Tag: commercial studies

Questions Related to commercial studies

A company with a paid up Capital of 5,000 equity shares of Rs.10 each has a turnover of four times with a margin of 8% on sales.
The ROI of the company will be______.

commercial studies sources of business finance - 2 equity shares share and stock equity and preference shares

  1. 28%

  2. 32%

  3. 35%

  4. 42%

Show answer
Correct Option: B
Explanation:

ROI= margin of 8% on sales * 4 = 32%

The ending balance of owner's equity is Rs.21,000. During the year, the owner contributed Rs.6,000 and withdrew Rs.4000. If the firm had Rs.8,000 net income for the year what was the owner's equity at the beginning?

commercial studies sources of business finance - 2 equity shares share and stock equity and preference shares

  1. Rs.23,000

  2. Rs.21,000

  3. Rs.19,000

  4. Rs.11,000

Show answer
Correct Option: D
Explanation:

Owner's equity at the beginning= ending balance of owner's equity - net income + withdrawal amount - contributed amount = 21000-800+4000-6000 = 11000.

Decrease in working capital appear in fund flow statement in _________ side.

commercial studies statement of changes in financial position preparation of cash flow statement cash flow statement finance

  1. Sources

  2. Application

  3. Both (A) and (B)

  4. None of the above

Show answer
Correct Option: A
Explanation:

Working capital is current assets less current liabilities. A decrease in the net current assets leads to increase in fund flow which needs to be included. Hence, It appear in sources.

E-commerce includes buying and selling of which of the following:


P) Goods - e.g. digital camera, music system, clothes, accessories.
Q) Information - e.g. subscription to some law site may give access to some court cases.
R) Services - e.g. placement services by naukri.com.

commercial studies structure of business e-tailing e-advertising, e-marketing and e-security e-commerce and mobile commerce

  1. $P-X, Q-X, R- X$

  2. $P-\surd, Q-X, R- \surd$

  3. $P-\surd, Q-\surd, R- X$

  4. $P-\surd, Q-\surd, R- \surd$

Show answer
Correct Option: D
Explanation:

E-Commerce in India, is the rapidly growing business platform as it includes buying and selling of goods, services and information. Goods and services that includes cameras, clothes, subscription to some law sites, placement services can be purchased and sold through internet. There is nothing in the market that cannot be purchased online.

______ refers to the idea of extracting business intelligence from the competitive web pages.

commercial studies structure of business e-tailing e-advertising, e-marketing and e-security e-commerce and mobile commerce

  1. Web farming

  2. Web theft

  3. Web heating

  4. None of the above

Show answer
Correct Option: A
Explanation:

Web farms refers to the collection of servers in single location called a data center in order to function as a coordinated group that can be controlled and managed easily. Web farming refers to extracting the idea from the web pages.

Match the following:

Sr. No. List I Sr. No. List II
P B2C commerce  1. Electronic Commerce
Q Selling + customer satisfaction 2. Customers should approach business to buy
R Form of business transactions that is carried out through electronic processing andtransmission of data 3. E-commerce
S Allowing another firm in a foreign market to use technical know-how and trade mark 4. The basic concept of this model  is to sell the product online to the consumers
5. Marketing
6. Franchising
commercial studies structure of business e-tailing e-advertising, e-marketing and e-security e-commerce and mobile commerce

  1. $P-4, Q-5, R-3, S-6$

  2. $P-4, Q-5, R-6, S-3$

  3. $P-4, Q-5, R-6, S-1$

  4. $P-2, Q-5, R-3, S-6$

Show answer
Correct Option: A
Explanation:
Answer: A
B2C commerce: This basically refers to business to customer where all the customer oriented products and services are provided online to all the customers from most of the business units. 
Selling+customer satisfaction: Marketing is a process that starts with the basic idea of a product, which is developed keeping in mind the customer satisfaction and continues even after the sale of the product by providing the customers with after sale services. 
E- commerce: E-commerce stands for electronic commerce where the information or trade between two parties are done through electronic transmission of data. 
Franchising: It is a farm of ownership parent company(franchiser) allows many firms(franchisee) in the foreign market to use the technical know-how and trade mark of the company to separate the business in agreement for a regular payment at a fixed rate. 

Which type of business can be conducted online _________.

commercial studies structure of business e-tailing e-advertising, e-marketing and e-security e-commerce and mobile commerce

  1. B2B

  2. B2C

  3. C2B

  4. All of the above

Show answer
Correct Option: D
Explanation:

There are many types of e-commerce activities i.e. business to business (B2B) transactions, Business to Customer, Consumer to Consumer, Consumer to Business(C2B) etc.

_________ model defines the Buyer and Seller as two different entities. It is similar to manufacturer issuing goods to the retailer or wholesaler.

commercial studies structure of business e-tailing e-advertising, e-marketing and e-security e-commerce and mobile commerce

  1. B to B

  2. B to C

  3. C to B

  4. C to C

Show answer
Correct Option: A
Explanation:

Business to business form of e-business includes transactions that takes place between two business enterprises without including customers. For example: Car manufacturing firm can ask for quotation of prices from spare parts manufacturing firm.

The balances of all assets accounts, expenses accounts, losses, drawings are placed in the _______of the trial balance.

commercial studies conceptual framework of accounting distinction between accounting and book-keeping distinction between book-keeping and accounting meaning and objectives of accounting

  1. Credit column

  2. Debit column

  3. Ledger folio

  4. None of the above

Show answer
Correct Option: B

In double entry system of book-keeping every business transaction effects ________________.

commercial studies conceptual framework of accounting distinction between accounting and book-keeping distinction between book-keeping and accounting meaning and objectives of accounting

  1. Two accounts with equal but opposite effect.

  2. Two sides of the same account.

  3. The same account on two different dates.

  4. All of the above

Show answer
Correct Option: A
Explanation:

Because every business transaction affects at least two accounts, our accounting system is known as a double-entry system.