Tag: fundamentals of business activities

Questions Related to fundamentals of business activities

An organisation has production, purchase, marketing, finance and human resource departments. All of them working together to achieve organisational goals.
From your point of view, the value which is reflected here is "Co-Operation, Co ordination, do work with the help of each other".

elements of business fundamentals of business activities factors affecting business interrelationship between industry, commerce and trade other aspects of a business

  1. True

  2. False

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Correct Option: A
Explanation:

An organisation consists of several departments who work together to achieve a common goal. If they do not work together the activities will not be carried out efficiently and effectively and the goal will not be accomplished. 


Hence, the values such as co-operation, co-ordination and work with the help of each other are essential for all departments to work together and achieve the objective.

Environment is a _________.

elements of business fundamentals of business activities factors affecting business interrelationship between industry, commerce and trade other aspects of a business

  1. complex phenomenon

  2. comprehensive phenomenon

  3. economic phenomenon

  4. non-economic phenomenon

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Correct Option: A
Explanation:

Environment is dynamic in nature. It consists of various factor like trends, preferences and other factors which directly and indirectly affect the business.

It is a complex phenomenon as it cannot be directly controlled but its affect is directly applicable on business.

Which of the following is an important factor of success in a goods production company?

elements of business fundamentals of business activities factors affecting business interrelationship between industry, commerce and trade other aspects of a business

  1. Customers

  2. Marketing intermediates

  3. Workers

  4. Low cost of production of goods

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Correct Option: D
Explanation:

A goods production company runs on manufacturing and supply of the manufactured goods, for this kind of a company to be a successful, it has to consider the factor of low cost of production as important to manufacture more goods at low cost and earn profits.

The business environmental factors are _________.

elements of business fundamentals of business activities factors affecting business interrelationship between industry, commerce and trade other aspects of a business

  1. static

  2. dynamic

  3. both (A) and (B)

  4. none of these

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Correct Option: B
Explanation:

Business environment is a mixture of many factors and changes in some or the other factors continue to take place. Therefore, it is said that business environment is dynamic.

Stimulus response theories based on the processes of.

elements of business fundamentals of business activities factors affecting business interrelationship between industry, commerce and trade other aspects of a business

  1. Drive

  2. Cue

  3. Response and reinforcement

  4. All the above

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Correct Option: D
Before the Annual General Meeting the secretary has to draft the annual/directors report.
elements of business fundamentals of business activities factors affecting business interrelationship between industry, commerce and trade other aspects of a business

  1. True

  2. False

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Correct Option: A
Explanation:

True, the duties of the secretary before the annual general meeting is to prepare the annual report of all the directors in consultation with the chairman .

Which of the following does not characterise business activity?

elements of business fundamentals of business activities factors affecting business interrelationship between industry, commerce and trade other aspects of a business

  1. Production of goods and services

  2. Presence of risk

  3. Sale or exchange of goods and services

  4. Salary or wages

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Correct Option: D
Explanation:

Business activity is an activity which is an engaged in primary purpose of making a profit, salary and wages are expenses to a business. Hence it is not a primary business activity. 

_________ is the statement which defines the goals of company.

elements of business fundamentals of business activities factors affecting business interrelationship between industry, commerce and trade other aspects of a business

  1. Mission

  2. Vision

  3. Business Module

  4. None of the above

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Correct Option: B
Explanation:

Vision statement is a statement that defines what company is and what it does whereas the main purpose of mission statement is to get across the ambitions of an organisation in short.

A __________ is also essential if a new venture is a manufacturing concern. 

elements of business fundamentals of business activities factors affecting business interrelationship between industry, commerce and trade other aspects of a business

  1. market analysis

  2. operation plan

  3. bank loan

  4. organizational plan

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Correct Option: B
Explanation:

If a new venture is an manufacturing concern it should have operational plan because operational plan consists of raw material requirement, manufacturing requirement , output and all things related to manufacturing.


Establishment of management by objectives presupposes ___________________.

elements of business fundamentals of business activities factors affecting business interrelationship between industry, commerce and trade other aspects of a business

  1. That limits of authority are not defined

  2. That employees are provided with result expected

  3. Unlimited freedom to operate in the assigned task

  4. Unlimited freedom to set golas

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Correct Option: B