Tag: business organisation

Questions Related to business organisation

We read in the newspaper that the foreign direct investment are preferred over the capital inflow. In this context, please consider the following.
  Which statement is more suitable for this statement ?

  1. FDI brings in latest technology

  2. FDI does not involve large outflow

  3. FDI improves efficiency of the economy

  4. None of the above


Correct Option: A
Explanation:

We read in the newspaper that the foreign direct investment are preferred over the capital inflow. In this context, FDI brings in latest technology is the more suitable for this statement. Foreign Direct Investment plays a crucial role in growth dynamics of an economy.It serves the interest of the foreign investors as well as look after the long-term financial interest of the investors.

'If you want to gauge economic status of a country, analyse the status of its capital market'. This statement is pertaining to ________.

  1. monetary policy

  2. capital policy

  3. stock exchange

  4. None of the above


Correct Option: C
Explanation:

'If you want to gauge economic status of a country, analyze the status of its capital market'. This statement is pertaining to stock exchange.Stock exchange has a provision to list the securities for trading. This is a service given to corporate sector. Stock exchange leads to capital formation as prices of securities with a variable return continue to increase over a long term Stock exchange provides services like, wide dissemination of prices of securities.

Stock exchange leads to _________ as prices of securities with a variable return continue to increase over long term.

  1. pricing of securities

  2. liquidity

  3. spreading of equity cult

  4. capital formation


Correct Option: D
Explanation:

Stock exchange leads to capital formation as prices of securities with a variable return continue to increase over long term. Stock exchange has a provision to list the securities for trading. This is a service given to corporate sector. Stock exchange provides services like, wide dissemination of prices of securities.

Sale of securities after the trading hours of the stock exchange is known as _______________.

  1. Short selling

  2. Stop loss

  3. Kerb dealing

  4. Profit taking


Correct Option: C
Explanation:

Sale of securities after the trading hours of the stock exchange is known as Kerb dealing. Kerb dealing or Kerb trading occurs outside of the general market operations, commonly through the use of computers or telephones after the official exchanges have closed.

Stock exchange deals with the _________________.

  1. Second-hand securities

  2. Issue of equity shares

  3. Issue of preference shares

  4. Issue of debentures


Correct Option: A
Explanation:

Stock exchange deals with the second hand securities. Stock exchange works through a network of exchanges. Companies list their stock on an exchange in order to raise money to expand their business and investors purchase those shares.

Which of the following are secondary market intermediaries for corporate securities in India?
I. Investors
II. Jobbers
III. Brokers and sub-brokers
IV. Portfolio consultants

  1. I, II and III only

  2. II, III and IV only

  3. II and III only

  4. III and IV only


Correct Option: B

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

List-I List-II
(i) Private ownership and Free Enterprise (a) Secondary Market
(ii) Government ownership and Central Authority (b) Capitalism
(iii) The market for the sale and purchase of previously issued securities (c) Primary Market
(iv) The market for new long term capital (d) Socialism
  1. $(i) - (b), (ii) - (d), (iii) - (a), (iv) - (c)$

  2. $(i) - (a), (ii) - (b), (iii) - (c), (iv) - (d)$

  3. $(i) - (b), (ii) - (d), (iii) - (c), (iv) - (a)$

  4. $(i) - (a), (ii) - (c), (iii) - (b), (iv) - (d)$


Correct Option: A

As per G.R. Terrey:

  1. Personal management is a continuous function.

  2. Human resources is a continues function.

  3. Personal management is hike a water power the faucet.

  4. None of the above


Correct Option: A

Writing an organizational strategic plan is an example of the __________ management function.

  1. Leading

  2. Coordinating

  3. Planning

  4. Organizing


Correct Option: C