COMMERCE QUESTIONS & ANSWERS FOR INTERVIEW/VIVA VOCE ETC.
COMMERCE QUESTIONS & ANSWERS FOR
INTERVIEW/VIVA VOCE ETC.
Question 1. What Is Commerce?
Answer :
Commerce refers to and includes all those activities which are necessary to bring goods and services from the place of their origin to the place of their consumption.
Question 2. Into How Many Departments Is Commerce Mainly Divided Into? Which Are They?
Answer :
Into two.
They are:
-Trade
-Aids of trade
Question 3. The Trade Is Sub Divided Into Two Divisions, Which Are They?
Answer :
Home trade and Foreign trade.
Question 4. Into How Many Divisions The Home Trade Is Divided?
Answer :
Into two they are, Whole sale and retail
Question 5. Which Are The Two Divisions Of Whole Sale?
Answer :
They are import trade and export trade
Question 6. When Did The Commerce Begin To Grow?
Answer :
It is began to grow only after the division of labour and development of exchange. Once it started growing, it spread its invisible thread throughout the length and breadth of the world.
Question 7. What Is A Company?
Answer :
A company is an incorporated association which is an artificial person, having an independent legal entity, with a perpetual succession, a common seal, a common capital comprised of transferable shares and carrying limited liability.
Question 8. What Is Audit?
Answer :
An audit may be said to be such an examination of books, accounts and vouchers of a business, whether it is in a proper manner for the financial period.
Question 9. What Is The Minimum Number Of Directors In A Public Company?
Answer :
Atleast two directors
Question 10. What Is Public Sector?
Answer :
Central government,
local authorities and
the public corporations that run nationalized industries
Question 11. What Is Plant Layout?
Answer :
‘Plant layout’ means the arrangement and location of different departments and of the machinery and equipment within a department
Question 12. What Is Protocol?
Answer :
The minutes or records of a diplomatic conference; especially a note of agreement on a subsidiary matters which supplements a treaty.
Question 13. What Is Mortgage?
Answer :
It is a transaction by which land or any other property may be given as security for repayment of a loan
Question 14. What Is Loan?
Answer :
Something lent for the borrower’s temporary use, especially money lent with conditions about repayment and the payment of interest.
Question 15. What Is An Account?
Answer :
An account is a book-keeping device used in summarizing the increases and decreases in each asset or equity item
Question 16. What Is A Balance Sheet?
Answer :
It is the statement of account which is prepared at the end of every financial year. It gives the total picture of business at the point of time.
Question 17. What Is Business?
Answer :
Business is the sum of activities comprising buying and sellinggoods, manufacturing goods or providing services inorder to make profit.
Question 18. What Is Guarantor?
Answer :
A person who promises that if a second fails to fulfill some obligation, then he will fulfill it instead or pay money upto a specified limit to compensate for any loss caused by the second person’s failure
Question 19. What Is Quoted Price?
Answer :
It is the price of a share commodity as stated in the official list of the stock exchange commodity market.
Question 20. What Is Share?
Answer :
A unit for reckoning investors interests in the contributed capital of a company
Question 21. What Is The Other Name For Creditorship ?
Answer :
securities Debentures
Question 22. Who Is Called An Arbitrator?
Answer :
A person chosen by the parties to a dispute to suggest a way of settling the dispute
Question 23. What Is A Capital?
Answer :
The tangible resources of a person or organization, including cash, machinery, land, building, raw material etc. are called capital
Question 24. Who Is Sleeping Partner?
Answer :
A partner who contributes capital but will not take partin business activities is called a sleeping partner.
Question 25. When Did The Government Institute The Companies Amendment Act?
Answer :
In February 1963.
Question 26. What Is Debit?
Answer :
It is the term using in double entry book keeping for an entry made on the left-hand side of an account
Question 27. Who Is A Floor Trader?
