Question 1

Question 7: What is an argument against social responsibility based on economic theory?

Accepted Answer

B) Higher production costs

Critics argue that social responsibility can lead to increased production costs, impacting profitability.

Question 2

4. Question: What is the primary function of commercial banks in an economy?

Accepted Answer

c) Facilitating financial transactions

Commercial banks play a key role in facilitating financial transactions, offering services such as deposits, loans, and payment services.

Question 3

Question 18: Which factor is crucial for effective communication in an international team?

Accepted Answer

C) Promoting cultural intelligence

Cultural intelligence involves the ability to work effectively across different cultural contexts, promoting successful international communication.

Question 4

Question 12: In systematic sampling, how is the starting point determined?

Accepted Answer

a) Randomly

Explanation: Systematic sampling involves selecting every kth item from a list, with a random starting point.

Question 5

Question 7: In international business writing, what is crucial for clarity?

Accepted Answer

C) Simple language and clarity

Clarity is essential in international business writing to ensure understanding across cultures.

Question 6

Question 9: What term is used to describe the practice of sourcing goods and services from multiple countries to take advantage of cost differences?

Accepted Answer

B

Outsourcing involves obtaining goods or services from multiple countries to benefit from cost differentials.

Question 7

Question 20: Which of the following is a characteristic of a z-test in large sample hypothesis testing?

Accepted Answer

a) Requires knowledge of the population standard deviation

Explanation: A z-test is suitable for large samples and requires knowledge of the population standard deviation.

Question 8

Question 20: What is the primary purpose of redeeming preference shares?

Accepted Answer

C) Returning capital to shareholders

Question 9

Question 12: In a bailment, what is the person transferring possession called?

Accepted Answer

B) Bailor

Explanation: The person transferring possession in a bailment is called the bailor.

Question 10

Question 9: How does controlling contribute to the efficiency of an organisation?

Accepted Answer

B. By reducing waste

Controlling helps identify and eliminate inefficiencies, thereby reducing waste in resources.

Question 11

Question 10: Which statistical distribution is commonly used for large sample tests?

Accepted Answer

a) Normal distribution

Explanation: Large sample tests often rely on the normal distribution due to the Central Limit Theorem.

Question 12

According to the Dynamic Theory of Profit, what role does innovation play in profit generation?

Accepted Answer

D

The Dynamic Theory of Profit emphasises that innovation plays the primary role in generating profit.

Question 13

Question 6: The process of converting debentures into equity shares is known as:

Accepted Answer

B) Conversion

Question 14

Question 14: In which situation does a contractual lien typically arise?

Accepted Answer

A) Purchase of goods

Explanation: A contractual lien often arises in the context of the purchase of goods.

Question 15

Question 19: What is the primary difference between strategic control and operational control?

Accepted Answer

C. Level of management

Strategic control is typically exercised by top management, while operational control is more focused on day-to-day activities at lower levels of management.

Question 16

13. Question: Which factor is crucial for the growth of the entrepreneurial sector in an economy?

Accepted Answer

c) Innovation and risk-taking

The entrepreneurial sector thrives on innovation and risk-taking, driving economic development and competitiveness.

Question 17

Question 1: What is controlling in management?

Accepted Answer

C. Monitoring and adjusting activities

Controlling involves monitoring ongoing activities to ensure they are consistent with the planned activities and making necessary adjustments.

Question 18

What does the Marginal Productivity Theory of Factor Pricing suggest?

Accepted Answer

A

The Marginal Productivity Theory states that factors are paid according to their marginal contribution to production.

Question 19

Question 5: What is cultural sensitivity?

Accepted Answer

B) Being aware and respectful of cultural differences

Cultural sensitivity involves recognizing and valuing diverse cultural perspectives.

Question 20

Question 9: As the sample size increases in a hypothesis test, what happens to the power of the test?

Accepted Answer

a) Increases

Explanation: Larger sample sizes generally result in increased power, making it easier to detect true effects.

Unit 5 — Question Paper

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