COMMERCE 2024/2025 Trial Test Questions (30) Objective Questions

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Select the correct options for each Questions below

1. What is the primary function of commercial banks?

a) Manufacturing goods b) Providing education c) Offering healthcare services d) Accepting deposits and providing loans

2. Which of the following is an example of a non-renewable resource?

a) Wind energy b) Natural gas c) Solar energy d) Forests

3. Which of the following is a characteristic of a monopoly market structure?

a) Many firms selling identical products b) A single seller dominating the market c) No barriers to entry d) Perfect competition

4. What does GDP stand for in economics?

a) Gross Domestic Product b) Great Demand and Profit c) Global Development Plan d) Gross National Product

5. What is the study of the production and distribution of wealth called?

a) Sociology b) Economics c) Anthropology d) Psychology

6. What is the term for the total value of goods and services produced within a country in a given year?

a) National income b) Per capita income c) Gross National Product (GNP) d) Gross Domestic Product (GDP)

7. Which type of taxation takes a higher percentage of income as income increases?

a) Progressive tax b) Regressive tax c) Proportional tax d) Excise tax

8. What is the term for a financial institution that specializes in taking deposits and lending money?

a) Credit union b) Investment bank c) Commercial bank d) Central bank

9. What is the term for a legal document that gives the holder the right to buy or sell a particular asset at a specified price within a set period?

a) Stock certificate b) Bond c) Option d) Mortgage

10. Which of the following is a characteristic of a sole proprietorship?

a) Limited liability b) Separate legal entity c) Multiple owners d) Unlimited personal liability

11. What is the term for an economic system in which the means of production are privately owned and operated for profit?

a) Socialism b) Communism c) Capitalism d) Fascism

12. What is the term for the value of all final goods and services produced within a country's borders in a given time period, usually a year?

a) Gross National Product (GNP) b) Gross Domestic Product (GDP) c) Net Export Value (NEV) d) Gross Profit Margin (GPM)

13. What is the term for a market structure in which there are many firms, each producing a slightly different product?

a) Monopoly b) Oligopoly c) Perfect competition d) Monopolistic competition

14. What is the term for the act of buying and holding securities in order to profit from dividend income and capital gains?

a) Speculation b) Day trading c) Investment d) Arbitrage

15. Which of the following is a factor of production in economics?

a) Advertising b) Money c) Land d) Sales

16. What is the term for the document that specifies the fundamental rights and duties of a company's shareholders?

a) Memorandum of Association b) Articles of Association c) Prospectus d) Annual report

17. What is the term for the total value of a firm's outstanding shares of stock?

a) Market capitalization b) Enterprise value c) Book value d) Shareholder equity

18. What is the term for the rate at which the general level of prices for goods and services is rising, causing purchasing power to fall?

a) Inflation b) Deflation c) Recession d) Depression

19. What is the term for a financial market where securities are bought and sold for immediate delivery and payment?

a) Stock market b) Futures market c) Bond market d) Money market

20. Which of the following is NOT a factor affecting demand?

a) Price of the product b) Consumer income c) Price of complementary goods d) Government regulations

21. What is the term for the situation in which a business expands its activities to offer a wider range of products or services?

a) Diversification b) Monopoly c) Specialization d) Oligopoly

22. Which of the following is a form of e-commerce that involves the purchase and sale of goods or services between businesses?

a) B2C (Business-to-Consumer) b) C2C (Consumer-to-Consumer) c) B2B (Business-to-Business) d) C2B (Consumer-to-Business)

23. Which of the following is a type of business organization that combines the features of a corporation and a partnership?

a) Sole proprietorship b) Corporation c) Limited liability partnership (LLP) d) Partnership

24. What is the term for the study of how people make choices to satisfy their needs and wants?

a) Psychology b) Sociology c) Economics d) Anthropology

25. Which of the following is a characteristic of a partnership?

a) Limited liability for all partners b) Ease of raising capital c) Unlimited personal liability for all partners d) Separate legal entity

26. What is the term for the amount of money that remains after all expenses have been subtracted from revenue?

a) Investment b) Profit c) Loss d) Revenue

27. What is the term for a legal document that grants an individual or organization the right to exclusively use a trademark or patent?

a) License b) Permit c) Copyright d) Franchise

28. What is the term for a situation in which the supply of a good or service is greater than the demand for it?

a) Scarcity b) Monopoly c) Surplus d) Shortage

29. Which of the following is an example of a government expenditure?

a) Household income b) Corporate profit c) Defense spending d) Stock market trading

30. What is the term for the process of developing, promoting, and distributing products to satisfy customers' needs and wants?

a) Production b) Marketing c) Accounting d) Inventory management