ICFAI University Sample Papers

Can you provide me previous year question paper of the subject Business Environment & Law under ICFAI University MBA Module-1?

[sumit]

The previous year question paper of the subject Business Environment & Law under ICFAI University MBA Module-1 is as follows:

1. The study of factors such as family structures and their changes, role and status of women in society, and educational levels and gender inequality in educational levels which affect a business organization is a part of
(a) Demographic environment
(b) Social environment
(c) Cultural environment
(d) Ethical environment
(e) Internal environment.

2. Which among the following is studied with reference to the size, growth rate, age composition, gender composition, life expectancy, etc., of the population?
(a) Demographic environment
(b) Political environment
(c) Economic environment
(d) Trade environment
(e) Legal environment.

3. The traditional family life cycle facilitates the classification of family units into distinct segments on the basis of various stages in the family. Which stage of this family life cycle is associated with the task of disconnecting or reconnecting with one’s family on a different level while simultaneously establishing oneself as a person?
(a) Bachelorhood
(b) Honeymooners
(c) Parenthood
(d) Post parenthood
(e) Dissolution.

4. Which of the following is not an element of culture?
(a) Language
(b) Age
(c) Aesthetics
(d) Education
(e) Religion.

5. Which of the following statements is not true with respect to Hall’s Map of Culture?
(a) Hall’s Map of Culture is a two-dimensional matrix containing different human activities
(b) The different human activities are called primary message systems
(c) Ten activities fall under primary message system of Hall's Map of Culture
(d) It works very well in the context of international business
(e) A person interested in the cultural analysis of a particular region has to study all the activities, in order to grasp adequate understanding of the culture.

6. Which of the following factors given below is/are not a part of the economic environment?
I. Monetary, industrial and fiscal policies
II. Factors related to the management of public affairs and their impact on an organization’s business
III. Capitalist, socialistic or mixed economy
IV. Infrastructural factors such as financial institutions, banks, communication facilities, modes of transport and energy sources.
(a) Only (I) above
(b) Only (II) above
(c) Both (I) and (II) above
(d) Both (II) and (III) above
(e) (II), (III) and (IV) above.

7.
Who among the following sell goods on behalf of the principal?
(a)
Commission agents

(b)
Auctioneers

(c)
Brokers

(d)
Shipping agents

(e)
Warehouse Keepers.

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8.
Which of the following environments includes macro level factors such as national income, per capita income and balance of payments that affect an organization’s business?
(a)
Trade environment
(b)
Economic environment
(c)
Financial environment
(d)
Political environment
(e)
Technological environment.
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9.
Micromax Ltd., a software company, is trying to make its presence felt in the highly competitive market. It creates and installs copies of software on personal computers without proper permission from the producer or the vendor of the software. This is a violation of
(a)
Trademarks

(b)
Patents

(c)
Copyrights

(d)
Intellectual Property Rights

(e)
Trade Secret.

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10.
Which of the following is not correct regarding requirements of a good tax structure?
(a)
Revenue yield should be adequate

(b)
It is only the impact point at which the tax is imposed that matters and not the final resting place, for constructing a good tax structure

(c)
The distribution of tax burden should be equitable

(d)
The tax structure should facilitate the use of fiscal policy for stabilization and growth objectives

(e)
The tax system should be understandable to the taxpayer.

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11.
Which of the following is an example of direct tax?
(a)
Inheritance tax

(b)
Excise duty

(c)
Customs duty

(d)
Sales tax

(e)
Corporation tax.

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12.
Tariffs are imposed by the government
I. To discourage the use of certain products as their use is perceived to harm the society
II. To raise revenue and to promote economic and social goals
III. To encourage the outflow of foreign exchange reserves in case of imports
IV. To shelter a domestic industry from the onslaught of foreign companies.

(a)
Only (I) above
(b)
Both (I) and (II) above
(c)
Both (II) and (III) above
(d)
(I), (II) and (III) above
(e)
(I), (II) and (IV) above.
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13.
Power can be classified into different categories on certain bases. Which of the following types draws its base for power in organization structure?
(a)
Legitimate power

(b)
Expert power

(c)
Coercive power

(d)
Referent power

(e)
Reward power.

