MCQ Bank
Which of the following is not the prime objective of a commercial business?
- A) Fulfillment of corporate social responsibilities
- B) Economic uplift
- C) Employment generation
- D) All of the given options
Size of a firm as per balance sheet is represented through:
- A) All of the given options
- B) Market value
- C) Book value
- D) Economic value
Optimal capital structure is a mix of debt and equity where _______ is maximized and overall cost of capital is _______.
- A) Cost of debt, maximized
- B) Cost of equity, maximized
- C) Value of a firm, maximized
- D) Value of a firm, minimized
Which of the following is the general assumption of capital structure theories?
- A) No taxes
- B) All of the given options
- C) There is no change in risk perception of the investors with the change in capital structure
- D) Cost of debt < cost of equity
All are the general assumptions of M&M theory EXCEPT:
- A) Investors behave rationally
- B) Firms can be identical
- C) All earnings are retained
- D) External factors do not affect
Which type of pricing is often used by tech companies launching innovative products?
- A) Penetration pricing
- B) Bundle pricing
- C) Price skimming
- D) Cost-based pricing
What is Murabaha in Islamic finance?
- A) Stock market investment
- B) A leasing contract
- C) Asset-backed cost-plus financing
- D) A type of debt bond
Which of the following is an example of a direct distribution channel?
- A) Wholesaler
- B) Supermarket
- C) Distributor
- D) E-commerce website
Why is accounting called the "language of business"?
- A) Because it provides financial transparency
- B) Because it manages IT systems
- C) Because it involves marketing
- D) Because it uses English
What is Mudarabah in Islamic finance?
- A) A leasing contract
- B) A risk-sharing profit arrangement
- C) An interest-bearing loan
- D) A gambling-based investment
What does ESG investing focus on?
- A) Employee retirement plans
- B) Environmental, Social, and Governance factors
- C) Stock prices
- D) Economic slowdown
Which pricing model adjusts prices in real-time based on demand?
- A) Bundle pricing
- B) Dynamic pricing
- C) Psychological pricing
- D) Skimming
What is the function of the Pakistan Stock Exchange (PSX)?
- A) Issuing passports
- B) Trading financial securities
- C) Inspecting business sites
- D) Collecting taxes
A tech firm introduces a basic version of its app for free and charges for premium features. This is:
- A) Freemium model
- B) Psychological pricing
- C) Value-based pricing
- D) Promotional pricing
How does factoring work in short-term finance?
- A) Taking a long-term loan
- B) Selling receivables for quick cash
- C) Investing in stocks
- D) Selling inventory
What is the key principle that Islamic finance prohibits?
- A) Profit-making
- B) Risk-sharing
- C) Asset-backing
- D) Interest (Riba)
A fitness app targets senior citizens with low-impact workouts. This is an example of:
- A) Undifferentiated marketing
- B) Behavioral segmentation
- C) Niche positioning
- D) Geographic segmentation
During which stage of the Product Life Cycle is promotion typically heaviest?
- A) Growth
- B) Introduction
- C) Maturity
- D) Decline
Why is “People” important in the 7Ps of marketing?
- A) It ensures automation
- B) It includes factory workers
- C) It impacts service quality
- D) It refers to product designers
Why do companies use bundle pricing?
- A) To offer combined value at a discount
- B) To reduce product quality
- C) To charge more for a single product
- D) To increase production time