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Q.1 The term transactions in business referes to-
- Exchange of goods
- goods and services
- transfer of goods
- Goods and sale
Answer ✔ (c) transfer of goods
Explanation: Transaction referes to transfer of goods. The buyer and seller often involved in the exchange of items of value such as goods, information, services and money.
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Q.2 Channel of distribution is zero level in-
- Manufacturers → physician → consumer
- Manufacturer → wholesaler → physician → patient
- Manufacturer → retailer → patient
- Manufacturer → patient
Answer ✔ (d) Manufacturer → patient
Explanation: zero level channels have no intermediates.
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Q.3 Type of relationship of street vendor is-
- small scale fixed retailer
- large scale retailer
- Itinerant retailer
- Pertinent retailer
Answer ✔ (c) Itinerant retailer
Explanation: The trem itinerant retailer shall include person selling goods door to door as well as person selling goods from a mobile cart, trailer or similar devices.
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Q.4 OTC drugs are-
- Ethical drugs
- Prescription drugs
- Ethical and prescription drugs
- non-prescription drugs
Answer ✔ (d) non-prescription drugs
Explanation: OTC drugs are over the counter medicines, sold directly to a consumer wothout a prescripton.
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Q.5 Safety stock is used for -
- For protection of store from fire or thefts
- As an insuarance claim during emergency
- for emergency to meet unforeseen demands
- to increase the market value of product
Answer ✔ (c) for emergency to meet unforeseen demands
Explanation: safety stock is also known as buffer stock and its is used in emergency to meet extra demands.
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Q.6 ICICI stands for -
- Industrial Credit and Investment Corporation of India
- Inductrial and Commercial Investment Corporation of India
- Indian Corporation of Investments and Commercial Institution
- Industrial Corporation of Investment and Credit Income
Answer ✔ (a) Industrial Credit and Investment Corporation of India
Explanation: ICICI stands for Industrial Credit and Investment Corporation of India.
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Q.7 Which one of the following will not apear as source of fund in flow statement?
- Increase in share capital
- increase in working capital
- increase in secured loans
- funds from operation
Answer ✔ (b) increase in working capital
Explanation: Increase in working capital will not appear as source of fund in flow statement.
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Q.8 Inventories comprise of-
- Raw material
- General store machinery
- Finished products
- All of the above
Answer ✔ (d) All of the above
Explanation: Inventory refers to the goods and material that a business holds for the ultimate purpose of resale/repair.
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Q.9 A leader who permits the members of the group to do whatever they want to do whatever they want to do may be classified into-
- Democratic leader
- Laissez - Faire leader
- Herzberg leader
- social leader
Answer ✔ (b) Laissez - Faire leader
Explanation: The Laissez - Faire leadership style is where all the rights and powers to make decision is fully given to the worker.
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Q.10 Advertisement and salesmanship help to remove the-
- Hindrance of place
- Hindrance of persons
- Hindrance of finance
- Unawareness
Answer ✔ (d) Unawareness
Explanation: advertisement and salesmanship help to remove the unawareness.
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Q.11 Business is an-
- non-economic activity
- economic activity
- both economic and non-economic activity
- All of the above
Answer ✔ (b) economic activity
Explanation: Business is also known as Enterprise or a firm. It is an economic activity.
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Q.12 Partners who are neither entitled to take part in the management nor do they invest and get a share of profits are-
- silent partners
- Prtners by estoppel
- Nominal partner
- Limited partner
Answer ✔ (a) silent partners
Explanation: Silent partners do not involved in a business.
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Q.13 The oldest form of business organisation is-
- Joint stock company
- Sole Proprietorship
- Partnership
- All of the above
Answer ✔ (b) Sole Proprietorship
Explanation: Sole or single properietorship is considered as the simplest as well as the oldest form of business ownership.
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Q.14 The buying and selling of pharmaceuticals items for making profit is called-
- Trading
- Commerce
- Direct service
- Miscellaneous
Answer ✔ (a) Trading
Explanation: Trading is the value added function of the economic process.
