SS2 First Term Commerce Past Questions And Answers

Here they are;

Question: What is the primary function of a central bank in an economy?

 

A) Agriculture

B) Industry

C) Banking and currency

D) Education

Answer: C) Banking and currency

Question: Which type of market structure is characterized by a large number of sellers offering similar but not identical products?

 

A) Monopoly

B) Oligopoly

C) Monopolistic competition

D) Perfect competition

Answer: C) Monopolistic competition

Question: What is the purpose of a balance sheet in accounting?

 

A) Record daily transactions

B) Measure profitability

C) Show the financial position of a business at a specific point in time

D) Analyze market trends

Answer: C) Show the financial position of a business at a specific point in time

Question: In the context of marketing, what does SWOT stand for?

 

A) Sales, Work, Operations, Technology

B) Strengths, Weaknesses, Opportunities, Threats

C) Supply, Warehouse, Output, Transactions

D) Strategy, Workforce, Objectives, Training

Answer: B) Strengths, Weaknesses, Opportunities, Threats

Question: Which economic system is characterized by government ownership of the means of production and central planning?

 

A) Capitalism

B) Socialism

C) Communism

D) Mixed economy

Answer: C) Communism

Question: What is the function of the Securities and Exchange Board of India (SEBI)?

 

A) Regulation and supervision of stock exchanges

B) Agricultural development

C) Environmental protection

D) Education policy

Answer: A) Regulation and supervision of stock exchanges

Question: What is the term for the total value of goods and services produced by a country in a specific time period?

 

A) Gross Domestic Product (GDP)

B) Consumer Price Index (CPI)

C) Inflation rate

D) Balance of trade

Answer: A) Gross Domestic Product (GDP)

Question: In accounting, what does ROI stand for?

 

A) Return on Investment

B) Rate of Inflation

C) Revenue from Operations and Investments

D) Risk of Insolvency

Answer: A) Return on Investment

Question: Which type of unemployment occurs when individuals are between jobs or searching for their first job?

 

A) Cyclical unemployment

B) Structural unemployment

C) Frictional unemployment

D) Seasonal unemployment

Answer: C) Frictional unemployment

Question: What is the purpose of a demand curve in microeconomics?

 

A) Illustrate the relationship between price and quantity demanded

B) Depict government spending

C) Show the distribution of income

D) Represent foreign exchange rates

Answer: A) Illustrate the relationship between price and quantity demanded

Question: Which financial statement provides a snapshot of a company’s financial position at a specific point in time?

 

A) Income statement

B) Cash flow statement

C) Balance sheet

D) Statement of retained earnings

Answer: C) Balance sheet

Question: What is the main purpose of the World Trade Organization (WTO)?

 

A) Ensure global weather patterns

B) Facilitate international trade negotiations and agreements

C) Regulate world population growth

D) Manage global currency exchange rates

Answer: B) Facilitate international trade negotiations and agreements

Question: In the context of marketing, what is the product life cycle?

 

A) A timeline of a company’s foundation

B) Stages a product goes through from introduction to decline

C) Annual sales record

D) Duration of a trademark

Answer: B) Stages a product goes through from introduction to decline

Question: What does the term “opportunity cost” refer to in economics?

 

A) The cost of purchasing opportunities

B) The highest-valued alternative that must be forgone when a choice is made

C) The cost of raw materials

D) The cost of advertising

Answer: B) The highest-valued alternative that must be forgone when a choice is made

Question: Which economic indicator is often used to measure the overall health of the job market?

 

A) GDP growth rate

B) Consumer Price Index (CPI)

C) Unemployment rate

D) Stock market index

Answer: C) Unemployment rate

Question: What is the role of the International Monetary Fund (IMF) in the global economy?

 

A) Regulate international shipping

B) Provide financial assistance to countries facing balance of payments problems

C) Set global interest rates

D) Control world oil prices

Answer: B) Provide financial assistance to countries facing balance of payments problems

Question: In the context of business, what does SWOT analysis help identify?

 

A) Market share

B) Profit margins

C) Strengths, weaknesses, opportunities, and threats

D) Employee satisfaction

Answer: C) Strengths, weaknesses, opportunities, and threats

Question: What is the term for a market situation where there is only one seller of a product with no close substitutes?

 

A) Monopoly

B) Oligopoly

C) Perfect competition

D) Monopolistic competition

Answer: A) Monopoly

Question: What is the primary goal of financial management in a business?

 

A) Maximize shareholder wealth

B) Minimize customer complaints

C) Increase market share

D) Achieve social responsibility

Answer: A) Maximize shareholder wealth

Question: Which type of budget involves estimating future expenses based on historical data and trends?

 

A) Zero-based budgeting

B) Incremental budgeting

C) Performance budgeting

D) Forecast-based budgeting

Answer: D) Forecast-based budgeting