Business Environment Multiple Choice Question MCQ

31 August, 2024

Categories: Education

1. In India, the Privatization helps in a big way to enhance market potencies by enhancing:

(a) Efficiency

(b) Quality

(d) All of these

Answer: (d) All of these

2. As a type of privatization, the delegation may happen through:

(a) Contract

(b) Franchise

(d) Any of these

Answer: (d) Any of these

3. The Selling of a portion of owner¬ship (Stake) in a public enterprise to private parties is regarded as:

(a) Delegation

(b) Divestment

(d) Disinvestment

Answer: (d) Disinvestment

4. In case of Maruti-Suzuki, the Union Government surrendered partial ownership and sold the majority stake to Suzuki of Japan in course of time. This is a case of:

(a) Partial Disinvestment

(b) Displacement

(d) Divestment

Answer: (d) Divestment

5. The Government monopoly through BSNL and MTNL has been taken away by the private sector plays like Airtel, Reliance Jio, Vodafone, etc. This type of privatization may be regarded as _________.

(a) Displacement

(b) De-Centralization

(d) Ownership pattern policy

Answer: (a) Displacement

6. _________ facilitates privatization if it enables private sector to challenge a Government monopoly.

(a) Displacement

(b) De-regulation

(d) Privatization

Answer: (b) De-regulation

7. FDI in sectors/activities which do not require any prior approval either of the Government or the Reserve Bank of India is identified as:

(a) Green Channel

(b) Priority route

(d) Automatic Route

Answer: (d) Automatic Route

8. The method of FDI other than Automatic route is called:

(a) NRI Route

(b) Government Route

(d) Priority Route

Answer: (b) Government Route

9. In the post liberalization and privatization period, India was Con-sidered a lucrative place of FDI inflow because of its :

(a) Huge domestic market

(b) Huge employment opportunity

(d) None of these

Answer: (a) Huge domestic market

10. _________ may be described as a flow of capital investment to an enter-prise in a nation by another enterprise located in a different nation by capturing a majority stake in ownership in a company in the target country.

(a) Foreign Direct Investment.

(b) Foreign Direct Inflow

(d) Foreign Intuitional Investors.

Answer: (a) Foreign Direct Investment.

11. Permission for FDI is _________.

(a) Uniform for all sectors

(b) Not Uniform for all sectors

(d) Not allowed in India

Answer: (b) Not Uniform for all sectors

12. Where there is no approval through Automatic Route, the company Concerned has to seek permission from _________.

(a) FIPB

(b) FPIB

(d) Ministry of Foreign Trade

Answer: (a) FIPB

13. In which of the following sectors, the FDI is prohibited?

(a) Atomic Energy

(b) Nidhi Company

(d) All of these

Answer: (d) All of these

14. FIPB stands for:

(a) Foreign Institutional Promotion Board

(b) Foreign Institutional Preparatory Board

(d) Foreign Investment Promotion Board

Answer: (d) Foreign Investment Promotion Board

15. India generally receives FDI from:

(a) US

(b) Britain

(d) All of the above

Answer: (d) All of the above

16. TDR stands for

(a) Transferable Development Rights

(b) Technical Device Rights

(d) None of these

Answer: (a) Transferable Development Rights

17. In which of the following sector, FDI is not prohibited?

(a) Development of Townships

(b) Construction of residential’ com-mercial premises

(d) Trade in TDR

Answer: (d) Trade in TDR

18. Identify the sector where, FDI is not permitted:

(a) Automobile

(b) Infrastructure

(d) Animal Husbandry

Answer: (d) Animal Husbandry

19. FDI is allowed in:

(a) Tea Plantation

(b) Coconut Plantation

(d) None of the above

Answer: (a) Tea Plantation

20. Which of the following is correct?

(a) Government looks for FITs over FDI’s for investment purposes

(b) There is no restriction in any sector for FDI

(d) All of these.

Answer: (c) There is limitation on some sectors for FDI

Business Environment Multiple Choice Question MCQ

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