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500+ MCQs Series for CA FOUNDATION BCK CHAPTER 4 GOVERNMENT POLICIES FOR BUSINESS GROWTH OBJECTIVE QUESTIONS MCQ'S TEST

CA FOUNDATION PAPER - 4 (BUSINESS AND COMMERCIAL KNOWLEDGE) 500+ MCQs

CHAPTER - 4 GOVERNMENT POLICIES FOR BUSINESS GROWTH MOST IMPORTANT OBJECTIVE QUESTIONS

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1. The Government Policies are "Sine qua non" for all spheres of the economy. The term "Sine qua non" means:
    (a) Indispensible
    (b) Universal
    (c) Robust
    (d) Applicable
Answer - (a)




2. In which country, the import of second hand foreign cars is allowed?
    (a) India
    (b) Bangladesh
    (c) Japan
    (d) USA
Answer - (b)




3. During the time of Emperor Chandra Gupta Maurya, the great intellectual guru of the emperor___________outlined the public policy of the State.
    (a) Akbar
    (b) Sultan
    (c) Chanakya
    (d) Todarmal
Answer - (c)




4. At the time of attaining freedom in 1947, India witnessed the existence of the problem of__________
    (a) Multiplicity of Princely States
    (b) Lack of Industries
    (c) Lack of enough food-grains
    (d) All of the above
Answer - (d)




5. In Delhi sultanate, who introduced stringent tax reforms:
    (a) Alauddin Khilji
    (b) Akbar
    (c) Todarmal
    (d) Chanakya
Answer - (a)




6. During the time of Akbar, land reforms were introduced under the leadership of:
    (a) Alauddin Khiljis
    (b) Akbar
    (c) Todarmal
    (d) Chanakya
Answer - (c)




7. During the time when Ashoka, the Great, ruled Magadh__________ introduced the policy of Peace & Harmony.
    (a) Ashoka
    (b) Chandragupta
    (c) Todarmal
    (d) Chanakya
Answer - (a)




8. Who has authorised the book "Arthashastra", a Conceptual frame work of State Craft and public Policy?
    (a) Chandragupta Maurya
    (b) Chanakya
    (c) Plato
    (d) Akbar
Answer - (b)




9. At the time of independence, Strong policy making was required as the nation had a diversity of:
    (a) Languages
    (b) Cultures
    (c) Inequalities
    (d) All of the above
Answer - (d)




10. Which of the following is not a part of European Nations?
    (a) Germany
    (b) Denmark
    (c) Japan
    (d) Sweden
Answer - (c)




11. BRICS Stands for
    (a) Brazil, Russia, India, China and South Africa
    (b) Britain, Russia, India, China and Sweden
    (c) Brazil, Russia, India, Columbia, and South America
    (d) Britain, Russia, India, Columbia and Sweden.
Answer - (a)




12. Which one of the following is regarded as Socialist and Communist State?
    (a) China
    (b) North Korea
    (c) Erstwhile Soviet Union
    (d) All of the above
Answer - (d)




13. There have been monumental efforts in changing the post-independence policies specially in 1991. These efforts are Commonly referred to as:
    (a) LPG
    (b) SEC
    (c) RRB
    (d) None of the above
Answer - (a)




14. Which one of the following is an example of Liberalisation?
    (a) Simplification of tax structure
    (b) Removing quotas and bars
    (c) Removing economic restrictions
    (d) All of the above
Answer - (d)




15. The measures of lifting the trade barriers are covered in:
    (a) Liberalization
    (b) Privatization
    (c) Globalization
    (d) All of the above
Answer - (c)




16. Simplification of trade restrictions related to import is an example
    (a) Globalization
    (b) Privatization
    (c) Disinvestment
    (d) Aggregation
Answer - (a)




17. LPG stands for:
    (a) Liberalization
    (b) Privatization
    (c) Globalization
    (d) All of these
Answer - (d)




18. Globalization means:
    (a) Taking off restrictions in export and import of goods and services
    (b) Gradual decrease in Government command and control over economic policies. (c) Transfer of Government ownership to private lands.
    (d) None of these.
Answer - (a)




19. Gradual decrease in Government command and control over the economic policies:
    (a) Globalization
    (b) Privatization
    (c) Liberalization
    (d) None of the above.
Answer - (c)




20. Which one of the following countries is included in BRICS nations?
    (a) Sweden
    (b) South Africa
    (c) South Korea
    (d) Singapore
Answer - (b)