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14.
Social class refers to the classification of members of a society into levels of distinct classes, so that a member of each class has approximately equal position in society with other members of the same class. Which of the following is not true regarding social class?
(a)
Social classes are multidimensional
(b)
Social classes are hierarchical
(c)
Social classes are restrictive
(d)
Social classes are heterogeneous
(e)
Social classes are dynamic.
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15.
Identify the proper sequence of needs in Maslow’s hierarchy of needs from lowest to highest.
(a)
Physiological – Social – Security – Esteem – Self actualization
(b)
Physiological – Security – Esteem – Social - Self actualization
(c)
Physiological – Security – Social – Esteem - Self actualization
(d)
Physiological – Social – Esteem – Security - Self actualization
(e)
Physiological – Esteem – Social – Security - Self actualization.
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16.
Which of the following usually captures the ideas and expressions that are inherent in a culture and includes aspects like art, drama, color, music and architecture?
(a)
Language
(b)
Religion
(c)
Education
(d)
Aesthetics
(e)
Lifestyle.
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17.
Which of the following is/are true with respect to primacy of host country approach?
I. It assumes that what is good at home would also work the same way in foreign markets.
II. It considers the market composition and base decisions on the cultural traits of the host country.
III. It assumes that the home country’s cultural traits are inappropriate for successful operation in markets outside the home country.

(a)
Only (I) above
(b)
Only (II) above
(c)
Only (III) above
(d)
Both (I) and (II) above
(e)
Both (II) and (III) above.
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18.
Identify the statements that hold true regarding cross-cultural analysis.
I. It is used by managers to understand the different market segments within and across national boundaries.
II. It helps in determining whether the marketing program can be used in more than one foreign market or must be modified to suit local conditions.
III. It binds an entity to its cultural assumptions, thus affecting the thinking process of the entity.
IV. It gives rise to the tendency to assume that people from other cultures are similar to people belonging to one’s own culture.

(a)
Both (I) and (II) above
(b)
Both (I) and (III) above
(c)
(I), (II) and (III) above
(d)
(I), (II) and (IV) above
(e)
(II), (III) and (IV) above.
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19.
Political risk refers to any government action that diminishes the value of a firm’s operations within the political boundaries or influence of that government. In this context, which of the following is not an element of political risk?
(a)
Confiscation
(b)
Contract repudiation
(c)
Promotion of currency convertibility
(d)
Unfair regulatory environment
(e)
War risk.
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20.
Which of the following statements is not true regarding Expropriation?
(a)
In Expropriation, the compensation provided is always adequate
(b)
Usually a company whose property is being expropriated, agrees to sell its operations not because it has a choice, but because of some coercion
(c)
The sale is made to the government or the nominee of the government, by order
(d)
Expropriation patterns might vary according to the industry, geographic region, type of ownership, technology, degree of vertical integration, asset size and politico-economic situation
(e)
Confiscation is a special case of Expropriation.
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21.
A developed economy is one, which has reached a very high stage of development. In this context, which of the following is/are a notable feature of a developed economy?
I. High population growth rate
II. High per capita income
III. High standard of living
IV. Large scale production.

(a)
Only(I) above
(b)
Only (II) above
(c)
Both (I) and (II)
(d)
Both (II) and (III)
(e)
Both (I) and (IV).
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22.
Several factors cause disequilibrium in a country’s balance of payments. Which of the following factors could cause a temporary disequilibrium?
(a)
Technological changes in the methods of production

(b)
Changes in consumer tastes within the country or abroad

(c)
Change in the country’s national income

(d)
Impact of the weather on agricultural production

(e)
Inflation.

