Commerce MCQs:
1. Which of the following is the primary objective of a business? a) Social welfare
b) Profit maximization
c) Employee satisfaction
d) Environmental protection
Answer: b) Profit maximization
2. What is the term for a market dominated by a few large firms? a) Monopoly
b) Oligopoly
c) Perfect competition
d) Monopsony
Answer: b) Oligopoly
3. The document used to transfer ownership of goods from seller to buyer is called? a)
Invoice
b) Bill of exchange
c) Debit note
d) Delivery note
Answer: a) Invoice
4. Which of the following is not a type of partnership? a) General partnership
b) Limited partnership
c) Corporation
d) Joint venture
Answer: c) Corporation
5. Which business structure provides limited liability to its owners? a) Sole
proprietorship
b) Partnership
c) Corporation
d) Cooperative
Answer: c) Corporation
6. The abbreviation 'LLP' stands for? a) Limited Liability Partnership
b) Long-term Legal Partnership
c) Low-Level Partnership
d) Liability Limited Proprietorship
Answer: a) Limited Liability Partnership
7. Which document sets the rules for running a company? a) Articles of Association
b) Memorandum of Understanding
c) Contract Agreement
d) Prospectus
Answer: a) Articles of Association
8. What is franchising? a) A type of investment
b) A method of expanding a business by licensing a third party
c) A type of stock market transaction
d) An accounting procedure
Answer: b) A method of expanding a business by licensing a third party
9. Which of the following is a function of marketing? a) Financing
b) Production
c) Pricing
d) Auditing
Answer: c) Pricing
10. The term “CSR” stands for? a) Corporate Social Responsibility
b) Company Sales Record
c) Customer Service Report
d) Credit and Sales Review
Answer: a) Corporate Social Responsibility
Accounting MCQs:
1. The accounting equation is: a) Assets = Liabilities + Equity
b) Assets = Liabilities - Equity
c) Assets = Liabilities x Equity
d) Assets = Liabilities ÷ Equity
Answer: a) Assets = Liabilities + Equity
2. Which financial statement shows a company’s profitability over a specific period? a)
Balance sheet
b) Income statement
c) Cash flow statement
d) Statement of retained earnings
Answer: b) Income statement
3. Depreciation is recorded as an: a) Asset
b) Liability
c) Expense
d) Equity
Answer: c) Expense
4. The balance sheet is also known as: a) Profit and Loss Statement
b) Statement of Financial Position
c) Cash Flow Statement
d) Revenue Statement
Answer: b) Statement of Financial Position
5. Which of the following is a current asset? a) Land
b) Accounts receivable
c) Building
d) Machinery
Answer: b) Accounts receivable
6. What type of account is “Prepaid Expenses”? a) Asset
b) Liability
c) Equity
d) Expense
Answer: a) Asset
7. Revenue is recognized when: a) Payment is received
b) The service is performed or the goods are delivered
c) The invoice is sent
d) The contract is signed
Answer: b) The service is performed or the goods are delivered
8. Which of the following is a liability? a) Cash
b) Equipment
c) Accounts payable
d) Inventory
Answer: c) Accounts payable
9. In double-entry accounting, every transaction affects: a) One account
b) Two accounts
c) Three accounts
d) Four accounts
Answer: b) Two accounts
10. Which accounting concept assumes a business will continue to operate indefinitely?
a) Accrual principle
b) Matching principle
c) Going concern
d) Consistency principle
Answer: c) Going concern
Economics MCQs:
1. Economics is the study of: a) Business
b) Money
c) Resource allocation and decision-making
d) Trade
Answer: c) Resource allocation and decision-making
2. What is opportunity cost? a) The cost of all alternatives
b) The next best alternative forgone
c) The total cost of production
d) The cost of producing one more unit
Answer: b) The next best alternative forgone
3. Which of the following is a microeconomic concept? a) National income
b) Inflation
c) Consumer demand
d) Unemployment
Answer: c) Consumer demand
4. When demand exceeds supply, it results in: a) Surplus
b) Deflation
c) Shortage
d) Equilibrium
Answer: c) Shortage
5. Gross Domestic Product (GDP) measures: a) Total exports
b) National income
c) The total value of goods and services produced within a country
d) Government spending
Answer: c) The total value of goods and services produced within a country
6. In a free market economy, prices are determined by: a) Government intervention
b) Central planning
c) Supply and demand
d) Monopolies
Answer: c) Supply and demand
7. Inflation refers to: a) An increase in supply
b) A decrease in supply
c) An increase in the general price level
d) A decrease in the general price level
Answer: c) An increase in the general price level
8. The law of demand states that, all else being equal: a) When the price increases,
demand increases
b) When the price increases, demand decreases
c) When the price decreases, supply decreases
d) When demand increases, price increases
Answer: b) When the price increases, demand decreases
9. Which of the following is a factor of production? a) Money
b) Capital
c) Taxes
d) Inflation
Answer: b) Capital
10. Which type of market structure has many sellers and identical products? a)
Monopoly
b) Oligopoly
c) Perfect competition
d) Monopsony
Answer: c) Perfect competition