Business Environment

11. Which of the following is NOT likely to be a benefit that host countries will obtain from MNCs?

  1. Technology transfer
  2. Import substitution
  3. The ability to impose high tax rates on them
  4. Job creation
Correct answer: (A)
Technology transfer

12. Which of the following can be a disadvantage to the host country of MNC investment:

  1. Drives out domestic competitors
  2. Sends profits abroad
  3. Threatens to leave if not "helped".
  4. Imports components
Correct answer: (A)
Drives out domestic competitors

13. National Income estimates in India is prepared by

  1. Planning Commission
  2. RBI
  3. Finance Ministry
  4. C.S.O
Correct answer: (D)

14. Mixed economy means

  1. Co–existence of small and large industries
  2. Promoting both agriculture and industries in the economy
  3. Co–existence rich and poor
  4. Co–existence of public and private sectors
Correct answer: (D)
Co-existence of public and private sectors

15. Black money in India

  1. Raises domestic prices
  2. Encourages lavish consumption
  3. Causes loss of revenue to the exchequer
  4. Effects all of the above
Correct answer: (D)
Effects all of the above

16. Income tax is an item of

  1. Concurrent List
  2. State list
  3. Union List
  4. Residuary List
Correct answer: (C)
Union List

17. Inflation, in theory occurs

  1. When prices of essential commodities outstrip income
  2. When money supply grows at a higher rate than GDP in real terms
  3. When exchange rate of domestic currency falls in foreign exchange markets
  4. When fiscal deficit exceeds balance of payments deficit.
Correct answer: (B)
When money supply grows at a higher rate than GDP in real terms

18. The objective of case-study is

  1. Remedial
  2. Diagnostic
  3. Educational
  4. All of the above
Correct answer: (C)

19. Which of the following regulates the working of stock markets in India?

  1. FEMA
  2. RBI
  3. SEBI
  4. Ministry of Finance
Correct answer: (C)

20. Find the odd one out

  1. IOCL
  2. HPCL
  3. ONGC Ltd.
Correct answer: (D)
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