Basic Concepts of Economics MCQs

Which form of business organization falls between a corporation and partnership ?

A. joint company
B. Joint stock company
C. Limited joint company
D. Limited Company

What occurs when a firm’s business is terminated Assets are sold, proceeds are used to pay creditors, and any leftovers are distributed to shareholders ?

A. Solvency
B. Crash
C. Bankruptcy
D. Liquidation

Percentage of total industry sales that a particular company controls is called ?

A. Lion’s share
B. Market share
C. Net share
D. Holding share

Where ‘Nikkei Stock average’ applies ?

A. Mainly to Korean equities
B. Mainly to international equities
C. Mainly to Japanese equities
D. Mainly to US equities

Which market is characterized by a small number of large buyers who control all purchases and therefore the market price of a good a service ?

A. Oligopoly
B. Grey market
C. Oligopsony
D. Green market

P2P is business slang. What does it refer ?

A. To start-ups or internet start-up
B. Path to profitability
C. Both of them
D. None of them

Term the authorization whether written or electronic, that shareholders’ votes may be cast by others ?

A. Proxy vote
B. Absentia vote
C. Remote vote
D. Casting vote

what is called an evaluation of credit quality of a company’s debt issued by Moody’s S&P and Fitch investors services ?

A. Credit worthiness
B. Credit Worth
C. Credit line
D. Ratings

Interest that is calculated as a simple percentage of the original principal amount is called ?

A. Market interest
B. Easy interest
C. Compound interest
D. Simple interest

What is called an additional levy added to some charge ?

A. Fine
B. Surcharge
C. Additional Charged
D. Extra charges

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