Meaning of Policies


21. In which country, you do not have to pay a single penny to enter the National Art Gallery?
    (a) England
    (b) India
    (c) Both India and England
    (d) You have to pay in both countries
Answer - (a)




22. A__________ emanates from decision and decision is taken in line with____________identify the right expression to fill in the blanks.
    (a) Policy, Goal
    (b) Plan, Budget
    (c) Goal, Plan
    (d) Budget, Plan
Answer - (a)




23._________ outlined political system as a set of interactions having structures, each of which performs its functions in order to keep it like a going Concern.
    (a) Gabriel Philips
    (b) Gabriel Almond
    (c) David Easton
    (d) Kautilya
Answer - (b)




24. Who has propounded model on political-policy relationship known as Black Box Model?
    (a) Gabriel Philips
    (b) Gabriel Almond
    (c) David Easton
    (d) Kautilya
Answer - (c)




25._______ given by David Easton, identifies that there are many Societal demands which one not in- cluded in the decisions and policies designed by the State.
    (a) Black Box Model
    (b) Politics Box Model
    > (c) Policy Box Model
    (d) White Box Model
Answer - (a)




26.__________ has classified the inputs of political system into generic functional categories.
    (a) Gabriel Almond
    (b) Gabriel Solomon
    (c) Richard David
    (d) David Easton
Answer - (a)




27. The outputs of political system generally take the form of:
    (a) Governmental Policies
    (b) Programs
    (c) Decisions
    (d) All of these
Answer - (d)




28. The generic functional categories of inputs of political system include:
    (a) Political Socialization & recruitment
    (b) Interest Aggregation & articulation
    (c) Political Communication
    (d) All of the above.
Answer - (d)




29.____________ are those which are carried on by a political system in response to demands or Stresses placed upon the system in the form of inputs.
    (a) Economic System
    (b) Input activities
    (c) Output activities
    (d) Political System
Answer - (c)




30. In the Context of political, the democracy frames:
    (a) Stringent Policies
    (b) No Policies
    (c) Liberal Policies
    (d) Complex Policies
Answer - (c)




31. An________ rules looks for policies which dominate over public freedom.
    (a) Autocratic
    (b) Democratic
    (c) Free Rein
    (d) Royal
Answer - (a)




Public Policy


32. Identify the one which may be considered as a public policy
    (a) A decision by a Central Government to purchase a fleet of cars
    (b) An old building to be demolished by a municipal corporation
    (c) All citizens are to be provided with biometric aadhaar card
    (d) Government passes a special resolution to change the name of a park
Answer - (c)




33. In any economy, the public policy is guided by __________factors.
    (a) Social and cultural
    (b) Religious
    (c) Political
    (d) All of these
Answer - (d)




34. In Delhi Metro, the first compart- ment in the moving direction is reserved for ladies. This policy of keeping reservation emanates from:
    (a) Socio perspective
    (b) Welfare perspective
    (c) Cultural perspective
    (d) Socio-cultural prospective
Answer - (d)




35. The Statement "Public policy is whatever Government chooses to do or not to do" is given by:
    (a) Thomas R. Dye
    (b) Richard Rose
    (c) Carl J. Friedrich
    (d) Martin Luther
Answer - (a)




36 Public Policies are always _______________
    (a) Goal oriented
    (b) Minutely defined
    (c) Pro-rich
    (d) For the poor
Answer - (a)




Nature of Public Policy


37. Which of the following is type of Public Policies.
    (a) Facilitative Policy
    (b) Regulatory Policy
    (c) Restrictive Policy
    (d) All of these
Answer - (d)




38. SEBI, RBI and IRDA are:
    (a) Regulatory Institutions
    (b) Policy institutions
    (c) Satellite Institutions (d) Goal setting bodies
Answer - (a)




39. In order to protect products, the Government has imposed Custom Duties. The nature of this public policy is
    (a) Restrictive
    (b) Regulatory
    (c) Facilitating
    (d) Liberal
Answer - (a)




40. The Conducive policies towards the development of Micro-Small- Medium Enterprises are an example of policy.
    (a) Restrictive
    (b) Regulatory
    (c) Facilitating
    (d) Liberal
Answer - (c)




41. The formation of National Skills Development Corporation is example of____________ policy.
    (a) Restrictive
    (b) Regulatory
    (c) Facilitating
    (d) Liberal
Answer - (c)