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Q.15 Warehousing is done to save-
- Time
- Place
- Cost
- Labour requirements
Answer ✔ (b) Place
Explanation: Warehousing is done primarily to save place.
D. Pharma • Drug Store and Business Management • Diploma in Pharmacy
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Q.16 The maximum number of members in public limited company is-
- 20
- 30
- 50
- unlimited
Answer ✔ (d) unlimited
Explanation: There is no restriction for maximum number of members in a public limited company.
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Q.17 In a mail order business goods are sold on-
- cash
- credit
- both cash and credit
- Instalment basis
Answer ✔ (a) cash
Explanation: In a mail order business goods are sold on cash and it can be done exclusively from home.
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Q.18 Coding of items helps in-
- Handling of store items
- Standardization of drug
- Reduction of items
- All of the above
Answer ✔ (a) Handling of store items
Explanation: coding of items helps in handling of store items.
D. Pharma • Drug Store and Business Management • Diploma in Pharmacy
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Q.19 The layout of drug store depends upon-
- Pharmacist/proprietor
- Rules specified in shedule N
- Availability of space
- All of the above
Answer ✔ (b) Rules specified in shedule N
Explanation: Schedule N includes list of minimum equipment for the efficient running of a pharmacy.
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Q.20 ABC analysis is based on-
- Unit price material
- consumption value of material
- storage value of material
- All of the above
Answer ✔ (b) consumption value of material
Explanation: ABC analysis is the business term used to define inventory chategorisation technique often used in material management. It is also known as selective inventory control. It depends on consumption value of materials.
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Q.21 Which of these data of marketing research is more reliable?
- Primary data
- secondary data
- both primary and secondary data
- none of the above
Answer ✔ (a) Primary data
Explanation: Marketing research is the process or set of process that link the consumers, customers and end users to the marketer through information. Primary data is more reliable for marketing research.
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Q.22 Location which attracts the customer for shopping may be termed as-
- Interceptive location
- Geographic location
- Generative Location
- Sucipent location
Answer ✔ (c) Generative Location
Explanation: People are attracted to generative location for the purpose of shopping thus it generates business. E.g. shopping centers, out laying retail stores, full line department stores.
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Q.23 Bank provides finance to bussiness for-
- Long term
- Short term
- medium term
- Any of the above
Answer ✔ (d) Any of the above
Explanation: finance deals with the allocation of assets. Bank provides finance to the business for various length of time.
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Q.24 Fixed rate of divident is given to-
- Equity share holders
- Preference share holders
- Differed shares
- Any of the above
Answer ✔ (b) Preference share holders
Explanation: Fixed rate of divident is given to preferance share holders.
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Q.25 Each transaction has double effect is shown by-
- Dual aspect concept
- Realization concept
- cost concept
- Money measurement concept
Answer ✔ (a) Dual aspect concept
Explanation: dual aspect concept also known as duality principle, it is a fundamental convention of accounting.
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Q.26 What is the role of shareholders in a company?
- Owners
- Creditors
- Managers
- Any of the above
Answer ✔ (a) Owners
Explanation: shareholders are the owners of the company. They have different percentage of ownership (share).
D. Pharma • Drug Store and Business Management • Diploma in Pharmacy
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Q.27 Plant and machinery will appear on-
- Debit side of balance sheet
- Debit side of profit and loss account
- Credit side of balance sheet
- Credit side of profit and loss account
Answer ✔ (a) Debit side of balance sheet
Explanation: In a balance sheet, plant and machinery are placed on the debit side.
D. Pharma • Drug Store and Business Management • Diploma in Pharmacy
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Q.28 Buying of items from foreign country is called-
- Export
- Import
- Enteport
- All of the above
Answer ✔ (b) Import
Explanation: Import is buying of items from foreign country.
