MCQ Questions for Class 12 History Chapter 13 Mahatma Gandhi and the Nationalist Movement: Civil Disobedience and Beyond with Answers

Check the below NCERT MCQ Questions for Class 12 History Chapter 13 Mahatma Gandhi and the Nationalist Movement: Civil Disobedience and Beyond with Answers Pdf free download. MCQ Questions for Class 12 History with Answers were prepared based on the latest exam pattern. We have provided Mahatma Gandhi and the Nationalist Movement Class 12 History MCQs Questions with Answers to help students understand the concept very well. https://mcqquestions.guru/mcq-questions-for-class-12-history-chapter-13/

Mahatma Gandhi and the Nationalist Movement Class 12 MCQs Questions with Answers

MCQ On Mahatma Gandhi And The National Movement Chapter 13 Question 1.
Where did Gandhi use Satyagraha for the first time?
(a) India
(b) South Africa
(c) South America
(d) England

Answer

Answer: (b) South Africa


Mahatma Gandhi And The National Movement MCQ Class 12 Question 2.
_______ was the moderate leader of Congress
(a) Lala Lajpat Rai
(b) Bipin Chandra Pal
(c) Bal Gangadhar Tilak
(d) Gopal Krishna Gokhale

Answer

Answer: (d) Gopal Krishna Gokhale


Mahatma Gandhi And National Movement MCQ Chapter 13 Question 3.
Gandhiji took back Non Cooperation movement in __________
(a) January 1921
(b) February 1922
(c) February 1921
(d) January 1922

Answer

Answer: (b) February 1922


Civil Disobedience Movement MCQ Chapter 13 Question 4.
Peasant Satyagraha at Bardoli was hold in ___________
(a) 1928
(b) 1929
(c) 1930
(d) 1931

Answer

Answer: (a) 1928


Class 12 History Chapter 13 MCQ Question 5.
________ was the congress President at its Lahora Session.
(a) Mahatma Gandhi
(b) Jawahar Lai Nehru
(c) Sardar Patel
(d) Subhash Chandra Bose

Answer

Answer: (b) Jawahar Lal Nehru


MCQ Questions For Class 6 History Chapter 13 Question 6.
Dandi March brought forward _________
(a) Non-Cooperation Movement
(b) Civil Disobedience Movement
(c) Quit India Movement
(d) Rowlatt Satyagraha

Answer

Answer: (b) Civil Disobedience Movement.


Mahatma Gandhi And The National Movement MCQ Class 12 Question 7.
Congress Ministries resigned in _________
(a) Oct. 1937
(b) Sept. 1938
(c) Sept 1940
(d) Oct. 1939

Answer

Answer: (d) Oct. 1939


MCQs On Civil Disobedience Movement Chapter 13 Question 8.
Consider the following events:
1. Jallianwala Bagh Massacre
2. Khilafat Movement
3. Formation of Swaraj Party
4. Arrival of Simon Commission
The correct chronological order of these events is:
(a) 1, 2, 3, 4
(b) 4, 3, 2, 1
(c) 2, 3, 4, 1
(d) 3, 4, 2, 1

Answer

Answer: (a) 1, 2, 3, 4


Mahatma Gandhi And The National Movement MCQs Chapter 13 Question 9.
Indicate which of the following options is not correct:
(a) Muslim League demanded Pakistan in 1946.
(b) Gandhi ji started Quit India Mission in 1942.
(c) Cripps Mission failed to achieve its objective.
(d) Cabinet Mission arrived in India in 1946.

Answer

Answer: (a) Muslim League demanded Pakistan in 1946.


MCQ On Civil Disobedience Movement Chapter 13 Question 10.
Consider the following statements regarding the Indian freedom struggle:
(a) Gandhi Ji withdrew from the non-cooperation movement due to the chauri chaura incident.
(b) Gandhi Ji gave his first public speech at BHU.
(c) Mahatma Gandhi was arrested in 1921 A.D.
(d) Nehru was the congress President at the Lahore session.
Which of the given statements is false?

Answer

Answer: (c) Mahatma Gandhi was arrested in 1921 A.D.


Question 11.
Consider the following events:
(1) Formation of Swaraj Party
(2) Second round Table conference
(3) Arrival of Simon Commission
(4) Gandhi-Irwin Pact
Their correct chronological order is:
(a) 1, 2, 3, 4
(b) 1, 3, 2, 4
(c) 1, 3, 4, 2
(d) 1, 4, 3, 2

Answer

Answer: (c) 1, 3, 4, 2


Question 12.
Consider the following events:
1. Jallianwala Bagh Massacre
2. Withdrawl of Non-Cooperation Movement
3. Beginning of Khilafat Movement
4. Formation of Swaraj Party
Their correct Chronological order is:
(a) 1, 2, 3, 4
(b) 1, 3, 4, 2
(c) 1, 3, 2, 4
(d) 3, 2, 4, 1

Answer

Answer: (c) 1, 3, 2, 4


We hope the given NCERT MCQ Questions for Class 12 History Chapter 13 Mahatma Gandhi and the Nationalist Movement: Civil Disobedience and Beyond with Answers Pdf free download will help you. If you have any queries regarding CBSE Class 12 History Mahatma Gandhi and the Nationalist Movement MCQs Multiple Choice Questions with Answers, drop a comment below and we will get back to you soon.

MCQ Questions for Class 12 Business Studies Chapter 13 Entrepreneurship Development with Answers

Check the below NCERT MCQ Questions for Class 12 Business Studies Chapter 13 Entrepreneurship Development with Answers Pdf free download. MCQ Questions for Class 12 Business Studies with Answers were prepared based on the latest exam pattern. We have provided Entrepreneurship Development Class 12 Business Studies MCQs Questions with Answers to help students understand the concept very well. https://mcqquestions.guru/mcq-questions-for-class-12-business-studies-chapter-13/

Entrepreneurship Development Class 12 MCQs Questions with Answers

Entrepreneurship Development MCQ Chapter 13 Question 1.
Self-actualisation needs on the job are fulfilled by :
(a) Ensuring hard work in the job
(b) Ensuring quality products
(c) Participating in a training programme
(d) None of the above

Answer

Answer: (c) Participating in a training programme


Question 2.
The attitude of Indian Government Machinery towards entrepreneurial development programme is :
(a) Destructive
(b) Negative
(c) Constructive
(d) Non-cooperative

Answer

Answer: (d) Non-cooperative


Question 3.
According to sociological approach, entrepreneurship
(a) Process of sensitivity
(b) Process of role performance
(c) Process of economic change
(d) All of these

Answer

Answer: (b) Process of role performance


Question 4.
Which of the following attitudes Is not generally associated with successful entrepreneurship :
(a) Competition and co-operation
(b) Desire to influence others
(c) Innovation and product improvement
(d) Status quo in business

Answer

Answer: (d) Status quo in business


Question 5.
The function of entrepreneur are:
(a) To imagine a business idea
(b) To study project feasibility
(c) To setup enterprise
(d) All the above

Answer

Answer: (d) All the above


Question 6.
Which of the following sentence is not a characteristic of entrepreneurship:
(a) Risk taking
(b) Innovation
(c) Creative activity
(d) Managerial training

Answer

Answer: (d) Managerial training


Question 7.
An entrepreneur is:
(a) Born
(b) Made
(c) Bom and made both
(d) All of these

Answer

Answer: (c) Born and made both


Question 8.
Entrepreneurship fails to lead :
(a) Partnership firm
(b) New corporate division
(c) New subsidiary venture
(d) None of these

Answer

Answer: (a) Partnership firm


Question 9.
__ gives financial assistance to entrepreneurs:
(a) ICICI
(b) SBI
(c) Indian Bank
(d) IMF

Answer

Answer: (a) ICICI


Question 10.
Social and economic development of a Nation is the result of………..:
(a) Entrepreneur
(b) Planning
(c) Operation
(d) Government

Answer

Answer: (a) Entrepreneur


Question 11.
The future of entrepreneurial in India is:
(a) In dark
(b) Bright
(c) In difficulty
(d) None of these

Answer

Answer: (b) Bright


Question 12.
Entrepreneurial Development Institute of India was established by:
(a) Maharashtra Government
(b) Gujarat Government
(c) Madhya Pradesh Government
(d) Tamilnadu Government

Answer

Answer: (b) Gujarat Government


Question 13.
Entrepreneurship is ensured by:
(a) Subsidiaries
(b) Larger Firm
(c) Medium Firm
(d) Small Firm

Answer

Answer: (b) Larger Firm


Question 14.
In India entrepreneurial development programme is :
(a) Necessary
(b) Unnecessary
(c) Wastage of time
(d) Wastage of money

Answer

Answer: (a) Necessary


Question 15.
Entrepreneurial Development Programee provides :
(a) Self-employment
(b) Education & training
(c) Skill increment
(d) All of these

Answer

Answer: (a) Self-employment


Question 16.
Maslow’s Hierarchy of needs theory is governed by the fact that:
(a) People are universally motivated by needs
(b) People are socially motivated by needs
(c) People are politically motivated by needs
(d) None of the above

Answer

Answer: (c) People are politically motivated by needs


Question 17.
Critical evaluation points of entrepreneurial development programme are:
(a) Organisational policies
(b) Lack of suitable selection procedure
(c) Lack quality of technical and vocational education and training
(d) All of these

Answer

Answer: (d) All of these


Question 18.
Entrepreneurship falls to lead :
(a) Partnership firm
(b) New corporate division
(c) New subsidiary venture
(d) None of these

Answer

Answer: (a) Partnership firm


Question 19.
Anentrepreneureissaidtobe:
(a) Promotor of economic development
(b) Motivator of economic development
(c) Both the above
(d) None of the (a) and (b)

Answer

Answer: (c) Both the above


Question 20.
Which of the following sentence is inconsistent in the context of entrepreneur:
(a) He is owner of the business
(b) He is risk taker
(c) He operates production activities
(d) He searches out business opportunities

Answer

Answer: (c) He operates production activities


We hope the given NCERT MCQ Questions for Class 12 Business Studies Chapter 13 Entrepreneurship Development with Answers Pdf free download will help you. If you have any queries regarding Entrepreneurship Development CBSE Class 12 Business Studies MCQs Multiple Choice Questions with Answers, drop a comment below and we will get back to you soon.

