Principles of Commerce Mcq and Introduction to Business Mcqs, Questions and Answers for Lecturer SPSC, PPSC and FPSC

Principles of Commerce is a very important subject stied in eleventh class (XI) and Introduction to Busines is an important Subject studied in the B.COM Part One (I). Here a complete list of Principles of Commerce mcq and Introduction to Business Mcqs is given.

These Commerce mcq and introduction to business mcqs will help students as well as aspirants of lecturers and other competitive exams. Currently, Here 50 Mcqs are solved.

Aspirants are advised to study this Introduction to Business Mcq and Principles of Commerce Mcqs for the preparation of college lecturer exams held by FPSC, SPSC and PPSC.

These mcqs are very useful for the students of Federal Board and other boards like Hyderabad, Sukkur, Karachi, etc.

Introduction to Business Multiple Choice Questions (MCQs)

1. Literary, the word Business means_________________.

(a) Being Busy

(b) Earning Profit

(c) Buying and Selling

(d) Both (a) and (c)

View Answer

(a) Being Busy

2. Any activity that is undertaken for the purpose of earning of profit is called_________________.

(a) Commerce

(b) Industry

(c) Business

(d) Trade

View Answer

(c) Business

3. The main purpose or aim of doing business is_________________.

(a) Earning Profit

(b) Producing Goods and Services

(c) Buying and Selling

(d) Both (a) and (c)

View Answer

(a) Earning Profit

4. Generally, business activities are divided into__________parts.

(a) Five

(b) Four

(c) Three

(d) Two

View Answer

(d) Two

5. The part of business activity which deals with buying and selling and removing hindrances of buying and selling is known as__________________.

(a) Business

(b) Industry

(c) Commerce

(d) Both (a) and (b)

View Answer

(c) Commerce

6. Trade means_____________________.

(a) Buying and Selling

(b) Exchange of Commodities

(c) Both (a) and (b)

(d) None of the Above

View Answer

(c) Both (a) and (b)

7. The part of business activity which deals with extraction production or fabrication of products is known as_____________________.

(a) Business

(b) Industry

(c) Trade

(d) Commerce

View Answer

(b) Industry

8. The term ‘Aids to Trade’ includes_____________________.

(a) Facilitation of Buying and Selling

(b) Buying and Selling

(c) Earning Profit

(d) Trade

View Answer

(a)  Facilitation of  Buying and Selling

9. Commerce includes which of the following activities:

(a) Industry

(b) Trade

(c) Aids to Trade

(d) Both (b) and (c)

View Answer

(b) Both (b) and (c)

10. Business covers which of the following activities:

(a) Social Service Activities

(b) Economic Activities

(c) Non-Economic Activities

(d) All of the Above

View Answer

(b) Economic Activities

11. A/An______________transaction(s) of buying and selling will not be termed as Business activity.

(a) Regular

(b) Daily

(c) Isolated

(d) Both (a) and (b)

View Answer

(c) Isolated

12. Literary, Sole Proprietorship means___________________.

(a) Single Ownership

(b) Dual Ownership

(c) Joint Ownership

(d) All of the Above

View Answer

(a) Single Ownership

13. Sole Proprietorship is a type of business organisation that is owned established controlled and financed by____________person(s).

(a) One

(b) Two

(c) Three

(d)  All of the Above

View Answer

(a) One

14. The biggest advantages of Sole Proprietorship is________________________.

(a) Unlimited Liability

(b) Limited

(c) Technological Progress

(d) Ease of Formation

View Answer

(d) Ease of Formation

15. In Sole Proprietorship, the liability of owner is_________________________.

(a) Limited

(b) Unlimited

(c) Both (a) and (b)

(d) None of the Above

View Answer

(b) Unlimited

16. Unlimited Liability means____________________.

(a) Owner’s liability is limited to the amount their investment

(b) Owner’s personal assets are liable for the business debt

(c) Personal assets of the owner are not liable for the business debt

(d) None of the Above

View Answer

(b) Owner’s personal assets are liable for the business debt

17. The control of the business in Sole Proprietorship is in the hands of_________________.

(a) Single Owner

(b) Employees

(c) Owner as well as Employees

(d) All of the Above

View Answer

(a) Single Owner

18. The business entity that is owned by a single person is called_________________.

(a) Company

(b) Partnership

(c) Cooperative Societies

(d) Sole Proprietorship

View Answer

(d) Sole Proprietorsrship

19. In Pakistan which of the following is the most common type of business ownership:

(a) Company

(b) Partnership

(c) Cooperative Societies

(d) Sole Proprietorship

View Answer

(d) Sole Proprietorsrship

20. Today, how many types of business ownership exist?

(a) Two

(b) Three

(c) Four

(d) Five

View Answer

(c) Four

21. In the eyes of law, Sole Proprietor and his business are considered as____________________.

(a) One

(b) Separate

(c) Both (a) and (b)

