CA Foundation Exam June 2023 » CA MCQs » Commerce

Commerce

MCQs on "Commerce": Find the multiple choice questions on "Commerce", frequently asked for all competitive examinations.

Commerce is defined as necessary to the economy globally. It encompasses everything related to the selling and buying services and goods at both the retail and wholesale levels. Commerce concerns the exchange of services and goods, often for profit. Commerce has mainly two branches, namely, aid to trade and trade.

Aid to trade consists of warehousing, transport, advertisement, distribution, Banking, and Insurance. On the other hand, trade can either be external or internal or between the borders of countries or within the borders of countries. There is seven primary business of Commerce models in total, B2B, B2A, B2C, C2C, C2B, C2A, and DTC.

Multiple Choice Questions

1. Accounting gives information on:

    1. Financial requirements of an Institution 
    2. Income cost for managers 
    3. Company’s liability tax for a certain year
    4. All of the Above

Answer: Correct Option D – All of the Above

Solution:

Accounting gives value or information on income and cost for managers, the Company’s tax liability for a certain year, and the financial necessities of an institution.

2. The long term investments that have no physical existence but have rights to information or value are called:

    1. Fixed assets
    2. Intangible assets
    3. Investments
    4. Current assets

Answer: Correct Option C – Investments

Solution: 

Long-term acquisitions have no biological existence but are rights to have information or value are known as intangible assets. An intangible asset is an asset that is not physical. Goodwill brand, intellectual property, and authorization such as trademarks and patents and copyrights are intangible assets.

3. The assets that can be converted into cash in a very short duration of time, approximately less than a year, are called:

    1. Fixed assets
    2. Intangible assets
    3. Current assets
    4. Investments

Answer: Correct Option C. Current assets

Solution: 

Approximately the assets that can be converted into cash within a very short period are known as current assets. Current assets consist of cash equivalent, stock, cash, marketable securities, and other liquid assets.

4. Trademarks, copyrights, and patents are:

    1. Fixed assets
    2. Intangible assets
    3. Current assets
    4. Investments

Answer: Correct Option B. Intangible assets

Solution: 

Trademarks, patents, and copyrights are all Intangible assets. An intangible asset is an asset that is biological and physical. Intangible assets are goodwill, intellectual property, brand recognition, trademarks, copyrights, and patents. 

  1. The debts which are to be repaid within a very short duration of time are called:
    1. Current liabilities
    2. Contingent liabilities
    3. Fixed liabilities
    4. All of the Above

Answer: Correct Option A – Current liabilities

Solution: 

The debts to be repaid within a very short time, approximately less than a year, are known as current liabilities. Current liabilities are a company’s obligations or debts pending for a short period within a normal operating cycle.

  1. The primary or the capital that is consumed by a system or a form in the production process is known as:
    1. Production cost
    2. Capital loss
    3. Depreciation
    4. Deadweight loss

Answer: Correct Option C. Depreciation

Solution: 

The capital that a system or firm is going through in the production process is called depreciation. In economics, depreciation is the bit-by-bit decrement in the economic value of the firm’s capital stock. 

  1. Who propounded the oppurtunity cost theory of global trade?
    1. Marshall
    2. Ricardo
    3. Haberler
    4. Ohlin and Heckscher

Answer: Correct Option C. Haberler

Solution: 

Haberler advised the opportunity cost explanation of global trade. Gottfried Haberler has attempted to restate the relation of costs in footings of opportunity cost. He also showed that he has a doctrine of cost relation and can hold valid even if the labour theory of value was discarded. 

  1. Which of the below-mentioned statements are incorrect? 
    1. Honesty of linear demand curve all the forms of elasticity can be depicted in five.
    2. The price elasticity of the economic process is displayed in terms of relative but not direct changes in the quantity, and the price demanded.
    3. If the demand curves are intersecting and linear, then the coefficient of elasticity would be different or the same on the demand curve at the point where they intersect. 
    4. The demand curves are parallel to each other at a certain price. The elasticity coefficient would be different in different curves of demand or demand curves.

