All205Business & Commercial Knowledge60Business Economics & Commercial Knowledge vol.255Fundamentals of Accounting50Quantitative Aptitude & Business Economics40

Q1Fundamentals of Accounting

Which TWO of the following items should be capitalised within the initial carrying amount of an item of plant?

ACost of transporting the plant to the factoryBCost of installing a new power supply required to operate the plantCA deduction to reflect the estimated residual valueDCost of a three-year maintenance agreement

Q2Quantitative Aptitude & Business Economics

If r = 0.9 and if 3 is subtracted from each observation of x and 5 is added to each observation of y, then r will:

ADecrease by 2 unitsBIncrease by 2 unitsCRemain unchangedDNone of these

Q3Business & Commercial Knowledge

Current technical standards knowledge shows:

ADue careBNegligenceCCarelessnessDIncompetence

Q4Fundamentals of Accounting

MPD received rent Rs. 720k. 31 Mar 21: Arrear 80k, Advance 50k. 31 Mar 22: Arrear 45k, Advance 100k. Rental income for year ended 31 Mar 22?

ARs. 745,000BRs. 695,000CRs. 635,000DRs. 805,000

Q5Business & Commercial Knowledge

Cooperatives aim to:

AMaximize profitBRender servicesCAvoid taxesDCompete aggressively

Q6Quantitative Aptitude & Business Economics

P(x) = 10x² + 5x − 100, where x is number of units. What is profit when 5 units are sold?

A200B225C175D150

Q7Quantitative Aptitude & Business Economics

Triangle sides: x, x+1, and 15 meters. x^2+(x+1)=15. Form quadratic equation:

AX^2 + X - 14 = 0BX^2 + X - 15 = 0CX^2 + 2X - 14 = 0DX^2 + 2X - 15 = 0

Q8Quantitative Aptitude & Business Economics

Which of the following about coefficient of variation (CV) are correct? (1) CV is independent of units expressed in % (2) CV is an absolute measure (3) CV is a relative measure (4) CV cannot be calculated if SD and mean are available

A(1) and (3) onlyB(2) and (4) onlyC(1), (2) and (3)DAll four

Q9Business Economics & Commercial Knowledge vol.2

Negative gap or deflationary gaps are same:

ATrueBFalseCD

Q10Business & Commercial Knowledge

PSL ensures stadiums' garbage is recycled. This shows:

ASocial responsibilityBEnvironmental responsibilityCEconomic responsibilityDLabour responsibility

Q11Business & Commercial Knowledge

Interest rates are typically a part of

ALoansBAccounts receivables factoringCstocksDshares issuance

Q12Quantitative Aptitude & Business Economics

Let x be a random variable with probability distribution P(X=x), then Sum(x * p(x)) is known as:

ASum of probabilitiesBMean or expected valueCMean of Binomial DistributionDNone of these

Q13Business & Commercial Knowledge

A source NOT suitable for long term:

AEquity capitalBDebenturesCTrade creditDPreference shares

Q14Business & Commercial Knowledge

Which statement best describes the relationship between risk and profit?

ANo relationshipBInverse relationshipCDirect relationshipDVariable relationship

Q15Business Economics & Commercial Knowledge vol.2

Which of the following measures in NOT likely to boost a country's rate of economic growth?

ATax cutsBTax rebatesCReduction in subsidiesDIncrease in government spending

Q16Business & Commercial Knowledge

A new sales order in an integrated system updates:

AAccounts payableBSales, inventory, and receivablesCOnly sales ledgerDOnly inventory

Q17Business & Commercial Knowledge

Pharmacy Chain discovered some stores were selling expired medicines. Which TWO immediate actions demonstrate ethical responsibility?

ARecall products immediatelyBInvestigate all locationsCHide the informationDContinue sales to avoid loss

Q18Business Economics & Commercial Knowledge vol.2

In Islam Ijara is a leasing agreement.

ATrueBFalseCD

Q19Business Economics & Commercial Knowledge vol.2

Which one cause to deficit in bop?

AImport of primary goods and export of finished goodsBImport of finished goods and export of primary goodsCHigh income elasticity of importDb & c

Q20Business Economics & Commercial Knowledge vol.2

In a closed economy with no government sector the multiplier shows the impact of a change in

AConsumption on investmentBInvestment on national incomeCnational income on consumptionDnational income on investment

Q21Business Economics & Commercial Knowledge vol.2

The process of buying and selling of goods and services or exchange of information regarding business activities through digitalized systems including internet is called E-business.

ATrueBFalseCD

Q22Quantitative Aptitude & Business Economics

Which of the following are correct? (1) Weighted AM considers relative importance of each item (2) Geometric mean is useful for average growth rates (3) CV is an absolute measure

A(1) and (2) onlyB(2) and (3) onlyC(1) and (3) onlyDAll three

Q23Fundamentals of Accounting

Insurance premium year to 31 Mar 2016 paid Apr 2015 Rs.10800. Premium year to 31 Mar 2017 paid Apr 2016 Rs.12000. Year ended 30 June 2016. P&L and SFP amounts?

AP&L Rs.11100 Prepaid Rs.9000BP&L Rs.11700 Prepaid Rs.9000CP&L Rs.11100 Accrual Rs.9000DP&L Rs.11700 Accrual Rs.9000

Q24Business Economics & Commercial Knowledge vol.2

Which of the following measures would immediately increase the cost of imports?

ATariffBQuotaCEmbargoDSubsidies

Q25Business Economics & Commercial Knowledge vol.2

Which one is not a participant of economy?

AHouseholdBStudentsCFirmsDGovernment

Q26Business & Commercial Knowledge

Chain of command is:

AInformal communicationBLine of authorityCCustomer feedbackDSupplier network

Q27Fundamentals of Accounting

Machine purchased 1 Apr 2019 Rs. 200k, residual 20k, life 10 years. At 30 Jun 2022 revised: residual 25k, life 8 years. Depreciation for year ended 30 Jun 2022?

ARs. 24,174BRs. 23,167CRs. 22,417DRs. 23,391

Q28Business Economics & Commercial Knowledge vol.2

An increase in the cash reserve ratio would:

ADecrease pricesBReduce inflationCControl lendingDAll the above

Q29Fundamentals of Accounting

Purchase return Rs. 84,000 wrongly posted to debit of sales return, but correctly in supplier's account. What is total of trial balance?

