SBI SCHOOL OF BUSINESS INTELLEGENCE

PRE-REQUISITES COMPETENCY STAGE EXAMINATION

Chapters (Full book) Total Marks: 100
Tutor: Malik Mumtaz Ahmed Time Allowed: 2 hours
Name of the examinees: ……………... ID:……………..
Introduction to Business (PRC-5) Mock

1. __________statement is more concerned with the future while_________Statement focuses on

present. (2)
(a) vision; comparative
(b) income; mission
(c) vision; mission
(d) mission; vision

2. __________stakeholders have _____________interests and organisations face trade-offs to

satisfy all of them. (2)
(a) all ; common
(b) every ; identical
(c) big ; larger
(d) different ; different

3. Which one of the following may NOT be the interest of suppliers in business organisations? (2)
(a) the company pay timely rather than accumulate bad debts
(b) the company continue to buy from the suppliers
(c) the company treat supplier fairly and deal in ethical way
(d) the company pays discounts to the suppliers

4. All but which one of the following is NOT the characteristic of sole proprietorship? (2)
(a) No legal formations to start a business
(b) Profit is not shared by anyone else
(c) Complete control and free to make decisions
(d) Owner’s liability is limited to the investment in the business.

5. Each partner has unlimited liability for the debts of the business in case of: (2)
(a) General partnership
(b) Unlimited partnership
(c) Limited partnership
(d) Specific partnership

6. Which of the following requirement are not applicable to a partnership firm? (select two options)
(2)
(a) Partners share profit and loss of the firm.
(b) The firm hold annual general meeting.
(c) The firm must file annual return and audit of financial statement.
(d) All partners pay tax on the income they receive from the firm.

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 7. The main features of enterprenual structures are (2)
(a) No delegation No formal structure Earlier stage of entity
(b) Managed by owner Formal structure Large entity
(c) Delegation of power No formal structure Small entity
(d) Simple operation Small size entity Formal structure

8. The organisational structure that gathers the people who have comparable skills and performs
similar tasks is termed as: (2)
(a) dimensional organnisation
(b) Functional organisation
(c) matrix organisation
(d) enterprenural organisation

9. In divisional organisation, divisions may be formed on the basis of: (select two options) (2)
(a) marketing
(b) product
(c) finance
(d) customers

10. Which one of the following is NOT true? (2)

(a) dividend is tax deductible
(b) dividend is not tax deductible and are paid from after tax income
(c) interest on debt instrument is tax deductible expense
(d) equity financing has no maturity date
11. Which one of the following modes of finance may be used to purchase machinery? (2)
(a) factoring
(b) bank overdraft
(c) term loans
(d) trade credits

12. In matrix organisation, ____________ are appointed with overall responsibility for individual
project whereas ___________ retain their decision- making authority on their functions. (2)
(i) project managers
(ii) divisional managers
(iii) geographical managers
(iv) functional managers

(a) (i) and (ii)

(b) (ii) and (iii)
(c) (iii) and (iv)
(d) (i) and (iv)

13. chain of commands refers to the number subordinates a superior can effectively manage. (2)
(a) true
(b) false

14. Which one of the following modes of finance may be used to purchase machinery? (2)
(a) factoring
(b) bank overdraft
(c) term loans
(d) trade credits

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 15. Retained earnings represent a portion of equity earnings left after deducting
the___________and____________. (2)
(a) tax; preference dividend
(b) common dividend; preference dividend
(c) tax; interest on borrowings
(d) interest; principal

16. The use of information systems: (2)

(a) facilitate communications among different stakeholders
(b) increases revenue and decreases costs
(c) facilitates access to variety of information
(d) all of the above

17. Which of the following input device may be used by an auditor on a year-end inventory count?(2)
(a) VDE
(b) QR reader
(c) digital camera
(d) OMR

18. Which of the following may not be the features of deterministic system? (2)
(i) predicted operations
(ii) predetermined rules
(iii) less easy to predict
(iv) example includes business

(a) (i) and (ii)

(b) (ii) and (iii)
(c) (iii) and (iv)
(d) (ii) and (iv)

19. Big companies use very large database called ___________. (select two options) (2)
(a) data warehouse
(b) cloud
(c) galaxies
(d) data mart

20. Which of the following refers to a computer program that simulates the judgement and behaviour
of a human or organisation that has expert knowledge and experience in a particular field? (2)
(a) Executive Information System (EIS)
(b) Expert System (ES)
(c) Decision Support System (DSS)
(d) Management Support System (MSS)

21. Ethical issues in business include: (2)

(a) fair dealing with employees
(b) acting within the law
(c) fair and honest dealing with suppliers and customers
(d) all of the above

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 22. Insider trading is the buying and selling of ______ by insiders who possess material that is still
not public. (2)
(a) stocks
(b) material secretly
(c) goods and services
(d) machinery by the employees

23. Which of the following are testing techniques while making ethical decisions?
(Select two options) (2)
(a) the lens test
(b) the mirror test
(c) the moral test
(d) the consequence test

24. Which of the following are not the principle of corporate social responsibility (CSR)? (2)
(i) an organization should operate in an ethical way and with integrity.
(ii) an organization should treat its employees fairly and with respect.
(iii) an organization should respect for basic human rights.
(iv) an organization should help to sustain environment for future generations.
(v) an organization should produce goods at low cost.
(vi) an organization should sell goods at competitive price.