MCQ Questions for Class 12 Business Studies Chapter 12 Consumer Protection

Consumer Protection Class 12 MCQ Questions With Answers

Consumer Protection Class 12 MCQ Chapter 12 Question 1.

‘The consumer has the right to acquire knowledge and to be a well-informed consumer throughout life’. Identify the right stated in the above lines.

(A) Right to Seek Redressal
(B) Right to be Heard
(C) Right of Consumer Awareness
(D) Right to Choose
Answer:
(C) Right of Consumer Awareness

Explanation:
A consumer, who is well informed about his rights and the relief available to him, would be in a position to raise his voice against any unfair trade practices or unscrupulous exploitation. In addition to this, an understanding of his responsibilities would also enable a consumer to safeguard his interests.

MCQ Questions for Class 12 Business Studies Chapter 12 Consumer Protection

MCQ On Consumer Protection Class 12 Chapter 12 Question 2.

Pragya bought an iron of reputed brand for ₹1,500 but it caused an electric shock while it was being used. Pragya wants to exercise her ‘Right’. Identify the right which she can exercise.

(A) Right to Choose
(B) Right to be Informed
(C) Right to be Heard
(D) Right to be Protected
Answer:
(D) Right to be Protected

Question 3.

“Bhuvan, who was a vegetarian went to a snack bar for having French fries and later found out that it had non-vegetarian content. Neither the advertisement nor the packing of the product displayed that the product has non-vegetarian content.” Which right of consumer is violated?

(A) Right to Choose
(B) Right to be Informed
(C) Right to be Heard
(D) Right to Seek Redressal
Answer:
(B) Right to be Informed

Explanation:
The right to be informed is an important component of consumer protection, The consumer must be provided with adequate and accurate information about quality, quantity, purity, standard and the price of the goods and services. Such information helps the consumers in their buying decision and use of the product.

MCQ Questions for Class 12 Business Studies Chapter 12 Consumer Protection

Question 4.

Ronit Raj, a marketing manager is a patient of diabetes for which he takes medicines regularly. One day, on his tour to Patna, he met with an accident and was hospitalised. Due to doctors’ negligence a delicate nerve of his right leg was cut rendering him crippled throughout his life. Identify the consumer right that has been violated by the doctors under the Consumer Protection Act, 2019 in the above situation.

(A) Right to Choose
(B) Right to be Informed
(C) Right to be Heard
(D) Right to be Protected
Answer:
(D) Right to be Protected

Question 5.

Your mother purchased a washing machine for ₹10,000 from an authorised dealer of the manufacturer with a verbal guarantee that the machine will be replaced with a new one if any of its parts becomes defective within 3 months from the date of purchase. The motor of the machine was burnt within 15 days of its purchase. On complaining, the seller refused to replace the machine. Name the redressal agency under Consumer Protection Act where your mother can file the complaint.

(A) District Commission
(B) State Commission
(C) National Commission
(D) None of the above
Answer:
(A) District Commission

Explanation:
Under the Consumer Protection Act, 2019, the District CDRC will entertain complaints when the value of goods or services is upto crore.

MCQ Questions for Class 12 Business Studies Chapter 12 Consumer Protection

Question 6.

Mr. X purchased a car for ₹15 lakhs but he is not satisfied with the quality and performance of the car. The company of the car did not provide any remedy to him. Under which authority of Consumer Protection Act, 2019 can he file an appeal?

(A) District Commission
(B) State Commission
(C) National Commission
(D) None of the above
Answer:
(A) District Commission

Explanation:
Under the Consumer Protection Act, 2019, the District CDRC will entertain complaints when the value of goods or service is upto ₹1 crore.

Question 7.

Which of the following statements is true?

(A) Asserting oneself to ensure that one gets a fair deal is the right of a consumer.
(B) Right to seek redressal entitles the consumer to get relief in case the product or service falls short of his expectation.
(C) Right to be heard empowers a consumer to have access to a variety of products and services.
(D) A case decided by the District Commission, can be appealed before the Supreme Court.
Answer:
(B) Right to seek redressal entitles the consumer to get relief in case the product or service falls short of his expectation.

Explanation:
The consumers have been given the right of redressal of their grievances relating to the performance, grade, quality etc. of the goods and services. If required, the product must be repaired replaced by the seller manufacturer. The Consumer Protection Act has duly provided for fair settlement of genuine grievances of the consumers. It has also set up a proper mechanism for their redressal at district, state and national levels.

MCQ Questions for Class 12 Business Studies Chapter 12 Consumer Protection

Question 8.

Under The Consumer Protection Act, 2019, can be approached to file a complaint by the legal heir of a deceased consumer if compensation claimed is ₹ 3 crores.

(A) District Commission
(B) State Commission
(C) National Commission
(D) All of the above
Answer:
(B) State Commission

Explanation:
Under the Consumer Protection Act, 2019 the State CDRC will hear complaints when the value is more than ₹ 1 crore but less than ₹ 10 crores.

Question 9.

Sandeep purchased a packet of biscuits from a nearby shop. He observed that the ingredients given on the label were not legible. He complained about it to the customer care of the company. The company sent a written apology besides stating that it will be ensured that the existing packets in the market will be withdrawn with immediate effect and new packets with legible labels will be made available. Which consumer right did Sandeep exercise?

(A) Right to be Informed
(B) Right to be Heard
(C) Both (A) and (B)
(D) Neither (A) nor (B)
Answer:
(C) Both (A) and (B)

Question 10.

Samaira went to a free eye-camp and got her eye treatment done for ‘glaucoma’. But the treatment has resulted in consistent pain and discomfort in her eyes forcing her to seek further medical attention.Samaira can file a complaint with under Consumer Protection Act.

(A) District Commission
(B) State Commission
(C) National Commission
(D) None of the above
Answer:
(D) None of the above

Question 11.

A consumer has which of the following?

(A) Only rights
(B) Only responsibilities
(C) Either rights or responsibilities
(D) Both rights and responsibilities
Answer:
(D) Both rights and responsibilities

MCQ Questions for Class 12 Business Studies Chapter 12 Consumer Protection

Question 12.

Match the REDRESSAL AGENCY as per Consumer Protection Act in Column I with the COMPENSATION CLAIMED in Column II.

Column I Column II
(a) District Commission (i) Exceeds ₹ 10 crores
(b) National Commission (ii) Exceeds ₹ 1 crore but does not exceed ₹ 10 crores
(c) State Commission (iii) Does not exceed ₹ 1 crore

(A) (ii), (iii), (i)
(B) (iii), (ii), (i)
(C) (ii),(i),(iii)
(D) (iii), (i), (ii)
Answer:
(D) (iii), (i), (ii)

Question 13.

Match the CONSUMER RIGHTS as per Consumer Protection Act in Column I with the appropriate EXPLANATION in Column II.

Column I Column II
(a) Right to be Protected (i) Wide variety of products in terms of quality, brand, prices, size, etc. should be offered to the consumer.
(b) Right to Choose (ii) Protection to consumer against goods and services which are hazardous to life and health.
(c) Right to Seek Redressal (iii) Consumer to get relief in case the product or service falls short of his expectations.

(A) (ii), (iii), (i)
(B) (iii), (ii), (i)
(C) (ii), (i), (iii)
(D) (iii), (i), (ii)
Answer:
(C) (ii), (i), (iii)

MCQ Questions for Class 12 Business Studies Chapter 12 Consumer Protection

Assertion and Reason Based MCQs

Directions: In the following questions, a statement of Assertion (A) is followed by a statement of Reason (R). Mark the correct choice as:
(A) Both (A) and (R) are true, and (R) is the correct explanation of (A).
(B) Both (A) and (R) are true, but (R) is not the correct explanation of (A).
(C) (A) is true, but (R) is false.
(D) (A) is false, but (R) is true.

Question 1.

Assertion (A): Many enlightened business firms have set up their own consumer service and grievance cells.
Reason (R): The consumer has a right to file a complaint and to be heard in case of dissatisfaction with a good or a service. 3

Answer:
(A) Both (A) and (R) are true, and (R) is the correct explanation of (A).

Explanation:
According to the Right of the Consumer Awareness, the consumer has the right to represent him or to be heard or right to advocate his interest. In case a consumer has been exploited or has any complaint against the product or service then he has the right to be heard and be assured that his/her interest would receive due consideration. Under this right, the companies must have complaint cells to attend the complaints of customers.

MCQ Questions for Class 12 Business Studies Chapter 12 Consumer Protection

Question 2.

Assertion (A): The Consumer Protection Act, 2019 has not defined the criteria of Consumer Disputes Redressal Commission (CDRCs).
Reason (R): Under the Consumer Protection Act, 2019 the National CDRC will hear complaints worth more than ₹ 10 crores.

Answer:
(D) (A) is false, but (R) is true.