(d) None of the Above

View Answer

(a) One

22. A business association of two or more persons to jointly carry on a business and share its profits and losses is called____________________.

(a) Partnership

(b) Sole Proprietorship

(c) Company

(d) Cooperative Society

View Answer

(a) Partnership

23. Partnership business must be owned by at least____________________.

(a) One

(b) Two

(c) Three

(d) Ten

View Answer

(b) Two

24. In Pakistan, the maximum number of partners allowed in a firm is____________________.

(a) 5

(b) 10

(c) 15

(d) 20

View Answer

(d) 20

25. In Pakistan, partnership business of governed under____________________.

(a) Banking Ordinance 1962

(b) Partnership Act of 1889

(c) Partnership Act of 1932

(d) Partnership Act of 1985

View Answer

(c) Partnership Act of 1932

26. In case of banking business, the maximum number of partners allowed in partnership business are____________________.

(a) 5

(b) 10

(c) 15

(d) 20

View Answer

(b) 10

27. The process of formation of a Joint Stock Company is called______________.

(a) Promotion

(b) Liquadation

(c) Incorporation

(d) All of them

View Answer

(a) Promotion

28. Which section of the Partnership Act defines the term Partnership?

(a) Section 1

(b) Section 2

(c) Section 3

(d) Section 4

View Answer

(d) Section 4

29. The written agreement between the partners is known as_________________.

(a) Partnership Agreement

(b) Partnership Deed

(c) Partnership Contract

(d) All of the above

View Answer

(b) Partnership Deed

30. A partner whose liability is limited in a firm is known as______________________.

(a) General Partner

(b) Special Partner

(c) Active Partner

(d) Both (a) and (b)

View Answer

(b) Partnership Deed

31. A partner who does not contribute capital nor participate in the management but only lends his name to the business is known as____________________.

(a) Active Partner

(b) Secret Partner

(c) Nominal Partner

(d) Partner by estoppel holding out

View Answer

(c) Nominal Partner

32. A person who is a partner in a firm but not known to the public is called_________________.

(a) Active Partner

(b) Secret Partner

(c) Nominal Partner

(d) Partner by estoppel holding out

View Answer

(b) Secret Partner

33. Under Partnership Act, 1932__________________is not recognised in Pakistan.

(a) General Partnership

(b) Partnership at Will

(c) Limited Partnership

(d) Both (a) and (c)

View Answer

(c) Limited Partnership

34. A person who contributes capital, share profit and losses but does not participate in the management is called_______________.

(a) Partner in Profit Only

(b) Sleeping Partner

(c) Dormant Partner

(d) Both (b) and (c)

View Answer

(d) Both (b) and (c)

35. If any person styles the character of a partner in a business before a third party (outsider) by words or in writing or by his act, he is called_______________.

(a) Partner at Will

(b) Minor Partner

(c) Secret Partner

(d) Partner by estoppel holding out

View Answer

(d) Partner by estoppel holding out

36. A partnership that is neither for a fixed period nor for a particular purpose is termed as__________________.

(a) Partner at Will

(b) General Partnership

(c) Limited Partnership

(d) Partnership at Particular

View Answer

(a) Partnership at Will

37. A partnership where no period is specified for the duration of the partnership in the deed is termed as__________________.

(a) Partner at Will

(b) General Partnership

(c) Limited Partnership

(d) Partnership at Particular

View Answer

(a) Partnership at Will

38. A partnership for a fixed period or duration is known as__________________.

(a) Partner at Will

(b) General Partnership

(c) Limited Partnership

(d) Partnership at Particular

View Answer

(d) Partnership at Particular

39. If the partnership deed is silent about the income distribution then how profit and losses are shared amongst partner__________________.

