Business and Commerce

Enhance your knowledge of Business and Commerce with a wide range of MCQs with answers and detailed explanations. Topics include business management, commerce, trade, economics, marketing, finance, entrepreneurship, and organizational behavior. These multiple-choice questions are designed for students, teachers, and candidates preparing for competitive exams (CSS, PMS, NTS, FPSC, PPSC, UPSC, MBA entry tests, etc.). Each MCQ is followed by a clear explanation to help you understand concepts deeply, improve analytical skills, and achieve success in exams. Ideal for practice, self-study, and revision in the field of Business and Commerce.

1. Xerography is a process of ___________.

A) electrical photography
B) blue printing
C) fixing stamps
D) printing address
✅ ANSWER: B
Xerography is a process of blue printing. Xerography is standard copy machine technology using toner on bond paper. When large size xerography machines became available, c. 1975, they replaced the older printing methods.

2. In case of ________ layout, production is carried on in special purpose machine.

A) functional
B) product
C) stationary
D) combined
✅ ANSWER: B
In case of product layout, production is carried on in special purpose machine. Since machines are arranged based on the sequence of operations, mechanized equipment such as conveyor belts can be used for transporting materials. This results in significant saving of time.

3. Book index is also called as ___________ index.

A) Vowel
B) Abound
C) Loose leaf book
D) Card
✅ ANSWER: B
Book index is also called as Abound index. A book index is simply a key to locating information contained in a book. It is also known as back-of-the-book index, as it is mostly found at the end of the book. The words of the Index are sorted Alphabetically.

4. Guarantee for employer for the loss out of employee’s dishonest is__________.

A) Burglary insurance
B) Fidelity insurance
C) third party insurance
D) medical insurance
✅ ANSWER: B
Guarantee for employer for the loss out of employee’s dishonest is Fidelity insurance. A Fidelity Insurance policy covers losses sustained by the employer as a result of an act of forgery, fraud or dishonesty from an employee.

7. __________ scale firms enjoy economies of scale.

A) Complex
B) Medium
C) Large
D) Small
✅ ANSWER: C
Large scale firms enjoy economies of scale. A firm’s efficiency is affected by its size. Large firms are often more efficient than small ones because they can gain from economies of scale.

8. A representative firm works under __________ conditions.

A) average
B) ideal
C) bad
D) good
✅ ANSWER: A
A representative firm works under average conditions. Representative firm must be one which has had a fairly long life, and fair success, which is managed with normal ability, and which has normal access to the economies, external and internal, which belong to that aggregate volume of production; account being taken of the class of goods produced, the conditions of marketing them and the economic environment generally.

9. Control of management of the company mainly vests in __________.

equity shareholders
preference shareholders
debenture holders
share holders
✅ The correct answer is A.
Control of management of the company mainly vests in equity shareholders. Equity shares represent the ownership of a company and capital raised by the issue of such shares is known as ownership capital or owner’s funds. They are the foundation for the creation of a company.
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