AThe credit side to be Rs. 84,000 more than debit sideBThe debit side to be Rs. 84,000 more than credit sideCThe credit side to be Rs. 168,000 more than debit sideDThe debit side to be Rs. 168,000 more than credit side

Q30Business Economics & Commercial Knowledge vol.2

Consumer sovereignty, capital accumulation, less waste of resources; refers to:

ACapitalismBMixed Economic SystemCSocialismDCommand Economy

Q31Business & Commercial Knowledge

Revenues from sales of product or services should be the primary source of funding. But funds from sales does not always come in when required. TRUE or FALSE?

ATRUEBFALSECD

Q32Business & Commercial Knowledge

Computer network basic purpose:

AShare resourcesBIncrease salariesCReduce computersDLock devices

Q33Business & Commercial Knowledge

ICAP's ethical standards promote:

APublic trustBDistrustCConfusionDUncertainty

Q34Fundamentals of Accounting

Which of the following can be most relevant to calculation of allowance for doubtful debts?

ATotal credit salesBTotal credit purchasesCTotal current assetsDTotal current liabilities

Q35Fundamentals of Accounting

What is the treatment of Pre-received income in the Statement of Financial Position?

ATreated as non-current assetBTreated as current assetCTreated as non-current liabilityDTreated as current liability

Q36Business & Commercial Knowledge

Headsets are:

AInput deviceBOutput deviceCOCRDAll of the above

Q37Business Economics & Commercial Knowledge vol.2

Which one is not a demerit of socialism?

ANo CartelsBTransparency IssueCBureaucratic IssuesDIncentive Less

Q38Business & Commercial Knowledge

Top oil refinery in the country is leading the oil industry for the last decade. The reason behind this success is attributed to the strategic planning of the management in the strategic planning process.

AGoals, objectives and strategies should be decided with the aim of fulfilling the entity's purpose.BDeveloping SMART goalsCStakeholders' analysis is key to successDAll of the above

Q39Business & Commercial Knowledge

Long chain of command has:

AFew levelsBMany levelsCNo levelsDFlat structure

Q40Business & Commercial Knowledge

Mining corporation of Pakistan want all miners' sites to provide information with complete security using public mobile networks. For this:

AVPN is suitableBDecentralised networks can be usedCMobile apps can be helpfulDLAN is effective

Q41Business & Commercial Knowledge

Legal protection of product's name, logo, and design is called:

ATrademarkBPatentCCopyrightDAll of the above

Q42Quantitative Aptitude & Business Economics

If a coin is tossed four times, the probability of four heads is equal to:

A0.25B0.0625C0.625DZero

Q43Business Economics & Commercial Knowledge vol.2

What macroeconomics doesn't cover?

ATheory of Firm BehaviourBTheory of UnemploymentCPublic DebtDInterest Determination

Q44Business Economics & Commercial Knowledge vol.2

A negative income elasticity of demand for a commodity indicates that as income increase then amount of the commodity purchased:

ARisesBFallsCRemain the unchangedDAny of the above

Q45Business & Commercial Knowledge

Innovate IT Solutions encourages employees to spend 10% of work time on personal projects that could benefit the company. This has led to several successful new products. Which TWO ethical/organizational aspects are highlighted?

AWork SpecializationBEmployee EmpowermentCInnovation CultureDStrict Time Control

Q46Fundamentals of Accounting

Statements: 1.Profit adds to owner's capital 2.Drawings reduce owner's capital. Which is correct?

ABoth statementsBOnly statement (1)COnly statement (2)DNo statement is correct

Q47Business Economics & Commercial Knowledge vol.2

Rise in wages increases the disposable income of people, which therefore increases demand for goods, increasing prices. The rising price cause greater demand for higher wages therefore increasing disposable income and so on. This effect is known as:

ADepressionBStagflationCWage – price spiralDDemand pull inflation

Q48Business & Commercial Knowledge

Which of the following statements is not true?:

AEvidence for reputation risk is conclusiveBEnvironmental efforts are one of the primary focuses of CSRCMirror testing is a technique for ethical decision-makingDAvoiding conflict of interest is a consideration for business ethics

Q49Quantitative Aptitude & Business Economics

Solve for x: 12x = 55 + x

A5B6C12D15

Q50Fundamentals of Accounting

A payable account: Payment Rs.160000; Credit purchases Rs.185000; Discount received Rs.16000; Contra Rs.7000; Balance c/d 31 Dec 2018 Rs.22000. What is balance b/d 1 Jan 2018?

ARs. 20000BRs. 22000CRs. 35000DRs. 205000

Q51Business Economics & Commercial Knowledge vol.2

If no foreign companies produce in a country, but many of the country's companies produce abroad, then

AThe country's GNP will tend to exceed its GDP.BThe country's GDP will tend to exceed its GNP.CThe country's GNP and GDP will tend to be equal.DThe country's GDP will tend to be equal to its domestic income.

Q52Fundamentals of Accounting

Tom Limited acquired delivery truck on 1 April 2019 at cost Rs. 4,800,000 with 8 years life and nil residual value. Year end 31 Dec 2019. Depreciation charge for 2019 on straight line basis?

ARs. 600,000BRs. 800,000CRs. 450,000DRs. 500,000

Q53Business Economics & Commercial Knowledge vol.2

Given diagram depicts:

ADemand pull inflationBCost push inflationCHyper inflationDNone of the above

Q54Quantitative Aptitude & Business Economics

First two terms of AP are in ratio 2:3. Which TWO statements are correct? (a) 1st = 2/3 of 2nd (b) 2nd = 2/3 of 1st (c) 1st = 3/2 of 2nd (d) 2nd = 3/2 of 1st

Aa and dBb and cCa and cDb and d

Q55Fundamentals of Accounting

An increase of Rs. 600 in allowance for doubtful debts was recorded incorrectly by debiting "Bad and Doubtful Debts Expense" and crediting "Receivables." What is the correcting entry to rectify this error?

ADebit Allowance for Doubtful Debts Rs.600, Credit Receivables Rs.600BDebit Receivables Rs.600, Credit Allowance for Doubtful Debts Rs.600CDebit Allowance for Doubtful Debts Rs.600, Credit Bad and Doubtful Debts Expense Rs.600DDebit Receivables Rs.600, Credit Bad and Doubtful Debts Expense Rs.600

Q56Fundamentals of Accounting

Which TWO of the following statements are correct?

