International Business II

MCQ Based Questions on Class 11 Business studies for chapter-12 International Business II

Find below MCQ Based Questions on Class 11 Business studies for chapter-12 International Business II all the MCQ questions are explained with correct answers and explanations. To check the correct answer click on the answer. 

Find MCQ questions for class 11 Business studies-12 International Business II

Business Studies - MCQ on International Business II

Class XI

Q. 1.Which one of these is the subsidiary of the state trading corporation of India meant for increasing exports

I. Minerals and metals trading corporation of India

II. Manufacturers export agents and export commission house

III. Projects and Equipments Corporation of India

IV. Mica Trading Corporation of India

Answer:

IV.Mica Trading Corporation of India

Explanation: It is the subsidiary for encouraging exports in india

Q. 2.The term duty draws back means

I. Higher rate of import duty

II. Refund of import duty for the exporters

III. Refund of export duty for exporters

IV. Handicap in matter of exports

Answer:

II.Refund of import duty for the exporters

Explanation: Duty draw back is giving back the import duty to the exporters

Q. 3.A letter of credit is

I. Letter of importer’s bank agreeing to accept and play on due date exporters bill

II. Letter containing conditions of credit

III. Purchase of sale

IV. Letter from an exporter to importer

Answer:

. I.Letter of importer’s bank agreeing to accept and play on due date exporter’s bill

Explanation: Letter sent by an importer to exporter sanctioning credit deal

A letter of credit is a guaranteeissued by the importer’s bank that it will honour payment up to certain amount of export bills to the bank of the exporter. Letter of credit is the most Appropriate and secures method of payment adopted to settle international Transactions

Q. 4.The importer cannot take delivery of goods unless he produces the

I. Bill of Sight

II. Bill of Lading

III. Shipping Bill

IV. Certificate of origin

Answer:

.II.Bill OF Lading

Explanation:Bill of lading is a document wherein a shipping company gives its official receipt of the goods and at the same time gives an undertaking to carry them to the port of destination.

Q. 5.Which one of the above policy measures would lead to an expansion of exports

I. Export Duty

II. Export subsidy

III. Liberal import entitlement

IV. Import Duty

Answer:

.II,Export Subsidy

Explanation:If export subsidy will be provided then definitely it will give rise to Export.

Q. 6.Which one of the following items is not in vogue now?

I. REP Licenses

II. Advance Licenses

III. Special Import Licenses

IV. Customs Permit

Answer:

III.Special Import Licenses

Explanation:Earlier special import license were given a lot of importance but now they are not so preferred

Q. 7.Which of the following items are not considered to be export promotion measures?

I. Quota Certificates,

II. Cash compensatory assistance

III. System of exchange control

IV. None

Answer:

I.Quota Certificates,

Explanation: Quota Certificates are not meant for export encouragement

Q. 8.Bill of Lading is issued by

I. Indian Commercial Banks

II. Foreign Banks

III. Shipping Company

IV. Exporters

Answer:

III.Shipping Company

Explanation: After receipt of the freight, the shipping company issues a bill of lading which serves as an evidence that the shipping company has accepted the goods for carrying to the designated destination.

Q. 9.Letter of Credit is now becoming An increasingly popular method of financing

I. Fixed Capital Needs

II. Working Capital Needs

III. Redemption of Debenture

IV. Distribution of Dividend

Answer:

II.Working Capital Needs

Explanation A letter of credit is a guarantee issued by the importer’s bank that it will honour up to a certain amount the payment of export bills to the bank of the exporter. Letter of credit is the most appropriate and secures method of payment adopted to settle international transactions

Q. 10.Import procedure begins with

I. Indent

II. Marine Insurance

III. Mate’s Certificate

IV. Shipping order

Answer:

I.Indent

Explanation It is a document in which the buyer (importer) orders for

supply of requisite goods to the supplier (exporter). The order or indent contains the

information such as quantity and quality of goods to be imported, price to be charged, method of forwarding the goods, nature of packing, mode of payment, etc.

