MGT211 Midterm MCQs 2025

Q1. Why did ancient societies invent writing systems like cuneiform?

1. To record business transactions
2. For poetry
3. To teach language
4. To preserve religious texts

Correct answer: To record business transactions

Q2. What is the role of “aids to trade” in commerce?

1. Controlling markets
2. Replacing labor
3. Providing money
4. Supporting the movement and sale of goods

Correct answer: Supporting the movement and sale of goods

Q3. Lifestyle entrepreneurs:

1. Align business with personal passion
2. Prefer franchises
3. Avoid innovation
4. Focus on tech startups

Correct answer: Align business with personal passion

Q4. The Hadith “Whoever hoards is a sinner” teaches:

1. Market ethics
2. Strategic pricing
3. Efficiency
4. Leadership

Correct answer: Market ethics

Q5. The business cycle refers to:

1. Economic ups and downs over time
2. Employee behavior
3. The stages of product life
4. Stock market patterns

Correct answer: Economic ups and downs over time

Q6. A serial entrepreneur starting a third venture applies past lessons. This is an example of:

1. Risk aversion
2. Innovation
3. Diversification
4. Experience-based application

Correct answer: Experience-based application

Q7. Which sector benefits most directly from SME subcontracting in Pakistan?

1. IT
2. Construction
3. Large-scale industry
4. Agriculture

Correct answer: Large-scale industry

Q8. How should a business respond to weak marketing?

1. Focus only on product development
2. Improve branding and outreach
3. Cut costs on promotion
4. Increase product prices only

Correct answer: Improve branding and outreach

Q9. A business operating in a socialist economy would most likely:

1. Face no government oversight
2. Be entirely profit-oriented
3. Share ownership with the state
4. Export freely without taxes

Correct answer: Share ownership with the state

Q10. What challenge is most common for entrepreneurs in Pakistan?

1. Unlimited funding
2. Difficulty in accessing finance
3. Global overexposure
4. Excessive innovation

Correct answer: Difficulty in accessing finance

Q1. The circular flow model explains:

1. How banks operate
2. Movement of products in an economy
3. Online marketing
4. Export strategies

Correct answer: Movement of products in an economy

Q2. A company impacted by cost-push inflation might respond by:

1. Reducing prices
2. Raising product prices
3. Cutting wages
4. Increasing employee benefits

Correct answer: Raising product prices

Q3. What was the key business advancement during the Third Industrial Revolution?

1. Assembly line
2. E-commerce and automation
3. Printing press
4. Smart cities

Correct answer: E-commerce and automation

Q4. A tech startup focusing on AI-driven analytics is part of which sector?

1. Tertiary
2. Quaternary
3. Secondary
4. Primary

Correct answer: Quaternary

Q5. Why do social entrepreneurs differ from typical entrepreneurs?

1. They prioritize social value
2. They manage multiple ventures
3. They seek venture capital
4. They avoid profits

Correct answer: They prioritize social value

Q6. What does cost-push inflation refer to?

1. Increase in production costs
2. Increase in demand
3. Market speculation
4. Currency devaluation

Correct answer: Increase in production costs

Q7. The central objective of business is:

1. Profit Earning
2. Employment creation
3. Knowledge generation
4. Resource management

Correct answer: Profit Earning

Q8. What is a core principle of business ethics that means treating people justly?

1. Transparency
2. Fairness
3. Loyalty
4. Respect

Correct answer: Fairness