AA cheque is an agreement of payment between two individuals or organizationsBCheque issued by businessman is treated as receipt in cash bookCOverstatement of bank charges in bank statement represents timing differenceDPay order is issued by the bank on behalf of customer stating an order to pay a specified amount to a specified person

Q57Business Economics & Commercial Knowledge vol.2

The government should extend the duration of unemployment benefits to those workers who lost their jobs due to outsourcing. This statement is best described as

Aan example of marginalism.Ban example of the fallacy of composition.Ca normative statement.Da positive statement.

Q58Quantitative Aptitude & Business Economics

Mr. Azhar opened two accounts. First with Rs. 25,000 at 8% p.a. and second with Rs. 44,000 at 10% p.a. (both simple interest). In how many years does the second amount become double the first?

A12 yearsB10 yearsC15 yearsD17 years

Q59Business & Commercial Knowledge

Ethically speaking, a car dealer can sell a car without disclosing that there was an accident as far as the car was repaired and tested by a reputed mechanic. TRUE or FALSE?:

ATRUEBFALSECD

Q60Business Economics & Commercial Knowledge vol.2

Which one is not a precondition of law of supply?

AOil pricesBIncome of the consumerCWagesDNone of the above

Q61Business & Commercial Knowledge

ABC group conducts initial interviews… Focus is on:

ATechnical knowledgeBEthics and valuesCBackground & expectationsDAll of the above

Q62Fundamentals of Accounting

Free samples cost Rs. 30,000 recorded as credit sales at 30% markup. Periodic system. Impact on GP and NP after correction?

AIncrease in GP Rs. 9,000 & Increase in NP Rs. 9,000BDecrease in GP Rs. 9,000 & Increase in net profit Rs. 9,000CDecrease in GP Rs. 9,000 & Decrease in NP Rs. 39,000DDecrease in GP Rs. 30,000 & Decrease in NP Rs. 30,000

Q63Business Economics & Commercial Knowledge vol.2

Suppose consumer saving is specified as S = -50 + 0.50Y, investment spending is Rs.75 b, gross exports total Rs.50 b, and gross imports equal Rs.35 b. Find the equilibrium level of output algebraically by equating leakages and injections.

ARs. 180 bBRs. 290 bCRs. 390 bDRs 280 b

Q64Business Economics & Commercial Knowledge vol.2

Due to COVID-19 world has gone for lockdown. Consequently, in international market the prices for petroleum products have shown historical cut along with less consumption of Oil too. In economic theory this is known as?

AContraction in quantity demandedBExtension in quantity supplyCFall in demandDFall in supply

Q65Fundamentals of Accounting

Which TWO of the following errors shall not cause the need to create a suspense account?

AOvercasting of sales return daybookBComplete reversal of entriesCThe balance of motor vehicle account listed on credit side of trial balanceDA purchase invoice overlooked and unrecorded

Q66Fundamentals of Accounting

GAAP stands for:

AGeneral Accounting and Audit PrinciplesBGenerally Accepted Accounting PrinciplesCGlobally Accepted Accounting PrinciplesDGeneral Accounts and Accounting Principles

Q67Fundamentals of Accounting

Which TWO of the following error/omission resulted overstatement of overdraft balance of cash book?

ABank charges recorded on debit side of cash bookBA customer directly deposited amount in our bank account, and not entered in cash bookCReceipt was recorded on payment sideDPayment was recorded on receipt side

Q68Business Economics & Commercial Knowledge vol.2

If consumption function is: C = 500 + 0.75 y value of MPS would be:

A0.75B0.25C500D0.5

Q69Quantitative Aptitude & Business Economics

The ____ of a future cash flows is the amount that an investor would need to invest today to receive that amount in the future.

AFuture valueBPresent valueCEffective annual rateDNominal rate

Q70Business Economics & Commercial Knowledge vol.2

A fall in interest rate can cause:

ACost push inflationBDemand pull inflationCExpected inflationDWage spirals

Q71Business & Commercial Knowledge

Capital items and supplies are sub-categories of which product type?

AIndustrialBBankingCManufacturingDConsumer

Q72Business & Commercial Knowledge

Brand personality includes:

AFeatures, culture, mission, vision, and goals of a businessBOnly logosCOnly pricingDOnly packaging

Q73Quantitative Aptitude & Business Economics

For a quadratic function y = ax² + bx + c the value of a cannot be:

A0B1C2D3

Q74Quantitative Aptitude & Business Economics

A table manufacturer has to pay Rs.30,000 as fixed cost and Rs.10,000 as variable cost per table. Selling price is Rs.15,000. Compute break-even point:

A6 unitsB4 unitsC8 unitsD2 units

Q75Business Economics & Commercial Knowledge vol.2

Which is NOT a cause of inward shift of aggregate demand curve?

AConsumers begin to spend moreBFirms have wave of optimismCGovernment spending more on power generation projectsDAll of the above.

Q76Business Economics & Commercial Knowledge vol.2

Consumption of "Economic bad" can lead to negative externalities.

ATrueBFalseCD

Q77Business Economics & Commercial Knowledge vol.2

. _________ arises when government expenditure exceeds over its revenue:

APublic revenueBPublic debtCDirect taxesDSubsidies

Q78Fundamentals of Accounting

Which statements about IAS-2 correct?

AFixed production overheads not included in finished goods costBCost measured using FIFO or weighted averageCWrite-down of inventory recognised as expenseDInventory recorded at lower of replacement cost or realizable value

Q79Quantitative Aptitude & Business Economics

The product of two positive integers is 28 and when added together the result is 11. Find the integers:

A2 and 14B4 and 7C28 and 1DNot possible to determine

Q80Business Economics & Commercial Knowledge vol.2

During a year, a country's national income in money terms increased by 8%, prices increased by 4% and total population increased by 2%. What was the approximate change in real income per head?

Aa decrease of 2%BnilCan increase of 2%Dan increase of 4%

Q81Business & Commercial Knowledge

Ethical dilemmas often involve:

AClear choicesBConflicting valuesCNo conflictDSimple decisions

Q82Quantitative Aptitude & Business Economics

Mr. Dawood's share prices grew by 2% in first year and decreased by 2% in second year. Compute percentage gain/(loss) over the period of two years.