Explanation:
The Act has defined the criteria of Consumer Disputes Redressal Commission (CDRCs). The National CDRC will hear complaints worth more than ₹ 10 crores. The State CDRC will hear complaints when the value is more than ₹ 1 crore but less than ₹10 crore. While the District CDRC will entertain complaints when the value of goods or service is upto ₹ 1 crore.

Question 3.

Assertion (A): It is the responsibility of the consumer to buy only standardised goods as they provide quality assurance.
Reason (R): The consumers have certain responsibilities to follow and should keep a few things in mind while purchasing goods and services.

Answer:
(A) Both (A) and (R) are true, and (R) is the correct explanation of (A).

Explanation:
To put a stop to adulteration and corrupt practices of the manufacturers and traders, it is the duty of every consumer to be conscious of the quality of product they buy They should look for the standard quality certification marks like ISI, Agmark, FPO, Woolmark, Eco-mark, Hallmark, etc. while making the purchases.

Case-Based MCQs

I. Read the following text and answer the following questions on the basis of the same :
Piyali purchased an ISI marked Heater from Bharti Appliances. She made cash payment, but failed to get a Cash Memo. While making use of the heater she observed that it was not working properly. She contacted the shopkeeper immediately and told him the problem. Shopkeeper paid no heed to her complaint.

Rather he marked that the good in question was not bought from his shop. Piyali had no evidence of proving that the heater was purchased from his shop only. She discussed the problem with her friend Sohini who advised her to approach Consumer Forum and lodge the complaint. Piyali was convinced with the idea of lodging the complaint against the shopkeeper but due to lack of cash memo it was difficult for her to proceed.

MCQ Questions for Class 12 Business Studies Chapter 12 Consumer Protection

Question 1.

Identify the right of the consumer as referred to in the above paragraph.

(A) Right to be Informed
(B) Right to be Protected
(C) Right to be Heard
(D) Right to Choose
Answer:
(B) Right to be Protected

Question 2.

Identify the responsibility of the consumer referred in the above case.

(A) Quality Conscious
(B) Must Obtain Cash Memo
(C) Cautious Consumer
(D) Ready to Lodge Complaint .
Answer:
(B) Must Obtain Cash Memo

Explanation:

The consumer should ask for a cash memo on purchase of goods or services. This would serve as a proof of the purchase made.

Question 3.

Piyali cannot lodge a complaint against the shopkeeper. Why?

(A) She do not have the right.
(B) She was aware of the fact.
(C) She do not have the cash memo.
(D) She was happy with the product.
Answer:
(C) She do not have the cash memo.

Question 4.

Under which Act Piyali can seek to protect her rights being a consumer?

(A) Consumer Protection Act, 2019
(B) Consumer Protection Act, 1986
(C) The Indian Contract Act, 1872
(D) The Competition Act, 2002
Answer:
(A) Consumer Protection Act, 2019

Explanation:
The basic aim of the Consumer Protection Act, 2019 is to save the rights of the consumers by establishing authorities for timely and effective administration and settlement of consumers’ disputes.

II. Read the following text and answer the questions given below:

Sameer planned to buy a new car and did a lot of market research. He finally purchased a car for ? 15 lakhs from ‘Lance Motors’ in his city. The car was delivered to him and he was really excited to own a brand new car. Later on after speaking with few of his friends, he got to know that though the car’s performance was good from all aspects, people generally faced problems with the car’s suspension over a period of time. When he observed his own car, he found that its suspension was also faulty and would start giving issues soon during driving. Thus, he decided to report the issue to the company.

He complained multiple times with the company but they were not responded to. This forced him to take further action and he decided to approach the three-tier machinery existing under The Consumer Protection Act. He filed a case at tier one. Since he was not satisfied with the orders of this public authority, he appealed before tier two and on being dissatisfied with the orders at this level, he appealed before tier three. Sameer was not content with the orders at the third level also and decided to appear in the Supreme Court of India.

Question 1.

Which tier one authority did Sameer approach?

(A) District Commission
(B) State Commission
(C) National Commission
(D) None of the above
Answer:
(A) District Commission

Explanation:
A complaint can be made to the appropriate District Commission when the value of the goods and services in question along with the compensation claimed, does not exceed ₹ 1 crore.

MCQ Questions for Class 12 Business Studies Chapter 12 Consumer Protection

Question 2.

Which tier two authority did Sameer approach?

(A) District Commission
(B) State Commission
(C) National Commission
(D) None of the above
Answer:
(B) State Commission

Explanation:
In case aggrieved party is not satisfied with the order of the District Commission, he can appeal before the State Commission within 45 days of the passing of order.

Question 3.

Which tier three authority did Sameer approach?

(A) District Commission
(B) State Commission
(C) National Commission
(D) None of the above
Answer:
(C) National Commission

Explanation:
In case aggrieved party is not satisfied with the order of the District Commission, he can appeal before the National Commission within 30 days of the passing of order.

MCQ Questions for Class 12 Business Studies Chapter 12 Consumer Protection

Question 4.

Can Supreme Court of India entertain Sameer’s appeal?

(A) Yes
(B) No
(C) Depends on the Supreme Court’s discretion.
(D) Only if tier three authority recommends his case to the Supreme Court.
Answer:
(B) No

III. Read the following text and answer the questions given below:

In a colony, several people bought mosquito rackets from a company. Most rackets became useless within two months. Rishab, one of the residents of the colony, decided to submit the case to the Consumer Court, but the residents did not unite. He felt very lonely on this issue. The price of the racket is ₹450. At the same time, a friend of Rishab is a journalist and he reported the incident in the daily newspaper. When the company learned of this situation, it decided to take a milestone step. The company decided to take back or repair all faulty rackets of the community residents. The whole story took an interesting twist, when a technician of the company told the management that in the instruction manual it is specified to clean racket every month. When questioned, it was found that residents who had problems with the rackets, including Rishab, did not clean their rackets for a month atleast.

Question 1.

Which important aspect from the consumer’s point of view is highlighted in the above case?

(A) Unorganised consumers
(B) Instruction manual
(C) Moral justification
(D) Sue the company
Answer:
(A) Unorganised consumers

Explanation:
Consumers need to be organised in the form of consumer organisations which would take care of their interests.

Question 2.

At which level of consumer court could Rishab apply for the claim of his loss?

(A) District Commission
(B) State Commission
(C) National Commission
(D) None of the above
Answer:
(A) District Commission

Explanation:
The Consumer Protection Act, 2019 has defined the criteria of Consumer Disputes Redressal Commission (CDRCs). The District CDRC will entertain complaints when the value of goods or services is upto ₹ 1 crore.

MCQ Questions for Class 12 Business Studies Chapter 12 Consumer Protection

Question 3.

Which consumer responsibility was not followed by the residents of Rishab’s colony?

(A) Taking cash memo
(B) Following manual instructions
(C) Buy only standardised goods
(D) Assert yourself to ensure that you get a fair deal
Answer:
(B) Following manual instructions

Explanation:
It is the responsibility of a consumer to learn about the risks associated with products and services, follow manufacturer’s instructions and use the products safely.

MCQ Questions for Class 12 Business Studies Chapter 12 Consumer Protection

Question 4.

Which consumer right helped protect the company?

(A) Right to be Informed
(B) Right to be Protected
(C) Right to Consumer Awareness
(D) Right to Choose
Answer:
(A) Right to be Informed

Explanation:
The consumer has a right to have complete information about the product he intends to buy including its ingredients, date of manufacture, price, quantity, directions for use, etc. It is because of this reason that the legal framework in India requires the manufactures to provide such information on the package and label of the product.

MCQ Questions for Class 12 Business Studies with Answers

MCQ Questions for Class 12 Business Studies Chapter 11 Marketing Management

Marketing Management Class 12 MCQ Questions With Answers

Marketing Management MCQ Class 12 Chapter 11 Question 1.

In order to get feedback about its recently launched immunity-boosting ayurvedic medicine, Atulya Limited conducted an online survey using a questionnaire, to gather customer views and opinions. Identify the marketing function being used by Atulya Limited.

(A) Standardisation
(B) Product designing
(C) Customer support service
(D) Gathering and analysing market information
Answer:
(D) Gathering and analysing market information

Explanation:
One of the important functions of a marketer is to gather and analyse market information. This is necessary to identify the needs of the customers and take various decisions for the successful marketing of the products and services. This is important for making an analysis of the available opportunities and threats as well as strengths and weaknesses of the organisation.

MCQ Questions for Class 12 Business Studies Chapter 11 Marketing Management

Marketing Management Class 12 MCQ Chapter 11 Question 2.

…………….. refers to producing goods of predetermined specifications, which helps in achieving uniformity and consistency in the output.

(A) Standardisation
(B) Packaging
(C) Labelling
(D) Grading
Answer:
(A) Standardisation

Explanation:
Standardisation refers to development of standards for production of goods with respect to shape, design, colour and other characteristics. If products are standardised, customers are able to identify a product and its characteristics very well.

Marketing Class 12 MCQ Chapter 11 Question 3.

Which of the following are considered as the pillars of marketing?

(A) Packaging
(B) Labelling
(C) Both (A) and (B)
(D) None of these
Answer:
(C) Both (A) and (B)

Explanation:
Packaging and labelling have become so important in modern day marketing that these are considered as the pillars of marketing. Packaging is important not only for protection of the products but also serves as a promotional tool.

Question 4.

Which of the following functions of marketing helps in building customer’s loyalty and in promoting its sale?

(A) Standardisation
(B) Branding
(C) Pricing of Products
(D) Grading
Answer:
(B) Branding

Explanation:
Branding means giving an attractive name, symbol or identity mark to the product to make a product different from others so that it is known by that name or symbol or mark.

