Business Environment

331. PEST is an acronym which stands for

  1. duct, Economy, Society, Technology
  2. Political, Economic, Societal, Technological
  3. Political, Economic, Social, Technological
  4. People, Economy, Standards, Transport
Correct answer: (C)
Political, Economic, Social, Technological

332. An increase in the general level of prices, as measured against some baseline of purchasing power is also known as

  1. inflation
  2. recession
  3. deflation
  4. depression
Correct answer: (A)
inflation

333. Transfer of assets of a foreign firm to a domestic firm effected by the government with payment of compensation is

  1. Expropriation
  2. Appropriation
  3. Confiscation
  4. Domestication
Correct answer: (A)
Expropriation

334. A contract drafted under civil law differs from that drafted under common law in the following respect

  1. It will be detailed
  2. It will be shorter and less specific
  3. It will provide less severe damages
  4. It will be in detail
Correct answer: (B)
It will be shorter and less specific

335. Non- tariff trade barriers do not include

  1. administrative regulations
  2. export subsidiaries
  3. fiscal barriers
  4. quota
Correct answer: (B)
export subsidiaries

336. In India, the patent available for pharmaceuticals is

  1. for product only
  2. for process only
  3. both for product and process
  4. neither product nor process
Correct answer: (C)
both for product and process

337. To what extent of the world population is collectivist?

  1. 10- 20 per cent
  2. 40-50 per cent
  3. 70-80 per cent
  4. 90-95 per cent
Correct answer: (C)
70-80 per cent

338. Which economic factors should be analysed by organizations wishing to expand in international markets?

  1. Interest rates
  2. Employment
  3. Purchasing power
  4. All the above
Correct answer: (D)
All the above

339. The concept of a firm's 'license to operate' refers to

  1. a legal requirement for company registration
  2. the need for a firm to retain its legitimacy in the eyes of the public
  3. a qualification needed by company directors
  4. an agreement recognizing trade unions
Correct answer: (B)
the need for a firm to retain its legitimacy in the eyes of the public

340. A multi-national corporation (MNC) is defined by

  1. carrying out production in more than one country
  2. having sales in more than one country
  3. having a multi-ethnic workforce
  4. having suppliers in more than one country
Correct answer: (A)
carrying out production in more than one country
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