Class 11 Business Studies Chapter 6 Social Responsibilities of Business and Business Ethics MCQ Questions with Answer

Social Responsibilities of Business and Business Ethics Class 11 MCQ is one of the best strategies to prepare for the CBSE Class 11 Board exam. If you want to complete a grasp concept or work on one’s score, there is no method except constant practice. Students can improve their speed and accuracy by doing more Social Responsibilities of Business and Business Ethics class 11 MCQ which will help them all through their board test.

Social Responsibilities of Business and Business Ethics Class 11 MCQ Questions with Answer

Class 11 Business Studies MCQ with answers are given here to Chapter 6 Social Responsibilities of Business and Business Ethics. These MCQs are based on the latest CBSE board syllabus and relate to the latest Class 11 Business Studies syllabus. By Solving these Class 11 MCQs, you will be able to analyze all of the concepts quickly in the Chapter and get ready for the Class 11 Annual exam.

Learn Social Responsibilities of Business and Business Ethics Class 11 MCQ with answers pdf free download according to the latest CBSE and NCERT syllabus. Students should prepare for the examination by solving CBSE Class 11 Social Responsibilities of Business and Business Ethics MCQ with answers given below.

Question 1 : The interest rate on Three months Inter Corporate deposit is

• a) 0.12
• b) 0.15
• c) 0.1
• d) 0.2

Answer: 0.12

Question 2 : Which one of the following statement is TRUE about Public deposits?

• a) Public deposit cannot exceed 25% of share capital and reserves
• b) Rate of interest offered on public deposits is lower than the rate of interest on bank deposits
• c) Public deposit are issued for a period of 6 months to 5 years
• d) It is one of the reliable sources of finance

Answer: Public deposit cannot exceed 25% of share capital and reserves

Question 3 : Which of the following institution provides financial assistance towards balanced regional development and development of management education in the country?

• a) Industrial finance Corporation of India (IFCI)
• b) Industrial Credit and Investment Corporation of India (ICICI)
• c) Industrial development Bank of India ( IDBI)
• d) Life insurance Corporation of India (LIC)

Answer: Industrial finance Corporation of India (IFCI)

Question 4 : ADRs are issued in

• a) USA
• b) China
• c) India
• d) Canada

Answer: USA

Question 5 : ______are debt instrument that does not carry a specific rate of interest , but issued at a heavy discount

• a) Bonds
• b) Debentures
• c) None of the options
• d) Equity Shares

Answer: Bonds

Question 6 : Public Deposits are the deposits that are directly raised from

• a) The public
• b) The auditors
• c) The owners
• d) The directors

Answer: The public

Question 7 : Which one of the following is the first Global Company who issue IDR in India?

• a) Standard Chartered PLC
• b) HDFC
• c) Reliance
• d) HSBC

Answer: Standard Chartered PLC

Question 8 : Which one of the following is the unsecured short term deposit made by one company with another?

• a) ICD
• b) ADR
• c) IDR
• d) GDR

Answer: ICD

Question 9 : Internal sources of capital are those that are generated through

• a) Within the business
• b) Issue of shares
• c) Outsiders
• d) Loans form banks

Answer: Within the business

Question 10 : The maturity period of commercial paper usually ranges from

• a) 90 days to 1 year.
• b) 15 days to 1 year
• c) 20 to 40days
• d) 60 to 90 days

Answer: 90 days to 1 year.

Question 11 : Under the factoring agreement, the factor

• a) Collects the clients debt or accounts receivables.
• b) Transfer the goods from one place to another.
• c) Makes the payment on behalf of client
• d) Produces and distributes the goods or services

Answer: Collects the clients debt or accounts receivables.

Question 12 : Under the lease agreement , the lessee gets the right to

• a) Use the asset for specific period of time.
• b) Share the profit earned
• c) Vote
• d) Sell the asset.

Answer: Use the asset for specific period of time.

Question 13 : Which one of the following is the advantage of Equity shares?

• a) No charge on assets
• b) Dilution of control
• c) Higher cost
• d) Risk.

Answer: No charge on assets

Question 14 : The preference shares that can be converted into equity shares are known as

• a) Convertible preference shares
• b) Non convertible preference shares
• c) Non Participating preference shares
• d) Participating preference shares

Answer: Convertible preference shares

Question 15 : Which one of the following is known as the Risk capital?

• a) Equity shares
• b) Debentures
• c) Retained earnings
• d) Preference shares

Answer: Equity shares

Question 16 : Which one of the following is NOT the disadvantage of raising funds through debentures?