Answer :
A person, usually a member of the stock exchange entitled to trade on the floor of that exchange is called floor Trader
Question 28. What Is Liquid Asset?
Answer :
The asset of the business which comprises cash or item which can easily and quickly be converted into cash within a period of one year
Question 29. Name The Brand Mark Which Has Legal Restrictions?
Answer :
Trademark
Question 30. What Is Stock Market?
Answer :
An organized market for securities. Also called a ‘stock exchange’
The tangible resources of a person or organization, including cash, machinery, land, building, raw material etc. are called capital
Question 31. What Is Tap?
Answer :
A large quantity of securities held by some one who is able to sell to any one who wants to buy is called a tap.
Question 32. What Is Value Added Tax(v.a.t.)?
Answer
The principle of V.A.T. is that tax is levied at each stage of the production of goods or services and on the value added at each stage of the production
Question 33. What Is Vital Statistics?
Answer :
It is the statistics concerned with births, deaths, ages, health, marriages, diseases etc…
Question 34. What Is Gratuity?
Answer :
A gift given especially of a small sum of money given in response to ther service received or anticipated
Question 35. What Is Gross National Product (g.n.p)?
Answer :
It is the total value of all goods and services that are produced by the people of a specified country in an year
Question 36. What Is Wage?
Answer :
It is the remuneration paid to the operative staff whoe output can be directly in an year
Question 37. What Is A By-product?
Answer :
A commonly which can be sold, produced in the process of manufacturing the main product.
Question 38. Which Is Called A Barometer Of Financial Health Of A Country?
Answer :
Stock-Exchange
Question 39. A Document Issued By A Vendor Giving Credit To The Debtor Is Called......
Answer :
Credit note
Question 40. What Is The Term Used With Reference To Assurance Policies?
Answer :
Endowment
Question 41. What Is Petty Cash?
Answer :
A small fund of cash held by an institution which is used to make small and urgent payments
Question 42. Who Are Entitled To Take Part In The Control And Management Of Business In A Company?
Answer :
The board of directors elected by the shareholders
Question 43. In A Company Who Is Responsible For Considering The Legal Aspects Of Company Activities?
Answer :
The company secretary
Question 44. What Is A Man Hour?
Answer :
It is an unit for measuring employment equivalent to the employment of one person for one hour
Question 45. Which Audit Is Conducted Only Once In A While And That Also When The Client Desires?
Answer :
Occasional audit
Question 46. The Bailment Of Goods As Security For Payment Of A Debt Is Called.......
Answer :
Pledge
Question 47. The Selection Of Goods Offered For Sale By A Retailer Is Called........
Answer :
Assortment
Question 48. What Is A Person Or Party To Whom An Assignment Is Made Called?
Answer :
Assignee
Question 49. What Is Tenor?
Answer :
A bill of exchange may be payable sometime in the future
Question 50. Which Value Was Measured In Gold Or Equivalent In Us Dollars?
Answer :
Par value
Question 51. What Is The Name Of Entry Which Is Used In Bank Column Cash Book To Record The Money Transaction?
Answer :
Contra entry
Question 52. The Fixed Cost Of Producing A Quantity Of A Good Divided By The Quantity Produced Is……
Answer :
Average fixed cost
Question 53. Which Is The Basic Document Of A Company?
Answer :
Memorandum of association
Question 54. Minimum Number Of Persons Who Has To Sign The Memorandum Of Association?
Answer :
Seven persons in the presence of one witness
Question 55. In The Charter Of The Company While Choosing A Name Which Word Should Not Be Included?
Answer :
Co-operative
Question 56. In The Name Of A Company Which Word Should Be Used At The End?
Answer :
Limited
Question 57. Which Is The Most Important Clauses Of The Memorandum?
Answer :
The object clause
Question 58. Which Is A Document Containing A Rules And Regulations For The Internal Management Of The Company?
Answer :
The article of association
Question 59. What Is The Maximum Number Of Partners In Banking Business?