Q. 11.Which Statement is correct

I. EXIM banks promote Indian exports through a wise variety of range of landing programmes

II. EXIM bank does not extends non funded facility to Indian exporter

III. Overseas investment finance facility is not a part of th functions of EXIM Banks

IV. EXIM Bank was establishing to provide assistance in raising capital in international markets

Answer:

.I.EXIM banks promote Indian exports through a wide variety of range of landing programmes

Explanation: It acts as a mediator and risk taker

Q. 12.EXIM Bank can be described as

I. Non Banking Financial Company

II. Commercial Bank

III. Non Banking Non Financial Company

IV. Schedule Bank

Answer:

III.Non Banking Fianncial Company

Explanation: EXIM bank mainly act as a mediator between importer and exporter so it is not a financial institution but it I a risk taker

Q. 13.LIBOR refers to

I. Liberalised system of foreign exchange transfer between Banks

II. Inter Bank lending rate for Euro dollars at London

III. Lowest rate of Interest at which hauks in London len sterling

IV. Lowest rate of interest prescribed by RBI

Answer:

IV.Lowest rate of Interest at which hauks in London lend sterling

Q. 14.Which one of these is not a commercial risk

I. Introduction of the buyer

II. New restriction placed on import export trade

III. Damage of goods in transit

IV. Change in the exchange rate

Answer:

I.Introduction of the buyer

Explanation: It is not risk at all infact it is an advantage

Q. 15.A red Clause letter of credit authorizes the

I. Banker no transfer the a/c to some other person

II. Banker to take recourse to the drawer in case of difficulty

III. Banker to fix the amount of credit

IV. Negotiating banker to provide advance credit to the beneficiary for purchase of materials

Answer:

.IV.Negotiating banker to provide advance credit to the beneficiary for purchase of materials

Explanation With this letter beneficiary can get credit in advance

Q. 16.Globalization of financial services is being promoted by

I. World Trade Organization

II. International Finance Corporation

III. International Bank for reconstruction and development

IV. International monetary fund

Answer:

II.International Finance Corporation

Explanation IFC promotes the financial services in the world

Q. 17.Which one of the following documents attests the fact that goods of specified quantity ,value of description are entering the bounds of the country

I. Bill of Lading

II. Documentary Bill

III. Consular Invoice

IV. Bill of Entry

Answer:

I. Bill of Lading

Explanation Bill of lading is a document wherein a shipping company gives its official receipt of the goods and at the same time gives an undertaking to carry them to the port of destination.

Q. 18.Export Duty is borne by the importer in ______________mode

I. FOB

II. CIF

III. FAS

IV. CIS

Answer:

III.FAS

Explanation Free along side ship All the charges upto putting the goods alongside the ship to be paid by the exporter while putting them on the ship at buyers expose

Q. 19.The export procedure begins with the:

I. Excise

II. Indent

III. Shipping Bills

IV. Mate’s Receipts

Answer:

II.Indent

Explanation It is a document in which the buyer (importer) orders for

supply of requisite goods to the supplier (exporter). The order or indent contains the

information such as quantity and quality of goods to be imported, price to be charged, method of forwarding the goods, nature of packing, mode of payment, etc.

Q. 20.Identify the document among the following that is a document of the file to the goods

I. Bill of Lading

II. Bill of Entry

III. Letter of Credit

IV. None of these

Answer:

I.Bill of Lading

Explanation Bill of lading is a document wherein a shipping company gives its official receipt of the goods and at the same time gives an undertaking to carry them to the port of destination.

Q. 21.How many copies are generally prepared of a bill to entry?

I. One

II. Two

III. Three

IV. Four

Answer:

III.Three

Explanation Three copies are prepared for bill of entry

Q. 22.An importer wishing to re export the goods is required to prepare

I. Shipping order

II. Charter Party

III. Shipping Bill

IV. Bill of Lading

Answer:

III.Shipping Bill

Explanation The shipping bill is a permission to export the goods which are imported this is known as enerpot trade

Q. 23.Cashew Corporation is subsidiary wholly owned by

I. MTC

II. RBI

III. STC

IV. EXIM Bank

Answer:

III.STC

Explanation State Trading Corporation was set to implement Foreign trade policy

Q. 24.Which of the following documents are not required for obtaining an

export license?

I. IEC number

II. Letter of credit

III. registration-cum-membership certificate

IV. Bank account number

Answer:

II.Letter of credit

Explanation A letter of credit is a guarantee issued by the importer’s bank that it will honour payment up to a certain amount of export bills to the bank of the exporter.

Q. 25.Which of the following documents is not required in connection with an

import transaction?