MCQ Questions for Class 12 Business Studies Chapter 11 Marketing Management

MCQ Of Marketing Management Class 12 Question 5.

Which of the following statements is true regarding marketing?

(A) It is a process whereby people exchange goods and services for money.
(B) It has been referred to as performance of business activities that direct the flow of goods and services from producers to consumers.
(C) It includes many activities that are performed even before goods are actually produced and continue even after the goods have been sold.
(D) All of the above
Answer:
(D) All of the above

Explanation:
Marketing refers to the process of ascertaining consumers needs and supplying various goods and services to the final , consumers or users to satisfy those needs. Basically, marketing is the performance of business activities that direct the flow Of goods and services from producers to consumers or users.

MCQ Questions for Class 12 Business Studies Chapter 11 Marketing Management

Marketing MCQs Class 12 Chapter 11 Question 6.

Marketing is a………….. process by which people interact with others in order to persuade them to act in a particular way, say to purchase a product or service rather than forcing them to do so.

(A) Physical
(B) Social
(C) Technical
(D) Psychological
Answer:
(B) Social

Marketing Management MCQ Pdf Class 12 Question 7.

Which of the following marketing functions is concerned with informing the customers about the firm’s products?

(A) Physical Distribution
(B) Promotion
(C) Market Planning
(D) Packaging and Labelling
Answer:
(B) Promotion

Explanation:
Promotional activities include advertising, personal selling, sales promotion and publicity. All promotional activities involve communication with the existing and prospective customers whereby they are made aware of the product, its distinctive features, price, availability, etc. The objective g of promotional activities is to motivate the customers to buy the product

Marketing MCQ Class 12 Chapter 11 Question 8.

Which function of marketing is concerned with the cost and location of target market ?

(A) Promotion
(B) Warehousing
(C) Transportation
(D) Branding
Answer:
(C) Transportation

Explanation:
A marketing firm has to analyse its transportation needs after taking into consideration various factors such as nature of the product, cost and location of target market and take decisions in respect of mode of transportation to be chosen and other related aspects.

MCQ Questions for Class 12 Business Studies Chapter 11 Marketing Management

MCQ On Marketing Management Class 12 Chapter 11 Question 9.

Samay wanted to purchase a car with the latest standards and possessing features to minimize pollution. He saw an advertisement and subsequently visited the showroom of the company where the car was displayed. In his discussion, the marketing manager told Samay that the company is providing credit facilities, maintenance services and many other useful services on account of which the company is experiencing repeat sales and has been able to develop brand loyalty. Thus, ………….marketing function is being discussed between the marketing manager and Samay.

(A) Branding
(B) Customer support service
(C) Promotion
(D) Physical distribution
Answer:
(B) Customer support service

Explanation:
A very important function of the f marketing management relates to developing . customer support services such as after sales services, handling customer complaints and adjustments, procuring credit services, maintenance services, technical services and consumer information. All these services aim at providing maximum satisfaction to the customers, which is the key to marketing success in modern days.

MCQ Questions for Class 12 Business Studies Chapter 11 Marketing Management

Class 12 Marketing Management MCQ Chapter 11 Question 10.

Match the FUNCTIONS of Marketing in Column I with the appropriate ACTIVITIES in Column II.

Column I Column II
(a) Marketing Planning (i) Providing basis for distinguishing the product of a firm with that of the competitor.
(b) Product Designing and Development (ii) Specifying the action programmes to achieve different objectives.
(c) Branding (iii) Making the product attractive to the target customers.

(A) (ii), (iii), (i)
(B) (iii), (ii), (i)
(C) (ii), (i), (iii)
(D) (iii), (i), (ii)
Answer:
(A) (ii), (iii), (i)

MCQs Of Marketing Management Class 12 Question 11.

Rohan is manufacturing lunch boxes for school going children. To maximize the profits, he decided to improve their quality and added a hot case to the boxes. As a result of this improvement in the product, its sale increased gradually. Which of the following marketing philosophy was involved:

(A) Product
(B) Prize
(C) Standard
(D) None of the above
Answer:
(A) Product

Explanation:
Product improvement became the key to profit maximisation of a firm, under the concept of product orientation. With the increase in the supply of the products, customers started looking for products which were superior in quality, performance and features. Therefore, the emphasis of the firms shifted from quantity of production to quality of products.

MCQ Questions for Class 12 Business Studies Chapter 11 Marketing Management

MCQ Marketing Management Class 12 Chapter 11 Question 12.

Creams and medicines are the examples of ………….. products.

(A) Convenience
(B) Shopping
(C) Speciality
(D) None of the above
Answer:
(A) Convenience

Explanation:
Those consumer products, which are purchased frequently, immediately and with least time and efforts are referred to as convenience goods.

MCQ Of Business Studies Class 12 Chapter 11 Question 13.

That part of a brand which can be recognised but which is not utterable is called

(A) Brand Mark
(B) Trade Mark
(C) Brand Name
(D) All of these
Answer:
(A) Brand Mark

Explanation:
That part of a brand which can be recognised but which is not utterable is called brand mark. It appears in the form of a symbol, design, distinct colour scheme or lettering.

MCQ Questions for Class 12 Business Studies Chapter 11 Marketing Management

Class 12 Marketing MCQ Chapter 11 Question 14.

“A popular brand of Hair Conditioners comes in different categories for different hair, say for normal hair and for other categories”. dentify the function of labelling in the above example.

(a) Providing information required by law
(b) Describe the product and specify its contents
(c) Grading of products
(d) Promotion of products
Answer:
(c) Grading of products

Explanation:
Grading is the process of classification of products into different groups, on the basis of some of its important characteristics such as quality, size, etc.

Question 15.

A car manufacturer offers to sell a particular brand of car at a discount of ₹ 10,000 for a limited period.
Identify the sales promotion activity in the above example.

(A) Refund
(B) Product combinations
(C) Rebate
(D) Discount
Answer:
(C) Rebate

Explanation:
Offering products at special prices, to clear off excess inventory is called rebate.

Question 16.

Suganya decided to start the business of selling dress materials. She did some research to find out about the preferences of prospective customers. Based on this, she prepared a detailed business plan. She then made important decisions about the features, quality, packaging, labelling and branding of the dress material. Which of the following elements of Marketing Mix is being discussed here?

(A) Promotion
(B) Market
(C) Product
(D) Place
Answer:
(C) Product

Explanation:
In marketing, product is a mixture of tangible and intangible attributes, which are capable of being exchanged for a value, with ability to satisfy customer needs.

MCQ Questions for Class 12 Business Studies Chapter 11 Marketing Management

Question 17.

Quick Foods Ltd. is a food delivery service app that has recently faced criticism for tampering of their products by their delivery boys. The company decided to put a hologram seal on the food packets in order to protect the contents from being tampered with along with a safety warning for the consumers to check the seal on delivery conceptof marketing has been discussed in this case which is not only performing an important function of communicating with the potential buyer but also promoting its sale.

(A) Labelling
(B) Product designing and development
(C) Branding
(D) Packaging
Answer:
(A) Labelling

Explanation:
Labels are useful in providing detailed information about the product, its contents, method of use, etc.

Question 18.

Which of the following statements is incorrect with respect to the various aspects of Marketing Mix?

(A) The advantage of registering Trade Mark is to get exclusive legal rights for its use and no other firm can use this mark to sell similar goods.
(B) Promotion mix refers to the decisions related to sales promotion tools used by an organisation to achieve its objectives.
(C) Product mix includes activities that are involved in transferring the ownership to customers and to make the product available at the right place at the right time.
(D) None of the above
Answer:
(C) Product mix includes activities that are involved in transferring the ownership to customers and to make the product available at the right place at the right time.

Question 19.

”Buy appliances worth ₹ 15,000 and get a discount voucher of ₹ 3,000.” Which of the following sales promotion activity is being depicted here?

(A) Discount
(B) Usable benefits
(C) Rebate
(D) Quantity gift
Answer:
(B) Usable benefits

Question 20.

‘Buy two get one free’ is printed on the label of the package of toothpaste. Which labelling function is being performed by this statement ?

(A) Describe the product
(B) Identification of the brand
(C) Grading of product
(D) Sales promotion
Answer:
(D) Sales promotion

Explanation:
An important function of label is to aid in promotion of the products. A carefully designed label can attract attention and give reason to purchase. Labels play an important role in sales promotional schemes launched by companies.

MCQ Questions for Class 12 Business Studies Chapter 11 Marketing Management

Question 21.

Sumit has been using ‘Smooth Shave’ a famous shaving cream available in the market. On watching numerous advertisements in the television, he decided to try a new brand of shaving cream. When he went to the near-by store to purchase the same, he saw shaving creams by other producers making similar claims. Hence, he could not make up his mind as to which shaving cream to purchase. Which of the following objection to advertising is being discussed in this case?

(A) Undermines social values
(B) Confuses the buyers
(C) Encourages sale of inferior products
(D) Adds to cost
Answer:
(B) Confuses the buyers

Explanation:
So many products are being advertised which makes similar claims that the buyer gets confused as to which one is true and which one should be relied upon.

Question 22.

‘Ultimate Televisions Ltd.’ is offering its 50″ TV sets at a discount of ₹ 10,000 for a period of two months beginning from 15th February, 2021. Which of the following sales promotion activity is being used by ‘Ultimate Televisions Ltd.

(A) Discount
(B) Refunds
(C) Rebate
(D) Quantity gift
Answer:
(C) Rebate

Question 23.

The advertisement of a tour and travel agency states the following in its advertisement Visit ‘Jaisalmer-The Golden City’, Visit ‘Jaipur- The Pink City’, Visit ‘Udaipur-The City of Lakes’. What is being marketed by the agency through the advertisement ?