Answer :
Ten
Question 60. What Is The Minimum Number Of Members In A Public Company?
Answer :
Seven
Question 61. Which Bank Note Gives The Bearer The Right To Have Its Face Value Converted Into Gold Or Some Other Commodity Of Value Equivalent To The Amount Stated?
Answer :
Convertible bank-note
Question 62. In Which Form The Co-operative Society, Distributes Its Surplus Dividends To Its Members?
Answer :
In the form of bonus
Question 63. Which Is The Technique Designed To Create An Artificial Market To Benefit A Businessman?
Answer :
Rigging the market
Question 64. What Is Dead Time?
Answer :
Time lost through no fault of the employee and for which he is usually paid at the full rate
Question 65. What Is A Decision Tree?
Answer :
A diagram of a sequence of decisions, each of which involves choosing between a known number of alternatives and depends on the resultants of the previous decisions
Question 66. What Is Syndicate?
Answer :
A group of people working together towards a common objective usually profit is called a syndicate.
Question 67. In The Aspect Of Banking Business What Is The Term Used Of Giving Loans To Companies On A Large Scale?
Answer :
Wholesale banking
Question 68. The Profit Margin Which A Retailer Of Goods Obtains From His Supplier Is Called........
Answer :
Trade discount
Question 69. What Is The Main Distinction Between An Auditor And An Accountant?
Answer :
It is the duty of the auditor to prepare the accounts, The accounts has to be prepared by the accountant where as the auditor is concerned with the detailed and critical examination of the account book
Question 70. What Is The Term Used To Indicate A Statement Of What Is Owned And What Is Owed?
Answer :
Assets and Liability statements
Question 71. How Is An Asset Expressed?
Answer :
Assets Liabilities = owner’s equity
Question 72. What Is Subsidy?
Answer :
It is a method adopted by the government or a company of supporting a price
Question 73. In Which Organization, Every Subordinate Must Obey His Superior, Whether Be Likes It Or Not?
Answer :
Formal organization
Question 74. Which Department Is Maintained In Every Modern Business House To Obtain The Good Will Of The People?
Answer :
Public relations departments
Question 75. What Is Quasi-loan?
Answer :
It is an arrangement between two persons under which one agrees to meet some of the other’s financial obligations on condition that the later reimburses him.
Question 76. Which Are The Main Principles In Allocation Of Office Work?
Answer :
They are specialization, correlation and business connection
Question 77. Who First Suggested The Separation Of Manual Work From Mental Labour Through The Establishment Of Two Department?
Answer :
Taylor
Question 78. Which Are The Two Departments Suggested By Taylor?
Answer :
Planning and Operation
Question 79. Which Is A Chief Subsidiary Object Of Auditing?
Answer :
Detection of Frauds and errors
Question 80. What Is Freight?
Answer :
The money paid to a ship owner for carrying goods by an exporter
Question 81. Who Is A Journeyman?
Answer :
A craftsman who, having finished his period of apprenticeship
Question 82. What Is A Questionnaire?
Answer :
A document specially produced in large numbers containing a set of questions intended to elicit useful information
Question 83. Give Another Name For Parent Company?
Answer :
Holding company
Question 84. What Function Of The Computer Ensures That The Data Are Not Distorted During Processing?
Answer :
Parity check
Question 85. What Is The Term Used With Particular Reference To Bills Of Exchange?
Answer :
Endorsement
Question 86. What Is The Price At Which The Supply Curve For A Good And Its Demand Curve Intersect Called?
Answer :
Equilibrium price
Question 87. What Is Similar To Overdraft Except That It Is Comparatively For A Longer Period?
Answer :
Cash credit
Question 88. What Is The Term Ad Referendum Means?
Answer :
This term means that although the contract has been signed, certain matters have been left over for consideration when they actually arise
Question 89. What Is S.a.y.e.?
Answer :
Save While You Earn
Question 90. Who Are Plural Executives?