D. Pharma • Drug Store and Business Management • Diploma in Pharmacy
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Q.29 Trial balance helps in preparing-
- Trading account
- profit and loss account
- Balance sheet
- All of the above
Answer ✔ (d) All of the above
Explanation: Trial balance checks the sum of debits against the sum of credits.
D. Pharma • Drug Store and Business Management • Diploma in Pharmacy
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Q.30 A chemist shop deals only in drugs so it is an example of-
- General store
- Single line store
- Street stall
- none of the above
Answer ✔ (b) Single line store
Explanation: Single line store is also known as speciality store.
D. Pharma • Drug Store and Business Management • Diploma in Pharmacy
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Q.1 Poultry farms comes under which industry?
- Extractive industries
- Genetic industries
- Manufacturing industries
- Construction industries
Answer ✔ (b) Genetic industries
Explanation: Genetic industries are such industries in which certain species of plants and animals are multiplied and reproduced.
D. Pharma • B. Pharma • Drug Store and Business Management • Diploma in Pharmacy
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Q.2 A type of account relating to losses and incomes is:
- Personal
- Real
- Nominal
- Profit and loss
Answer ✔ (c) Nominal
Explanation: Nominal accounts in accounting are the temporary account such as the income statement accounts.
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Q.3 In VED analysis D stands for-
- Data of receipt of items
- Desirable item
- Deviation of stock
- Daily desired item
Answer ✔ (b) Desirable item
Explanation: VED analysis is vital, essential, and desirable analysis employed in inventory control.
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Q.4 alpha numeric codification is suitable for a -
- Large scale organisation
- Small scale organisation
- Medium scale organisation
- All of the above
Answer ✔ (a) Large scale organisation
Explanation: Alpha numeric codification is a coding system suitable for large scale organisation, e.g. Car Numbers.
D. Pharma • B. Pharma • Drug Store and Business Management • Diploma in Pharmacy
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Q.5 Purchase indent is an -
- External document
- Internal document
- Legal document
- None of the above
Answer ✔ (b) Internal document
Explanation: Purchase indent is a document that is used by the company internally that authorize the purchasing of products and material needed by the company.
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Q.6 Economic order quantity (EOQ) aims at minimizing -
- Carrying cost
- Ordering cost
- Both of carrying cost and ordering cost
- Suppliers price
Answer ✔ (c) Both of carrying cost and ordering cost
Explanation: EOQ aims to minimize carrying cost and ordering cost.
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Q.7 Which of the method of advertisement is suitable for uneducated media?
- Magazines
- Audio visual
- News papers
- Any of the above
Answer ✔ (b) Audio visual
Explanation: Audiovisuals refers to work with both a sound and visual component. This method is suitable for uneducated peoples.
D. Pharma • B. Pharma • Drug Store and Business Management • Diploma in Pharmacy
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Q.8 The business financial year in India ends on -
- March 31st
- December 31st
- July 31st
- March 31st and December 31st
Answer ✔ (a) March 31st
Explanation: A financial year in India generally ends on 31st march.
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Q.9 Patent, copyright, trademarks comes under which type of assets?
- Current assets
- Intangible assets
- Tangible assets
- Miscellaneous assets
Answer ✔ (b) Intangible assets
Explanation: Intangible assets are identifiable long term assets of the company having no physical existence.
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Q.10 Uniform part of a loan raised by a company is known as -
- Public deposit
- Equity shares
- Debentures
- Borrowed capital
Answer ✔ (c) Debentures
Explanation: Debentures is a document that either creates a debt or acknowledge it and it is debt without collateral.
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Q.11 Induction training is meant for -
- Existing employees
- New employees
- Both (a) and (b)
- None of the above
Answer ✔ (b) New employees
Explanation: Induction training is a type of training given as an initial preparation upon taking up a post (new employees)
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Q.12 Bank is an organisation which deals in -
- Deposits
- Loans
- Money
- All of the above
Answer ✔ (d) All of the above
Explanation: Bank is an organisation which deals different matters related to money like deposit, loan, interest, etc.