(A) Experience
(B) Place
(C) Ideas
(D) Services
Answer:
(B) Place

Question 24.

Prateek took his nephew Raman for shopping to ‘Hamleys’ to buy him a toy car for his birthday. Raman was delighted when on payment of the bag, he got a school bag along with the toy car free of cost. Identify which technique of sales promotion is being used by the company.

(A) Quantity gift
(B) Product combinations
(C) Lucky draw
(D) Sampling
Answer:
(B) Product combinations

Explanation:
Product combinations is offering another product as gift along with the purchase of a product, say offer of a pack of 1/2 kg of rice with the purchase of a bag of aatta (wheat flour)

MCQ Questions for Class 12 Business Studies Chapter 11 Marketing Management

Question 25.

Match the CATEGORY being marketed in Column I with the correct EXAMPLE in Column II.

Column I Column II
(a) Ideas (i) Film festival
(b) Experience (ii) Family Planning
(c) Events (iii) Mountaineering

(A) (ii),(iii),(i)
(B) (iii), (ii), (i)
(C) (ii), (i), (iii)
(D) (iii), (i), (ii)
Answer:
(A) (ii),(iii),(i)

Assertion and Reased Based MCQs

Directions: In the following questions, a statement of Assertion (A) is followed by a statement of Reason (R). Mark the correct choice as:
(A) Both (A) and (R) are true, and (R) is the correct explanation of (A).
(B) Both (A) and (R) are true, but (R) is not the correct explanation of (A).
(C) (A) is true, but (R) is false.
(D) (A) is false, but (R) is true.

Question 1.

Assertion (A): Personal selling plays a very important role in the introduction stage of a new product.
Reason (R): Personal selling helps in persuading customers about the merits of the product.

Answer:
(A) Both (A) and (R) are true, and (R) is the correct explanation of (A).

Explanation:
Personal selling is a very effective promotional tool, which helps in influencing the prospects about the merits of a product and thereby increasing its sale.

MCQ Questions for Class 12 Business Studies Chapter 11 Marketing Management

Question 2.

Assertion (A): The design of the product contributes«. to making the product attractive to the target customers.
Reason (R): Customer support services are very effective in bringing repeat sales from the customers and developing brand loyalty for a product.

Answer:
(B) Both (A) and (R) are true, but (R) is not the correct explanation of (A).

Explanation:
A good design can improve performance of a product and also give it a competitive advantage in the market.

Question 3.

Assertion (A): That part of a brand, which can be spoken is called a brand name.
Reason (R): That part of a brand which can be recognised but which is not utterable is called trade mark

Explanation:
That part of a brand which can be recognised but which is not utterable is called brand mark. It appears in the form of a symbol, design, distinct colour scheme or lettering. A brand or part of a brand that is given legal protection is called trademark.

Question 4.

Assertion (A): Advertising is an impersonal form of communication.
Reason (R): Advertising is less flexible as the message is standardised and is not tailor made to the requirements of the different customer groups.

Answer:
(B) Both (A) and (R) are true, but (R) is not the correct explanation of (A).

Explanation:
Advertising is an impersonal form of communication. It is less forceful than personal selling as there is no compulsion on the prospects to pay attention to the message.

MCQ Questions for Class 12 Business Studies Chapter 11 Marketing Management

Question 5.

Assertion (A): In personal selling a direct face- to-face dialogue takes place that involves an interactive relationship between the seller and the buyer.
Reason (R): Personal selling allows a salesperson to develop personal relationships with the prospective customers, which may become important in making sale.

Answer:
(B) Both (A) and (R) are true, but (R) is not the correct explanation of (A).

Explanation:
Personal selling involves oral presentation of message in the form of conversation with one or more prospective customers for the purpose of making sales. It is a personal form of communication.

Case-Based MCQs

I. Read the following text and answer the questions given below:

Yamuna Prasad, a small shopkeeper in Bikaner, Rajasthan used to sell the famous ‘Bhujia-Sev’. It was a quick-selling product for locals and foreign tourists. His second generation expanded the business and got ‘Yamuna Ki Bhujia’ registered with concerned authorities. Gradually the brand offered a wide range of products to its customers like namkeen, sweets, bakery items, etc. However, ‘Bhujia-Sev’ remained the most popular product of the brand creating maximum revenue.’Yamuna Ki Bhujia’ offered its products at competitive prices even while offering customer services like gift packaging and free home delivery to become a household name.

Now it has virtually become a synonym for bhujia-sev in the market, so much so, that people ask for ‘Yamuna Ki Bhujia’ instead of bhujia-sev. ‘Yamuna Ki Bhujia’ has developed a strong distribution network in India and abroad by setting up retail outlets and reaching out to the customers through internet selling.Promotion of the brand had always been low profile, till the increase in competition pushed itto hire the services of a professional advertising agency, VIGYAPAN PVT. LTD. for promoting the product.On the advice of VIGYAPAN PVT. LTD., ‘Yamuna Ki Bhujia’ has also worked upon managing public opinion by developing relations with the masses through sponsoring cultural and sporting events, maintenance of public parks, etc.

Question 1.

‘His second generation expanded the business and got ‘Yamuna Ki Bhujia’ registered with concerned authorities.’ With reference to the given text ‘Yamuna ki Bhujia’ is a…………giving it a legal protection against its use by anyone else.

(A) Brand value
(B) Trademark
(C) Trait mark
(D) Brand mark
Answer:
(B) Trademark

Explanation:
A brand or part of a brand that is given legal protection is called trademark. The protection is given against its use by other firms. Thus, the firm, which got its brand registered, gets the exclusive right for its use. In that case, no other firm can use such name or mark in the country.

MCQ Questions for Class 12 Business Studies Chapter 11 Marketing Management

Question 2.

‘Yamuna Ki Bhujia’ offered its products at competitive prices even while offering customer services like gift packaging and free home delivery to become a household name.Identify the factor affecting the element of marketing mix being discussed above.

(A) Marketing methods used
(B) Objectives
(C) Extent of competition in the market
(D) Product cost
Answer:
(A) Marketing methods used

Question 3.

‘Yamuna Ki Bhujia’ has developed a strong distribution network in India and abroad by setting up retail outlets and reaching out to the customer through internet selling. Identify the decision related to the element of marketing mix being discussed above.

(A) Storing and assorting products in order to create time utility.
(B) Regarding the channels or using intermediaries.
(C) Both (A) and (B)
(D) Regarding branding, packaging and labelling.
Answer:
(B) Regarding the channels or using intermediaries.

Question 4.

On the advice of VIGYAPAN PVT. LTD., ‘Yamuna Ki Bhujia’ has also worked upon managing public opinion by developing better relations with the masses through sponsoring cultural and sporting events, maintenance of public parks, etc. Name the department in the organisation which is generally responsible for performing the above important task of managing public opinion.

(A) Marketing department
(B) A separate department created in the firm for the purpose
(C) An outside agency
(D) Any of the above
Answer:
(D) Any of the above

II. Read the following text and answer the questions given below:

‘Hayaram’ is a famous chain selling a large variety of products in the Indian market. Their products include chips, biscuits, sweets and squashes. It charges a comparatively higher price than its competitors as it sells quality products. Besides, it offers regular discounts to its customers and easy credit terms to its retailers. It has five of its own retail shops. It also sells its products through various grocery stores so that the products are made available to customers at the right place, in the right quantity and at the right time. It regularly uses different communication tools to increase its sales.

But it is also concerned about the impact as the potential customers or the prospects can’t be delivered the message compulsively. So there is one scheme the company has decided to launch where chips will be provided with an additional cold drink for a particular time period. It not only satisfies its customers but also provides employment to handicapped people.

Question 1.

The above para describes the combination of variables used by Hayaram to prepare its market offering. The combination of variables used by ‘Hayaram’ to prepare its market offering is termed as……….

(A) Promotion mix
(B) Sales Mix
(C) Price Mix
(D) Marketing Mix
Answer:
(D) Marketing Mix

Explanation:
Marketing mix is described as the set of marketing tools that a firm uses to pursue its marketing objectives in a target market.

Question 2.

“It also sells its products through various grocery stores so that the products are made available to customers at the right place, in the right quantity and at the right time.” Identify the element of marketing mix stated above.

(A) Product
(B) Price
(C) Place
(D) Promotion
Answer:
(C) Place

Explanation:
Place or Physical Distribution include activities that make firm’s products available to the target customers.

MCQ Questions for Class 12 Business Studies Chapter 11 Marketing Management

Question 3.

Identify the sales promotion technique decided to be used by ‘Hayaram’.

(A) Product combination
(B) Rebate
(C) Quantity plus
(D) Usable benefits
Answer:
(A) Product combination

Question 4.

“It charges a comparatively higher price than its competitors as it sells quality products.” Identify the element of marketing mix stated above.

(A) Product
(B) Price
(C) Place
(D) Promotion
Answer:
(B) Price

MCQ Questions for Class 12 Business Studies with Answers

MCQ Questions for Class 12 Business Studies Chapter 10 Financial Markets

Financial Markets Class 12 MCQ Questions With Answers

Financial Market MCQ Class 12 Chapter 10 Question 1.

Which of the following statements is false regarding financial market?

(A) Financial markets complicate the purchase and sale of financial assets.
(B) Financial markets provide valuable information about securities being traded in the market.
(C) They provide liquidity to financial assets.
(D) None of the above.
Answer:
(A) Financial markets complicate the purchase and sale of financial assets.