42. Which one of the following is the example of Regulatory Practices?
    (a) Customs duties
    (b) RBI
    (c) MSME
    (d) NSDC 
Answer - (b)




43. After Independence, Planning Commission (now NITI Aayog) was established to make economic plans for a period of
    (a) Three
    (b) Four
    (c) Five
    (d) Seven
Answer - (c)




44. After independence, India followed a:
    (a) Socialistic Path of Development
    (b) Commonwealth Model of Growth (c) Mixed Economic Path
    (d) Capitalistic Model of Development
Answer - (c)




45. NITI Aayog replaced:
    (a) Planning Commission
    (b) Election Commission
    (c) MRTP Commission
    (d) Financial Commission
Answer - (a)




46. Which of the following institutions has been scrapped recently?
    (a) Minerals and Metals Regulatory Commission
    (b) Coal India Limited
    (c) Planning Commission
    (d) FIPB
Answer - (c)




47. Many of the Eastern European nations signed "Warsaw Pact" and followed the ______ pattern of economy.
    (a) Communistic
    (b) Capitalistic
    (c) Mixed
    (d) Regional
Answer - (a)




48. Which one of the following western European nations have followed a Capitalistic model?
    (a) Great Britain
    (b) France and Spain
    (c) Portugal and Germany
    (d) All of the above.
Answer - (d)




49. The Constitution of the nation outlines the nature of policies to be taken for the growth and development of the nation. This Constitution was framed and accepted in _________.
    (a) 1947
    (b) 1948
    (c) 1950
    (d) 1951
Answer - (c)




50. When India became independent, the problems prevailing were -
    (a) Socio-economic transformation
    (b) National Integrity
    (c) External Environment
    (d) All of the above
Answer - (d)




51. Immediately after independence, the new Government of India indentified a thoroughly close knit relation and interaction between the important Government agencies. These agencies were:
    (a) Political Executive
    (b) Legislature
    (c) Bureaucracy & judiciary
    (d) All of the above.
Answer - (d)




53. Who invests the foreign currency in India to get better returns, other than Foreign Direct Investments?
    (a) Non-Resident Indians
    (b) Overseas citizens of India
    (c) Both (a) & (b)(d) None of the these
Answer - (c)




54. In any economy, the foreign Direct Investment:
    (a) Is meant for setting up of business.
    (b) Brings forex investment
    (c) Enhances employment opportunities
    (d) All of the above.
Answer - (d)




55. OCI refers to
    (a) Overseas citizens of India
    (b) Overseas Corporate Investors
    (c) Other Corporate Investors
    (d) None of these
Answer - (a)




56. As a part of series of measures taken towards liberalizing foreign investment, permission was grouted to _______to invest up to 100 percent capital in priorities sectors
    (a) Non-Resident Indians
    (b) Overseas Corporate Bodies
    (c) Both (a) & (b)
    (d) 100 percent Capital is never allowed
Answer - (c)




57. OCBs mean:
    (a) Overseas Corporate Bodies
    (b) Ordnance Commission Bilateral Secretariat
    (c) Oversees Civic Boards
    (d) Oversees Commercial Bilateral Treaties
Answer - (a)




58. FEMA replaced FERA in
    (a) 2004
    (b) 2000
    (c) 1991
    (d) 1999
Answer - (d)




59. The Companies in India are examples of FDI presence in India during the past liberalization days.
    (a) Samsung, Sony and HP
    (b) Coke, Pepsico and Microsoft
    (c) General MotorsHyundaiHonda, Toyota, Volkswagen & Volvo
    (d) All of the above.
Answer - (d)




60. Which one of the following measures was taken towards liberalizing foreign investment?
    (a) Automatic permission for technology agreements in high priority industries
    (b) Removal of restrictions on FDI in low technology areas.
    (c) Liberalization of technology imports.
    (d) All of the above.
Answer - (d)




61. In order to give protection to foreign investments, the Government has signed the convention of ________
    (a) Multilateral Investment Agreement.
    (b) Multilateral Investment Rule.
    (c) Multilateral Inflow Guarantee Agency.
    (d) Multilateral Investment Guarantee Agency.
Answer - (d)




62._________ as a policy helped India in integrating the country's economy with the world economy.
    (a) Globalization
    (b) Privatization
    (c) Social Regionalism
    (d) None of these.
Answer - (a)




63. Industrial policy was reformed first through the Industrial Policy in _________, which opened up the foreign Capital inflow.
    (a) 1949
    (b) 1951
    (c) 1991
    (d) 2015
Answer - (c)




