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CUET (UG) entrance exam Question Bank Solutions for Business Studies

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Business Studies
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The basic purpose of SEBI is to create an environment to facilitate efficient mobilisation and allocation of resources through the securities markets. Who are the constituents of this market for whom SEBI aims at creating a conducive environment?

[10] Financial Markets
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Which of the following is not a Protective Function performed by SEBI?

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Which of the following statements is not true regarding Democratic Style of Leadership?

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The Securities and Exchange Board of India was established by the Government of India and was  given a statutory status in ______.

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State the first development bank of the country

[10] Financial Markets
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Of the following sources of funds, ______ are not Borrowed Funds. 

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Which of the following is/are the 'Developmental Functions' of Securities and Exchange Board of India?

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Of the following sources of funds, ______ are Owner's Funds. 

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"The purpose of the fourth test was too find out how much capability a person has to mix-up with other persons, and whether he can influence other persons and get influenced by them." Which tests is indicated in this situation?

[6] Staffing
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Solar Horse Ltd. decided to import new hi-tech machines from Korea to decrease the cost of production and increase quality of work. It decided to give one month training to 5 supervisors and 10 workers to provide technical knowledge and skills to operate those machines. For this, dummy models of machinery were provided to them to practice on it. Identify the type of training provided by Soler Horse Ltd.

[6] Staffing
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Assertion (A): Certificates of Deposit (CD) are secured, negotiable, long-term instruments in bearer form.

Reason (R): A rise in call money rates makes other sources of finance such as commercial paper and certificates of deposit cheaper in comparison as banks raise funds from these sources.

[10] Financial Markets
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A cardboard box consisting of 10 packets of 1 Kg sugar, is an example of:

[11] Marketing
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Which is the apex statutory body of capital market to which customers can complain to redress their grievances?

[10] Financial Markets
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Mr. Saxam, production manager of Creative Concepts, discusses with his staff about the new export order. All the staff members unanimously agree that they all will work together to do overtime to complete the order and meet the deadline. Mr. Saxam is following ______ Leadership Style. 

[7] Directing
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______ debt-equity ratio is preferred by the commercial banker over the years as it indicates financial strength of a unit.

[10] Financial Markets
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Read the following text and answer the following question on the basis of the same:

Mr. A. Bose is running a successful business. Mr. Bose is the owner of R. K. Cement Ltd. Mr. Bose decided to expand his business by acquiring a Steel Factory. This required an investment of~ 60 crores. To seek advice in this matter, he called his financial advisor Mr. T. Ghosh who advised him about the judicious mix of equity (40%) and Debt (60%). Employ more of cheaper debt may enhance the EPS. Mr. Ghosh also suggested him to take loan from a financial institution as the cost of raising funds from financial institutions is low. Though this will increase the financial risk but will also raise the return to equity shareholders. He also apprised him that issue of debt will not dilute the control of equity shareholders. At the same time, the interest on loan is a tax-deductible expense for computation of tax liability. After due deliberations with Mr. Ghosh, Mr. Bose decided to raise funds from a financial institution.

In the above case Mr. Ghosh suggested to raised more funds from debt. Higher debt-equity ratio results in:

[10] Financial Markets
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Zakira Ltd. wants to invest in treasury bills issued by RBI. What will be the minimum amount to be invested in Treasury Bill?

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Zakira Ltd. wants to invest in treasury bills issued by RBI. What will be the minimum amount to be invested in Treasury Bill?

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What are the components of physical distribution.

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What are the the major activities involved in the physical distribution of products.

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