National Management College – Perundurai
CA Foundation – Business and Commercial Knowledge
Max. Time: 1 HR Total Marks : 50
Answer all the questions


  1. ABC Ltd. takes over XYZ Ltd. in such a manner that forthwith ABC Ltd. will control all the busness operations of XYZ. It may be called as:

(a) Merge (b) Demerage (c) Acquisition (c) Jone of theedr

  1. The affairs of a corporation should be executed in a manner so as to ensure that they are conducted in an ethical manner and as per provisions of law. This system of overseeing the affairs of a Corporation is called as:

(a) Governance (b) Observation    (c) Corporate Governance (d) Corporate Observations

  1. The procedure wherein a person in debt negotiates the price with the lender of a loan, in order to reduce the instalments is called as:

(a) Debt settlement (b) Debt Repayment    (c) Debt Negotiation (d) None of these

  1. There are two types of cords: One is based upon magnetic stripes & others are based on computer chip. The Computer chip based cards are used for data storage, processing and identification. These cards are known as:

(a) Pen Drive (b) Smart cards (c) Debit card (d) Computer Cards.

  1. ______  in the sum or portion of the value that is at stake of subject to loss from a valuation in prevalent interest rates.

(a) Value at Risk (b) Sum at risk (c) Amount at Risk (d) Stake Risk

  1. If a schedule bank has surplus funds. Then it can be deposited with the RBI for short periods. Such rate of interest offered by the RBI is called as:

(a) Repo Rate (b) Reverse Repo Rate

(c) Conversion Rate                                      (d) None of these

  1. Sometimes, a single project is handled by multiple companies, which may be to buy something or to build something. A combination of such several companies working together for a particular purpose is called as_________

(a) Consolidation Rate      (b) Merger     (c) Consortium   (d) None of these

  1. The strategy plays an inevitable role in the growth of any organization. The management’s storyline foe how the strategy will be a money market is called as ________                       .

(a) Super strategy (b) Mega Strategy (c) Vision strategy (d) Business model

  1. The falling or attitude that inclines a customer either to return to the company / shop / outlet to purchase these again may be regarded as ____________                     .

(a) Customer loyalty (b) Customer need

(c) Customer Satisfaction (d) Customer want

  1. For call options,  _________means the stock price is below the strike price.

(a) Out of the Money (b) in the Money

(c) Other than Money   (d) with Money

  1. Which one of the following is the funding institution.

(a) RBI (b) IRDAI (c) IFCI (d) CCI

12.The Central office of the Reserve Bank was Initially established in  ________but was permanently moved to                       in 1937.

(a) Kolkata, Mumbai (b) Mumbai, Kolkata (c) Delhi, Mumbai (d) Kolkata, Delhi

  1. Which condition, or which is not true out of options about bank rate?

(a) It is called discount rate

(b) It is different from repo rate

(c) SEBI Influences the interest rates through bank rate                                                                                                            (d) Higher bank rate will translate to higher lending rates by the banks

  1. Who was the regulatory body for controlling financial affairs in India before SEBI?

(a) Controller of Capital Issues                                                                                                                                                        (b) Reserve Bank of India                                                                                                                                                                (c) Insurance Regulatory and Development Authority of India                                                                                                 (d) Government of India

  1. How many members of SEBI Board are nominated by RBI?

(a) One (b) Two (c) Three (d) Four

  1. Which one of the following is the industry specific business facilitator?

(a) Insurance Regulatory and Development Authority                                                                                                              (b) Reserve Bank of India                                                                                                                                                                  (c) Securities & Exchange Board of India                                                                                                                                      (d) Ministry of Industry

  1. In Delhi sultanate, who introduced stringent tax reforms:

(a) Alauddin khilji (b) Akbar (c) Todarmal (d) Chanakya

  1. ERICS Stands for  _______                   .

(a) Brazil, Russia, India, China, and South Africa                                                                                                                                                                  (b) Britain, Russia, India, China, and Sweden                                                                                                                                  (c) Brazil, Russia, India, Columbia and South America                                                                                                                               (d) Britain, Russia, India, Columbia and Sweden.

  1. A ____________emanates from decision and decision is taken in line with identify the right expression to fill in the blanks.

(a) Policy, Goal (b) Plan, Budget (c) Goal, Plan (d) Budget, Plan

  1. An rules looks for policies which dominate over public freedom

(a) Autocratic (b) Democratic (c) Free Rein (d) Royal

  1. Public Policies are always

(a) Goa oriented (b) Minutely defined      (c) Pro-rich (d) For the poor

  1. During the time of Emperor Chandra Gupta Maurya, the great intellectual guru of the emperor,                     _____Outlined the public policy of the State.