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Q.13 What is a pooled commission?
- Share of commission on total profit
- Equal share of commission on total sale
- Equal share of commission on annual total sale
- Straight salary plus bonus on sale
Answer ✔ (b) Equal share of commission on total sale
Explanation: Pooled commission is the equal share of commission on total sale .
D. Pharma • B. Pharma • Drug Store and Business Management • Diploma in Pharmacy
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Q.14 Drug samples worth Rs. 5,000 were distributed to physicians. The amount should be debited to -
- Sales account
- Samples account
- Advertisement account
- None of the above
Answer ✔ (c) Advertisement account
Explanation: Advertising account executes work withing advertising or multiservices agencies acting as a link between clients and the agency.
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Q.15 Credit balance of a ledger account is denoted by -
- Excess of credit side over debit side
- Excess of debit side over credit side
- Equally of debit and credit
- Any of the above
Answer ✔ (a) Excess of credit side over debit side
Explanation: Excess of credit side over debit side is called credit balance.
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Q.16 The exchange of goods between foreign producers and foreign consumer comes under -
- Import and export trade
- Import trade
- Entrepot trade
- External trade
Answer ✔ (c) Entrepot trade
Explanation: Entrepot trade in which imported goods are re-exported with or without any additional processing or repackaging.
D. Pharma • B. Pharma • Drug Store and Business Management • Diploma in Pharmacy
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Q.17 Indian contract act was passed in -
- 1992
- 1872
- 1972
- 1892
Answer ✔ (b) 1872
Explanation: The indian contract act was passed in 1872.
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Q.18 Scrap and surplus disposal helps to -
- Reduce investments
- Release surplus funds
- Make available funds
- All of the above
Answer ✔ (d) All of the above
Explanation: Disposal of scrap and surplus items helps in gaining funds, reducing investment, space sparing etc.
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Q.19 The Imprest system is used in relation to -
- Sales book
- Purchase book
- Petty cash book
- Journal
Answer ✔ (c) Petty cash book
Explanation: Imprest system is a form of financial accounting system. The most common imprest system is the petty cash system.
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Q.20 In fund flow system the term 'fund' means -
- Cash
- Current assets
- Current liabilities
- Current liabilities - current assets
Answer ✔ (d) Current liabilities - current assets
Explanation: Fund means current liabilities and current assets in fund flow statement.
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Q.21 A budget is a -
- Financial statement
- Quantitative statement
- A report only
- Any of the above
Answer ✔ (b) Quantitative statement
Explanation: A budget is a quantitative expression of a plan for defined period of time.
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Q.22 in the journal data is recorded on the basis of -
- Account
- Nature
- Year
- Transaction
Answer ✔ (d) Transaction
Explanation: the unit of classification of data within the journal is the transaction. In the journal the data is recorded on the basis of transaction.
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Q.23 A person who is interested to start a retail drug store must be -
- D.Pharmacy
- Registered Pharmacist
- Chemist
- Druggist
Answer ✔ (b) Registered Pharmacist
Explanation: Registered Pharmacist is licensed to start a retail drug store.
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Q.24 Which one is not the function of management?
- Planning
- Organising
- Crediting
- Staffing
Answer ✔ (c) Crediting
Explanation: Management includes planning, organising, staffing, leading and controlling an organisation to accomplish the goal.
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Q.25 Open tender means -
- Major tender
- Moderate tender
- Minor tender
- None of these
Answer ✔ (a) Major tender
Explanation: Open tender is also known as competitive tender, public tender and major tender.
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Q.26 The form of cheque for which we cannot get cash in hand is -
- Bearer cheque
- Order cheque
- Crossed cheque
- None of the above
Answer ✔ (c) Crossed cheque
Explanation: Crossed cheque is a cheque marked to specify an instruction about the way it is to be redeemed. One can not get cash in hand through a crossed cheque.