Answer: Correct Option C – If the demand curves are intersecting and linear, then the coefficient of elasticity would be different or the same on the demand curve at the point where they intersect

Solution: 

The change of per cent in quantity demanded divided by the per cent change in the price is known as the elasticity coefficient. 

  1. If the Demand for the service and goods is inelastic, again, its price will cause the total financial loss of the users or consumers of the goods to:
    1. Decrease
    2. Increase
    3. Become zero
    4. Remain the same

Answer: Correct Option A – Decrease

Solution: 

If the demand for the service and goods is inelastic, an increase in its price will make the total outlay of the consumers of the quality increase. 

  1. The Horizontal demand curve collateral to the x-axis expresses that the elasticity of the demand is:
    1. Infinite
    2. Zero
    3. Equals to 1
    4. greater than zero but less than infinity

Answer: Correct Option B – Zero

Solution: 

The Horizontal demand curve collateral to the x-axis expresses that the elasticity of the demand is infinite. It is equal to zero when the economic process curve or demand curve is parallel to the y-axis.

  1. The market capital in India is controlled by?
    1. RBI
    2. NABARD
    3. IRDA D. SEBI
    4. A & D

Answer: Correct Option E-A&D

  1. How many institutions or companies are considered in the BSE Sensex?
    1. 25
    2. 50
    3. 30 
    4. 111

Answer: Correct Option B – 50

  1. In the list mentioned below, which of them is causative for the fluctuations happening in Sensex?
    1. Monetary policy
    2. Rain
    3. None of the above
    4. Political instability

Answer: Correct Option A – Monetary policy

  1. Nifty was founded in which period?
    1. 1952
    2. 1996
    3. 1965
    4. None of these

Answer: Correct Option B – 1996

  1. The market of money where the stocks are traded is called:
    1. Long-term market
    2. Counter market
    3. Capital market
    4. Shorter-term market

Answer: Correct Option C – Capital market

  1. Financial Management is mainly pertained with
    1. Arrangement of funds
    2. All aspects of utilizing and acquiring the resources of financial instruments for activities of firms
    3. Profit maximization
    4. Efficient Management of every business

Answer: Correct Option B – All aspects of utilizing and acquiring the resources of financial instruments for activities of firms

Solution:

Financial Management has mainly pertained to all aspects of utilizing and acquiring the resources of financial instruments for the activities of firms. Financial Management is the main application of general rules of management to the financial points of an endeavour. 

  1. The initial goal of Financial Management is
    1. To maximize the return
    2. to minimize the risk
    3. to stabilise the financial condition of the business
    4. to maximize profit 

Answer: Correct Option C –  to stabilise the financial condition of the business

Solution:

The initial goal of Financial Management is to stabilise the financial condition of the business. All the Enterprises or the businesses in to maximize their net profit, minimize disbursals and maximize their marketplace share.

  1. In his conventional role as a financial manager, he is responsible for
    1. Proper utilization of monetary resource
    2. Efficient social control of the financial gain of capital
    3. Arrangement of primary assets of the social group
    4. Planning of commercial enterprise resources 

Answer: Correct Option C – Arrangement of primary assets of the social group

Solution:

In his conventional role as a financial manager, he is responsible for the arrangement of primary assets of the social group. The financial managers are also responsible for the financial health of an institution or organization.

  1. The proportions of Commerce that modify the commerce crosswise the nation extremities are known as:
    1. global reach
    2. ubiquity
    3. Richness
    4. Interactivity

Answer: Correct Option A – global reach

Solution:

The proportions of Commerce that modify the commerce crosswise the nation extremities are known as global reach. Global reach refers to the commercial undertaking of a business initiative to increase admittance.

  1. Which of the below-mentioned is not reckoned as one of the three forms of e-commerce
    1. Consolidation
    2. Innovation
    3. Reinvention
    4. Preservation

Answer: Correct Option D – Preservation

Solution:

Preservation is not reckoned as one of the three forms of e-commerce. The act of conformity to something described above or precluding it from being damaged.