ANo gain no lossB4% gainC4% lossD0.04% loss

Q83Quantitative Aptitude & Business Economics

If deviations from mean for two observations are -3 and +3, the variance is:

A0BDoes not existC9DNone of these

Q84Quantitative Aptitude & Business Economics

The effective rate of interest corresponding to a nominal rate of 3% p.a. payable half yearly is:

A3.2% p.a.B3.25% p.a.C3.0225% p.a.DNone of these

Q85Business & Commercial Knowledge

Jamshaid is known for his support to all in office. He is always there to guide anyone, especially newcomers in developing professional expertise and how to use social skills. He is acting as

AMentorBSupervisorCTrainerDNone of the above

Q86Business Economics & Commercial Knowledge vol.2

In the diagram, aggregate demand shifts towards right. It is the result of following policy.

ADecrease in rate of interestBDecrease in reserve ratioCPurchasing bondsDAll of the above

Q87Fundamentals of Accounting

Why is the timeliness concept important in accounting?

AIt ensures financial information is detailed and comprehensiveBIt ensures financial information is free from errors and biasCIt guarantees financial statements are prepared by certified accountantsDIt allows decision-makers to receive information in time to influence their decisions

Q88Fundamentals of Accounting

The Accrual / Matching Concept implies that:

ARevenue is recorded only when cash is receivedBExpenses are recorded only when cash is paidCRevenue and expenses are recorded when they are earned or incurredDBoth (a) and (b)

Q89Fundamentals of Accounting

A company constructed a new office building at a cost of Rs. 800,000. A junior accountant mistakenly capitalized an additional Rs. 25,000 related to the opening ceremony expense. Depreciation at 5% per annum was charged on the total amount of Rs. 825,000. What is the combined impact of these errors on the company's assets and profit for the year?

AAssets overstated by Rs.25,000; Profit overstated by Rs.25,000BAssets overstated by Rs.23,750; Profit overstated by Rs.23,750CAssets overstated by Rs.25,000; Profit overstated by Rs.1,250DAssets overstated by Rs.23,750; Profit understated by Rs.23,750

Q90Business Economics & Commercial Knowledge vol.2

'Expenditure done by households or firms on capital goods is called____________.'

AConsumptionBSavingCPostponed consumptionDInvestment

Q91Fundamentals of Accounting

In which book of prime entry does cash purchases worth Rs.500000 would be recorded?

APetty cash bookBCash bookCPurchase day bookDAccounts payable book

Q92Business Economics & Commercial Knowledge vol.2

Market rate of interest is determined by:

ACentral bankBCommercial bankCDemand & supply of moneyDInflation

Q93Fundamentals of Accounting

Nasir Limited pays internet bills for Jan-Jun 2022 in subsequent month equally. Paid till 30 Jun Rs. 181k. Amount for statement of CI and FP at 30 Jun 2022?

AIncome: 181k expense, Position: 36.2k accruedBIncome: 181k expense, Position: 36.2k prepaidCIncome: 217.2k expense, Position: 36.2k accruedDIncome: 217.2k expense, Position: 36.2k prepaid

Q94Business & Commercial Knowledge

Consumer markets exist for:

AIndustrial machineryBProducts and services used by end consumers, like cameras, clothes, and household itemsCRaw materialsDOnly digital products

Q95Fundamentals of Accounting

What does the reliability concept in accounting emphasize?

AFinancial statements should be available promptly after the reporting periodBFinancial information should be verifiable accurate and dependable based on objective evidenceCFinancial statements should be comparable with those of other companiesDFinancial information should be concise and easy to understand

Q96Quantitative Aptitude & Business Economics

The object function for above feasible region is Profit = 500x + 400y. What is the maximum achievable profit for the company.

A10,000B25,000CUnlimitedDDepends upon units produced

Q97Business & Commercial Knowledge

The success of a business entity largely depends on the _____ of its human resources.

ALocationBSkills and experienceCAgeDNumber of employees

Q98Business & Commercial Knowledge

CEO reviewing environmental impact of toy disposal is involved in:

AMaking overall plansBEnsuring contractsCFormulating strategyDFinancial management

Q99Quantitative Aptitude & Business Economics

The geometric mean of two regression co-efficients is equal to:

ACo-efficient of determinationBCo-efficient of correlationCCo-efficient of rank correlationDNone of these

Q100Business & Commercial Knowledge

Cash flow statement shows:

AProfitBCash generationCAssetsDReserves

Q101Business & Commercial Knowledge

Marketing ensures that:

AProducts meet consumer needsBProducts are produced randomlyCOnly advertising is doneDOnly sales targets are met

Q102Quantitative Aptitude & Business Economics

Over a period of 12 months, in which monthly advertising expenditure ranges from Rs. 20,000 to Rs. 50,000, the correlation between monthly advertising expenditure and monthly sales is 0.8. Which of the following is/are true on the basis of the information given? A. Higher sales are caused by higher expenditure on advertising. B. If advertising expenditure is increased to Rs. 100,000 sales will increase. C. Sixty four percent of the changes in sales from one month to the next can be explained by corresponding changes in advertising expenditure. D. A correlation coefficient derived from 24 months’ data would be more reliable than that given above.

AA and CBB and DCC and DDC only

Q103Business Economics & Commercial Knowledge vol.2

Internal and external borrowing is possible in private finance only

ATrueBFalseCD

Q104Fundamentals of Accounting

Bank statement OD Rs. 1,490,850. Unidentified credit Rs. 354,000 (customer transfer 30 June). Advice dated 30 June received 5 July: Bank charges Rs. 7,850 (overcharged by 1,250), Dividend Rs. 50,000, Standing instruction Rs. 12,000. Cash book corrected. Bank balance to report?

ARs. 1,489,600 OverdraftBRs. 760,000 Positive balanceCRs. 1,492,100 OverdraftDRs. 803,030 Positive balance

Q105Business & Commercial Knowledge

Development differs from training because it:

AFocuses on long-term experience and skill growthBOnly teaches specific tasksCIs done only in classroomsDReplaces recruitment

Q106Business Economics & Commercial Knowledge vol.2

____________ does not satisfy canon of equality.

AProportionalBProgressiveCRegressiveDNone of these

Q107Quantitative Aptitude & Business Economics

____ is a mathematical method for determining a way to achieve the best outcome (such as maximum profit or lowest cost) subject to a number of limiting factors (constraints).

