66. The concept that value of a rupee to be received in future is less than the value of a rupee on hand today is known as:
(A) Recovery factor concept
(B) Compounding factor concept
(C) Time value of money
(D) Opportunity cost
Answer:
(C) Time value of money
Explanation:
The Time Value of Money is the foundational financial principle that money available at the present time is worth more than the same amount in the future due to its potential earning capacity.
67. Which of the following approaches is most appropriate for an organization with little experience in international markets?
(A) Joint venture
(B) Strategic alliance
(C) Acquisition
(D) Exporting
Answer:
(D) Exporting
Explanation:
Exporting requires the lowest level of commitment, investment, and operational risk compared to direct investments, making it the safest initial entry strategy for inexperienced firms.
68. The main objective of International Monetary Fund (IMF) is to:
(A) Promote International trade
(B) Help economically backward countries
(C) Maintain stable exchange rates
(D) Promote international tourism
Answer:
(C) Maintain stable exchange rates
Explanation:
The core mandate of the IMF is to ensure the stability of the international monetary system, which heavily revolves around managing exchange rates and international payments.
69. Trade-Related Aspects of Intellectual Property Rights (TRIPS) agreement is administered by:
(A) World Bank
(B) IMF
(C) World Trade Organization
(D) UNCTAD
Answer:
(C) World Trade Organization
Explanation:
TRIPS is an international legal agreement between all the member nations of the World Trade Organization (WTO).
70. Which of the following is an element of Micro Environment?
(A) Politics
(B) Competitor
(C) Economic condition
(D) Cultural factors
Answer:
(B) Competitor
Explanation:
A business’s micro-environment consists of actors close to the company that affect its immediate ability to serve customers, including suppliers, marketing intermediaries, customers, and competitors.
