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CBSE Questions for Class 11 Commerce Business Studies International Business Quiz 6 - MCQExams.com
CBSE
Class 11 Commerce Business Studies
International Business
Quiz 6
Franchising enables the franchiser to increase his goodwill and reputation by expanding his network.
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0%
False
0%
Partly false
0%
True
0%
Partly true
Explanation
A
franchise
is a business opportunity that allows the
franchisee
to start a business by legally using the
franchiser's
expertise, ideas, and processes. This helps the franchiser to grow his business in the market and increases the goodwill of the franchiser.
Hence, option (C) is the correct answer.
The exchange of goods exclusively between two countries is known as _______.
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0%
trade
0%
bilateral trade
0%
import
0%
export
Explanation
A bilateral trade is the exchange of goods between two nations promoting trade and investment . The two countries will reduce or eliminate tariffs, import quotas, export restrains and other trade barriers to encourage trade and investment.
Setting up a new firm in a foreign country for operations is also known as _____________.
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0%
new establishment
0%
green field venture
0%
open market operations
0%
foreign portfolio investments
Explanation
Greenfield Venture
is a form of market entry strategy with establishment of a new wholly owned subsidiary in a foreign country by constructing its facilities from start. Through
Greenfield venture
, a business enters a new market without the help of another business which is already present there.
The parent company has to make 100 per cent _________ in the foreign subsidiaries.
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0%
debt capital
0%
foreign direct investment
0%
venture capital
0%
equity investments
Explanation
The parent company acquires full control over the foreign company by making 100 per cent investment in equity capital. When a company makes a full investment of equity capital of a company,hence the company is owned.
Various trade promotion measures and schemes available to business firms are mentioned in the ___________ policy.
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0%
organisational
0%
export-import
0%
government
0%
legislative
Explanation
Various trade promotion measures and schemes available to business firms are mentioned in the export-import policy. this export-import policy is also known as the EXIM policy.
Goods meant for export are subjected to payment of various excise and custom duties.
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0%
True
0%
False
Explanation
The goods that are meant for export are not subjected to payment of various excise and custom duties as per the export excise duty exemption. Since goods meant for exports are not consumed domestically, these are not subjected to payment of various excise and customs duties. Any such duties paid on export goods are, therefore, refunded to exporters on production
At present there are ______ EPCs dealing with different commodities.
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0%
34
0%
21
0%
15
0%
20
______________ is to encourage the import of capital goods for export production.
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0%
EPCG
0%
Exemption of payment of sales tax
0%
Advance licence scheme
0%
All of the above
Explanation
Export Promotion Capital Goods (EPCG) scheme is to encourage the import of capital goods for export production, it allows import of capital goods including spares for pre production, production, post production of export goods at zero duty.
______________ facility entitles firms to produce goods without payment of excise and other duties.
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0%
EPCG
0%
Duty drawbacks
0%
Export manufacturing under bond scheme
0%
Neither of the above
Explanation
Export manufacturing under bond scheme facility entitles firms to produce goods without payment of excise duties and other duties. the duties that are paid for the export goods are also refunded under duty drawback scheme.
Post-shipment finances are the finances provided for purchasing, manufacturing, processing, packaging of goods.
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0%
True
0%
False
Explanation
Finances provided for purchasing, manufacturing, processing, packaging of goods are the pre-shipment finances. The post shipment finances are suppliers credits, custom duties to be paid , export bills etc.
Under the ___________ scheme, an exporter is allowed duty free supply of inputs required to manufacture export goods.
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0%
export manufacturing under bod scheme
0%
advanced license scheme
0%
exemption of payment of sales tax
0%
all of the above
Explanation
Under the advanced license scheme, an exporter is allowed duty free supply of inputs required to manufacture export goods.
Government of India is the apex body responsible for the country's external trade.
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0%
True
0%
False
Explanation
Government of India is the apex body responsible for the country's external trade as the government develops the rules and regulations levied on the import and export trade made in India.
Which organisation sets the rule of trade on a global scale?
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0%
World Trade Organisation
0%
World Organisation of Trade
0%
Both (A) and (B)
0%
None of the above
Explanation
World Trade Organisation
The World Trade Organization is the only international institution that oversees the global trade rules between nations. The WTO is based on agreements signed by the majority of the world's trading nations. The main function of the organization is to help producers of goods and services, exporters, and importers protect and manage their businesses.
Finance is required by the exporters even after the shipment of product.
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0%
True
0%
False
Explanation
Finance is required by the exporter even after the shipment of the product as the exporter has to pay for the various licensing and custom duties when the goods reach their destination in the foreign market.
The word franchise is a ___________ word.
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0%
Anglo British
0%
Anglo Indian
0%
Anglo French
0%
Anglo Greek
Explanation
A BRIEF HISTORY OF
FRANCHISING
The History and Evolution of
Franchising
The word “
franchise
” is derived from the
Anglo
-
French
word meaning “liberty.” In Middle
French
, it is “franchir” to free. In Old
French
, it is “franc,” signifying free. The
French
term “francis” means granting rights or power to a peasant or serf.
It is form of direct marketing where customers become distributors ________.
