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Commerce MCQs

  • The Internal Rate of Return (IRR) is the rate of discount that makes Net Present Value (NPV)

    (A) zero
    (B) one
    (C) positive
    (D) negative

    The answer is: (A) zero

  • An investment should be accepted if

    (A) Rate of Return > Opportunity Cost
    (B) Rate of Return < Opportunity Cost
    (C) Rate of Return = Opportunity Cost
    (D) A, B and C are irrelevant

    The answer is: (A) Rate of Return > Opportunity Cost

  • World Trade Organization (WTO) was established on 1 January

    (A) 1993
    (B) 1995
    (C) 1997
    (D) 1999

    The answer is: (B) 1995

  • The main function of WTO is to ensure that trade flows:

    Q. The main function of WTO is to ensure that trade flows:
    I. smoothly
    II. freely
    III. predictably
    (A) I only
    (B) II only
    (C) I and II only
    (D) I, II and III

    The answer is: (D) I, II and III

  • USMCA (United States-Mexico-Canada) free trade agreement has replaced

    (A) GATT
    (B) NAFTA
    (C) ECO
    (D) League of Nations

    The answer is: (B) NAFTA

  • A company sent a job offer letter to a candidate on 2 May 2020. The candidate received the letter on 4 May 2020. The communication of offer is completed on

    (A) 2 May 2020
    (B) 4 May 2020
    (C) 3 May 2020
    (D) 2 or 4 May 2020

    The answer is: (B) 4 May 2020

  • A company sent a job offer letter to a candidate.

    Q. A company sent a job offer letter to a candidate. The candidate sent the acceptance letter on 2 May 2020 and the company received the letter on 4 May 2020. The communication of acceptance is completed on
    (A) 2 May 2020
    (B) 4 May 2020
    (C) 3 May 2020
    (D) 2 or 4 May 2020

    The answer is: (A) 2 May 2020

  • International Trade figures (in million dollars) of a country are given below:

    Q. International Trade figures (in million dollars) of a country are given below:
    Value of goods exported: 100
    Value of goods imported: 120
    Spending by citizens on foreign travel: 30
    Services provided to foreign visitors: 10
    What was the Balance of Payments (in million dollars) for this country?
    (A) $20 million
    (B) $40 million
    (C) –$20 million
    (D) –$40 million

    The answer is: (D) –$40 million [Money In (100+10) – Money Out (120+30) = –40]

  • Which source of financing is not available to a sole proprietor and a partnership?

    (A) bank loan
    (B) retained profit
    (C) trade credit
    (D) share issue

    The answer is: (D) share issue

  • Which of the following is an example of a credit sale?

    (A) buying furniture with a debit card
    (B) exchanging a mobile with a new one
    (C) leasing land for one year
    (D) buying a car with a deposit and installments

    The answer is: (D) buying a car with a deposit and installments