Explanation:
Financial markets facilitate easy purchase and sale of financial assets. In doing so they provide liquidity to financial assets, so that they can be easily converted into cash whenever required. Folders of assets can readily sell their financial assets through the mechanism of the financial market.

MCQ Questions for Class 12 Business Studies Chapter 10 Financial Markets

Business Studies Chapter 10 MCQ Class 12 Question 2.

The money market is a market for short-term funds which deals in monetary assets whose period of maturity is:

(A) Upto one year
(B) Upto six months
(C) Upto three months
(d) None of these
Answer:
(A) Upto one year

Explanation:
The money market is a market for short-term funds which deals in monetary assets whose period of maturity is upto one year. These assets are close substitutes for money.

Question 3.

Which of the following money market instrument is also known as Zero Coupon Bonds?

(A) Call Money
(B) Treasury Bill
(C) Commercial Paper
(D) Commercial Bill
Answer:
(B) Treasury Bill

Explanation:
Treasury bill are also known as Zero Coupon Bonds issued by the Reserve Bank of India on behalf of the Central Government to meet its short-term requirement of funds.

MCQ Questions for Class 12 Business Studies Chapter 10 Financial Markets

Question 4

……………… is short-term finance repayable on demand, with a maturity period of one day to fifteen days.

(A) Call Money
(B) Treasury Bill
(C) Commercial Paper
(D) Commercial Bill
Answer:
(A) Call Money

Explanation:
Call money is a short-term finance repayable on demand, with a maturity period of one day to fifteen days, used for inter bank transactions. Commercial banks have to maintain a minimum cash balance known as cash reserve ratio.

Question 5.

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

(A) ₹ 25,000
(B) ₹ 20,000
(C) ₹ 50,000
(D) ₹ 1,00,000
Answer:
(A) ₹ 25,000

Explanation:
Treasury bills are available for a minimum amount of ₹ 25,000 and in multiples thereof.

MCQ Questions for Class 12 Business Studies Chapter 10 Financial Markets

Question 6.

Mahindra Bank wants short-term finance for only one or two days. What option should it pick?

(A) Treasury bills
(B) Call Money
(C) Commercial Paper
(D) None of the above
Answer:
(B) Call Money

Explanation:
Call money is mainly used by the banks to meet their temporary requirement of cash. They borrow and lend money from each other normally on a daily basis. It is repayable on demand and its maturity period varies between one day to a fortnight.

Question 7.

Aman had 55 shares of Vani Ltd. He wanted to sell 30 shares, so he went for a specific market to sell them through online portal. He went for which of following markets?

(A) Money Market
(B) Secondary Market
(C) Primary Market
(D) None of the above
Answer:
(B) Secondary Market

Explanation:
The secondary market is also known as the stock market or stock exchange, It is a market for the purchase and sale of existing securities. It helps existing investors to disinvest and fresh investors to enter the market.

MCQ Questions for Class 12 Business Studies Chapter 10 Financial Markets

Question 8.

Which of the following statements is incorrect regarding Financial Markets?

(A) The process by which allocation of funds is done is called financial intermediation.
(B) Money market instruments are close substitutes for money.
(C) The difference between the price at which the treasury bills are issued and their redemption value is the interest receivable on them and is maturity value.
(D) Treasury Bills are issued at a price which is lower than their face value and repaid at par.
Answer:
(C) The difference between the price at which the treasury bills are issued and their redemption value is the interest receivable on them and is maturity value.

Explanation:
The difference between the price at which the treasury bills are issued and their redemption value is the interest receivable on them and is called discount.

Question 9.

Match the FUNCTIONS of Financial Markets in Column I with their correct MEANING in Column II

Column I Column II
(a) Allocative Function (i) Establish a price for the financial asset through interaction between house-holds and business firms.
(b) Facilitating Price Discovery (ii) Easy purchase and sale of financial assets.
(c) Financial Assets Liquidity (iii) Mobilization of savings and channelising them into the most productive use.

(A) (ii), (iii), (i)
(B) (iii), (ii), (i)
(C) (ii), (i), (iii)
(D) (iii), (i), (ii)
Answer:
(D) (iii), (i), (ii)

MCQ Questions for Class 12 Business Studies Chapter 10 Financial Markets

Question 10.

Which of the following is a function of the stock exchange?

(A) Providing liquidity and marketability to existing securities
(B) Spreading of equity cult
(C) Contributing to economic growth
(D) All of the above
Answer:
(D) All of the above

Explanation:
Stock Exchange provides both liquidity and easy marketability to already existing securities in the market. In stock exchange securities of various companies are bought and sold. This process of disinvestment and reinvestment helps to invest in most productive investment proposal and this leads to capital formation and economic growth.

Question 11.

The organisation/institution which provides scope for speculation is:

(A) Stock exchange
(B) SEBI
(C) Brokers
(D) None of the above
Answer:
(A) Stock exchange

Explanation:
The stock exchange provides sufficient scope within the provisions of law for speculative activity in a restricted and controlled manner. It is generally accepted that a certain degree of healthy speculation is necessary to ensure’ liquidity and price continuity in the stock market.

MCQ Questions for Class 12 Business Studies Chapter 10 Financial Markets

Question 12.

………….. is an institution or organisation, which holds securities in electronic form, in which trading is done.

(A) Stock Exchange
(B) SEBI
(C) Depository
(D) None of the above
Answer:
(C) Depository

Explanation:
Just like a bank keeps money in safe custody for customers, a depository is also like a bank and keeps securities in electronic form on behalf of the investor. It is a technology driven electronic storage system. It has no paper work relating to share certificates, transfer, forms, etc.

MCQ Questions for Class 12 Business Studies Chapter 10 Financial Markets

Question 13.

Which of the following can be a depository participant (DP)?

(A) Bank
(B) Broker
(C) Financial Services Company
(D) All of the above
Answer:
(D) All of the above

Explanation:
A depository participant (DP), can be either a bank, broker, or financial services company. Depository Participant (DP) is an agent of the depository. Investors interact only f with DR Any financial institution can become DP after registration with SEBI. The company whose shares are to be transacted in lectronic form must be registered with a depository.

Question 14.

It has been made compulsory to settle all trades within how many days of the trade date on a rolling settlement basis?

(A) One
(B) Two
(C) Three
(D) Four
Answer:
(B) Two

Explanation:
Cash is paid or securities are delivered on pay-in day, which is before the T+2 day as the deal has to be settled and finalised on the T+2 day. The settlement cycle is on T+2 day on a rolling settlement basis.

MCQ Questions for Class 12 Business Studies Chapter 10 Financial Markets

Question 15.

Hemu’s mother gifted her shares of a large IT company. The securities were in physical form. She has a bank account but does not possess any other forms of security. She wanted to sell the shares and approached a registered broker. Which of the following is a mandatory detail which she needs to provide the broker?

(A) Permanent Account Number
(B) Educational qualification and occupation.
(C) Residential status
(D) None of the above
Answer:
(A) Permanent Account Number

Explanation:
If an investor wishes to buy or sell any security he has to first approach a registered broker or sub-broker and enter into an agreement with him. The investor has to sign a broker-client agreement and a client registration form before placing an order to buy or sell securities and also has to provide certain other details and information such as PAN number.

Question 16.

………….. is a legally enforceable document and helps to settle disputes claims between the investor and the broker. It contains details of the number of shares bought or sold, the price, the date and time of deal, and the brokerage charges.

(A) Share
(B) Contract Note
(C) Registration Form
(D) None of these
Answer:
(B) Contract Note

Explanation:
Contract note contains details of the number of shares bought or sold, the price, the date and time of deal, and the brokerage charges. This is an important document as it is legally enforceable and helps to settle disputes claims between the investor and the broker.

MCQ Questions for Class 12 Business Studies Chapter 10 Financial Markets

Question 17.

NSE and BSE are types of………….. .

(A) Depositories
(B) Depository Participants
(C) Stock Exchanges
(D) Banks
Answer:
(C) Stock Exchanges

Explanation:
BSE is type of stock exchange which provides an efficient and transparent market for trading in equity, debt instruments, derivatives, and mutual funds. NSE is also a stock exchange that establishes a nationwide trading facility for all types of securities.

Question 18.

Match the STEPS for screen-based trading for buying and selling of securities by an investor in Column I with their correct EXPLANATION in Column II.

Column I Column II
(a) One (i) Open a demat account
(b) Two (ii) Place an order with the broker to buy or sell shares
(c) Three (iii) Enter into an agreement with a registered broker or sub-broker
(d) Four (iv) Provide necessary details and information

(A) (i), (iii), (iv), (ii)
(B) (iii), (iv), (i), (ii)
(C) (iv), (ii), (i), (iii)
(D) (iii), (i), (ii), (iv)
Answer:
(B) (iii), (iv), (i), (ii)

MCQ Questions for Class 12 Business Studies Chapter 10 Financial Markets

Question 19.

Which of the following stands for SEBI?

(A) Stock and Exchange Board of India
(B) Securities and Exchange Board of India
(C) Securities and Exchange Bank of India
(D) Stock and Exchange Bank of India
Answer:
(B) Securities and Exchange Board of India

Explanation:
SEBI stands for Securities and Exchange Board of India. SEBI regulates how the stock market and mutual funds function.

Question 20.

Which of the following is are the ‘Developmental Functions’ of Securities and Exchange Board of India?

(A) It trains the intermediaries of securities market
(B) It conducts research and publishes information useful to all market participants
(C) It undertakes measures to develop the capital markets by adapting a flexible approach.
(D) All of the above
Answer:
(D) All of the above

Explanation:
Developmental functionrefers to the steps taken by SEBI in order to provide the investors with a knowledge of f the trading and market function. It includes training of intermediaries who are a part of the security market, introduction of trading through electronic means and by making the underwriting an optional system in order to reduce cost of issue.