(a) As per terms of the agreement

(b) As per the capital ratio

(c) Equally amongst all partners

(d) All of them

View Answer

(c) Equally amongst all partners

40. Partnership is owned by________________.

(a) Single Person

(b) Two Persons only

(c) Two or more than two persons

(d) All of them

View Answer

(c) two or more than two persons

41. The main reason which contributed towards the development of company form of organisation is__________________.

(a) need for large capital

(b) need for limited liability

(c) Ease of Formation

(d) Both (a) and (b)

View Answer

(d) Both (a) and (b)

42. The biggest disadvantage of partnership is_____________________.

(a) Limited Liability

(b) Unlimited Liability

(c) Ease of Formation

(d) Both (a) and (b)

View Answer

(b) Unlimited Liability

43. Which of the following is considered as an artificial person?

(a) Sole Proprietor

(b) Partnership

(c) Company

(d) None of the above

View Answer

(c) Company

44. The seal has the effect of_____________________.

(a) signature of a real person

(b) separation of ownership from management

(c) Transferability of shares

(d) Perpetual Existence

View Answer

(a) signature of a real person

45. Perpetual Existence means________________.

(a) An artificial Person

(b) Limited Liability

(c) Long life of the company

(d) Limited life of the company

View Answer

(c) Long life of the company

46. In Pakistan, a company form of business organisation is governed by______________.

(a) Companies Ordinance 1984

(b) Companies Ordinance 1962

(c) Companies Ordinance 1969

(d) Companies Ordinance 1901

View Answer

(a) Companies Ordinance 1984

47. In company form of business organistion, the liability of a member remains______________.

(a) Unlimited

(b) Limited

(c) Both (a) and (b)

(d) None of the above

View Answer

(b) Limited

48. A company can perform the following function(s) as a natural person?

(a) Can own property in its name

(b) Can sue and can be sued

(c) Can enter into a contract with a person or company

(d) All of them

View Answer

(d) All of them

49. In public limited company, there must be at least_______________members.

(a) Two

(b) Five

(c) Seven

(d) Ten

View Answer

(c) Seven

50. In private limited company, there must be at least_______________members.

(a) Two

(b) Five

(c) Seven

(d) Ten

View Answer

(a) Two

51. The maximum number of shareholders allowed in public company is_______________.

(a) Forty

(b) Fifty

(c) One hundred

(d) Unlimited

View Answer

(d) Unlimited

52. The maximum number of shareholders allowed in private company is_______________.

(a) Forty

(b) Fifty

(c) One hundred

(d) Unlimited

View Answer

(b) Fifty

53. __________________of the company are known as promoters

(a) Founders

(b) Shareholders

(c) Directors

(d) Auditors

View Answer

(a) Founders

54. Business means___________________.

(a) Commerce

(b) Trade and Commerce

(c) Industry and Commerce

(d) Buying and Selling of Goods

View Answer

(c) Industry and Commerce

55. In Pakistan, Cooperative Societies are governed under___________________________.

(a) Cooperative Societies Act 1902

(b) Cooperative Societies Act 1917

(c) Cooperative Societies Act 1925

(d) Cooperative Societies Ordinance 1982

View Answer

(c) Cooperative Societies Act 1925

56. The main objective of the Cooperative Societies is to____________________________.

(a) Provide Services to the Public

(b) Provide Services to the members

(c) Earn Profit

(d) All of these

View Answer

(b) Provide Services to the members

57. The oldest form of Business Organisation is________________________.

(a) Sole Proprietorship

(b) Partnership

(c) Joint Stock Company

(d) Cooperative Society

View Answer

(a) Sole Proprietorship

58. Which of the following form of Business Organisation is easy to form?

(a) Sole Proprietorship

(b) Partnership

(c) Joint Stock Company

(d) Cooperative Society

View Answer

(a) Sole Proprietorship

59. The liability of members of Cooperative Society is____________________.

(a) Unlimited

(b) Limited

(c) Both (a) and (b)

(d) None of these

View Answer

(b) Limited

60. Legally, which of the following is considered as an Artificial Person?

(a) Partnership Firm

(b) Joint Stock Company

(c) Cooperative Society

(d) Both (b) and (c)

View Answer

(d) Both (b) and (c)

61. In order to start a Cooperative Society, What should be the minimum number of members?

(a) Two

(b) Seven

(c) Ten

(d) Twenty

View Answer

(c) Ten

62. Who controls the management of a cooperative society?

(a) Board of Director

(b) Any Director

(c) Any Manager

(d) Managing Committee

View Answer

(d) Managing Committee

63. After the announcement of dividends, the company should pay it to the shareholders in__________days. 

(a) 15 

(b) 30

(c) 45

(d) 60

View Answer

(d) Managing Committee

64. How many sections are there in the Companies Ordinance, 1984? 

(a) 511

(b) 512

(c) 513

(d) 514

View Answer

(d) 514

Companies Ordinance, 1984 contains 514 sections and 8 schedules.