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23.
Which of the following statements is not true with respect to Current Account of Balance of Payments?
(a)
It is a record of the value of trade in goods and services and of transfers between a country and the rest of the world
(b)
Service transactions include travel and transportation, income and payments on foreign investments
(c)
Transfer payments relate to gifts, foreign aid, pensions, private remittance and charitable donations received from foreign individuals
(d)
It can also be said that it consists of international dealings in visible trade (goods) and invisible trade (services)
(e)
A deficit on this account means that more goods and services have been exported than have been imported.
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24.
Which of the following is not an advantage of mutual funds?
(a)
Diversified investment improves the risk-return profile of the portfolio
(b)
Mutual funds generally offer a number of schemes to suit the requirements of the investors
(c)
Investors can choose the securities they want to invest in, or the securities they want to sell
(d)
Mutual funds are generally managed by knowledgeable, experienced professionals whose time is solely devoted to tracking and updating the portfolio
(e)
It is easier to liquidate holdings in a mutual fund as compared to direct investment in securities.
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25.
A mutual fund whose objective is to generate capital gains rather than current income for the investors is referred to as
(a)
Growth fund

(b)
Pension funds

(c)
Off-shore funds

(d)
Income fund

(e)
Index fund.

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26.
According to section 45 – I (bb) of the RBI Act, which of the following is referred to as money received by way of deposit or loan or in any other form, excluding certain specified items?
(a)
Venture capitals
(b)
Mutual Funds
(c)
Public Deposits
(d)
Options
(e)
Shares.
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27.
Venture capital funds are eminently suitable as a source of risk finance. The reason for making this statement is based on certain characteristics of Venture capital funds. Identify the most appropriate characteristic.
(a)
It is equity or quasi-equity investment

(b)
It is a long term investment

(c)
It is an active form of investment

(d)
It is Equity or quasi-equity investment and a long term investment

(e)
It is Equity or quasi-equity investment, long term investment and an active form of investment.

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28.
Which economic indicator focuses on differences in the economic wellbeing of different groups in the population?
(a)
National income
(b)
Gross domestic product
(c)
Income distribution
(d)
Index numbers
(e)
Gross national product
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29.
‘Del credere’ agents fall under which of the following categories of mercantile agents?
(a)
Brokers
(b)
Commission Agents
(c)
Auctioneers
(d)
Shipping Agents
(e)
Warehouse keepers.
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30.
Which of the following is not true regarding licensing as a strategy for entering into foreign markets?
(a)
In licensing, a firm, called the licensor, sells the right to use its intellectual property - technology, patents, copyrights, work methods, brand names, or trademarks- to another firm, called the licensee, in return for a fee
(b)
The use of licensing is affected by host country policies
(c)
Opportunity costs are absent in Licensing
(d)
Through licensing, a firm can gain from locational advantages of foreign production without incurring any ownership, managerial or investment obligations
(e)
The long-term strategic implications of licensing a firm's technology are of great concern to any firm.
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31.
Which of the following is defined as the process of breaking down governmental and artificial barriers in international trade and investment?
(a)
Globalization
(b)
Privatization
(c)
Liberalization
(d)
Standardization
(e)
Nationalization
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32.
The French government prohibited the imports of beef from Russia. Consequently, there was a decline in the sales of beef in the French market. The privilege of giving rights for import of such products is termed as
(a)
Import license

(b)
Import tariffs

(c)
Import restrictions

(d)
Import duties

(e)
Import substitution.

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33.
The risk of government taking over the ownership of property after paying some amount as compensation, which is called expropriation is a major factor that is taken into consideration by investors. This type of risk can be called
(a)
Economic risk

(b)
Financial risk

(c)
Market risk

(d)
Political risk

(e)
Ideological risk.

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34.
International franchising is one of the fastest growing forms of international business activity today. It is a special form of
(a)
Trade
(b)
Branding
(c)
Licensing
(d)
Agency
(e)
Arrangement
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35.
Which of the following has/have a lien on the goods for the charge payable to them?
I. Brokers
II. Commission agents
III. Auctioneers
IV. Warehouse keepers.