MCQ Questions for Class 12 Business Studies Chapter 10 Financial Markets

Question 21.

Rishu’s friend Devina works as a Finance Manager in Perfect Solutions Ltd. Devina in a meeting with the directors of the company came to know that the firm would soon be declaring a bonus issue which would lead to an increase in the price of shares. On this basis, Devina advised Rishu to purchase the shares of Perfect Solutions Ltd., who thus bought the shares. SEBI can control malpractices like these through which of the following functions:

(A) Protective functions
(B) Regulatory functions
(C) Development functions
(D) All of the above
Answer:
(A) Protective functions

Explanation:
The protective function implies the role that SEBI plays in protecting the investor interest and also that of other financial participants. Prohibition of fraudulent and unfair trade practices like making misleading statements, manipulations, price rigging, etc. is the function of SEBI.

Question 22.

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

(A) SEBI
(B) CDSL
(C) NSE
(D) BSE
Answer:
(A) SEBI

Explanation:
SEBI was established to protect the interest of people in the stock market and provide a healthy environment for them. It is the supreme statutory body of capital market to which customers can complain to redress their grievances.

MCQ Questions for Class 12 Business Studies Chapter 10 Financial Markets

Question 23.

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?

(A) Issuers of securities
(B) Investors
(C) Market intermediaries
(D)All of the above
Answer:
(D)All of the above

Explanation:
The basic purpose of SEBI is to create an environment to facilitate efficient mobil is ationandal location of resources through the securities markets. This environment aims at meeting the needs of the three groups which basically constitute the market, viz, the issuers of securities (companies), the investors and the market intermediaries

Question 24.

Which of the following is not a Protective Function performed by SEBI?

(A) Prohibition of fraudulent and unfair trade practices.
(B) Conducting research and publishing information useful to all market participants.
(C) Undertaking steps for investor protection.
(D) Promoting fair practices and code of conduct in securities market.
Answer:
(B) Conducting research and publishing information useful to all market participants.

Explanation:
Conducting research and publishing information useful to all market participants is the development function of SEBI. Developmental function refers to the steps taken by SEBI in order to provide the investors with a knowledge of the trading and market function.

Question 25.

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

(A) 1988
(B) 1992
(C) 1996
(D) 1998
Answer:
(B) 1992

Explanation:
The Securities and Exchange Board of India was established by the Government of India on 12 April, 1988 as an interim administrative body to promote orderly and healthy growth of securities market and for investor protection. It was f to function under the overall administrative control of the Ministry of Finance of the Government of India. The SEBI was given a statutory status on 30 January, 1992 through an ordinance.

MCQ Questions for Class 12 Business Studies Chapter 10 Financial Markets

Question 26.

Match the FUNCTIONS of SEBI in Column I with the respective EXPLANATION in Column II:

Column I Column II
(a) Protective (i) Training of intermediaries of the securities market.
(b) Regulatory (ii) Prohibition of fraudulent and unfair trade practices.
(c) Development (iii) Registration of brokers, sub-brokers and other players of market.

(A) (iii), (i), (ii)
(B) (i), (ii), (iii)
(C) (ii), (iii), (i)
(D) (iii), (ii), (i)
Answer:
(C) (ii), (iii), (i)

Assertion and Reason Based MCQs

Directions: In the following questions, a statement of Assertion (A) is followed by a statement of Reason (R). Mark the correct choice as:
(A) Both (A) and (R) are true, and (R) is the correct explanation of (A).
(B) Both (A) and (R) are true, but (R) is not the correct explanation of (A).
(C) (A) is true, but (R) is false.
(D) (A) is false, but (R) is true.

Question 1.

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.

Answer:
(D) (A) is false, but (R) is true.

Explanation:
Certificates of Deposit (CD) are unsecured, negotiable, short-term instruments in bearer form, issued by commercial banks and development financial institutions.

Question 2.

Assertion (A): A commercial bill is a bill of exchange used to finance the working capital requirements of business firms.
Reason (R): Commercial bill is a short-term, negotiable, self-liquidating instrument which is used to finance the credit sales of firms.

Answer:
(B) Both (A) and (R) are true, but (R) is not the correct explanation of (A).

Explanation:
Commercial bills are basically negotiable instruments accepted by buyers for goods or services obtained by them on credit, Such bills being bills of exchange can be kept upto the due date and encashed by the seller or may be endorsed to a third party in payment of dues owing to the latter.

MCQ Questions for Class 12 Business Studies Chapter 10 Financial Markets

Question 3.

Assertion (A): The primary market is also known as the new issues market.
Reason (R): It deals with new securities being issued for the first time.

Explanation:
The primary market is a type of capital market that deals with the new issue of stocks and securities. The investors in this market are banks, financial institutions, insurance companies, mutual funds and individuals.

Question 4.

Assertion (A): An ideal capital market is one where finance is available at reasonable cost.
Reason (R): Capital market is a market where low risk, unsecured and short-term debt instruments that are highly liquid are issued and actively traded everyday.

Answer:
(C) (A) is true, but (R) is false.

Explanation:
The money market is a market for short-term funds which deals in monetary assets. It is a market where low risk, unsecured and short-term debt instruments that are highly liquid are issued and actively traded everyday.

Question 5.

Assertion (A): Stock exchange contributes to economic growth.
Reason (R): Through the process of disinvestment and reinvestment savings get channelised into their most productive investment avenues.

Answer:
(A) Both (A) and (R) are true, and (R) is the correct explanation of (A).

Explanation:
Stock exchange offers a platform for trading of securities of the various companies. This process of trading involves continuous disinvestment and reinvestment, which offers opportunities for capital formation and subsequently, growth of the economy.

MCQ Questions for Class 12 Business Studies Chapter 10 Financial Markets

Question 6.

Assertion (A): Stock exchange is an unorganised market.
Reason (R): Stock exchange makes complete information available to public in regard to prices and volume of transactions taking place every day.

Answer:
(D) (A) is false, but (R) is true.

Explanation:
A stock exchange is generally organised as an association, a society or a company with a limited number of members.
It is open only to these members who act as brokers for the buyers and sellers.

Question 7.

Assertion (A): Stock exchange provides safety to dealings and investment.
Reason (R): Transactions on the stock exchange are conducted only amongst its members with adequate transparency.

Answer:
(A) Both (A) and (R) are true, and (R) is the correct explanation of (A).

Explanation:
Stock exchange provides safety, security and equity in dealings as transactions are conducted as per well defined rules and regulations. Transactions on the stock exchange are conducted in strict conformity to its rules and regulations which include the procedure and timings of delivery and payment to be followed.

MCQ Questions for Class 12 Business Studies Chapter 10 Financial Markets

Question 8.

Assertion (A): Demat account refers to an account which an Indian citizen must open with the DPs to trade in listed securities in electronic form.
Reason (R): Depository is like a bank in which an investor can deposit and withdraw his shares.

Answer:
(B) Both (A) and (R) are true, but (R) is not the correct explanation of (A).

Explanation:
Investors who want to get securities in electronic form opens a Demat Account. From this account one can hold shares of various companies in the dematerialised electronic form.

Question 9.

Assertion (A): Government of India decided to set-up a separate regulatory body known as Securities and Exchange Board of India.
Reason (R): SEBI was set up to prevent trading malpractices and achieve a balance between self regulation by the securities industry and its statutory regulation.

Answer:
(A) Both (A) and (R) are true, and (R) is the correct explanation of (A).

Explanation:
Many malpractices started taking place such as rigging of prices, non-adherence of provisions of the Companies Act, violation of rules and regulations of stock exchanges etc. Due to these malpractices, people started losing confidence in the stock market. The government felt a sudden need to set up an authority to regulate the working and reduce these malpractices. As a result, the Government came up with the establishment of SEBI.

MCQ Questions for Class 12 Business Studies Chapter 10 Financial Markets

Question 10.

Assertion (A): Controlling insider trading and imposing penalties for such practices is a protective function of SEBI.
Reason (R): Registration of collective investment schemes and Mutual Funds is a development function of SEBI.

Answer:
(C) (A) is true, but (R) is false.

Explanation:
Registration of collective investment schemes and Mutual Funds is a regulatory function of SEBI. Regulatory functions involve establishment of rules and regulations for the financial intermediaries along with corporates that helps in efficient management of the market.

Question 11.

Assertion (A): The objective of SEBI is to maintain a balance between statutory regulations and self regulation.
Reason (R): The objective of the Primary Market Advisory Committee is to advise SEBI on issues related to the development of primary market in India.

Answer:
(B) Both (A) and (R) are true, but (R) is not the correct explanation of (A).

Explanation:
The SEBI has formed two advisory committees. They are the Primary Market Advisory Committee and the Secondary Market Advisory Committee. The objectives of these two committees is to advise SEBI on issues related to the development of primary market in India.

MCQ Questions for Class 12 Business Studies Chapter 10 Financial Markets

Case-Based MCQs

I. Read the following text and answer the questions given below:

ISQAA SOLAR Limited is searching for options to raise ₹ 20,000 crores from the primary market for diversification and modernisation of existing projects. It hired the services of a renowned financial consultancy firm, DHAN LAXMI PVT. LTD. to suggest options for the same. DHAN LAXMI PVT. LTD. suggested a list of options to the Board of Directors of the company. It was decided that for the immediate requirement of ₹ 1,500 crores, the company will give a privilege to existing shareholders to subscribe to a new issue of shares according to the terms and conditions of the company.

