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Latest Commerce Useful for Competitive Examinations Exam Question (Objective Questions), MCQ in English

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Commerce

Question 1Single Answer
Who is Father of Scientific Management ?
  1. A
    Henry Fayol
  2. B
    Elton Mayo
  3. C
    Chester Bernard
  4. D
    F. W. Taylor
Question 2Single Answer
Appointment of a Company Secretary is made by –
  1. A
    Promoters
  2. B
    Board of Directors
  3. C
    Debenture holders
  4. D
    Government
Question 3Single Answer
Bonus Shares are issued to –
  1. A
    Equity Shareholders
  2. B
    Preference Shareholders
  3. C
    Debenture Holders
  4. D
    Secured Creditors
Question 4Single Answer
Under which principle, all the rights of an insured are transferred to insurance company after making payment of claim ?
  1. A
    Subrogation
  2. B
    Utmost good faith
  3. C
    Contribution
  4. D
    Average clause
Question 5Single Answer
Rs. 10,000 spent on the replacement of worn out parts of an electronic machinery is treated as –
  1. A
    Capital expenditure
  2. B
    Revenue expenditure
  3. C
    Deferred revenue expenditure
  4. D
    Capital loss
Question 6Single Answer
EPS is calculated as –
  1. A
    EBIT / Equity shares
  2. B
    EBIT – Preference Dividend / Equity shares
  3. C
    EAT / Equity shares
  4. D
    EAT – Preference Dividend / Equity shares
Question 7Single Answer
Which is the oldest form of organisation ?
  1. A
    Line
  2. B
    Line and staff
  3. C
    Functional
  4. D
    Matrix
Question 8Single Answer
In β€˜Direction’ who is given importance ?
  1. A
    To machines
  2. B
    To paper work
  3. C
    To man
  4. D
    To production
Question 9Single Answer
Standard costing is a technique of –
  1. A
    Planning
  2. B
    Organising
  3. C
    Coordination
  4. D
    Control
Question 10Single Answer
β€˜Table A’ is an alternative to –
  1. A
    Prospectus
  2. B
    Articles of Association
  3. C
    Memorandum of Association
  4. D
    None of the above
Question 11Single Answer
FEMA stands for –
  1. A
    Foreign Exchange Management Act
  2. B
    Funds Exchange Management Act
  3. C
    Finance Enhancement Monetary Act
  4. D
    Future Exchange Management Act
Question 12Single Answer
What of the following is false about W.T.O. ?
  1. A
    It is the main organ for implementing the Multilateral Trade Agreement
  2. B
    It is global in its membership
  3. C
    It has far wider scope than GATT
  4. D
    Only countries having more than prescribed level of total GDP can become its member
Question 13Single Answer
……........… has been founded to act as permanent watchdog on the international trade .
  1. A
    ISRD
  2. B
    ADS
  3. C
    WTO
  4. D
    DIMF
Question 14Single Answer
Which of the following statement is correct ?
  1. A
    The disinvestment programme has been successfully carried out in India
  2. B
    Privatisation up to 100% has been carried out in all the PSU in India
  3. C
    Under strategic sale method of disinvestment, the government sells a major share to a strategic partner
  4. D
    None of the above
Question 15Single Answer
Advance Income-tax is shown in the –
  1. A
    Debit side of Profit and Loss Account
  2. B
    Liability side of the Balance Sheet
  3. C
    Credit side of Profit and Loss Account
  4. D
    Assets side of the Balance Sheet
Question 16Single Answer
In the absence of a Partnership Deed, the rate of interest allowed on the partner’s loan to the firm is –
  1. A
    5%
  2. B
    6%
  3. C
    10%
  4. D
    None of the above
Question 17Single Answer
Interim Dividend is shown –
  1. A
    In Profit and Loss Account
  2. B
    In Profit and Loss Appropriation Account
  3. C
    On Asset side of Balance Sheet
  4. D
    On Liabilities side of Balance Sheet
Question 18Single Answer
Memorandum of Association contains –
  1. A
    Objective clause
  2. B
    Name clause
  3. C
    Capital clause
  4. D
    All of the above
Question 19Single Answer
If a cheque presented through the Clearing House is returned unpaid for any reason, the banker has to enclose the cheque to a Returning Memo while returning the instrument to the customer. This provision has been prescribed under:
  1. A
    Negotiable Instruments Act, 1881
  2. B
    Reserve Bank of India Act, 1934
  3. C
    Banking Regulation Act, 1949
  4. D
    RBI Clearing House Rules
Question 20Single Answer
By which of the following methods a Company Secretary can be removed from his post ?
