# Bihar Board 12th Entrepreneurship Objective Important Questions Part 4

Bihar Board 12th Entrepreneurship Important Questions Objective Type Part 4 are the best resource for students which helps in revision.

## Bihar Board 12th Entrepreneurship Objective Important Questions Part 4

Question 1.
What is net sales?
(a) Gross sales – Sales return
(b) Sales return – Gross sales
(c) Gross sales – Profit
(d) Gross sales + Profit
Answer:
(a) Gross sales – Sales return

Question 2.
The formula of operating profit ratio
(a) $$\frac{\text { Gross profit }}{\text { sales }} \times 100$$
(b) $$\frac{\text { Net profit margin }}{\text { sales }} \times 100$$
(c) $$\frac{\text { Operation profit }}{\text { sales }} \times 100$$
(d) $$\frac{\text { Net profit }}{\text { sales }} \times 100$$
Answer:
(c) $$\frac{\text { Operation profit }}{\text { sales }} \times 100$$

Question 3.
Operating ratio = ?
(a) Gross profit – Sales
(b) Profit – Loss
(c) Net sales – Gross profit
(d) Cost + Profit
Answer:
(c) Net sales – Gross profit

Question 4.
An ideal current ratio is
(a) 2 : 1
(b) 1 : 2
(c) 3 : 2
(d) 4 : 1
Answer:
(a) 2 : 1

Question 5.
Current ratio is
(a) Composite ratio
(b) P/L ratio
(c) Balance sheet ratio
(d) None of these
Answer:
(c) Balance sheet ratio

Question 6.
Which of the following is not operating expense?
(a) Advertising expense
(b) Wages
(c) Written of preliminary exp.
(d) Rent
Answer:
(c) Written of preliminary exp.

Question 7.
Formula of the depreciation to sales
(a) $$\frac{\text { Depreciation }}{\text { Net sales }} \times 100$$
(b) $$\frac{100}{\text { Net sales }} \times \text { depreciation }$$
(c) $$\frac{\text { Net sales }}{\text { Depreciation }} \times 100$$
(d) $$\frac{\text { Depreciation }}{100} \times \text { Net sales }$$
Answer:
(a) $$\frac{\text { Depreciation }}{\text { Net sales }} \times 100$$

Question 8.
Contribution
(a) Sales less total cost
(b) sales less variable cost
(c) Sales less fixed cost
(d) None of these
Answer:
(b) sales less variable cost

Question 9.
Break even point
(a) $$\frac{\text { Fixed cost }}{\text { Contribution per unit }}$$
(b) $$\frac{\text { Variable cost }}{\text { Contribution }}$$
(c) $$\frac{\text { Fixed cost }}{\text { Profit }} \times 100$$
(d) $$\frac{\text { Unit cost }}{\text { Loss }} \times 100$$
Answer:
(a) $$\frac{\text { Fixed cost }}{\text { Contribution per unit }}$$

Question 10.
Utility is included in BEP as
(a) Diagnostic tool
(b) Risk valuation
(c) Profit improvement
(d) All of these
Answer:
(d) All of these

Question 11.
The difference between actual sale and break-even sale is called
(a) Net profit
(b) Gross profit
(c) Contribution
(d) Margin of safety
Answer:
(d) Margin of safety

Question 12.
Risk capital foundation was established in
(a) 1970
(b) 1975
(c) 1986
(d) 1988
Answer:
(b) 1975

Question 13.
Venture capital thought was originated in
(a) India
(b) England
(c) America
(d) Japan
Answer:
(d) Japan

Question 14.
Venture capital was established in SIDBI
(a) 1972 – 73
(b) 1952 – 53
(c) 1992 – 93
(d) 1892 – 93
Answer:
(c) 1992 – 93

Question 15.
Risk capital foundation was established by
(a) IFCI
(b) UTI
(c) IDBI
(d) ICICI
Answer:
(a) IFCI

Question 16.
Venture capital contains
(a) High risk
(b) Venture risk
(c) No risk
(d) None of these
Answer:
(a) High risk

Question 17.
According to guidelines issued by government, debt equity ratio for venture capital is
(a) 1.5
(b) 2.0
(c) 0.5
(d) 2.5
Answer:
(a) 1.5

Question 18.
Indian investment fund was established by
(a) IFCI
(b) SBI
(c) Can Bank
(d) Grindlay Bank
Answer:
(d) Grindlay Bank

Question 19.
Variables are used for technical capability
(a) 2
(b) 3
(c) 4
(d) 5
Answer:
(c) 4

Question 20.
Labour intensive technique is appropriate because it relate with
(a) Unstable nature
(b) Movable nature
(c) Constant nature
(d) Advantage in nature
Answer:
(a) Unstable nature

