Tag: business organisation

Questions Related to business organisation

Services traded between economies could include transport, construction services, insurance and financial services etc.

  1. True

  2. False


Correct Option: A
Explanation:

Trade in Services refers to the sale and delivery of an intangible product, called a service, between a producer and consumer. Trade in services that takes place between a producer and consumer that are, in legal terms, based in different countries is called International Trade in Services.

International trade takes place when buyers find foreign markets cheaper to buy in and sellers find them more profitable to dispose of their products than the domestic market.

  1. True

  2. False


Correct Option: A
Explanation:

International trade is the exchange of capital, goods, and services across international borders or territories. In most countries, such trade represents a significant share of gross domestic product.

In a company the use of proce sensitive corporate information by the company people to make gains or cover loss known as?

  1. Insider trading

  2. future trading

  3. Foreign Trading

  4. Stock Trading


Correct Option: A

Which one of the following is amongst India's major import items?

  1. Jute

  2. Wheat and rice

  3. Ayurvedic medicines

  4. Oil and petroleum products


Correct Option: D
Explanation:

One of India's most major import items is oil and petroleum products. Oil and petroleum are the highest imported products due to its demand and scarcity in India.

'FDI is an investment which a parent company makes in a foreign country. Where as FII is an investment made by an investor in the market of a foreign country'. State whether the statement is true or false.

  1. True

  2. False


Correct Option: A
Explanation:

A foreign direct investment is an investment in the form of a controlling ownership in a business in one country by an entity based in another country. It is thus distinguished from a foreign portfolio investment by a notion of direct control.

Among the measures taken by the government, existing companies with foreign equity can raise such investment upto _____ % under the prescribed guidelines.

  1. 49

  2. 51

  3. 50

  4. 70


Correct Option: B
Explanation:

Equity capital is generated by the sale of shares of stock. If taking on more debt is not financially viable, a company can raise capital by selling additional shares.Instead, the cost of equity capital refers to the amount of return on investment shareholders expect based on the performance of the larger market.

Which among the following has accelerated India's flow of foreign investment into India?

  1. Improving standard of living.

  2. Widening markets.

  3. New Industrial Policy, 1991

  4. All of the above


Correct Option: C
Explanation:

On July 24, 1991, Government of India announced its new industrial policy with an aim to correct the distortion and weakness of the Industrial Structure of the country that had developed in 4 decades; raise industrial efficiency to the international level; and accelerate industrial growth.

NRIs can invest upto 100% equity in high-priority industries, export houses, trading houses, hospitals, and sick-industries. Is this statement true or false?

  1. True

  2. False


Correct Option: A
Explanation:

NRIs/OCBs will be permitted to invest , on non-repatriation basis, in Money Market Mutual Funds (MMMFs) floated by commercial banks and public sector /private sector financial institutions, with authorisation from Reserve Bank of India/Securities and Exchange Board of India (SEBI).

Which among the following is not grouped as Primary product under the commodity composition of India's exports?

  1. Agricultural and allied

  2. Ores and minerals

  3. Textiles

  4. All of the above


Correct Option: C
Explanation:

A textile is a flexible material consisting of a network of natural or artificial fibres. Yarn is produced by spinning raw fibres of wool, flax, cotton, hemp, or other materials to produce long strands.Textiles are formed by weaving, knitting, crocheting, knotting, felting, or braiding.

Trade services can be restricted by the barriers of _____.

  1. no such restriction

  2. domestic regulations

  3. RBI

  4. SEBI


Correct Option: B
Explanation:

Article VI.4 of the General Agreement on Trade in Services (GATS) and the Decision on Domestic Regulation (S/L/70) call upon WTO members to develop any necessary disciplines to ensure that measures relating to qualification requirements and procedures, technical standards and licensing requirements and procedures.