Answer :
A group of people (a committee or board) who were given responsibility to exercise authority jointly over Specified activities of others.
Question 91. What Is Boomboggling?
Answer :
It is the wasteful or uneconomic labour indulged in by a firm to boost cost of production.
Question 92. What Is Quid Proquo?
Answer :
One thing in return for another consideration
Question 93. What Is A Paper Gold?
Answer :
Colloquial name for special drawing rights or similar suggested schemes
Question 94. What Is Kennedy Round?
Answer :
A extensive negotiations of multilateral tariff agreements, within the limits set by the General Agreement on Tariffs and Trade, investigated by the late American President Kennedy.
Question 95. What Is The Hot Money?
Answer :
It refers to funds that move quickly from one country to another in search of the highest rate of interest.
Question 96. What Is A Garnishee Order?
Answer :
It is a court order attaching the funds of the judgement debtor in the hands of a third party in favour of the judgement-creditor.
Question 97. What Is A Dead Rent?
Answer :
A minimum amount payable, for example, on the lease of mine.
Question 98. What Is A Kite?
Answer :
A cheque drawn by some one who knows there is no money in the bank account he is drawing on.
Question 99. What Is Future Market?
Answer :
An organized market for buying and selling future contracts
Question 100. What Is Free Trade?
Answer :
The unrestricted international trade either with no customs duties or with customs duties which are used to create revenue.
Question 101. What Is Business Cycle?
Answer :
A recurring sequence of changes business activity.
Question 102. What Is A Bank?
Answer :
According to Prof: John pagets “no one or nobody corporate or otherwise can be a banker who does not open current accounts; pay cheques drawn on himself and collect cheques for customers”.
Question 103. What Is An Exchange Bank?
Answer :
Exchange banks extend financial assistance to foreign trade and deal in foreign exchange.
Question 104. What Is Quantitative Credit Control?
Answer :
Quantitative credit controls are used when it wants to control the total supply of money
Question 105. What Is Qualitative Credit Control?
Answer :
Qualitative credit controls are used when it wants to control the use of funds made available by the commercial banks to customers
Question 106. What Is Open Market Operation?
Answer :
Open market operations imply the purchase and sale of government securities by the Central Bank in the open market.
Question 107. What Is V.r.r.?
Answer :
Variable Reserve Ratio
Question 108. Define Endorsement?
Answer :
’Endorsement’ or ‘indorsement’ is the act of signing the name of the maker of the holder of a negotiable instrument for the purposes of negotiation.
Question 109. What Is Sans Frais Endorsement?
Answer :
It is an endorsement where the endorser specifies that the endorsee or any subsequent holder need not incur any expense on the instrument on his account.
Question 110. What Is Facultative Endorsement?
Answer :
In a facultative endorsement, the endorser waives some of his rights, like the right to receive notice of dishonor.
Question 111. Define Bill Of Exchange?
Answer :
The negotiable instruments act, 1881 defines a ‘bill of exchange’ as “an instrument in writing containing an unconditional order, signed by the maker, directing a certain person to pay a certain sum of money only to, or to the order of a certain person or to the bearer of the instrument.
Question 112. What Is Maturity Date?
Answer :
A bill is said to be matured on the date which it falls due for payment. This date id called the ‘due date’ or the ‘maturity date’ of the bill.
Question 113. What Is Days Of Grace?
Answer :
A bill falls due only on the third day after the day on which it is stated to be payable. These extra days allowed for the payment of a bill is called the ‘Days of Grace’.
Question 114. What Is Inland Bill?
Answer :
Bill drawn and made payable in India as well as bill drawn upon a person residing in India is called an Inland Bill.
Question 115. What Is Foreign Bill?
Answer :
A foreign bill is one which is drawn in India and made payable in a foreign country or drawn on one who is a resident of a foreign country.
Question 116. Define Promissory Note?
