International Commerce Olympiad

1. Which of the following is a business activity?

(a) Going to a temple for prayers (b) Mother cooking for children.

Ans: (c) Trading in cars

2. Transfer of interest by a Professional:

(a) Is Possible (b) Is partially possible

(d) Is not possible

Ans: (d) Is not possible

3. The industries which provide support services to other industries are known as:

(a) Primary Industries (b) Secondary Industries

Ans: (d) Tertiary Industries

4. Which of the following cannot be classified as Auxilliaries to trade?

(a) Insurance (b) Mining

Ans: (b) Mining

5. Business risk is not likely to arise due to:

(a) Changes in government policy (b) Good management

Ans: (b) Good management

6. Which of the following is not a justification for the business to earn a profit:

(a) It may lead to malpractices like exploitation of the consumer

(b) It is a source of income for business persons.

(d) It builds up the reputation of the business.

Ans: (a) It may lead to malpractices like exploitation of the consumer

7. The reward for employment is:

(a)Profit (b) Money

Ans: (d) Salary

8. Choose the correct combination which matches the appropriate example for

the industries given below:

(a) Extractive-Poultry farm; Genetic-Farming

(b) Assembling-Computer; Genetic-Cement

(d) Extractive-Mining; Assembling-Sugar

Ans: (c) Processing-Sugar; Synthetical-Cement

9. One of the multiple objectives of the business states that the business should strive to introduce new ideas or methods in its work. Which of the following is being referred to:

(a) Market Standing (b) Productivity

Ans: (c) Innovation

10. Rama wanted to start a business of supplying readymade garments. But she was wondering about how much profit or return on investment she would be able to earn. This situation reflects which characteristic of business:

(a) Uncertainty of Return (b) Element of Risk

Ans: (c) Profit earning

11. A Chartered Accountant is working as a consultant in a company and also doing private practice part time is involved in:

(a) Business and Profession (b) Profession only

Ans: (d) Employment and Profession

12. Which of the following statements supports the argument that “Profit maximization should not be the sole aim of the business”:

(a) A person dealing in stationary

(b) Indicator of efficient working

(d) Goodwill or reputation

Ans: (a) A person dealing in stationary

13. Which one of the following can be categorized as Business?

(a) A person dealing in stationary

(b) A housewife cooking food for the family

(d) A teacher helping his sister in her Home-work.

Ans: (a) A person dealing in stationary

14. Which of the following is an example of Profession?

(a) A chartered accountant getting salary from a company.

(b) A car dealer selling cars.

(d) A factory worker getting wages for his work.

Ans: (c) A company secretary engaged in private practice.

15. Which of the following is true for Business Risk?

(a) The Chance of fire, theft or strike are examples of Speculative risk.

(b) Pure risk arises out of changes in market conditions.

(d) Pure risk involves a possibility of loss or no loss.

Ans: (c) Speculative risk involve only a possibility of gain.

16. Which of the following is NOT an auxiliary to trade?

(a) Computer services (b) Insurance

Ans: (a) Computer services

17. Which of the following is an economic activity?

(a) A teacher imparting education to his/her ward.

(b) A minister giving speech in parliament.

(d) A CEO of a company taking a class of differently abled students

Ans: (b) A minister giving speech in parliament.

18. Which of the following is the correct difference between business and profession?

(a) The reward for business is professional fee while that of profession is

profit.

(b) Transfer of interest is possible in profession but not in business.

(d) Larger capital is required in profession than business.

Ans: (a)

19. Match the example of Industry (Column I) with its type (Column II):

Column I Column II

(a) Fishing (i) Tertiary

(b) Advertising (ii) Assembling

(d)Car manufacturing (iv) Genetic Select from the following options:

(a) A-(iv); B-(iii); C-(ii); D-(i) (b) A-(ii); B-(iv); C-(i); D-(iii)

Ans: (d) A-(iii); B-(i); C-(iv); D-(ii)

20. Match the example of cause of Business risk (Column I)with the type of

cause (Column II):

Column I Column II

(a) Political disturbance (i) Human Cause

(b) Floods (ii) Economic Cause

(d)Strikes (iv) Other Cause Select from the following options:

(a) A-(iv); B-(ii); C-(i); D-(iii) (b) A-(iii); B-(ii); C-(iv); D-(i)

Ans: (d) A-(iv); B-(iii); C-(ii); D-(i)

21. From the following identify which is not a characteristic of business?

(a) Production or procurement of goods and services

(b) An economic activity

(d) Certainty of return

Ans: (d) Certainty of return

22. Match the objective of business in column I with its example in column II:

Column-I Column-II

(1)Profit earning A. Buy Hallmark Jewellery

(ii)Market Standing B. Opening of a new branch

(iii) Growth C. Offering product at competitive price

(iv) Quality Goods/Services D. Selling premium goods at high prices

Select from the following alternatives:

(a) (i)-C; (ii)-B; (iii)-D; (iv)-A (b) (i)-B; (ii)-C; (iii)-D; (iv)-A

Ans: (d) (i)-D; (ii)-C; (iii)-B; (iv)-A

23. A doctor working in a hospital also runs his private clinic. He/She is engaged in:

(a) Business only (b) Profession only

Ans: (b) Profession only

24. Which of the following is NOT true about ‘Business Risk’?

(a) Business risks arise due to uncertainties

(b) Some businesses do not carry any risk

(d) Profit is the reward for risk taking

Ans: (b) Some businesses do not carry any risk

25. Which of the following statements is true?

(a) ‘Poultry farming’ comes under genetic industry

(b) ‘Sugar’ comes under analytical industry

(d) All services come under Secondary Industries

Ans: (a) ‘Poultry farming’ comes under genetic industry

26. Which of the following is NOT an auxiliary to trade?

(a) Insurance (b) Internet

Ans: (b) Internet

27. An American firm, ‘Zebsik Enterprise’ purchased hand made decorative pieces from India, re-packaged and sold them in its own name to Japan. The above transactions represents:

(a) Export for Zebsik Enterprise, Import for India and Entrepot for Japan.

(b) Import for Zebsik Enterprise, Export for India and Entrepot for Japan.

(d) Import for Zebsik Enterprise, Entrepot for India and Export for Japan.

Ans: (c) Entrepot for Zebsik Enterprise, Export for India and Import for Japan.

28. Which type of industry is Packaging?

(a) Processing Industry (b) Tertiary Industry

Ans (b) Tertiary Industry

29. Sudden rise in the cost of operation is a cause related to which type of business risk?

(a) Natural Cause (b) Human Cause

Ans: (c) Economic Cause

30. Which of the following is an example of business risk due to economic cause?

(a) Earthquake (b) Recession in country

Ans: (b) Recession in country

31. The Bollywood industry is engaged in:

(a) Business/Economic activity (b) Primary sector

Ans: (c) Secondary sector

32. Commerce removes the hindrance of place through which of the following activities:

(a) Warehousing (b) Transportation

Ans (b) Transportation

33. An Indian company buys mobile phones from a firm in Finland and sells them to another firm in Mongolia. What type of trading activity is it:

(a) Export (b) Import

Ans: (c) Entrepot

34. ‘RIOTS’ is which type of cause of Business Risk:

(a) Human Cause (b) Natural Cause

Ans: (a) Human Cause

35. To produce and distribute essential goods at a reasonable price is a/an objective of business.

(a) Social objective (b) National objective

Ans: (a) Social objective

36. Factories, retailing, transportation, aviation, hospitality and advertising all are examples of:

(a) Non-economic activities (b) Business activities

Ans: (b) Business activities

37. Terrorist attack in September 2001 led to adverse effects on USA businesses especially hotel and airline industry. To which type of cause can we associate the above instance to the businesses?

(a) Natural cause (b) Human Cause

Ans: (b) Human Cause

38. Aid to trade includes:

(a) Banking (b) Manufacturing

Ans: (a) Banking

39. The Park Palace, a famous customized tailoring shop in London decided to open its chain in India. It tied up with Saloona, India and opened The Park Saloona in Delhi. They trained the staff about the latest techniques and were given diploma for the same. Their main aim was to provide customized tailoring to people working incorporate.

Which type of economic activity can be adjudged for The Park Saloona from above?

(a) Business (b) Profession

Ans: (a) Business

40. What removes Hindrance of Information in relation to Commerce?

(a) Transportation (b) Trade

Ans: (d) None of the above

41. ‘Innovation’,as an objective of Business, falls in following category:

(a) Economic objectives (b) Social objectives

Ans: (a) Economic objectives

42. “Importing for the purpose of Exporting” is termed as:

(a) International Commerce (b) Foreign Collaboration

Ans: (c) Entrepot

43. Which of the following statements is correct in relation to Economic Objectives of Business:

(a) Earning Profits must be the main priority by all possible ways.

(b) Growth will follow in case business has ensured its survival in competitive market.

(d) Survival must be ensured first, then business should aim at profit making followed by growth.

Ans: (d) Survival must be ensured first, then business should aim at profit making followed by growth.

44. Match the phrases in Column A with those in Column B:

Column A Column B

(i) Primary objective of profession (a) Special skill

(ii) Occupation of a Chartered v (b) Profession

(iii) Primary objective of business (c) Making profit

(iv) Essential requirement for a profession(d) Providing service Choose the correct option:

(a) (i)-(a); (ii)-(a); (iii)-(d); (iv)-(c)

(b) (i)-(a); (ii)-(d); (iii)-(c); (iv)-(b)

(d) (i)-(d); (ii)-(b); (iii)-(c); (iv)-(a)

Ans: (d) (i)-(d); (ii)-(b); (iii)-(c); (iv)-(a)

45. Which of the following statements is incorrect about Business Risk?

(a) Business risk is uncertain

(b) Business risk is an essential element of Business

(d) The business risk can be eliminated completely

Ans: (d) The business risk can be eliminated completely

46. ABC Company was charged with evasion of tax and asked to pay fine, which led to heavy losses for the company. Which characteristic of business is being referred here?

(a) Uncertainly of return

(b) Element of Risk

(d) Production or procurement of goods and services

Ans: (b) Element of Risk