I. Bill of lading

II. Shipping bill

III. Certificate of origin

IV. Shipment advice

Answer:

II.Shipping bill

Explanation The shipping bill is a permission to export the goods which are imported this is known as enerpot trade

Q. 26. Which of the following do not form part of duty drawback scheme?

I. Refund of excise duties

II. Refund of customs duties

III. Refund of export duties

IV. Refund of income dock

Answer:

IV.Refund of income dock

Explanation Income Dock is not refunded

Q. 27. Which one of the following is not a document related to fulfill the customs formalities

I. Shipping bill

II. Export license

III. Letter of insurance

IV. Performa invoice

Answer:

.I.Shipping bill

Explanation The shipping bill is a permission to export the goods which are imported this is known as enerpot trade

Q. 28. Which one of the following is not a part of export documents?

I. Commercial invoice

II. Certificate of origin

III. Bill of entry

IV. Mate’s receipt

Answer:

II.Certificate of origin

Q. 29. A receipt issued by the commanding officer of the ship when the cargo

is loaded on the ship is known as

I. Shipping receipt

II. Mate receipt

III. Cargo receipt

IV. Charter receipt

Answer:

II. Mate receipt

Explanation A mate receipt is a receipt issued by the commanding officer of the ship when the cargo is loaded on board, and contains the information about the name of the vessel, berth, date of shipment, description of packages, marks and numbers, condition of the cargo at the time of receipt on board the ship, etc.

Q. 30. Which of the following document is prepared by the exporter and

includes details of the cargo in terms of the shippers name, the number

of packages, the shipping bill, port of destination, name of the vehicle

carrying the cargo?

I. Shipping bill

II. Packaging list

III. Mate’s receipt

IV. Bill of exchange

Answer:

I.Shipping bill

Explanation The shipping bill contains particulars of the goods being exported, the name of the vessel, the port at which goods are to be discharged, country of final destination, exporter’s name and address, etc.

Q. 31. The document containing the guarantee of a bank to honour drafts

drawn on it by an exporter is

I. Letter of hypothetication

II. Letter of credit

III. Bill of lading

IV. Bill of exchange

Answer:

II.Letter of credit

Explanation A letter of credit is a guarantee issued by the importer’s bank that it will honour up to a certain amount the payment of export bills to the bank of the exporter.

Q. 32. Which of the following does not belong to the World Bank group?

I. IBRD

II. IDA

III. MIGA

IV. IMF

Answer:

IVIMF

Explanation International Monetary Fund (IMF) is the second international organization next to the World Bank.

Q. 33. TRIP is one of the WTO agreements that deal with

I. Trade in agriculture

II. Trade in services

III. Trade related goods

IV. None of these

Answer:

IV.None of these

Explanation Trade Related Aspects of Intellectual Property Rights delas with aspects of intellectual property

Q. 34.In Foreign Trade CIF stands for:

I. Cost

II. Cost and Freight

III. Cost and Insurance

IV. Cost, Insurance and freight

Answer:

IV.Cost, Insurance and freight

Explanation CIF is comprised of all the important elements of trade

Q. 35.Which one of the following is the most appropriate statement

I. Foreign Trade facilitates maximum utilization of natural resources

II. Foreign trade promotes International cooperation

III. All the above statements are valid

IV. Foreign trade raises the standard of living

Answer:

.III.All the above statements are valid

Explanation Foreign trade has promoted optimum utilization, cooperation and standard of living

Q. 36.Who announces the EXIM Policy or Foreign Trade Policy

I. Central Government

II. State Government

III. Chamber of Commerce

IV. World Trade Organization

Answer:

Central Government

Explanation Central government forms he exim policy and implements it.

Q. 37.Outsourcing a producer or some components from a company in foreign country is known as:

I. Franchising

II. Contract Manufacturing

III. Licensing

IV. Joint Venture

Answer:

II.Contract Manufacturing

Explanation Contract manufacturing refers to a type of international business where a firm enters into a contract with one or a few local manufacturers in foreign countries to get certain components or goods

produced as per its specifications.

Q. 38.An exporter can raise loan on the basis of:

I. Shipping Order

II. Mate’s Receipt

III. Bill of Lading

IV. None of the above

Answer:

III. Bill of Lading

Explanation Bill of lading is a document wherein a shipping company gives its official receipt of the goods and at the same time gives an undertaking to carry them to the port of destination.