(a) (i) and (ii)

(b) (iii) and (iv)
(c) (v) and (vi)
(d) (i) and (iv)

25. A chartered Accountant who does not provide his up-to-date professional services is violating
______________ code of ethics of ICAP. (2)
(a) professional behaviour
(b) objectivity
(c) professional competence and due care
(d) integrity

26. Which one of the following may NOT be the characteristic of a product? (2)
(a) a product needs a name
(b) a product should be durable
(c) a product should be adaptable
(d) a product needs to be relevant

27. The buyer of __________ is most cost, quality, standard conscious and more deliberative than
the buyer of _____________. (2)
(a) a durable product; non-durable product
(b) a product; service
(c) a consumer product; an industrial product
(d) an industrial product; a consumer product

28. Target market can be broadly classified into: (select two options) (2)
(a) consumer markets
(b) local market
(c) foreign market
(d) industrial market

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 29. Which one of the following statements is not true? (2)
(a) product life cycle is the pattern of sales and profits over time for a product.
(b) product life cycle is the span of time a product can be useful.
(c) marketing decisions about a product are influenced by the prevailing phase of life
cycle of a product.
(d) a typical product life cycle has 4 specific phases

30. __________ tend to focus on general population, whereas ___________ tend to focus on
individual or small groups. (2)
(a) Sale; marketing
(b) Promotion; advertisement
(c) Brand; image
(d) Marketing; sales

31. Strategy for marketing is _________ whereas _________strategy is used for sales. (2)
(a) real; imaginary
(b) push; pull
(c) explicit; implicit
(d) pull; push

32. ____________ involve the observations and the study of pertinent information about the job. (2)
(a) job description
(b) job specification
(c) job satisfaction
(d) job analysis

33. Both job description and job specifications are used to: (select two options) (2)
(a) develop advertisement
(b) develop job plan
(c) select suitable candidates
(d) develop job plan

34. Which of the following organisations give more importance to physical fitness and mental agility
while selecting an employee. (2)
(i) airline company
(ii) accounting firm
(iii) health organisation
(iv) law enforcement agency

(a) (i) and (ii)

(b) (ii) and (iii)
(c) (iii) and (iv)
(d) (i) and (iv)

35. Which of the following is not the type of on-the-job training? (2)
(a) job rotation
(b) work shadowing
(c) apprenticeship
(d) orientation

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 36. In ___________ a job holder is given more authority about decision making. (2)
(a) job enrichment
(b) job rotation
(c) job enlargement
(d) job analysis

37. Which one the following may not be the possible reason of higher rate of employee turnover? (2)
(a) poor selection and training process
(b) unsatisfactory compensation programmes
(c) job enrichment
(d) poor working conditions

38. Long term planning in production planning has a time frame of: (2)
(a) three to five years
(b) five to seven years
(c) over two years
(d) one year

39. Which one of the following is not the type of production process? (2)
(a) mass production
(b) quality production
(c) mass customisation-
(d) customisation

40. Which of the following product layout will best suit the ship building? (2)
(a) process layout
(b) product Layout
(c) fixed-position layout
(d) assembly-line Layout.

41 Which of the following is not the key information system used to control flow of resources
and inventory? (2)
(a) PERT
(b) MRP
(c) MRP II
(d) ERP

42. Which of the following tool is not used by manufacturing operation management to
increase efficiency? (2)
(a) warehouse management software
(b) defect tracker
(c) process re-engineering
(d) enterprise resource planning

43. _________________ refers to the ongoing process of monitoring and improving

production process. (2)
(a) manufacturing operation management
(b) research and development
(c) human resource management
(d) management information system

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 44. WAPDA is now responsible for: (select two options) (2)
(a) development of water and hydropower resources
(b) distribution of electricity
(c) operating hydroelectric utility
(d) transmission of electricity

45 ___________ means the material inputs needed for production, whereas _________ refers to the
production and distribution of products. (2)
(a) upstream; downstream
(b) upwards integration; forwards integration
(c) forwards integration; upwards integration
(d) downstream; upstream

46. In Pakistan, power is generated by: (2)

(a) WAPDA
(b) K.Electric
(c) IPP
(d) all of the above

47. Which one of the following refers to market capitalisation? (2)

(a) total rupee market value of a company’s outstanding shares
(b) total capital invested by a person in shares
(c) total capital employed by investor in a company
(d) total number of outstanding shares by a company

48. Which one of the following Pakistani value-added textile product has highest contribution of
exports? (2)
(a) ready made garments
(b) bed ware
(c) cotton fabrics
(d) textile made up other than bed ware and towels

49. Which one of the following sectors involve in processing crude oil and natural gas into end user
form? (2)
(a) upstream
(b) mid-stream
(c) downstream
(d) all of the above

50. Which of the following are the responsibilities of the drug regulatory authority of Pakistan
(DRAP)? (2)
(a) registration of new medicine
(b) registration of new manufacturing site
(c) maximum retail price of medicine
(d) all of the above

THE END

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