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Q.27 The maximum number of partners allowed in a general business -
- 10
- 20
- 50
- 100
Answer ✔ (b) 20
Explanation: Maximum 20 partners are allowed in a general business.
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Q.28 The perpetual inventory system includes-
- Bin card
- Stores ledger
- Continuous stock taking
- All of the above
Answer ✔ (d) All of the above
Explanation: Perpetual inventory is also known as continuous inventory, described system of inventory where information on inventory quality and availability is updated on a continuous basis as a function of doing business. A bin card and store ledger are common elements in a perpetual inventory system.
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Q.29 Commerce is a term involved in -
- Earning profit
- Buying and selling of goods
- Managing work
- Providing finance
Answer ✔ (b) Buying and selling of goods
Explanation: Commerce is a whole system of an economy that constitute an environment for business (buying and selling of goods).
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Q.30 Formula of debt equity ratio is -
- Net profit after tax
- Owners equity
- Total liabilities / shareholders equity
- Internal equity / external equity
Answer ✔ (c) Total liabilities / shareholders equity
Explanation: Debt equity ratio is used to measure relative claims of creditors and owners. It is Total liabilities by stockholders equity.
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Q.1 When businesses organisations owned and controlled by a single person it is…
- Sole proprietorship
- Partnership firms
- Co operative society
- All of them
Answer ✔ (a) Sole proprietorship
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Q.2 .. . Encourage self-employment.
- Sole proprietorship
- Co operative society
- Partnership firms
- All of them
Answer ✔ (a) Sole proprietorship
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Q.3 The highest secrecy can be maintained in
- Sole proprietorship
- Co operative society
- Partnership firms
- All of them
Answer ✔ (a) Sole proprietorship
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Q.4 Limited scope of expansion is the disadvantage of…
- Sole proprietorship
- Partnership firms
- Co operative society
- All of them
Answer ✔ (a) Sole proprietorship
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Q.5 The oldest form of business organisation is….
- Partnership
- Joint hindu family
- Sole Proprietorship
- All of them
Answer ✔ (a) Partnership
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Q.6 In which of the following forms of business organization, registration is compulsory…
- Partnership firm
- Sole proprietorship
- Joint-stock company
- All of them
Answer ✔ (b) Sole proprietorship
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Q.1 Inactive partner is also known as…..
- Sleeping partner
- Working partner
- Secret partner
- None of them
Answer ✔ (a) Sleeping partner
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Q.2 … . . .. Partner do not take part in conduct of business firm.
- Working partner
- Secret partner
- Inactive partner
- None of them
Answer ✔ (c) Inactive partner
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Q.3 The partner not disclosed to public but shares the profit and losses of the firm is…
- Sleeping partner
- Inactive partner
- Both of them
- None of them
Answer ✔ (c) Both of them
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Q.4 The partner not sharing profit but liable for the debts of the firm is…
- Secret partner
- Nominal partner
- Working partner
- None of them
Answer ✔ (b) Nominal partner
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Q.5 The partner Neither contributing capital not taking an active part in business conduct is…
- Active partner
- Working partner
- Nominal partner
- None of them
Answer ✔ (c) Nominal partner
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Q.6 The partner who does not want to be known as partner of the firm is…
- Secret partner
- Working partner
- Secret partner
- None of them
Answer ✔ (a) Secret partner
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Q.7 The partnership wherein partners have unlimited liabilities is…
- General partnership
- Limited partnership
- Both of them
- None of them
Answer ✔ (a) General partnership
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Q.8 A limited partnership consist of…
- General partners
- Limited partners
- Special partners
- All of them
Answer ✔ (d) All of them
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Q.9 More stable partnership is…
- General partnership
- Limited partnership
- Both of them
- None of them
Answer ✔ (b) Limited partnership
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Q.10 The partner having authority to check the books of account for information besides not a part of Managing firm is…
- General partners
- Limited partner
- Special partners
- All of them
Answer ✔ (b) Limited partner
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