₹ 4,500 crores would be raised by allotment of securities to a consortium of financial institutions, instead of inviting subscription from the public by making a direct appeal to investors to raise capital. It was further decided to raise capital to the tune of ₹ 6,000 crores through an issuing house. All these options were accepted by the Board of Directors. The Board further decided to raise₹ 8,000 crores through the online system of the stock exchange by entering into an agreement with the exchange.

Question 1.

Identify the method of floatation of new issues in the primary market, not taken up by ISQAA SOLAR LTD.

(A) Offer for sale
(B) Rights issue
(C) E-IPO
(D) Offer through prospectus
Answer:
(D) Offer through prospectus

Explanation:
Offer through prospectus involves inviting subscription from the public through issue of prospectus.

Question 2.

” ₹4,500 crores would be raised by allotment of securities to a consortium of financial institutions, instead of inviting subscription from the public by making a direct appeal to investors to raise capital.” Identify the method of floatation of new issues in the primary market being discussed above, which the company has decided to use :

(A) Offer for sale
(B) Private placement
(C) Right issue
(D) Offer through prospectus
Answer:
(B) Private placement

Explanation:
Private placement is the allotment of securities by a company to institutional investors and some selected individuals. It helps to raise capital more quickly than a public issue.

MCQ Questions for Class 12 Business Studies Chapter 10 Financial Markets

Question 3.

Identify the reason which has made the firm raise funds from the institutional investors:

(A) It helps to raise funds quickly.
(B) It is not expensive.
(C) Both (A) and (B).
(D) None of the above.
Answer:
(C) Both (A) and (B).

Question 4.

How much money was raised by the company through E-IPO’s?

(A) ₹ 8,000 crores
(B) ₹ 4,500 crores
(C) ₹20,000 crores
(D)₹ 6,000 crores
Answer:
(A) ₹ 8,000 crores

Case-Based MCQs

I. Read the following text and answer the questions given below:

Rajesh is the CEO of a leading petrochemical company. Recently, the company issued share capital to cover some expenses. However, in order to meet the floating cost of issuing shares, the company decided to conduct Bridge Financing. Therefore, it decided to issue a money market tool. The CEO’s decision wisely met the company’s requirements. Three months later, the company decided to issue new shares in the primary market again.

According to the floating method it involves, it decided to adopt the method mainly adopted by listed companies and attract the masses by directly contacting the public. Again, success came from the company’s approach and the realization of its goals. However, when the company tried the same type again three months later, the company encountered many problems. The problem is to determine a key aspect related to the security of the new release. If the same process is carried out in the secondary market, the company will not care too much about this key aspect.

Question 1.

Which type of money market instrument was issued by the company in the earlier part ?

(A) Call money
(B) Treasury bill
(C) Commercial paper
(D) Certificate of deposit
Answer:
(C) Commercial paper

Explanation:
Commercial paper is a short term unsecured promissory note, negotiable and transferable by endorsement and delivery with a fixed maturity period. It is issued by large and creditworthy companies to raise short-term funds at lower rates of interest than market rates.

Question 2.

Which method of floatation was adopted by the company three months later ?

(A) E-IPOs
(B) Offer through prospectus
(C) Right issue
(D) Offer for sale
Answer:
(B) Offer through prospectus

MCQ Questions for Class 12 Business Studies Chapter 10 Financial Markets

Question 3.

When the company repeated the same process again after three months, it faced problem in:

(A) Primary market
(B) Money market
(C) Commodity market
(D)None of the above
Answer:
(A) Primary market

Question 4.

What key aspect the company would not have cared about in the secondary market ?

(A) Pricing of securities
(B) Regulations from the government
(C) Safety of investor’s money
(D) None of the above
Answer:
(A) Pricing of securities

II. Read the following text and answer the questions given below:

“Usually, money market funds are recommended to investors with an investment horizon of 90-365 days. These schemes can help you diversify your portfolio and help invest surplus cash while maintaining liquidity. It is a good option for retail investors with smaller investment amounts. Ensure that you invest according to your investment plan.”After reading this article in a magazine, Ramesh who needs funds for his venture decided to buy a financial asset from the RBI.

This financial asset is an instrument of short-term borrowing. He decided to buy it because he doesn’t want to take risk and wants an assured return. This instrument is a promissory note. It is highly liquid. This instrument is also known as Zero Coupon Bond. On this instrument is written T-91. Investment in this instrument started with just ₹ 25,000. For a higher value it is given in the multiples of ₹ 25,000.

Question 1.

Which financial asset is indicated in the above case?

(A) Treasury Bill
(B) Commercial Paper
(C) Commercial Bill
(D) Call Money
Answer:
(A) Treasury Bill

Explanation:
A Treasury bill is basically an instrument of short-term borrowing by the Government of India maturing in less than one year. Treasury bills are issued in the form of a promissory note. They are highly liquid and have assured yield and negligible risk of default.

MCQ Questions for Class 12 Business Studies Chapter 10 Financial Markets

Question 2.

On whose behalf does the RBI issue this instrument?

(A) Government of India
(A) Government of India
(B) Financial Institutions
(C) Banks
(D) Private Companies
Answer:
(A) Government of India

Question 3.

What does T-91 denote here?

(A) Investing period
(B) Receiving period
(C) Conversion period
(D) Maturity period
Answer:
(D) Maturity period

Question 4.

What is the minimum amount for which this instrument is available?

(A) ₹ 25,000
(B) ₹ 50,000
(C) ₹ 1,00,000
(D) ₹ 1,50,000
Answer:
(A) ₹ 25,000

MCQ Questions for Class 12 Business Studies Chapter 10 Financial Markets

III. Read the following text and answer the questions given below:

“Unicon Securities Pvt. Ltd.” was established to deal in securities. It was registered as a stockbroker with National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) to trade in securities listed at these exchanges. It is also a depository participant with CDSL and NSDL. In the first three years, it developed its business successfully. After that, the composition of Board of Directors changed. Some customers complained to the customer care centre of the company that shares purchased by them and for which the payment has been duly made, were not transferred to their Demat Accounts by “Unicon Securities Pvt. Ltd.”. The executive of customer care centre promised the aggrieved customers that their shares will be transferred to their respective Demat Accounts very soon. But the company delayed the matter and didn’t transfer the shares of the customers to their Demat Accounts. This eroded investors confidence and multiplied their grievances. On regular inspection and by conducting enquiries of the brokers involved, the Securities and Exchange Board of India (SEBI) was able to detect this irregularity.

Question 1.

Identify the step of trading procedure in a stock exchange which has not been followed by “Unicon Securities Pvt. Ltd.”.

(B) Placing the order
(C) Executing the order
(D) Settlement
Answer:
(D) Settlement

Question 2.

Which apex statutory body of capital market inspected and conducted enquiries in order to detect irregularities?

(A) NSE
(B) BSE
(C) Unicon Securities Pvt. Ltd.
(D) SEBI
Answer:
(D) SEBI

Question 3.

By not converting and transferring the shares to the investors Demat Account, i.e., electronic form, which process was not followed?

(A) Dematerialisation
(B) Settlement
(C) Registration
(D) Rematerialisation
Answer:
(A) Dematerialisation

MCQ Questions for Class 12 Business Studies Chapter 10 Financial Markets

Question 4.

Identify the function of SEBI being stated in paragraph.

(A) Development
(B) Protective
(C) Regulatory
(D) None of the above
Answer:
(C) Regulatory

Explanation:
Regulatory functions involve establishment of rules and regulations for the financial intermediaries along with corporate that helps in efficient management of the market- S

IV. Read the following text and answer the questions given below:

Rajni Auto Manufacturers has been into business for the last 30 years and have decided to give a special privilege to their existing shareholders to subscribe to the new issue of shares where they will be given shares according to the proportion of shares held by them. The company always gives special treatment to its loyal stakeholders and also ensures that they remain associated with the organization for longer durations. Last year, the company was successfully dealing through the capital market where both the buying and selling of securities were taking place. The owner of the company is a man of ethical business. He often contributes to business magazines by writing articles and editorials. He recently wrote an article about the watchdog of stock market. The article gained a lot of popularity and now is part of the curriculum of MBA students.

Question 1.

Which method of floatation was used by Rajni Auto Manufacturers?

(A) Right issue
(B) Private placement
(C) Offer for sale
(D) E-IPOs

Explanation:
Rights Issue is a privilege given to existing shareholders to subscribe to a new issue of shares according to the terms and conditions of the company. The shareholders are offered the ‘right’ to buy new shares in 1 proportion to the number of shares they already possess.

MCQ Questions for Class 12 Business Studies Chapter 10 Financial Markets

Question 2

Which type of capital market was this company dealing in?

(A) Primary market
(B) Secondary market
(C) Commodity market
(D) None of these
Answer:
(B) Secondary market

Explanation:
The secondary market is also known as the stock market or stock exchange. It is a market for the purchase and sale of existing securities. It helps existing investors to disinvest and fresh investors to enter the market. It also provides liquidity and marketability to existing securities.

Question 3.

Which watchdog of the capital market has been referred to in the above case?

(A) Capital market
(B) Stock market
(C) SEBI
(D) Broker
Answer:
(C) SEBI

MCQ Questions for Class 12 Business Studies Chapter 10 Financial Markets

Question 4.

Identify regulatory functions of the organization identified above?

(A) Pricing of securities
(B) Spreading of equity cult
(C) Registration of brokers and sub-brokers
(D) Promotion of ethical and fair practices
Answer:
(C) Registration of brokers and sub-brokers

MCQ Questions for Class 12 Business Studies with Answers