Business Environment

281. The objectives of import duty is/are

  1. To raise income for the government
  2. To restrict imports
  3. To encourage exports
  4. To raise income and restrict imports
Correct answer: (D)
To raise income and restrict imports

282. The following benefit is not expected from globalisation

  1. Reaping the benefits of free trade
  2. Better quality of life through choice of product
  3. Better knowledge through compulsory education
  4. Dissemination of information through new information technology
Correct answer: (C)
Better knowledge through compulsory education

283. The cultural environment of a country is best defined by which characteristics?

  1. Degree of nationalism and economic community membership
  2. Production process and standards of measurement
  3. Standard of living and stage of economic development
  4. Values, attitudes, heroes, myths and symbols
Correct answer: (D)
Values, attitudes, heroes, myths and symbols

284. Which of the following are positive reasons for internationalization?

  1. Market diversification
  2. Economies of scale
  3. International competitiveness
  4. All of the above
Correct answer: (D)
All of the above

285. Profit may be defined as

  1. the difference between total wage costs and total sales revenue
  2. total revenue from sales
  3. the difference between total production costs and total sales revenue
  4. the amount of money paid to shareholders as dividends
Correct answer: (C)
the difference between total production costs and total sales revenue

286. Which type of organization structure is characterized by departments or units dealing with specialized tasks?

  1. Matrix
  2. Divisional
  3. Hierarchical
  4. Functional
Correct answer: (D)
Functional

287. The goods and the services produced, priced and distributed by the government is

  1. Market economy
  2. Secular economy
  3. Command economy
  4. Mixed economy
Correct answer: (C)
Command economy

288. The transfer of the ownership of state property into the hands of the private individuals by the sale of state assets through auction is

  1. Privatization
  2. Liberalization
  3. Globalization
  4. Domestication
Correct answer: (A)
Privatization

289. The focus on increasing profitability and profit growth by reaping the cost reduction that come from economies of scale is

  1. global standardization strategy
  2. localization strategy
  3. transnational strategy
  4. international strategy
Correct answer: (A)
global standardization strategy

290. The entry mode that allow firms to export their process know- how to countries where FDI is prohibited, thereby enabling the firm earn greater return from this assets is ______________.

  1. licensing
  2. consultancy exports
  3. project exports
  4. turnkey projects
Correct answer: (D)
turnkey projects
Page 29 of 39