(a)
Only (I) above
(b)
Only (II) above
(c)
Only (III) above
(d)
Both (I) and (II) above
(e)
Both (III) and (IV) above.
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36.
Mutual insurance pools may be owned by a group of insurers. Such pools are expected to accept only those risks, which would meet certain standards. These standards are related to
(a)
Technology
(b)
Underwriting
(c)
ISO – 9002
(d)
Pollution control
(e)
Break-even levels
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37.
A solution to environmental pollution lies in creating mutual insurance pools, assigned risk pools, and environmental trust funds. Which of the following is true with regard to assigned risk pools?
(a)
Assigned risk pools are owned by a group of insurers who are experts in a particular technological area
(b)
Assigned risk pools are created by the government
(c)
Assigned risk pools are financed through end-use taxes or broad-based taxes
(d)
Assigned risk pools pay for the clean-up of hazardous sites on a no-fault basis
(e)
Assigned risk pools create a surplus for the government.
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38.
The compensation paid under a licensing agreement is termed as
(a)
Patent
(b)
Fees
(c)
Royalty
(d)
Commission
(e)
Tax.
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39.
Which of the following is not an asset in the balance sheet of a bank?
(a)
Bill Financing
(b)
Overdrafts
(c)
Deposits
(d)
Cash
(e)
Investments
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40.
Which of the following is a kind of ‘Financial Intermediation’ that facilitates the borrowing of relatively short-term funds from savers and providing long-term loans to borrowers who require a long-term commitment to funds?
(a)
Denomination Intermediation
(b)
Default-Risk Intermediation
(c)
Liquidity Intermediation
(d)
Information Intermediation
(e)
Maturity Intermediation.
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41.
Which of the following is referred to as non-tariff barriers in international trade?
(a)
Restrictive trading laws
(b)
Anti dumping laws
(c)
Legal incentives
(d)
Income tax holidays
(e)
Quantitative restrictions
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42.
The purpose of all government interventions is to maximize society’s welfare. Which of the following statements is not true with regard to government regulation?
(a)
If resources are allocated among various users in a society in such a way that no one can be made better off without making someone else worse off, then a such a society is called a ‘pareto efficient’ economy
(b)
If resources can be reallocated in such a way that it makes at least one person better off without making anyone else worse off, then there is scope for ‘pareto improvement’
(c)
Society may not necessarily prefer a ‘pareto efficient’ allocation of its resources
(d)
Markets are not completely efficient
(e)
Markets are generally characterized by perfect competition.
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43.
Ideas that are translated into tangible products, writings and so on, and that are protected by the state for a limited period of time from “Unauthorized commercial exploitation” are referred to as
(a)
Jurisdiction of laws
(b)
Foreign investment regulations
(c)
Intellectual property rights
(d)
Restrictive trading laws
(e)
Host country laws
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44.
Tariff is a tax that a government levies on exports and imports. A term ‘reverse tariff’ is known as
(a)
Export duty
(b)
Import duty
(c)
Export Incentive
(d)
Subsidy
(e)
Import incentive
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45.
Which of the following statements hold(s) true regarding bribing, an unethical behavior that distorts the market system?
I. A bribe makes a choice more attractive to a decision maker by enhancing the personal gain associated with it.
II. Bribery enhances the freedom of choice by changing the conditions under which a decision is made.
III. It leads to allocation of more resources to a less desirable alternative.

(a)
Only (I) above
(b)
Only (II) above
(c)
Only (III) above
(d)
Both (I) and (II) above
(e)
Both (I) and (III) above.
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46.
Which of the following refers to the state in which certain diplomatic organizations and people operating in a foreign country are exempted from the jurisdiction of the laws in that country?
(a)
Expropriation

(b)
Confiscation

(c)
Nationalization

(d)
Extraterritoriality

(e)
Domestication.

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47.
Mr. Joshi is 59 years old and is about to retire next year. He stays along with his wife. His children are married and well-settled. Mr. and Mrs. Joshi are in which stage of the traditional family life cycle?
(a)
Bachelorhood
(b)
Honeymooners
(c)
Parenthood
(d)
Postparenthood
(e)
Dissolution
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48.
Hero India Ltd. is an Indian based company that intends to extend its marketing and other activities outside India. Its strategy is to make its presence felt and provide value addition to all its customers. Hero India Ltd. proposes to become
(a)
Domestic company
(b)
International company
(c)
Multinational company
(d)
Global company
(e)
Multi-domestic company.
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49.
Merchant middlemen form an important link in business. Which of the following functions both as an importer and exporter?
(a)
The wholesaler
(b)
Multiple shops
(c)
Large scale retailer
(d)
Cooperative store.
(e)
Chain store
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50.
When the host government takes over a foreign business but does not compensate the owners for the loss, such takeover is regarded as an act of
(a)
Expropriation
(b)
Confiscation
(c)
Nationalization
(d)
Socialization
(e)
Domestication.