65. GAAT was signed in the year________________.

(a) 1924

(b) 1932

(c) 1947

(d) 1948

View Answer

(c) 1947

66. GAAT stands for_____________.

(a) General Agreement on Trade and Traffic

(b) General Agreement on Trade and Tariff

(c) General Agreement on Trade and Transport

(d) General Agreement on Tariff and Trade

View Answer

(b) General Agreement on Trade and Tariff

67. GAAT’s headquarter is located in_____________.

(a) Oslo

(b) Alaska

(c) Geneva

(d) New York

View Answer

(c) Geneva

68. FOB stands for_____________________.

(a) Foreign Oil Board

(b) Free on Board

(c) Foreign Order Board

(d) First on Board

View Answer

(b) Free on Board

69. An indent house is one which:

(a) serves as a middleman between importer and exporter of goods for getting orders

(b) Guarantees the payment for goods

(c) Packs and forwards the goods

(d) Perform custom formalities on behalf of the importer

View Answer

(a) serves as a middleman between importer and exporter of goods for getting orders

70. A letter of credit (L/C) is issued on behalf of____________________.

(a) An exporter

(b) Custom Authorities 

(c) An importer

(d) Shipping Company

View Answer

(c) An importer

71. The persons who manage the affairs of a company:

(a) The shareholders

(b) The debenture holders

(c) The directors

(d) The promoters

View Answer

(c) The Directors

72. A wholesaler creates a link between____________________. 

(a) Retailer and Manufacturer

(b) Manufacturer and Government

(c) Consumer and Manufacturer

(d) Retailer and Consumer

View Answer

(a) Retailer and Manufacturer

73. Holding company is one which has_________________.

(a) Less than 50% of shares of other company

(b) More than 50% of shares of other company

(c) 50% of shares of other company

(d) No shares of other company

View Answer

(b) More than 50% of shares of other company

74. Channel of distribution is a route used by business to supply___________________________.

(a) Goods and Information

(b) Services and Information

(c) Information

(d) Goods and Services

View Answer

(d) Goods and Services

75. The audit of Public Limited Company is:

(a) Necessary after every three years

(b) Necessary after every six years

(c) Necessary on yearly basis

(d) Not necessary

View Answer

(c) Necessary on yearly basis

76. A consumer has direct link with:

(a) Retailer

(b) Wholesaler

(c) Industrialist

(d) Agent

View Answer

(a) Retailer

77. The shareholders should be informed about the statutory meeting at least_______________.

(a) 21 days before

(b) 14 days before

(c) 7 days before

(d) 5 days before

View Answer

(a) 21 days before

78. The maximum number of partners in banking business are_______________.

(a) Five

(b) Ten

(c) Twenty

(d) Thirty

View Answer

(b) Ten

79. The profit that is distributed among the shareholders is called____________________.

(a) Profit

(b) Dividend

(c) Drawing

(d) Bonus

View Answer

(b) Dividend

80. A document which contains the terms and condition of partnership business in written is called:

(a) Partnership Document

(b) Partnership Law

(c) Partnership Rules

(d) Partnership Deed

View Answer

(d) Partnership Deed

81. The industry is the component of________________.

(a) Commerce 

(b) Trade

(c) Business

(d) Government

View Answer

(c) Business

82. The debenture holders of company are called:

(a) Directors

(b) Shareholders

(c) Creditors

(d) Employees

View Answer

(c) Creditors

83. In partnership, an active partner:

(a) Invests capital but does not work

(b) Neither invests capital nor works

(c) Not only invests capital but also work

(d) None Of these

View Answer

(c) Not only invests capital but also work

84. The agent who is responsible for the receipt of the credit sale is called_________________.

(a) Del credre agent

(b) Factor

(c) Underwriter

(d) Commission agent

View Answer

(a) Del credre agent

85. The business includes the activities:

(a) Economic

(b) Non-economic

(c) Social

(d) Welfare

View Answer

(a) Economic

86. When was the Partnership Act formed?

(a) 1910

(b) 1923

(c) 1931

(d) 1932

View Answer

(d) 1932

87. A company established by the order of Parliament or President is called_______________.

