Profile of Sir Tariq Tunio (Sir TT)
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UNDERSTANDING NATURE OF BUSINESS
1.
Business is an organization which, by providing goods
and services desired by the customer, strives for _
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a. Public good
b. Welfare of the poor
c. Profit
d. National development
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UNDERSTANDING NATURE OF BUSINESS
2.
By providing household essentials, clothing, medical
care, transportation, banking, communication etc.,
business meets the needs of
a. Companies
b. Consumers
c. Cities
d. Manufacturers
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UNDERSTANDING NATURE OF BUSINESS
3.
Tangible items that
can be held, touched, or
stored, manufactured or traded by the business are
termed as:
a. Tangible Property
b. Intangible Property
c. Materials
d. Goods
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4.
Intangible offerings of businesses that cannot be held,
touched or stored are termed as:
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a. Business plans
b. Intellectual property
c. Services
d. Business projects
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UNDERSTANDING NATURE OF BUSINESS
5.
Physicians, lawyers, hairstylists and airlines all provide:
a. Consultancy
b. Services
c. Advisory
d. Opinion
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UNDERSTANDING NATURE OF BUSINESS
6.
Besides B-to-C transactions (business to consumers
transactions), businesses also engage in
B-to-B
transactions (business to business transactions):
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a. True
b. False
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UNDERSTANDING NATURE OF BUSINESS
7.
Business creates goods and services that are the basis
of our:
a. Standard of growth
b. Standard of living
c. Standard of business
d. Standard of quality
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8.
The standard of living of a country is measured by the:
a. Output of its people
b. Output of goods and services
c. Output of its resources
d. Output of its institution
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UNDERSTANDING NATURE OF BUSINESS
9.
In what ways business play a key role in determining
our quality of life?
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a. By providing jobs and goods and services to society
b. By providing natural resources to the country
c. By providing training for human resource
development
d. By providing corporate culture to the companies
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UNDERSTANDING NATURE OF BUSINESS
10. Which of the following terms best describes ‘The
general level of human happiness based on such
things as life expectancy, educational standards,
health, sanitation and leisure time’?
a. Quality of business
b. Quality of life
c. Quality of goods and services
d. Management by objectives (MBO)
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11. Building high quality of life is effort of?
a. Business
b. Government
c. Not-for-profit organization
d. All of the above
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UNDERSTANDING NATURE OF BUSINESS
12. Profitability of a business can be measured through a
key variables such as:
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a. Revenue
b. Cost
c. Profit
d. All of the above
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UNDERSTANDING NATURE OF BUSINESS
13. The money which a company receives by providing
services and goods is called:
a. Interest
b. Revenue
c. Profit
d. Dividend
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UNDERSTANDING NATURE OF BUSINESS
14. Expenses incurred for creating and selling goods and
services (such as rent, salaries, supplies, transportation
etc.) are referred to as:
a.
b.
c.
d.
Cost
Cash outflows
Assets
Liabilities
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UNDERSTANDING NATURE OF BUSINESS
15. The money which is left over after the deduction of
expenses from revenue is called
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a. Sales
b. Interest
c. Profit
d. None of the above
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UNDERSTANDING NATURE OF BUSINESS
16. Charities, Trusts and welfare organizations and
institutions serve the people for free. Hence Edhi
Foundation and Citizen foundation are the example of _
a. Not for profit organizations
b. NGOS
c. Social welfare organisations
d. Religious organizations
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UNDERSTANDING NATURE OF BUSINESS
17. The primary goal of all businesses is to earn profit.
Thus earning profit contributes to society by providing
employment, which in turn provides money that is
reinvested in the economy.
a. True
b. False
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UNDERSTANDING NATURE OF BUSINESS
18. Laws, government regulations, economic, political and
social changes are challenges that may affect the
business.
a. True
b. False
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19.
describes what an organization plans or
hopes to be in the future and acts as an inspiration and
motivation to drive the employees to reach the goals.
a. Plan statement
b. Vision statement
c. Mission statement
d. Objective statement
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20. A mission is the future purpose and the reason of
organization’s future existence. It actually defines what
an organization wants to be and how it wants to be
viewed in future.
a. True
b. False
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21. According to Mintzberg, a
describes the
organization's basic function in society, in terms of the
products and services it produces for its customers.
a. Goal
b. Vision
c. Mission
d. None of above
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22. A mission statement should be clear and short
statement also includes key questions to answer.
Which of the following questions are included in a
mission statement.
i.
ii.
iii.
What is our value to the customer?
What will our future be?
What will our business be?
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a. i
b. i and ii
c. i and iii
d. none
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23. Is it true that one of the purpose of the mission
statement is to provide a basis for consistent
strategic planning decisions?
a. Yes
b. No
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24. A company must make a mission for its vision because
the mission reflects the purpose, value and action.
Therefore, in any business, the goals and objectives
should clearly support the organization's mission
statement.
a. True
b. False.
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UNDERSTANDING NATURE OF BUSINESS
25.
are the aims to achieve, expressed in narrative
terms. They are the broad intention for which a
company strives for.
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a. Objective
b. Goals
c. Plans
d. Missions
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26. If a company's goal is to maximize its profit , the aims
to achieve that goal are _
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a. Vision
b. Mission.
c. Objectives
d. Strategic plan
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27.
issues mission statement in which missions are
stated by them. Similarly the formal goals and
objectives of an entity are stated by them.
a. Employees
b. Supervisors
c. Government
d. Board of directors
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28. Goals should be based on realistic growth parameters
and pose reasonable challenges for the employees. Is it
true that over ambitious goals may maximize the
potential and motivate
the
employees
and
resultantly employees continue their efforts to reach
the goal?
a. Yes
b. No
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UNDERSTANDING NATURE OF BUSINESS
29. Along with the four factors of production _ is
considered as fifth factor of production as it plays a key
role in business.
a. Knowledge
b. Education
c. Machinery
d. Human skills
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30.