Answer :
Negotiable instrument act 1881 defines a promissory note as “an instrument in writing containing an unconditional undertaking signed by the maker to pay a certain sum of money only, to or to the order of a certain person”.
Question 117. What Is Insurance?
Answer :
Insurance is a mechanism through which the sufferings of one man is one man is minimized by sharing it with many men.
Question 118. What Is Causa Proxima (proximate Cause)?
Answer :
According to this doctrine when there are several causes, only the proximate or nearest cause should be considered. The distant and remote cause shall be ignored.
Question 119. What Is Re-insurance?
Answer :
Re-insurance means insuring an already insured risk by the insurer. It is done mainly to reduce the risk of the insurance company by sharing it with other companies.
Question 120. What Is Double Insurance?
Answer :
It is entirely different from re-insurance. In this case the insured insures the same subject matter with more than on insurance company.
Question 121. What Is The Definition Of Chambers Of Commerce?
Answer :
“Chambers of commerce is an voluntary association of merchants, financiers, manufactures and other engaged in business for the purpose of promoting and protecting the interests of its members and of the trade of the country as a whole”.
Question 122. Who Is An Agent?
Answer :
An agent is a person who is employed by another to represent him in dealing with other parties. The person why is so represented by an agent is called the principle.
Question 123. Into How Many Types Are The Agents Classifieds?
Answer :
Into two-General and Special
Question 124. Who Is An General Agent?
Answer :
General agent is one who is authorized to undertake work of a general nature. Eg. Managing Director or General Manager of a company.
Question 125. Who Is An Special Agent?
Answer :
Special agent is one who is appointed to undertake some special work Eg. Agent appointed to sell a car by its owner
Question 126. Who Is Broker?
Answer :
Brokers acts as intermediaries between two parties, in trade contracts.
Question 127. Who Is A Produce Broker?
Answer :
These brokers arrange for the sale and purchase of agricultural products such as coffee, tea etc..
Question 128. Who Is A Stock And Share Broker?
Answer :
They are engaged in the purchase and sale of shares and other securities, of companies as well as Government securities on a stock exchange.
Question 129. Who Is A Shipping Broker?
Answer :
They are brokers who transact business connected with ship. They arrange charter parties, procure cargo etc., on the behalf of their principles.
Question 130. Who Is A Insurance Broker?
Answer :
They arrange various types of insurance in connection with trade.
Question 131. Who Is A Property Broker?
Answer :
They are mainly engaged in buying and selling fixed assets like land, buildings etc.
Question 132. What Is Loco Or Ex-factory?
Answer :
This means the price quoted includes cost of goods plus a nominal profit. The place of delivery would be the suppliers factory or godown. The cost of transport, insurance and other expenses should be met by the buyer.
Question 133. What Is F.o.r. (free On Rail)?
Answer :
This indicates that the price covers the cost of goods and all other expenses till the goods are put into the railway wagon.
Question 134. What Is F.o.b (free On Board)?
Answer :
This includes cost of the goods and all other expenses to be incurred in placing the goods on board the ship.
Question 135. What Is F.a.s.(free Along Side)?
Answer :
This includes all expenses like packing charges, delivery of goods to the side of the ship etc. But it doesn’t include charges for putting them on board.
Question 136. What Is C & F (cost & Freight)?
Answer :
This includes the cost of goods plus the freight charges and other expenses for delivering the goods at the importer’s port.
Question 137. What Is C.i.f. (cost Insurance Freight)?
Answer :
This includes the cost of goods, insurance, freight and all charges upto to the port of import.
Question 138. What Is Marine Insurance?
Answer :
Marine insurance is the oldest kind of insurance. It is that branch of insurance which relates to ships and their cargoes.
Question 139. Which Is The Oldest Stock Exchange In India?
Answer :
Bombay Stock Exchange which was setup in 1887.
Question 140. What Is The Stock Exchange Functioning In Kerala Called?
Answer :
Kochi Stock Exchange
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