AGeometric progressionBQuadratic formulaCLinear programmingDSampling

Q108Quantitative Aptitude & Business Economics

A lends Rs.2,500 to B and a certain sum to C at 7% p.a. SI. After 4 years total interest from B and C is Rs.1,120. Sum lent to C is:

ARs.700BRs.1,500CRs.4,000DRs.6,500

Q109Fundamentals of Accounting

Which of the following errors will not affect a trial balance?

ARs. 5,000 utility expenses were entirely omitted from recordingBRent paid Rs. 2,500 has been recorded as Rs. 1,500 in rent accountCSales revenue account was under-casted by Rs. 10,000DCash paid Rs. 3,000 for repair of equipment was credited to repairs account

Q110Business Economics & Commercial Knowledge vol.2

Which of the following is an example of contractionary monetary policy?

AA decrease in spending on infrastructureBAn increase in direct taxesCAn increase in interest ratesDA decrease in reserve to be maintained with central bank

Q111Quantitative Aptitude & Business Economics

Which statements about random variables are correct? 1. Random variables are either discrete or continuous. 2. Discrete if values can be counted. 3. Continuous if can assume any value within a range.

A1 onlyB1 and 3C1 and 2DAll statements are correct

Q112Fundamentals of Accounting

Which balances shown on both sides of trial balance are correct?

ADebit: Furniture, Cash, Accrued expense; Credit: Capital, bank loanBDebit: Salaries, Furniture, Cash; Credit: Bank loan, accrued incomeCDebit: Furniture, Salaries, Cash, Accrued income; Credit: Capital, bank loan, accrued expenseDDebit: Salaries, Drawings, Loan to friend; Credit: Accrued income, Bank loan

Q113Business Economics & Commercial Knowledge vol.2

In the relationship between consumption expenditure and income, which statement is correct?

AThe average propensity to consume is constantBThe average propensity to consume is rising.CThe marginal propensity to consume is equal to the average propensity to consumeDThe marginal propensity to consume is less than the average propensity to consume

Q114Fundamentals of Accounting

Cash account Rs. 1,660,000 Dr (unadjusted). Adjustments: Debit undercast Rs. 200,000, Receipts brought forward Rs. 4,275,000 instead of Rs. 2,475,000 (error 1,800,000), Cheque bounced Rs. 220,000, Bank charges Rs. 184,000, Unpresented Rs. 520,000, Uncleared Rs. 626,000. Corrected cash book for SOFP?

ARs. 344,000 in current assetsBRs. 344,000 in current liabilitiesCRs. 970,000 in current assetsDRs. 970,000 in current liabilities

Q115Fundamentals of Accounting

The following errors have been corrected recently: An unidentified credit of Rs. 294,000 appearing in the bank statement was accounted for in the suspense account. It was discovered that the credit was a settlement of an old outstanding balance previously written off. The amount was net of 2% bank charges. Operating expenses include insurance premium of Rs. 900,000 paid during the year, out of which Rs. 200,000 pertain to owner's residential premises. The policy is valid up to 30 June 2020. What would be effect of correcting the above errors on net profit?

ARs. 294,000 IncreaseBRs. 210,000 IncreaseCRs. 550,000 IncreaseDRs. 844,000 Increase

Q116Fundamentals of Accounting

An unidentified credit of Rs. 209,000 appearing in the bank statement for the month of June 2021 was credited to the suspense account. It was discovered that the amount, net of settlement discount of 5%, was an online transfer by a customer. The revenue was earlier recognised at gross amount. What would be effect of correcting this error on revenue?

ARevenue will increase by Rs. 11,000BRevenue will decrease by Rs. 11,000CRevenue will increase by Rs. 209,000DThere will be no effect on revenue.

Q117Business Economics & Commercial Knowledge vol.2

Due to ____________________The production possibility frontier is concave to the origin:

AIn order to produce one good, resources must be diverted from the otherBSome resources are better at producing one good and some resources are good at producing other goodCThere is always some level of unemploymentDAll resources contribute towards production equally

Q118Business Economics & Commercial Knowledge vol.2

Cost reducing benefits of large scale:

AEconomies of scaleBDiseconomies of scaleCExternal economiesDInternal diseconomies

Q119Business & Commercial Knowledge

Not-for-profit organizations are established to:

AMaximize profitBAchieve objectives other than profitCAvoid taxesDCompete with businesses

Q120Business Economics & Commercial Knowledge vol.2

The diagram shows the consumption function given that the level of income is O𝑌̅ what does the distance ̅𝐴𝐵̅̅̅ represents,

AAutonomous consumptionBInduced consumptionCA.P.CDDissaving

Q121Business Economics & Commercial Knowledge vol.2

There is an inflationary gap when

AEquilibrium GNP is equal to full employment GNPBEquilibrium GNP is smaller than full employment GNPCEquilibrium GNP is larger than full employment GNPDNone of the above

Q122Fundamentals of Accounting

Jamal Sons: purchase 150k + attributed cost 25k capitalized 1 Mar 2022. Residual 10k, life 5 years. Refundable tax 12k wrongly capitalised. Dep SLM full year 31 Dec 2022. Net assets understated by?

ARs. 7,500BRs. 2,400CRs. 2,000DRs. 3,100

Q123Fundamentals of Accounting

Naseem is customer and supplier. June 30: receivables Rs. 25,500, payables Rs. 22,000. Terms: set off monthly, pay/receive remaining on 5th. Double entry at June 30?

AReceivables Dr. 22,000 and Payables Cr. 22,000BReceivables Dr. 25,500 and Payables Cr. 25,500CPayables Dr. 22,000 and Receivables Cr. 22,000DPayables Dr. 25,500 and Receivables Cr. 25,500

Q124Fundamentals of Accounting

Owner's annual life insurance premium paid from business bank account will be:

ADebited to insurance account and Credited to bank accountBDebited to bank account and Credited to drawings accountCDebited to bank account and Credited to insurance accountDDebited to drawings account and Credited to bank account

Q125Business & Commercial Knowledge

MIS focuses mainly on:

AInternal operationsBExternal risksCMarkets onlyDCompetitors only

Q126Business & Commercial Knowledge

Any organisation that employs a multiple command system and related support mechanisms including an associated organisational culture is a:

AFactory organisationBFunctional organisationCMatrix organisationDAll of the above

Q127Business Economics & Commercial Knowledge vol.2

A continuous or persistent rise in general price level is called:

AInflationBDeflationCDisinflationDStagflation

Q128Fundamentals of Accounting

If closing inventory is accounted for as Rs. 240,000 instead of Rs. 180,000 then:

AGross profit as well as net profit will be exaggeratedBGross profit and net profit would both be understatedCGross profit will be exaggerated, and net profit understatedDGross profit will be exaggerated but net profit correctly reported

Q129Business Economics & Commercial Knowledge vol.2

Which of the following is not an economic resource?