Question 21.
Capital intensive technique is not much useful because it
(a) Helps labour power
(b) Exploit customers
(c) Improves balanced regional developments
(d) Control capitalised resources
Answer:
(b) Exploit customers

Question 22.
Capital intensive technique is favoured due to
(a) Rapid growth
(b) Social influence
(c) (a) & (b) both
(d) None of these
Answer:
(d) None of these

Question 23.
Management is
(a) Art
(b) Science
(c) Art & Science both
(d) None of these
Answer:
(c) Art & Science both

Question 24.
The social responsibility of management is
(a) Towards the government
(b) Towards all
(c) Towards employees
(d) Towards himself
Answer:
(b) Towards all

Question 25.
Management is a profession. This statement is of
(a) Fayol
(b) Terry
(c) Robins
(d) American Management Association
Answer:
(d) American Management Association

Question 26.
Management is the development of men and not the direction of things
(a) Lawrence A. Appley
(b) R. C. Devis
(c) Keith and Gubelline
(d) Henry Fayol
Answer:
(a) Lawrence A. Appley

Question 27.
H. Fayol started the function of management
(a) 1912
(b) 1816
(c) 1916
(d) 1926
Answer:
(a) 1912

Question 28.
Function of management is
(a) 2
(b) 3
(c) 4
(d) 5
Answer:
(d) 5

Question 29.
Motivation includes
(a) Directing
(b) Controlling
(c) Staffing
(d) Planning
Answer:
(a) Directing

Question 30.
According to American Management Association, Management is a
(a) Science
(b) Profession
(c) Art
(d) Employment
Answer:
(b) Profession

Question 31.
Steps of product are
(a) Extractive
(b) Genetic
(c) Communication
(d) Extractive and Genetic
Answer:
(d) Extractive and Genetic

Question 32.
Production design includes
(a) Standardisation
(b) Planning
(c) Cost
(d) Control
Answer:
(a) Standardisation

Question 33.
Infact, present production system is
(a) Direct production
(b) Primary
(c) Secondary
(d) Indirect production
Answer:
(d) Indirect production

Question 34.
Use of linear programming
(a) In production method
(b) In market method
(c) In transportation method
(d) All of these
Answer:
(c) In transportation method

Question 35.
Production process includes
(a) Creativity
(b) Price
(c) Warehousing
(d) All of these
Answer:
(a) Creativity

Question 36.
The purpose of advertisement is
(a) To attract potential buyers
(b) To inform and guide customers
(c) To make publicity of product
(d) All of these
Answer:
(d) All of these

Question 37.
Brand indicates
(a) Symbol
(b) Design
(c) Name
(d) All of these
Answer:
(d) All of these

Question 38.
What does affect product mix?
(a) Marketing
(b) Product
(c) Financial
(d) All of these
Answer:
(a) Marketing

Question 39.
Which is the most important scope?
(a) Brand
(b) Labelling
(c) Packaging
(d) Trade mark
Answer:
(c) Packaging

Question 40.
Labelling is
(a) Compulsory
(b) Necessary
(c) Voluntary
(d) Wastage of money
Answer:
(b) Necessary

Question 41.
The characteristics of a good brand are
(a) Short name
(b) Memorable
(c) Attractive
(d) All these
Answer:
(d) All these

Question 42.
Importance of marketing concept is for
(a) Society
(b) Consumers
(c) Producers
(d) All the three
Answer:
(d) All the three

Question 43.
Marketing concept is
(a) Production oriented
(b) Sales oriented
(c) Customer oriented
(d) All the three
Answer:
(d) All the three

Question 44.
The advantage of marketing is to
(a) To consumers
(b) To businessmen
(c) To producer
(d) To all
Answer:
(d) To all

Question 45.
For business, marketing is
(a) Compulsory
(b) Necessary
(c) Unnecessary
(d) Luxury
Answer:
(a) Compulsory

Question 46.
Marketing expenditure is a burden
(a) On industry
(b) On businessmen
(c) On consumers
(d) All of these
Answer:
(c) On consumers

Question 47.
Money spent on marketing is
(a) Wastage
(b) Unnecessary expenses
(c) Burden on customer
(d) Investment
Answer:
(d) Investment

Question 48.
The rate of dividend on preference share is
(a) Fixed
(b) Variable
(c) Semi variable
(d) All of these
Answer:
(a) Fixed

Question 49.
SFC Act in India was passed in the year
(a) 1948
(b) 1949
(c) 1950
(d) 1951
Answer:
(b) 1949

Question 50.
IFCI was established in the year
(a) 1939
(b) 1948
(c) 1950
(d) 1956
Answer:
(b) 1948