  1. A
    By passing a resolution in Board Meeting
  2. B
    By order of Registrar of Companies
  3. C
    By passing a resolution in Annual General Meeting
  4. D
    None of the above
Question 21Single Answer
Which one of the following statements is correct in respect of Duty Drawback Scheme ?
  1. A
    Relieving export goods of duties paid for components used for manufacturing the export goods
  2. B
    Providing cash incentives to exporters to compensate the duty paid by them in foreign countries
  3. C
    Compensating importers to the extent of import duty paid by them for importing life-saving drugs
  4. D
    Providing a facility for withdrawing the duty paid by exporters if their exports are rejected in foreign countries
Question 22Single Answer
In foreign trade, what is the price quoted by a supplier which includes all charges incurred up to door delivery of goods to the buyer, called ?
  1. A
    Loco price
  2. B
    C.I.F. price
  3. C
    Franco price
  4. D
    Landed price
Question 23Single Answer
If the cost of goods sold is Rs. 1,00,000, the value of opening stock is Rs. 20,000 and the value of closing stock is Rs. 80,000, then the stock turnover ratio would be –
  1. A
    5 Times
  2. B
    4 Times
  3. C
    2 Times
  4. D
    1 Time
Question 24Single Answer
If profit made during the year is Rs. 10,000; increase and decrease in the current assets is Rs. 5,000 and Rs. 4,000 respectively, then the cash from operation equals –
  1. A
    Rs. 9,000
  2. B
    Rs. 10,000
  3. C
    Rs. 11,000
  4. D
    Rs. 19,000
Question 25Single Answer
Commercial paper is a –
  1. A
    long-term corporate security meant for small investors
  2. B
    medium-term corporate security meant for institutional investors
  3. C
    treasury paper meant for corporate investors
  4. D
    short-term corporate security meant for large-scale investors
Question 26Single Answer
Companies Act is governed by
  1. A
    RBI
  2. B
    SEBI
  3. C
    Partnership Act
  4. D
    Ministry of Corporate Affairs
Question 27Single Answer
Own shares purchased by a company with a view to reduce its capital is called
  1. A
    sale
  2. B
    Purchase
  3. C
    buy-back
  4. D
    Private placement
Question 28Single Answer
A company in which there is only one member is called
  1. A
    one member company
  2. B
    one person company
  3. C
    single company
  4. D
    Individual company
Question 29Single Answer
Shares which have preferential rights are called
  1. A
    Equity share
  2. B
    Preference share
  3. C
    Debenture
  4. D
    Bond
Question 30Single Answer
Which of the following is the registered capital of the company ?
  1. A
    Nominal capital
  2. B
    Authorised capital
  3. C
    Share capital
  4. D
    Both (a) and (b)
Question 31Single Answer
Capital which is called only at the time of winding-up of the company is called
  1. A
    Capital reserve
  2. B
    Reserve capital
  3. C
    Secure capital
  4. D
    Authorised capital
Question 32Single Answer
Which kind of preference share entitIes its holders to receive arrear of dividends of previous years ?
  1. A
    Cumulative preference share
  2. B
    Non-cumulative preference share
  3. C
    Convertible preference share
  4. D
    Non-convertible dividend share
Question 33Single Answer
Which document is an invitation offer to public to subscribe for company’s share ?
  1. A
    Red herring prospectus
  2. B
    Prospectus
  3. C
    In lieu of prospectus
  4. D
    None of the above
Question 34Single Answer
The balance of share forfeiture account can be used to
  1. A
    Provide for discount given at the time of reissue
  2. B
    Write-off preliminary expenses
  3. C
    Write-off bad debts
  4. D
    None of the above
Question 35Single Answer
A company issued 25,000 shares and received applications for 35,000 shares. Company wants to allot shares to everyone who has applied. What will be the ratio for allotment ?
  1. A
    6 : 7
  2. B
    7: 5
  3. C
    5 : 7
  4. D
    7 : 6
Question 36Single Answer
A company issued 10,000 shares of Rs10 each. Amount is payable as Rs 2 on application, Rs 5 on allotment and Rs 3 on first and final call. A shareholder who had 1,000 shares failed to pay allotment and first call amount on due date. After a month, he paid the due amount. What will be the amount received by company against issue of shares ?