AAirBWaterCSulphuric AcidDBooks

Q130Quantitative Aptitude & Business Economics

Five times the square of a number added to twice itself equals 24. Express as quadratic equation:

A5x^2+2x=24B5x^2+2x^2=24C5x^2+2x^3=24D5x+2x^2=24

Q131Business & Commercial Knowledge

Which statement correctly identifies a factor that influences strategic decisions due to legal considerations?

AA company relocates to increase managerial flexibilityBA business moves operations because of new employment legislationCA sole proprietor changes business type to reduce secrecy concernsDA partnership expands because cooperatives require shared ownership

Q132Quantitative Aptitude & Business Economics

Rs.300,000 lent to Jawwad at 10% p.a. compounded quarterly for 3 years. Effective annual rate of interest is:

A10%B12.38%C10.38%D11.38%

Q133Business & Commercial Knowledge

Short-term finance suitable for:

ADaily needsBExpansionCConstructionDMachinery

Q134Quantitative Aptitude & Business Economics

Dawood must pay Rs.428,000 in three years. Present loan amount if rate is 8% compounded semi-annually is:

ARs.345,161BRs.339,760CRs.338,254DRs.336,421

Q135Fundamentals of Accounting

Rs. 20,000 paid for the purchase for motor-cycle for personal use of Mr. Jott (a partner of 50% in the business) had been charged to Miscellaneous Expense Account. What journal entry must be recorded to correct this error?

ADEBIT: Misc expenses Rs. 20,000 and CREDIT: Capital of Mr. Jott Rs. 20,000BDEBIT: Misc expenses Rs. 10,000 and CREDIT: Capital of Mr. Jott Rs. 10,000CDEBIT: Drawings Rs. 10,000 and CREDIT: Misc. expenses Rs. 10,000DDEBIT: Drawings Rs. 20,000 and CREDIT: Misc. expenses Rs. 20,000

Q136Business Economics & Commercial Knowledge vol.2

The long-run average cost curve for a business will eventually rise because of:

AThe law of diminishing returnsBIncreasing competition in the industryCLimits to the size of the market for the goodDDiseconomies of scale

Q137Business & Commercial Knowledge

Examples of social factors in segmentation include:

APersonality, motives, lifestyle, faith, beliefsBRaw materialsCProduct priceDProduction cost

Q138Quantitative Aptitude & Business Economics

Person earns Rs.25000/day and saves 30%. How many days to accumulate savings of Rs.112500?

A10 daysB15 daysC20 daysD25 days

Q139Business & Commercial Knowledge

Manager Finance of Pepsi Ltd gives special consideration to give loans to employees of his department without approval from the head office. This is an example of:

AConformance to rulesBModification of rulesCIgnorance of rulesDViolation of rules

Q140Quantitative Aptitude & Business Economics

A person will receive Rs.5,000 six years from now. Present value at 8% compound discount rate is:

ARs.3,150.85BRs.3,170.99CRs.3,160.99DRs.3,180.99

Q141Quantitative Aptitude & Business Economics

Rs.200,000 at 12% SI and Rs.189,744 at 14% SI invested until total principal+interest of both become equal. Number of years is:

A4B3C2D5

Q142Business Economics & Commercial Knowledge vol.2

Money which having no intrinsic value is called:

ACommodity moneyBFiat moneyCFull bodied moneyDToken money

Q143Business & Commercial Knowledge

Networking of different computers within an organization is also known as:

AIntranetBExtranetCFreenetDClosed net

Q144Business & Commercial Knowledge

Manager at Human resource department is busy in analysing right man for right job with respect to skills, knowledge, experience and past assignments success factors. The company can make use of ____________ to get the desired information.

ACompany databasesBData analytics softwareCDatabase management systemsDData warehouses

Q145Business & Commercial Knowledge

Cash flow statement ignores:

ACash transactionsBNon-cash itemsCCash paymentsDCash income

Q146Fundamentals of Accounting

The double entry for return of goods purchased from Khan Limited on account is:

ACash (debit) and purchases (credit)BAccounts payable (debit) and purchases (credit)CAccounts payable (debit) and purchases return (credit)DNone of the above

Q147Business Economics & Commercial Knowledge vol.2

The government makes a new issue of bonds and sells them on the open market, where they are bought by private investors using cheques drawn on their banks. Which of the following describes the effect this has on the commercial banks?

AThey can raise lending because their cash base will rise.BThere is no effect on bank lending.CThey must cut lending to maintain an appropriate ratio of cash to loans.DThey will only be able to increase long term loans.

Q148Fundamentals of Accounting

Merchant bought 100 bags cement at Rs. 200, 5% trade discount. 50% paid on spot, balance in 3 months (2% discount if paid in 1 month, not certain). Revenue recognition deduction?

ATrade discount of Rs. 1,000BCash discount of Rs. 400CCash discount of Rs. 380DTrade discount of Rs. 1,000 and cash discount of Rs. 400

Q149Fundamentals of Accounting

Normal Limited purchased premises for Rs. 16 million with no salvage value and useful life of 45 years. Depreciation charge for fourth year under sum-of-year digit method?

ARs. 4,692,754BRs. 6,492,754CRs. 7,544,926DRs. 5,744,926

Q150Business Economics & Commercial Knowledge vol.2

The recession phase of the trade cycle will normally be accompanied by all of the following except which one?

AA rise in the rate of inflationBA fall in the level of national outputCAn improvement in the trade balanceDA rise in the level of unemployment

Q151Fundamentals of Accounting

Which is correct regarding nature of Accumulated Depreciation account?

