21. Which of the following is not a type of share capital?
a) Authorised Capital
b) Issued Capital
c) Fixed Capital
d) Subscribed Capital
Answer:
c) Fixed Capital
Explanation:
Authorised, issued, and subscribed are all formal classifications of a company’s share capital. “Fixed capital” is a general economic term for physical assets, not a share capital classification.
22. Which account is debited when a new partner brings goodwill in cash?
a) Cash Account
b) Partner’s Capital Account
c) Goodwill Account
d) Revaluation Account
Answer:
a) Cash Account
Explanation:
When a new partner brings their share of goodwill in cash, the cash comes into the business, so the Cash (or Bank) Account is debited.
23. If Net Profit is ₹5,00,000 and Revenue is ₹25,00,000, what is the Net Profit Margin?
24. XYZ Ltd. has: Net profit: ₹3,00,000, Depreciation: ₹50,000, Increase in debtors: ₹20,000, Decrease in creditors: ₹10,000. What will be the net cash flow from operating activities?
a) ₹3,20,000
b) ₹3,40,000
c) ₹2,80,000
d) ₹2,60,000
Answer:
a) ₹3,20,000
Explanation:
Operating Cash Flow = Net Profit + Non-cash expenses (Depreciation) – Increase in Current Assets (Debtors) – Decrease in Current Liabilities (Creditors). 3,00,000 + 50,000 – 20,000 – 10,000 = ₹3,20,000.
25. A company’s share capital appears on which side of the balance sheet?
a) Asset Side
b) Liability Side
c) Income Side
d) Equity Side
Answer:
b) Liability Side
Explanation:
In traditional accounting formats, Share Capital is presented on the Liabilities (and Equity) side of the balance sheet, as it represents funds the business owes back to its owners.
26. Which concept in management refers to the ability to inspire and lead people?
a) Leadership
b) Coordination
c) Motivation
d) Supervision
Answer:
a) Leadership
Explanation:
Leadership is the management process of influencing, inspiring, and guiding employees to work willingly and enthusiastically toward achieving organizational goals.
27. Which of the following is NOT a characteristic of management?
a) Goal-oriented
b) Dynamic function
c) Individual activity
d) Group effort
Answer:
c) Individual activity
Explanation:
Management is fundamentally a group activity involving the coordination of diverse individuals to achieve common organizational goals, not a solitary, individual activity.
28. Which function of management involves setting objectives and strategies?
a) Organizing
b) Directing
c) Controlling
d) Planning
Answer:
d) Planning
Explanation:
Planning is the primary function of management that involves anticipating the future, setting objectives, and deciding on the strategies and actions to achieve them.
29. Which principle of management suggests that employees should receive orders from only one superior?
a) Unity of Command
b) Unity of Direction
c) Division of Work
d) Scalar Chain
Answer:
a) Unity of Command
Explanation:
Henri Fayol’s principle of ‘Unity of Command’ states that an employee should have only one boss and receive instructions from one superior only to avoid confusion.
30. Which of the following Taylor’s techniques involves breaking work into small, specialized
tasks?
a) Time Study
b) Motion Study
c) Functional Foremanship
d) Standardization
Answer:
d) Standardization
Explanation:
While division of labor broadly applies, under F.W. Taylor’s scientific management, the breakdown and standardization of individual tasks and tools allows workers to maximize specialized efficiency.