  1. A
    Rs 92,000
  2. B
    Rs 90,000
  3. C
    Rs 1,00,000
  4. D
    Rs 8,000
Question 37Single Answer
Nominal share capital is
  1. A
    That part of the authorised capital which is issued by the company
  2. B
    The amount of capital which is actually applied for by the prospective shareholders
  3. C
    The maximum amount of share capital which a company is authorised to issue
  4. D
    The amount actually paid by the shareholders
Question 38Single Answer
Money received in advance from shareholders before it is actually called-up by the directors is
  1. A
    Mebited to calls-in-advance account
  2. B
    Credited to calls-in-advance account
  3. C
    Debited to calls account
  4. D
    None of the above
Question 39Single Answer
Shares can be forfeited
  1. A
    For non-payment of call money
  2. B
    For failure to attend meetings.
  3. C
    For failure to repay the loan to the bank
  4. D
    For which shares are pledged as a security.
Question 40Single Answer
The profit on reissue of forfeited shares is transferred to
  1. A
    General reserve
  2. B
    Capital redemption reserve
  3. C
    Capital reserve
  4. D
    Revenue reserve
Question 41Single Answer
Balance of share forfeiture account is shown in the balance sheet under the item
  1. A
    Current liabilities and provisions
  2. B
    Reserves and surpluses
  3. C
    Share capital
  4. D
    Unsecured loans
Question 42Single Answer
Amox Ltd. is registered with a capital of 10,00,000 equity shares of Rs 10 each. 6,00,000 equity shares were offered for subscription to public. Applications were received for 6,00,000 shares. All calls were made and amount was duly received except final call of Rs 2 on 80,000 shares.What Will will be the amount of share capital shown in the balance sheet ?
  1. A
    Rs 60,00,000
  2. B
    Rs 58,40,000
  3. C
    Rs 5,84,000
  4. D
    Rs 6,00,000
Question 43Single Answer
Which amongst the following shares conter voting rights on its holders ?
  1. A
    Equity shares
  2. B
    Redeemable preference shares
  3. C
    Participatory preference shares
  4. D
    None of the above
Question 44Single Answer
Amount payable on shares can be received in installments by the company. What is the first installment called ?
  1. A
    Application money
  2. B
    Allotment money
  3. C
    First call money
  4. D
    Second call money
Question 45Single Answer
Total capital specified in capital clause is Rs 50,00,000 which is divided in 35,000 equity shares of Rs 100 each and 15,000, 10% preference shares of Rs100 each. The company issued 10,000 equity shares and 5,000 preference shares. The public subscribed for 9,000 equity shares and 4,500 preference shares out of the issued shares. What will be the subscribed capital amount ?
  1. A
    Rs 50,00.000
  2. B
    Rs 50,000
  3. C
    Rs 9,00,000
  4. D
    Rs 13,50,000
Question 46Single Answer
Akash Ltd. registered capital is Rs 50,00,000 in shares of Rs 10 each.The company issued 2,00,000 of such shares, payable @ Rs 3 per share on allotment. What will be the amount due on allotment, if shareholder holding 20,000 shares paid all call money at the time of allotment only ?
  1. A
    Rs 4,00,000
  2. B
    Rs 6,00,000
  3. C
    Rs 60,000
  4. D
    Rs 1,50,000
Question 47Single Answer
The subscribed share capital of XYZ Ltd. is 80.00.000 divided in shares of Rs 100 each. There were no calls-in-arrears till the final call was made. The final call was paid on 77,500 shares. The calls-in-arrears amounted to Rs 62,500. Calculate the final call per share.
  1. A
    Rs 20
  2. B
    Rs 30
  3. C
    Rs 25
  4. D
    Rs 35
Question 48Single Answer
Shares for consideration other than cash can be issued at
  1. A
    Par
  2. B
    Premium
  3. C
    Discount
  4. D
    Both (a) and (b)
Question 49Single Answer
Neton Ltd. has in its memorandum of association.Capital clause stating that it is formed with 75,000 equity shares of Rs 100 each. The company has issued the entire shares and the public has also subscribed and paid-up for the full amount on application itself. What will be the subscribed capital Rs
  1. A
    Rs 75,00,000
  2. B
    Rs 10,00,000
  3. C
    Rs 1,00,000
  4. D
    Rs 7,50,000
Question 50Single Answer
Shareholders receive ......... from the company as a benefit against their investment.
  1. A
    Interest
  2. B
    Commission
  3. C
    Profit
  4. D
    Dividend
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