AExpenseBLiabilityCContra assetDAsset

Q152Fundamentals of Accounting

The cash book showed overdrawn balance which was not reconciled with bank statement balance. On scrutiny, it was found that cheque received from customer amounting to Rs. 35,000 was not recorded in cash book whereas direct debit of Rs. 25,000 was recorded in cash book as Rs. 2,500. The overdraft cash book balance after adjustments shall be:

ADeclined by Rs. 12,500BDeclined by Rs. 57,500CIncreased by Rs. 12,500DIncreased by Rs. 57,500

Q153Business & Commercial Knowledge

A product can be defined as:

AOnly physical goodsBAnything offered to satisfy a want or need, including goods, services, ideas, or combinationsCOnly servicesDOnly digital files

Q154Business Economics & Commercial Knowledge vol.2

Which of the following is / are components of public debt? 1. Public borrowing 2. Treasury bills 3. Securities issued by central bank

A1 onlyB1 and 2C2 onlyD1, 2 and 3

Q155Business Economics & Commercial Knowledge vol.2

Which one is NOT a pre-requisite of private finance?

ASecrecyBAnnual BudgetingCAdjustment of Income to ExpendituresDNone of the above

Q156Business & Commercial Knowledge

In a limited partnership, at least one partner is _________ partner, whose liability is __________

AGeneral, LimitedBSpecific, unlimitedCLimited, limitedDGeneral, unlimited

Q157Fundamentals of Accounting

Suspense account opened. Errors: (i) Electricity Rs. 620 recorded as Rs. 250 (ii) Discount allowed Rs. 200 wrongly credited to revenue (iii) Interest by bank Rs. 450 debited to bank only. At what amount should suspense be shown?

ARs. 320 DrBRs. 320 CrCRs. 120 DrDRs. 120 Cr

Q158Business & Commercial Knowledge

Core values shape:

AOrganizational cultureBOnly profitCOnly costsDOnly revenue

Q159Quantitative Aptitude & Business Economics

How much must be invested every year to accumulate Rs.300,000 at the end of 10 years if interest is compounded annually at 10%?

ARs.18,823.62BRs.18,523.62CRs.18,723.62DRs.18,623.62

Q160Business Economics & Commercial Knowledge vol.2

The information in the table is taken from a country's national income accounts. What is the value of exports? National income 600 Consumer spending 400 Investment spending 80 Government spending on goods and services 100 Taxation 90 Imports 120

ARs100 millionBRs120 millionCRs140 millionDRs230 million

Q161Business Economics & Commercial Knowledge vol.2

Pakistan's economy after Covid-19 currently facing a situation of:

ADeflationary gap or recessionary gapBInflation gapCIdeal equilibriumDNone of the above

Q162Fundamentals of Accounting

Opening receivables 250k, increase allowance 6k, sales returns 5k (80% credit), total sales 700k (20% cash), cheque dishonoured 12.5k, bad debts 8.3k, disc received 3.5k, closing 280k. Cash/cheques received?

ARs. 524,200BRs. 520,700CRs. 659,700DRs. 530,200

Q163Fundamentals of Accounting

On 22nd February equipment was purchased for Rs. 800,000, delivered immediately. Entity paid Rs. 500,000 immediately and remaining on 4th March. What journal entry on 22nd February?

ADebit Equipment Rs. 800,000; Credit Bank Rs. 500,000; Credit Advance Rs. 300,000BDebit Equipment Rs. 800,000; Credit Payables Rs. 500,000; Credit Bank Rs. 300,000CDebit Equipment Rs. 800,000; Credit Bank Rs. 500,000; Credit Payables Rs. 300,000DDebit Equipment Rs. 800,000; Credit Advance Rs. 500,000; Credit Payables Rs. 300,000

Q164Business Economics & Commercial Knowledge vol.2

________is the payment for the use of factors of production that are fixed in supply.

AWagesBLabourCRentDProfit

Q165Business Economics & Commercial Knowledge vol.2

The terms of trade are defined as:

AThe ratio of export prices to import pricesBThe total value of exports minus the total value of importsCThe change in volume of exports compared to changes in the volume of importsDThe commercial conditions under which international trade takes place

Q166Business & Commercial Knowledge

Physical facilities are typically necessary to produce many goods and services. Especially in recent years, technology has enabled businesses to use their capital more effectively. Which of the following could be an added advantage of use of technology in the business organizations?

AIt adds efficiencyBUsed for efficiencyCEfficiency and effectiveness are enhancedDUse for Management goals

Q167Business & Commercial Knowledge

There are no legal formalities needed to set up a business. This is true for:

ASole ProprietorBPartnershipCPrivate Limited CompanyDNone of the above

Q168Fundamentals of Accounting

The basic accounting equation is given by the formula: Equity + Long term liabilities = ________ + Current assets - Current liabilities.

ATotal AssetsBNon-current AssetsCFixed AssetsDCurrent Liabilities

Q169Fundamentals of Accounting

Opening allowance overstated, wrong amount charged to P&L. Impact on net profit and net assets for current year?

AProfit understated by double amountBProfit overstated by double amountCProfit understated by single amountDProfit overstated by single amount

Q170Quantitative Aptitude & Business Economics

For y = 2x² + 3x + 4, find value of y when x = −5:

A39B49C59D29

Q171Quantitative Aptitude & Business Economics

A firm employs 500 people and labour force grows at 2% per annum. How many new employees will be hired in next 5 years?

A52 employeesB550 employeesC552 employeesD50 employees

Q172Business & Commercial Knowledge

Which of the following is true for a Centralised decision making?

ADecisions by management are more likely to be taken with regard to the corporate objectives of the entity as a whole. There is a strong argument in favor of making strategic decisions centrally.BDecisions by management should be coordinated more effectively if all the key decisions are taken centrally.CIn a crisis, it is easier to make important decisions centrally.DAll of the Above.

Q173Fundamentals of Accounting

An asset is defined as:

AA resource controlled by an entity which is capable of generating independent cash flows.BA present economic resource controlled by the entity as a result of past events.CA resource owned/controlled by an entity as a result of past events from which future economic benefits are expected.DA resource capable of generating income for the entity.

Q174Fundamentals of Accounting

Bank sent debit advice Rs. 50,000 for interest on overdraft, not in cash book. Correct adjustment?