(a) Private company

(b) Chartered company

(c) Statutory company

(d) Government company

View Answer

(c) Statutory company

88. Who prepares the memorandum of a company?

(a) Registrar

(b) Promoter

(c) Expert

(d) Directors

View Answer

(b) Promoters

89. The objective of the advertisement is:

(a) Decrease in profit

(b) Increase in profit

(c) Decrease in loss

(d) Saving in expenses

View Answer

(b) Increase in profit

90. The person responsible for the sale of shares of a company is called:

(a) Director

(b) Agent

(c) Shareholder

(d) Underwriter

View Answer

(d)  Underwriter

91. Which of the following is the main objective of business?

(a) Social service

(b) Employment

(c) Earning Profit

(d) All of the Above

View Answer

(c)  Earning Profit

92. What is the time duration in which a public company is bound to call general meeting of Shareholders after getting the certificate Of incorporation? 

(a) within 18 months

(b) within 12 months

(c) within 9 months

(d) within 6 months

View Answer

(c)  Earning Profit

93. To whom is the first payment paid after the dissolution of the partnership?

(a) External debts of the business

(b) Payment to partners

(c) Payments to debts of partners

(d) None of the Above

View Answer

(a)  External debts of the business

94. A person who deals in ready-made items is known as_________________.

(a) Worker

(b) Trader

(c) Manufacturer

(d) Distributor

View Answer

(b)  Trader

95. The remuneration of an agent is called_____________________.

(a) Commission

(b) Salary

(c) Profit

(d) Wages

View Answer

(a) Commission

96. In an indirect channel of distribution the producer sell his commodities to the_______________.

(a) Retailer

(b) Wholesaler

(c) Consumer

(d) Agency

View Answer

(a) Retailer

97. A trader who buys and sells commodities in bulk is known as_____________.

(a) Retailer

(b) Wholesaler

(c) Consumer

(d) Agency

View Answer

(b) Wholesaler

98. A retailer serves as a link between:

(a) Manufacturer and Consumer

(b) Wholesaler and Manufacturer

(c) Wholesaler and Consumer

(d) None of the Above

View Answer

(c) Wholesaler and Consumer

99. A partner who invests cash in the business but does participate in the management affairs of the business is called_______________.

(a) Active Partner

(b) Insolvent Partner

(c) Sleeping Partner

(d) Deceased Partner

View Answer

(c) Sleeping Partner

100. The issued to the promoters of the company are called_______________.

(a) Deferred

(b) Ordinary

(c) Preference

(d) None of the Above

View Answer

(a) Deferred 

Foreign Trade or International Trade Mcqs added on 1st February 2020.

101. The export transaction starts with the receipt of an__________________.

(a) Enquiry letter from the importer

(b) Payment from Importer

(c) Opening of Letter of Credit (L/C)

(d) Order from Importer

View Answer

(a) Enquiry letter from the importer

102. The goods produced in one country are made available in other by______________.

(a) Warehousing

(b) Insurance

(c) Transporation

(d) Foreign Trade

View Answer

(d) Foreign Trade

103. How many copies of the Bill of Lading are issued?

(a) One

(b) Two

(c) Three

(d) Four

View Answer

(c) Three

104. Who issues Bill of Lading?

(a) Captain of the Ship

(b) Importer

(c) Shipping Company

(d) Exporter

View Answer

(c) Shipping Company

105. An order placed by the importer with an exporter for the supply of certain goods is called_________________.

(a) Indent

(b) Letter of Credit

(c) Bill of Lading

(d) None of these

View Answer

(a) Indent

106. The indent in which complete details of the goods is given is called_________________.

(a) Open Indent

(b) Close Indent

(c) Complete Indent

(d) None of these

View Answer

(b) Close Indent

107. Who does accept an Indent?

(a) Exporter

(b) Importer

(c) Auditor

(d) Government

View Answer

(a) Exporter

108. After the arrival of goods at the port, the importer presents complete details of goods to custom officials which are called____________.

(a) Bill of Lading

(b) Bill of Sight

(c) Bill of Entry

(d) None of the Above

View Answer

(c) Bill of Entry

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