All Free Economics MCQs with Answers

Every Economics question in the bank, across all chapters, each with the correct answer and a written explanation. Free and unlimited, with no account needed.

4,037 questions · page 170 of 202

  • A. Going legal
  • B. Book corporation
  • C. Chartered corporation
  • D. Incorporation

Explanation: Incorporation is the legal process by which a company is formed as a corporation under state law and receives its charter.

Correct answer: Incorporation
  • A. Bonus
  • B. Up level
  • C. Goodwill
  • D. Upgradation

Explanation: Goodwill is the excess of the purchase price over the fair market value of the identifiable net assets acquired.

Correct answer: Goodwill
  • A. Public offering
  • B. Public floating
  • C. going public
  • D. Coming public

Explanation: Going public describes a private company’s first sale of shares to the general public, usually through an initial public offering.

Correct answer: going public
  • A. Foreclosure
  • B. Default
  • C. Bankrupt
  • D. None of these

Explanation: Foreclosure is the legal process through which a mortgage lender seizes and typically sells property after the borrower fails to make…

Correct answer: Foreclosure
  • A. Gross Profit
  • B. Profit share
  • C. Dividend
  • D. Right share

Explanation: A dividend is the portion of distributable profit paid to shareholders according to their shareholding.

Correct answer: Dividend
  • A. Deflated market
  • B. Depressed market
  • C. Bearish market
  • D. Weak market

Explanation: A depressed market has weak demand relative to supply, commonly producing low prices and reduced business activity.

Correct answer: Depressed market
  • A. Rolling debt
  • B. Bad debt
  • C. Rescheduling
  • D. Default

Explanation: Default occurs when a borrower fails to pay interest or principal on time or violates the terms of the debt agreement.

Correct answer: Default
  • A. Debenture
  • B. Securities
  • C. Credit rating
  • D. None of them

Explanation: A debenture is generally an unsecured debt instrument, so repayment rests on the issuer’s creditworthiness and integrity rather than on…

Correct answer: Debenture
  • A. Efficient Account
  • B. Cost Accounting
  • C. Ultra-country economic risk
  • D. Outcome risk

Explanation: Cost accounting supplies management with information about production costs, cost control, and operating efficiency.

Correct answer: Cost Accounting
  • A. Stock market
  • B. Open market
  • C. Capital market
  • D. International market

Explanation: The capital market deals in long-term financial instruments such as shares, bonds and other securities.

Correct answer: Capital market
  • A. Bull market
  • B. Beamish market
  • C. Upward market
  • D. Hot market

Explanation: A bull market is characterised by sustained or expected price increases, reflecting optimism among investors.

Correct answer: Bull market
  • A. Bounce
  • B. Return
  • C. Grossed
  • D. Refused

Explanation: A cheque is said to bounce when the bank returns it unpaid, commonly because the account lacks sufficient funds.

Correct answer: Bounce
  • A. Internal laws
  • B. By laws
  • C. Character
  • D. Memorandum of articles

Explanation: By-laws are rules made to govern the internal management and conduct of an organisation.

Correct answer: By laws
  • A. Spreadsheet
  • B. Splinter
  • C. Family growth
  • D. Butterfly

Explanation: A butterfly is a corporate restructuring in which a company separates divisions into distinct companies, with existing shareholders…

Correct answer: Butterfly
  • A. A multinational company
  • B. Large and creditworthy company
  • C. A conglomerate company
  • D. A consortium of companies

Explanation: A blue-chip company is a large, established and financially reliable firm with a strong reputation and generally dependable securities.

Correct answer: Large and creditworthy company
  • A. Offer price
  • B. Bid price
  • C. Quote price
  • D. Market price

Explanation: The bid price is the highest price a buyer is currently willing to pay for a security.

Correct answer: Bid price
  • A. B2B
  • B. Indirect contact
  • C. Step by step
  • D. Trickle down

Explanation: B2B means business-to-business, an internet strategy in which one business deals directly with another business rather than selling to…

Correct answer: B2B
  • A. Balanced
  • B. At Equilibrium
  • C. At Par
  • D. None of them

Explanation: A security sold at a price equal to its stated face or nominal value is trading at par.

Correct answer: At Par
  • A. Assets of business that can be applied to its operation
  • B. Amount of current assets that exceeds current liabilities
  • C. Both of them
  • D. None of them

Explanation: Working capital is commonly expressed as current assets minus current liabilities, called net working capital; current assets alone are…

Correct answer: Both of them
  • A. To assume financial responsibility for grantee against failure
  • B. To sign so as to assume liability in case of specified losses
  • C. To guarantee the purchase or to agree to buy the unsold part of stock at fixed time and price
  • D. All of them

Explanation: An underwriter assumes financial liability by agreeing to purchase or cover securities that remain unsold, and the term also broadly…

Correct answer: All of them