Commerce MCQ Question and Answer

Commerce MCQ Question and Answer
61. Some organizations have escalator clause in their labour agreements.
What does this clause provide for ?
  • Automatic increase in wage/salary depending on seniority
  • Wage increase depending on output per day by the worker
  • Automatic increase in wage/salary depending upon increase in price index
  • Automatic increase in wage/salary depending on increase in profits of the firm
Show Answer
62. What is an organization structure in which each employee reports to both a functional (or division) manager and to a project (or group) manager, known as ?
  • Strategic business unit
  • Departmentation by customer
  • Matrix structure
  • Departmentation by territory
Show Answer
63. According to force-field theory, every behaviour is the result of equilibrium between which of the following ?
  • Push and pull effect
  • Strong and weak forces
  • Positive and negative forces
  • Driving and restraining forces
Show Answer
64. Life insurance is a contract of which one of the following ?
  • Indemnity
  • Guarantee
  • Contribution
  • Subrogation
Show Answer
65. What is outsourcing of production and concentrating on marketing operations in international business, known as ?
  • Licensing
  • Franchising
  • Contract manufacturing
  • Joint venture
Show Answer
66. Which of the following is not a feature of bonds ?
  • Par value
  • Yield to maturity
  • Coupon rate
  • Maturity
Show Answer
67. On 1st April, 2006, Y Ltd. Issued 1000, 12% debentures of Rs. 100 each at a discount of 6%. These debentures are redeemable in five equal annual instalments at the end of each year. What is the amount of discount to be written off in
the first year i.e. on 31st March, 2007, through P & L A/c ?
  • Rs. 2000
  • Rs. 1800
  • Rs. 1200
  • Rs. 600
Show Answer
68. XYZ Ltd. issued 10,000 shares of Rs. 100 each at Rs. 120 per share with Rs. 25 on application, Rs. 45 on allotment
including premium, Rs. 20 on first call and Rs. 30 on final call. Govind who held 200 shares did not pay any call money
and his shares were forfeited. What is the amount to be credited to Share Forfeiture Account on forfeiture ?
  • Rs. 14,000
  • Rs. 10,000
  • Rs. 9,000
  • Rs. 4,000
Show Answer
69. 75. X Ltd. purchased a car from Maruti Udyog Ltd. for Rs. 5,00,000. As per agreement Rs. 80,000 was to be paid in cash and
the balance by issue of shares of Rs. 10 each at a premium of Rs. 5 per share. How many shares should X Ltd. issue to Maruti Udyog Ltd. for the car ?
  • 30,000 shares
  • 29,000 shares
  • 28,500 shares
  • 28,000 shares
Show Answer
70. A company has issued a 20-year bond at Rs. 1000 par value with a coupon rate of 10 per cent. The required rate of return on similar bonds is 12 per cent. What is the current value of the bond ?
  • Rs. 905•33
  • Rs. 850•45
  • Rs. 833•33
  • Rs. 820•20
Show Answer
Questions and Answers for Competitive Exams Various Entrance Test