CUET Entrepreneurship MCQs Unit 5 Business Arithmetic

Question. Monika Ltd. manufactures two types of calculators, Basic Model and Scientific Calculators. The total fixed cost of entire operations is Rs. 1,40,000.

The weighted average contribution will be ________________.
A. Rs. 650
B. Rs. 455
C. Rs. 195
D. Rs. 560

Question. A firm has Capital of Rs. 10,00,000 of which Rs. 6,00,000 is debt fund; Sales of Rs. 5,00,000; Gross Profit of Rs. 2,00,000 and Expenses of Rs. 1,00,000. Return on Equity for the firm will be?
A.50%
B.25%
C.150%
D.30%

Question. The following table shows the number of guests who all stayed in a hotel in last 4 weeks and also their total bill amount for food, lodging and leisure activities.

What is the value of unit price for the hotel?
A. Rs.200
B. Rs.205
C. Rs.208
D. Rs.210

Question. The __________ is the Unit of Sale for multi-product business.
A.Owner
B.Customer
C.Supplier
D.Bank

Question. What will be the Net Working Capital of Sukhoi Ltd. from the given data? Cash Rs. 2,00,000 Account Receivables Rs. 1,50,000 Account Payables Rs. 65,000 Inventory Rs. 3,00,000 Short term borrowings Rs. 1,00,000 Outstanding Salaries Rs. 50,000.
A. Rs. 6, 50,000
B. Rs. 2,15,000
C. Rs. 8,65,000
D. Rs. 4,35,000

Question. Nomee India Ltd.’ are the producers of two different sizes of televisions. From the information given below, calculate the ‘Break-Even Quantity’ of the T.V. sets manufactured per month. Information:

Choose the correct option for Break-even point for the TV sets:
A. 43 inch – 10 units and 55 inch- 12 units
B. 43 inch – 12 units and 55 inch- 10 units
C. 43 inch – 10 units and 55 inch- 10 units
D. 43 inch – 12 units and 55 inch- 12 units

Question. After assuming the future demand, every company needs to determine when to place an order for stock and how much to order. This can be calculated by using the ________ formula.
A.Break-even point
B.Working Capital
C.Reorder Level
D.Economic Order Quantity

Question. Aloma Ayurvedic Limited is a well-established name in the market for ayurvedic medicine. It has entered into the market of immunity booster drinks and has introduced Immunity Shots in special packaging, in two flavours. Total fixed cost incurred in the entire operation is Rs. 5,60,000. Based on the Breakeven point analysis, will it be economically viable for Aloma Ayurvedic Limited to continue with the production of these immunity shots?

A. Yes, as there is a big market for immunity boosting products.
B. No, because there is a limited variety of immunity boosting shots being introduced by the company.
C. No, because the breakeven point is very greater than the combined sale of the two varieties Page 2 of 4
D. Yes, because the breakeven point is smaller than the combined sale of the two varieties.

Question. ASSERTION: The Cash Conversion Cycle is the length of time between a firm’s purchase of inventory and the receipt of cash from accounts receivable.
REASON: The cash conversion cycle for a manufacturing business is higher than a trading concern.
A. Assertion and Reason both are incorrect
B. Assertion and Reason both are correct but not a correct explanation
C. Assertion and Reason both are correct and a correct explanation
D. Assertion is wrong but Reason is correct

Question. If the purchase price is 80% of selling price, and the selling Price is Rs,2,000. Then the gross profit per unit earned by the business is:
A.Rs.1,000
B.Rs.500
C.Rs.1,600
D.Rs.400

Question. 8.The total bill in a restaurant during a week was ₹ 18,000. Though the food bill for individual customer was different but the average bill amount was ₹ 150. Based on this information, the number of customer who ate in that restaurant during the week is
A.90
B.100
C.120
D.140

Question. At BEP, which of the condition is to be fulfilled:
A. Total Revenue = Total Profit
B. Total Profit = Total Cost
C. Total revenue = Total cost
D. Total Revenue = fixed cost

Question. In a subsidiary of Sugar mill in U.P, cane juice is converted into organic jaggery. The mill owner wants to know whether to continue with this subsidiary or close it down. On an average, the monthly output of the subsidiary is 2,500 Kg., Sales price / kg- Rs. 100, Variable cost/ kg- Rs.30, Fixed expenses- Rs. 70,000. The breakeven point in units will be?
A. 1000 units
B. 1500 units
C. 10000 units
D. 7500 units

Question. If procurement or manufacturing lead time is 2 months, and demand during this period is expected to be 300 units per month, then the re order level is:
A.150 units
B.600 units
C.100 units
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D.500 units

Question. Cello Co. ltd manufacturers has three products: Pen, Pencil and Eraser.

Total fixed cost is ₹ 90,000.
From the above given information Overall break even points in units will be:
A. 4,000
B. 2,000
C. 3,000
D. 5,000