• a) No Dilution of control
• b) All of the options.
• c) Charge on assets
• d) Fixed obligation

Answer: No Dilution of control

Question 17 : Preference shares do not carry preferential rights over equity shares regarding

• a) Voting rights
• b) Payment of dividend
• c) None of the options
• d) Payment of capital

Answer: Voting rights

Question 18 : Working capital is raised through

• a) All of the options.
• b) Commercial paper
• c) Factoring
• d) Trade credit

Answer: All of the options.

Question 19 : ADRs are issued in

• a) USA
• b) China
• c) India
• d) Canada

Answer: USA

Question 20 : Funds required for purchasing current assets are known as

• a) Working capital
• b) Fixed capital
• c) Lease financing
• d) Retained earnings

Answer: Working capital

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Question 21: The term redeemable is used for

• a) Preference shares
• b) Equity shares
• c) Public deposits
• d) Commercial papers

Answer: Preference shares

Question 22 : Equity shareholders are called

• a) Owners of the company
• b) Partners of the
• c) Guardian of the
• d) Executives of the company

Answer: Owners of the company

Question 23 : Debenture holders are called______of the company.

• a) Creditors
• b) Owners
• c) Executives.
• d) Partners

Answer: Creditors

Question 24 : IDRs are issued in

• a) India
• b) Canada
• c) China
• d) None of the options

Answer: India

Question 25 : Equity share capital represents______of the company.

• a) Permanent capital
• b) Fixed capital
• c) Working capital
• d) Fluctuating capital

Answer: Permanent capital

Question 26 : Trade credit is an example of

• a) Short term finance
• b) Long term finance
• c) All of the options.
• d) Medium term finance

Answer: Short term finance

Question 27 : Public deposits are the deposits that are directly raised from

• a) The public
• b) The auditors
• c) The directors
• d) The owners

Answer: The public

Question 28 : It is purely voluntary obligation. Identify the category of social responsibility referred here.

• a) Discretionary Responsibility
• b) Legal Responsibility
• c) Ethical Responsibility
• d) Economic Responsibility

Answer: Discretionary Responsibility

Question 29 : It includes the behavior of the firm expected by the society but not codified by law. Identify the category of social responsibility referred here.

• a) Ethical Responsibility
• b) Economic Responsibility
• c) Legal Responsibility
• d) All the above

Answer: Ethical Responsibility

Question 30: It is a primary social responsibility to produce goods and services that society wants and sell them at reasonable profit. Identify the category of social responsibility referred here.

• a) Economic Responsibility
• b) Ethical Responsibility
• c) Legal Responsibility
• d) Discretionary Responsibility

Answer: Economic Responsibility

Question 31: Which of the following are the categories of Social Responsibility?

• a) All the above
• b) Ethical Responsibility
• c) Economic Responsibility
• d) Legal Responsibility

Answer: All the above

Question 32 : Which of the following can explain the need for pollution control

• a) All of the options
• b) Reduction of health hazards.
• c) Cost Savings.
• d) Reduced risk of liability.

Answer: All of the options

Question 33: Business people have the skill to involve

• a) Some social problems,
• b) All economic problems.
• c) No social problems
• d) All social problems

Answer: Some social problems,

Question: 34 Social responsibility is

• a) Broader than legal responsibility
• b) Same as legal responsibility
• c) Narrower than legal responsibility
• d) None of the options

Answer: Broader than legal responsibility

Question 35: Which of the following factors has forced businesses to assume social responsibility?

• a) Pressure of labour movement
• b) All the above
• c) Threat of public regulation
• d) Impact of consumer consciousness

Answer: Pressure of labour movement

Question 36 : It is the obligation of the business to take those decisions and to perform those actions which are expected in respect of the values and norms of the society. Identify the concept.

• a) Social Ethics
• b) None of the options
• c) Social Skills
• d) Social Responsibility

Answer: Social Ethics

Question 37 : Which of the following is not the social responsibility of business towards the consumers?

• a) To give them a share of profit
• b) To bring out reality in advertisement
• c) To make available good quality goods at cheap rates
• d) To avoid adulteration

Answer: To give them a share of profit

Question 38 : Which of the following is not the social responsibility of business towards the investors?

• a) To give appropriate salary
• b) To ensure proper dividend
• c) To ensure safety of capital
• d) To ensure proper utilization of capital

Answer: To give appropriate salary

Question 39 : These are socially determined moral principles which govern business activities. Identify the concept.

• a) Social Skills
• b) Social Responsibility
• c) Business Ethics
• d) None of the options

Answer: Social Skills

Question 40 : Providing charitable contributions to educational institutions is the example of which category of social responsibility?

• a) Discretionary Responsibility
• b) Ethical Responsibility
• c) Economic Responsibility
• d) Legal Responsibility

Answer: Discretionary Responsibility

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