64. What was the reason behind reforms by the Government in 1991?
    (a) Dysfunctions in Economy.
    (b) Poor efficiency and low productivity in public sector undertakings
    (c) Strong trade - Unionism which has crippled the growth of private sector
    (d) All of these
Answer - (d)




65. Upto 1991, The Government of India took huge loans from the source:
    (a) Asian Development Bank
    (b) World Bank
    (c) IMF
    (d) All of the above
Answer - (d)




66. In 1992, some of the Public Sector Enterprises were first corporatized and process was started to sold a large chunk of shares to public. This process may be regarded as :
    (a) Merger
    (b) Disinvestment
    (c) Globalization
    (d) Sell-off
Answer - (b)





67. In the mid 1980s, the Soviet Union got broken and ________ independent States were formed.
    (a) 7
    (b) 11
    (c) 15
    (d) 21
Answer - (c)




68. In 1992, the Government of India took revolutionary steps to open up the economy. Which one of the following is part of such steps?
    (a) Massive Change in economic policy
    (b) Priority given to Public Sector
    (c) Loss making Public Sector Enterprises were closed or divested
    (d) All of these.
Answer - (d)




69.________ emanates from decision and _________ is taken in line with ___________
    (a) Policy, decision and goal
    (b) Goal, Policy and Rules
    (c) Rules, Policy and goal
    (d) Rules, goal and Policy
Answer - (a)




70. Which one of the following Statement is Correct?
    (a) Decisions are not based on Policy.
    (b) All decisions can be categorized as the matters of policy.
    (c) All the decisions that are taken cannot be categorized as matter of policy.
    (d) There is no relation between decision and policy.
Answer - (c)




71. A decision is the ___________ of making a ____________
    (a) Act, Choice
    (b) Impact, Policy
    (c) Effect, decision
    (d) Rule,decision.
Answer - (a)




72. There are many policies of the Government having vast areas of operation affecting the general welfare and development of the society as a whole. These policies have been formulated keeping in view the:
    (a) Prime Character of the Indian Constitution
    (b) Socio-economic problems
    (c) Level of moral values of the society (d) All of these
Answer - (d)




73. The Union Government through different Ministries and various Regulatory Institutions may issue _____________.
    a) Codes
    (b) Guidelines
    (c) Statutes
    (d) Any of these.
Answer - (d)




74. Which one of the following is the example of distributive policies of the Government?
    (a) Adult Education Programme
    (b) Food Relief
    (c) Social insurance & immunization camps
    (d) All of these
Answer - (d)




75. __________ are concerned with regulation of national and foreign trade, business, safety measures, public utilities, etc.
    (a) Regulatory Rules
    (b) Regulatory Policies
    (c) Regulatory Act
    (d) Distribute Policies
Answer - (b)




76. _____________ can be in the area of public distribution to people below poverty line, public welfare, justice for women, health services, etc.
    (a) Regulatory Policies
    (b) Distributive Policies
    (c) Distributive Decisions
    (d) None of these
Answer - (b)




77. Which one of the following is not a regulatory institution?
    (a) RBI
    (b) Ministry of Commerce
    (c) SEBI
    (d) IRDA
Answer - (b)




78. Government holds responsibility and private sector handles fully and partly the delivery of product and services.
    (a) Delegation
    (b) Divestment
    (c) Displacement
    (d) Disinvestment
Answer - (a)




79. As a type of privatization, the delegation may happen through:
    (a) Contract
    (b) Franchise
    (c) Grant
    (d) Any of these
Answer - (d)




80. The Selling of a portion of owner- ship (Stake) in a public enterprise to private parties is regarded as:
    (a) Delegation
    (b) Divestment
    (c) Displacement
    (d) Disinvestment
Answer - (d)




81. In case of Maruti-Suzuki, the Union Government surrendered partial ownership and sold the majority stake to Suzuki of Japan in course of time. This is a case of:
    (a) Partial Disinvestment
    (b) Displacement
    (c) Delegation
    (d) Divestment
Answer - (d)




82. The Government monopoly through BSNL and MTNL has been taken away by the private sector plays like Airtel, Reliance Jio, Vodafone, etc. This type of privatization may be regarded as
    (a) Displacement

    (b) De-Centralization
    (c) Delegation
    (d) Ownership pattern policy
Answer - (a)




83. facilitates privatization if it enables private sector to challenge a Government monopoly.
    (a) Displacement
    (b) De-regulation
    (c) Dis-investment
    (d) Privatization
Answer - (b)