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0%
Franchising
0%
BPOs
0%
Network marketing
0%
None of the above
Explanation
Franchising is a form of direct marketing where the customers become distributors as a customer asks for the franchise from the franchiser to grow his business.
In line with a franchising agreement, a franchisee may use____________.
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0%
geographic region exclusively
0%
patents, designs, trade secrets and business know-how
0%
trade marks copyright and trade secrets
0%
all of the above
Explanation
Because
A
Franchise Agreement
is a legal, binding
contract
between a
franchisor
and franchisee. In the United States
franchise agreements
are enforced at the State level. Prior to a franchisee signing a
contract
, the US Federal Trade Commission regulates information disclosures under the authority of The
Franchise
Rule.
The world bank provides resources for __________.
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0%
education
0%
sanitation
0%
health care
0%
all of the above
Explanation
The world bank provides resources for education, sanitation, health care in the nations that lack such resources.
Agreement on textile and clothing is an agreement fostered by the __________.
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0%
World Bank
0%
United Nations
0%
WTO
0%
IMF
Explanation
The Agreement of textile and clothing provided for all then-existing textile and
clothing trade restrictions to be notified and eliminated over a period of 10 years from the date of
entry into force of the WTO Agreement.
Advantages to a franchisor in a franchise are _____________________.
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0%
capital injection
0%
market penetration
0%
risk sharing
0%
all of the above
Explanation
Advantages to a franchisor in a franchise
capital
injection
is an investment of
capital
into a company or institution, generally in the form of
cash
, equity, and debt
Market penetration refers to the successful selling of a product or service in a specific market.
Risk Sharing
is an entirely different concept. It involves
sharing
(dividing) common
risk
among two or more persons
___________ have been established by the government of India for development of production of traditional commodities and their export.
Report Question
0%
Department of commerce
0%
Export inspection
council
0%
Export promotion council
0%
Commodity boards
Compared to licensing, franchising is a more advantageous mode of entry because ____________.
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0%
it offers greater control
0%
it generates economics of scale in marketing to international customers.
0%
it is low-risk and low-cost
0%
all the above
Explanation
The advantages of Franchising are as follows:
It is considered a less expensive mode of entering into international business.
Since no or very little foreign investment is involved, franchiser is not a party to the losses, if any, that occur to foreign business.
Since the business in the foreign country is managed by the franchisee who is a local person, there are lower risks of business takeovers or government interventions
___________ is the corner stone of international franchising
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0%
Concentration
0%
Adaptation
0%
Standardization
0%
Focus
Explanation
Franchising
is an organizational form based on a legal agreement between an International
franchisor
to give
standardization that is the process of implementing and developing technical standards based on the consensus of different parties that include firms, users, interest groups.
Export inspection council aims at quality control and pre-shipment inspection of commodities meant for export.
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0%
True
0%
False
Explanation
Export inspection council aims at inspection of the quality control of the products and preshipment inspection of the commodities that are meant for export.
The World Bank is significantly involved in eradication of poverty through raising productivity.
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0%
True
0%
False
Explanation
The world bank is significantly involved in eradication of poverty through raising productivity in the underdeveloped nations by helping them in industrial and agricultural economies and creating employment opportunities for the poor.
The term royalty is closely associated with ________________.
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0%
licensing
0%
direct exporting
0%
contract manufacturing
0%
piggybacking
Explanation
Licensing is the process of permitting another party in a foreign country to produce and sell goods under your trademarks, patents or copy rights in lieu of some fee is another way of entering into international business. Licensing is a contractual arrangement which comes with a fee called royalty.
It is under the licensing system that Pepsi and Coca Cola are produced and sold all over the world by local bottlers in foreign countries.
The world bank diverted their resources to __________ & ___________ for the underdeveloped nations.
Report Question
0%
infrastructure, finance
0%
industrial, agriculture
0%
import, export
0%
neither of the above
Explanation
The world bank diverted their resources to industrial and agricultural help for the underdeveloped nations. Industrial and agricultural situations are the primary base to the development of an underdeveloped nation.
Which among the following is not the major objectives of the IMF?
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0%
Promote international monetary cooperation
0%
Promote balanced growth of international trade
0%
Promote weapons development in developing nations
0%
All of the above
Explanation
The major Objectives of IMF are
1: to promote international monetary cooperation.
2: To promote balanced growth of international trade.
To promote weapons development in developing nations is not an objective of the IMF.
Which of the following is a function of the WTO?
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0%
Laying down a commonly accepted code of conduct to reduce trade barriers
0%
Acting as a dispute settlement body
0%
Ensuring that all the rules regulations prescribed in the Act are duly followed by the member countries for the settlement of their disputes
0%
All of the above
Explanation
The functions of WTO are:
1: Laying down a commonly accepted code of conduct to reduce trade barriers.
2: Acting as a dispute settlement body.
3: Ensuring that all the rules regulations prescribed in the Act are duly followed by the member countries for the settlement of their disputes.
Which among the following is a function of the IMF?
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0%
Acting as short term credit institution
0%
Promoting orderly adjustment of exchange rate
0%
Lending institution of foreign currency and current transaction
0%
All of the above
Explanation
The functions of IMF are :
1: Acting as a short term credit institution
2: Promoting orderly adjustment of exchange rate
3: Lending instituions of foreign currency and current transaction.
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