_are the ones who have interest in the business
and are affected by the business:
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a. Shareholders
b. Stakeholders
c. Employees
d. General public
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31. Employees, supervisors and labor are the best example
of _.
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a. Connected stakeholders
b. Internal stakeholders
c. External holders
d. None of the above.
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32. Shareholders are stakeholders of the company and are
usually investors, seeking to earn a return on their
investment in the form of _
a. Interest
b. Dividend
c. Salary
d. Revenue
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33. Shareholders do not participate in company
management and leave the management to the BOD.
However, they influence the decisions of BOD when
they feel their interests are threatened. Which one of
the following might be the concern of the shareholders.
a.
b.
c.
d.
Payments to suppliers
Falling profits and share price
A proposal to invest in a major project where risk is
low
All the above.
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34. Executive directors and seniors fully and actively
participate in the company's management and decision
making with keen interest. However their interest are
affected by which of the following:
i.
ii.
iii.
Job security.
Power and status.
Factory work conditions
a. i
b. i, ii
c. i,ii ,iii
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UNDERSTANDING NATURE OF BUSINESS
35. Non executive directors and key suppliers are example
of which of the following:
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i.
ii.
iii.
Internal stake holders
Connected stake holders
External stakeholders
a. i
b. ii
c. ii, iii
d. i, iii
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UNDERSTANDING NATURE OF BUSINESS
36. Companies might issue bonds and debentures to
to raise funds and pay interest on them. Choose the
best option
a. Customers
b. Stakeholders
c. Suppliers
d. Lenders
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UNDERSTANDING NATURE OF BUSINESS
37. Lenders might not be concerned about heavy
borrowing by business
organisation
despite
considering that heavy borrowing might increase the
risks and the company will not be able to pay the
interest claimed.
a. True
b. False
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38.
are the members of BoD and bring experience and
knowledge to the board, however they are external
stakeholders of the company and appointed by the
BOD.
a. Executive directors.
b. Non executive directors
c. Employees
d. Managers.
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39. Directors are the key managers of the company who
make decisions and policies of the company but their
decisions are influenced by _ and they can take action
against the directors.
a. Non executive directors.
b. Employees
c. Suppliers
d. Shareholders
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40. Which of the following statement is correct for
connected stakeholders?
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a. They are decision makers
b. They are the part of the permanent infrastructure of
the organisation
c. They are very influential in shaping the future of
the organization and the decisions of its leaders.
d. None of the above
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41.
is used to categorize relevant stakeholders based
on their power or influence and level of interest in a
project or entity.
a. Power-interest matrix
b. Interest-powerful matrix
c. Power-influence matrix
d. None of the above
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42. Which of the following stakeholders have high power
and low Interest?
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a. Investors
b. Shareholders
c. Employee
d. Government
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43. Which of the following stakeholders have low power
and low interest?
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a. Managers
b. General public
c. Employee
d. Senior executives.
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44. For which of the following purpose a business
organization strives by providing goods and services
desired by its customers?
a. Goal
b. Objective
c. Profit
d. None of the above.
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45. Which of the following does not meet the needs of
consumers by providing tangible goods?
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a. Manufacturing Business
b. Services
c. Shopkeepers
d. Retailer
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UNDERSTANDING NATURE OF BUSINESS
51. The _ can be measured through key variables such as
revenue, costs and profit.
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a. Finances of business.
b. Value of business.
c. Profitability of business
d. All of the above.
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52. Due to which of the following factor the business may
incur a loss by not achieving its goals?
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a. Employing over qualified human resources
b. Inefficient use of resources
c. Use of expensive raw material.
d. All of the above.
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53. Not all companies earn profits, but that is the risk of
being in business. There is indirect relationship
between risks and profit, the greater the risk the lower
will be the profit.
a. True
b. False
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54. Profit is the reward for the
take in business
providing products.
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a. Money/ exchange.
b. Decisions
c. Risk
d. All of the above.
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55. Which of the following a business needs to learn that
what products consumers need and want and to
develop, manufacture, price, promote, and distribute
those products?
a. Financial resources.
b. Management skills.
c. Marketing expertise
d. Customer attention.
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56. Which of the following is not considered a factor for the
business to achieve and maintain profitability?
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a. Efficient operations
b. Ethical dealing with stakeholders
c. Efficient operations.
d. None of the above
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UNDERSTANDING NATURE OF BUSINESS
57. As a part of the strategic review, should
always
reconsider the purpose of the entity that they manage.
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a. Stakeholders
b. Management
c. Shareholders
d. All of the above.
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58. Which of the following is decided in the strategic
planning process?
a. Goals, objectives and strategies with the aim of
maximizing profit.
b. Goals and objectives with aim of delivering the
goods in timely manner.
c. Goals, objectives and strategies with the aim of
fulfilling the entity's purpose
d. None of the above
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59. Which of the following hierarchy should a business
entity have?
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a. Goals and objectives hierarchy
b. Management hierarchy
c. Aims and plans hierarchy
d. All of the above
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60. Which of the following is included in aims and plans
hierarchy?
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a. Goals
b. Tactical plans and aims
c. Vision
d. All of the above