84. FDI in sectors/activities which do not require any prior approval either of the Government or the Reserve Bank of India is identified as:
    (a) Green Channel
    (b) Priority route
    (c) Non-Commercial Route
    (d) Automatic Route
Answer - (d)




85. The method of FDI other than Automatic route is called:
    (a) NRI Route
    (b) Government Route
    (c) Institutional Route
    (d) Priority Route
Answer - (b)




86. In the post liberalization and privatization period, India was Considered a lucrative place of FDI inflow because of its
    (a) Huge domestic market
    (b) Huge employment opportunity
    (c) Low profile in Global economy
    (d) None of these
Answer - (a)




87. ______________may be described as a flow of capital investment to an enter- prise in a nation by another enterprise located in a different nation by capturing a majority stake in ownership in a company in the target country.
    (a) Foreign Direct Investment.
    (b) Foreign Direct Inflow
    (c) Globalization
    (d) Foreign Intuitional Investors
Answer - (a)




88. Permission for FDI is
    (a) Uniform for all sectors
    (b) Not Uniform for all sectors
    (c) Prohibited in all sectors
    (d) Not allowed in India
Answer - (b)




89. Where there is no approval through Automatic Route, the company Concerned has to seek permission from __________
    (a) Atomic Energy
    (b) Nidhi Company
    (c) Lottery Business
    (d) All of these
Answer - (a)




90. FIPB stands for:
    (a) Foreign Institutional Promotion Board
    (b) Foreign Institutional Preparatory Board
    (c) Foreign Investment Priority Board
    (d) Foreign Investment Promotion Board
Answer - (d)




91. India generally receives FDI from:
    (a) US
    (b) Britain
    (c) Singapore & Japan
    (d) All of the above
Answer - (d)




92. TDR stands for
    (a) Transferable Development Rights
    (b) Technical Device Rights
    (c) Technological Development Rays
    (d) None of these
Answer - (a)




93. In which of the following sector, FDI is not prohibited?
    (a) Development of Townships
    (b) Construction of residential/commercial premises
    (c) construction of roads & bridges
    (d) Trade in TDR
Answer - (d)




94. Identify the sector where, FDI is not permitted:
    (a) Automobile
    (b) Infrastructure
    (c) Textile
    (d) Animal Husbandry
Answer - (d)




95. FDI is allowed in:
    (a) Tea Plantation
    (b) Coconut Plantation
    (c) Sugarcane Plantation
    (d) None of the above
Answer - (a)




96. Which of the following is correct?
    (a) Government looks for FII's over FDI's for investment purposes
    (b) There is no restriction in any sector for FDI
    (c) There is limitation on some sectors for FDI
    (d) All of these.
Answer - (c)




97. 100% FDI investment allowed in which year?
    (a) 2010
    (b) 2012
    (c) 2014
    (d) 2004
Answer - (b)




98. Hyundai India Limited came to India through the FDI route. It followed the path of:
    (a) Divestment in Public Sector Unit
    (b) Joint Venture
    (c) By creating a 100% Indian subsidiary
    (d) Replacement of a Government sector business.
Answer - (c)




99. Who cannot be a Foreign Direct Investor?
    (a) Governments or Government Agencies
    (b) Estates, Trusts, or Other Organi- zations
    (c) Unincorporated Private or Public Enterprises
    (d) None of the above
Answer - (d)




100. FDI may be allowed through
    (a) Automatic Route
    (b) Government Route
    (c) Any of (a) & (b)
    (d) None of these
Answer - (c)




101. Blackrock invested 30 million USDs as a portfolio investor in Indian stock market. This may be a case of
    (a) FDI
    (b) FII investment
    (c) Indirect investment
    (d) NRI investment
Answer - (b)




102. Foreign Intuitional Investors are:
    (a) Large Foreign groups
    (b) Having substantial investible funds
    (c) Both (a) & (b)
    (d) None of these
Answer - (c)




103. Foreign Intuitional Investors are registered abroad with a view to investing in other nations to invest in:
    (a) Equity Markets
    (b) Hedge & Pension Funds
    (c) Mutual Funds
    (d) All of these
Answer - (d)




104. Which of the following statement is correct about FIIS?
    (a) They have strong research team.
    (b) They Speculate to invest in a Country.
    (c) They invest where there is a possibility of strong return in equity market
    (d) All of these.
Answer - (d)




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