(a) Akbar (b) Sultan (c) Chanakya (d) Todarmal

  1. Which of the following is not a part of European Nations?

(a) Germany (b)Denmark     (c) Japan (d) Sweden

  1. Simplification of trade restrictions related to import is an example of:

(a) Globalization (b) Privatization (c) Disinvestments    (d) Aggregation

  1. Which one of the following countries is included in BRICS nations?

(a) Sweden (b) South Africa (c) South Korea (d) Singapore

  1. Who has propounded model on political-policy relationship known as Black Box Model?

(a) Gabriel Philips (b) Gabriel Almond          (c) David Easton (d) Kautilya

  1. _____________are those which are carried on by a political system in response to demands or Stresses placed upon the system in the form of inputs.

(a) Economic System (b) Input activities

(c) Output activities (d) Political System

  1. In the Context of political, the democracy frames:

(a) Stringent Policies (b) No Policies

(c) Liberal Policies                          (d) Complex Policies

  1. Identify the one which may be considered as a public policy:

(a) A decision by a Central Govern-ment to purchase a fleet of cars                                                                                      (b) An old building to be demolished by a municipal corporation                                                                                            (c) All citizens are to be provided with biometric aadhaar card (c) All citizens are to be provided with biometric aadhaar card

(d) Government passes a special resolution to change the name of a park.

  1. The statement “ Public policy is whatever Government chooses to do or not to do” is given by:

(a) Thomas R. Dye (b) Richard Rose (c) Carl J. Friedrich (d) Martin Luther

  1. India is a pluralistic society, Therefore, there are many opinions. We have legal system.

(a) No (b) Simple (c) Complex (d) Tyranny

  1. The bill is notified as an Act, after the   ___________gives assent

(a) President   (b) Parliament (c) Prime Minister (d) Vice President

  1. HDFC Bank was incorporated in the year____________

(a) 1990 (b) 1991 (c)1994 (d)1995

  1. As per Charles Darwin, who survives?

(a) Strongest     (b) Most Intelligent

(c) Most responsive to change     (d) All of the above

  1. Which one of the following is not true about business?

(a) It is created to provide products or services to customers.                                                                                                  (b) It creates job opportunities                                                                                                                                                        (c) It is beneficial to society                                                                                                                                                              (d) It always gives return on investment.

  1. Which one of the following is not true about Business  Environment?

(a) It represents all external forces, factors or conditions that exert same degree of impact on business decisions.

(b) The success of business is affected by business environment                                                                                              (c) The business must continuously monitor and adapt itself to the environment                                                              (d) It Includes internal forces only.

  1. Now –a-days, the film industry generates revenue from ring tones/caller tunes rather than sale of music C.D. It exhibits____________ feature of business environment.

(a) Complex (b) Dynamic (c) Multi – faceted (d) For Reaching impact

  1. Which one of the following is not true about External Environment?

(a) It offers opportunities (b) It offers limitations also

(c) It creates pressures & threats (d) It never affects small business

  1. In relation to resources, “5M” represents:

(a) Men, Money, Method, Machine and Material                                                                                                                        (b) Management, Motivation, Money, Machine and Material

(c) Morale, Money, Method, Machine and Material

(d) Mobility, Method, Management, Machine and Material

  1. In relation to a popular cold drink “Pepsi”, Which one of the following is not internal factor?

(a) Packaging   (b) Scheme & Promotion

(c) Distribution Networks (d) Health Awareness

  1. Trends relate to:

(a) Happening of events in internal Environment

(b) Grouping of similar or related events                                                                                                                                      (c) Demands made by Interested group                                                                                                                                          (d) None of the above

  1. Which one of the following is not a part of interval Environment?

(a) Value System (b) Mission and objectives

(c) Customers (d) Lobour Union

  1. Cost structure of an industry is effected by___________own bargaining power.

(a) Organizations (b) Suppliers      (c) Consumer (d) Intermediary

  1. Asian Paints Ltd. has been a market leader in Paints since___________ .

(a) 1942 (b) 1960 (c) 1967 (d) 1971

  1. Which of the following is not a part of Retail banking?

(a) Card Services (b) Depository (c) Investments banking (d) ATM Services

  1. Which of the following is not a Product of Bajaj Auto Limited under “ Three wheelers” Segment?

(a) RE Compact (b) RE Optima (c) RE Compact 4S (d) RE Minima

  1. BPCL was th3__________ refinery to process newly found indigenous crude (Bombay High) in the Country.

(a) First (b) Second (c) Third (d Fourth

  1. Which of the following is a wholly owned subsidiary of CIPLA?

(a) Medical Smart Private Limited

(b) Meditab specialities Private Limited                                                                                                                                        (c) Medical Fluticasone Propionate Ltd.                                                                                                                                        (d) Meditab Escitalopram Ltd

  1. Dr. Reddy’s Lab was originally launched in  ___________ producing Active Pharmaceutical ingredients.

(a) 1980 (b) 1982 (c) 1984 (d) 1986

  1. GAIL has 22.5% stake in the Company “ Avantika Gas Limited”, It is a joint venture of GAIL with________

(a) HPCL (b) BPCL (c) IOCL (d) NTPC



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