) Involves giving employees work with a greater degree of responsibility and autonomy
c) Means that staff is moved periodically from task to task in order to increase variety and interest
Correct Answer:
The correct answer is 'c'.
Explanation:
Job rotation is a management technique where employees are periodically moved from one job to another. This can be done within the same department or across different departments. The goal of job rotation is to increase variety and interest in the work, and to give employees the opportunity to learn new skills.
Employee empowerment is a process of giving employees more control over their work. This can be done by giving them more responsibility, autonomy, and decision-making power.
Allocating a wider range of similar tasks to individuals is called job enlargement. This can be done to increase the challenge and responsibility of the work.
Therefore, the term "Job Rotation" means that staff is moved periodically from task to task in order to increase variety and interest.
______________________________
9) In _________ of marketing, unsatisfied need of the customers are satisfied.
a) Social oriented stage
b) Product oriented stage
c) Marketing oriented stage
d) None of the above
Correct Answer:
The correct answer is 'c'.
Explanation:
In the marketing oriented stage of marketing, the focus is
on satisfying the needs of the customers. This is done by
understanding the customer's needs and wants, and then
developing products and services that meet those needs.
The marketing oriented stage is the most successful stage
of marketing, as it leads to increased customer
satisfaction and loyalty.
The product oriented stage is focused on the product itself, rather than the customer. This means that the focus is on making the best product possible, regardless of whether or not it meets the needs of the customer. The product oriented stage is less successful than the marketing oriented stage, as it can lead to products that are not what the customer wants.
The social oriented stage of marketing is focused on the impact of the marketing activities on society. This means that the focus is on making sure that the marketing activities are ethical and sustainable. The social oriented stage is still in its early stages, but it is becoming increasingly important as businesses become more aware of the impact of their marketing activities.
Therefore, in the marketing oriented stage of marketing, unsatisfied need of the customers are satisfied.
______________________________
10) Which of the following statements is NOT true about services?
a) They are experienced, used or consumed.
b) They are often sold first, then consumed.
c) They are perishable.
d) They are tangible.
Correct Answer:
The correct answer is 'd'.
Explanation:
Services are intangible, meaning that they cannot be seen, touched, or felt. They are experienced, used, or consumed. For example, a haircut is a service that is experienced by the customer. The haircut cannot be seen, touched, or felt before it is purchased, but it is consumed by the customer when it is performed.
Services are often sold first, then consumed. This means that the customer pays for the service before it is actually delivered. For example, a customer might pay for a haircut before it is actually performed.
Services are perishable. This means that they cannot be stored or saved. Once a service is performed, it cannot be repeated. For example, a haircut cannot be saved and used again at a later date.
Therefore, the statement that is not true about services is that they are tangible.
______________________________
No comments