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: Goodwill3383. What is called when a private company first offers shares to the public market and investors ?
- 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 them3400. What is underwriter ?
- 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