ARs. 50,000 will be debitedBRs. 50,000 will be creditedCNo adjustmentDRs. 100,000 will be subtracted

Q175Business & Commercial Knowledge

Real-time processing disadvantage:

ASlowBExpensive and complexCNo accuracyDNo hardware required

Q176Business & Commercial Knowledge

Brand elements include all EXCEPT:

AProduct logo, color, sloganBCharacter, jingle, shapeCDistribution methodDGraphics and taste

Q177Quantitative Aptitude & Business Economics

A and B play four chess games. P(A wins) = 7/10. What is the probability that A wins first three games?

A0.25B0.3C0.32D0.103

Q178Business Economics & Commercial Knowledge vol.2

The multiplier principle explains how investment in capital goods responds disproportionately to changes in consumer demand.

ATrueBFalseCD

Q179Business & Commercial Knowledge

Departmentalization means grouping:

AActivities and peopleBOnly productsCOnly customersDOnly suppliers

Q180Business & Commercial Knowledge

Factory operations are reported on media for spoiling the drinking water. This is due to factory's:

AWeak plant controlsBLack of CSRCMaterial qualityDEmployees' carelessness

Q181Business & Commercial Knowledge

Branding is important because it:

AShapes perceptions and attracts new customersBIncreases production costs onlyCAvoids advertisingDOnly reduces product quality

Q182Business Economics & Commercial Knowledge vol.2

Consumption and investment spending in the national income accounts is solely for domestically produced goods and services.

ATrueBFalseCD

Q183Quantitative Aptitude & Business Economics

Find the effective rate of interest equivalent to nominal rate of 10% compounded semi-annually.

A10.25%B10.45%C10.35%D10.15%

Q184Business & Commercial Knowledge

Risk of failure of a business is high due to dependency on single person in:

APublic LimitedBPrivate LimitedCSole ProprietorshipDPartnership

Q185Business & Commercial Knowledge

Revenues from sales of product or services should be the primary source of funding but funds from sales don't always come in when required.

ATRUEBFALSECD

Q186Fundamentals of Accounting

The following information relates to Salman: Opening stock Rs. 28,700; Closing stock Rs. 21,400; Distribution cost Rs. 14,000; Audit Fee Rs. 25,000; Carriage in Rs. 16,000; Carriage out Rs. 18,000; Purchases Rs. 185,000; Depreciation Rs. 45,000. 80% of depreciation was related to cost of sales and remaining to administration cost. Based on above information, what was the cost of sales of Salman?

ARs. 253,300BRs. 246,300CRs. 244,300DRs. 228,300

Q187Quantitative Aptitude & Business Economics

The value which occurs most frequently in a dataset is called:

AModeBQ3CQ1DNone of these

Q188Fundamentals of Accounting

Business paid annual salary Rs.36000 in advance on 31 Aug 2017. Amount of prepaid salaries at year end 31 Dec 2017?

ARs. 12000BRs. 24000CRs. 28000DRs. 36000

Q189Fundamentals of Accounting

Trial balance: Machinery 150000; Equipment 120220; Trade receivables 35150; Trade payables 40220; Bank overdraft 18997; Cash at bank 32112. What is the amount of non-current assets?

ARs. 337482BRs. 270220CRs. 356479DRs. 318485

Q190Fundamentals of Accounting

Supplier issued new cheque Rs. 125,000 for time-barred on 25 June (cleared next day). Cancellation not recorded. Appropriate action?

AInclude Rs. 125,000 on receipt, unpresented Rs. NilBInclude Rs. 125,000 on payment, unpresented Rs. 125,000CInclude Rs. 250,000 on receipt, unpresented Rs. 125,000DInclude Rs. 250,000 on payment, unpresented Rs. 125,000

Q191Quantitative Aptitude & Business Economics

A firm deposits Rs.20,000 at start of each quarter for 3 years (at 12% quarterly in yr1). What rate must it earn in remaining 2 years to accumulate Rs.300,000 at end of yr3?

A13.4%B13.8%C14.2%D14.6%

Q192Quantitative Aptitude & Business Economics

Number of real roots for the quadratic equation 3x^2 + 2x + 1 = 0 are:

AOneBTwoCThreeDNone

Q193Quantitative Aptitude & Business Economics

The average daily sales and standard deviations are: Ali (41,4.3), Atif (36,3.2), Ahmed (26,2.9), Azeem (24,2.5). Most inconsistent is:

AAliBAtifCAhmedDAzeem

Q194Quantitative Aptitude & Business Economics

The common region satisfying the set of inequalities x ≥ 0 , y ≥ 0 , L1 : x + y ≤ 5, L2 : x + 2y ≤ 8 and L3 : 4x + 3y ≥ 12 is indicated by:

A.B.C.DNone of these

Q195Quantitative Aptitude & Business Economics

Using x = -0.55 + 2y. Compute x when y = 4.

A7.45B8.45C9.45D6.45

Q196Business Economics & Commercial Knowledge vol.2

which one is NOT a reason for shifting of LRAS1 TO LRAS2:

AImprovement in labour skills.BImprovement in technologyCExploring new natural resourcesDIncrease in wage rate

Q197Business Economics & Commercial Knowledge vol.2

Which function is performed by commercial bank?

ACredit creationBUtility servicesCUnderwriting servicesDAll of above

Q198Business Economics & Commercial Knowledge vol.2

Over a given period, the nominal value of a country's national income increased by 10% and the average price level increased by 20%. What can be deduced from this information?

AThe country's money supply increased by 10%.BThere was an increase in the income velocity of circulation.CThere was a reduction in the demand for money.DThere was a reduction in the volume of output.

Q199Business & Commercial Knowledge

Motivated employees are more likely to remain _____.

AIndifferentBWith the organisationCUnproductiveDConfused

Q200Business & Commercial Knowledge

Centralization means decisions by:

ALower levelsBSenior managementCCustomersDSuppliers

Q201Business & Commercial Knowledge

The span of control is wide, and the shape of the organization structure is flat, because of the small number of management levels. This statement is true for:

AWide-flat structureBTall-narrow structureCTall-flat structureDWide-short structure

Q202Business & Commercial Knowledge

Which feature differentiates a corporation from both sole proprietorships and partnerships?

AAbility to terminate operations without legal proceduresBUnlimited liability of all ownersCSeparate legal identity allowing it to sue and be suedDLow cost and ease of formation

Q203Business & Commercial Knowledge

Identity theft often occurs through:

AInternet anonymityBWater supplyCTelephone lines onlyDHR systems only

Q204Business Economics & Commercial Knowledge vol.2

Which of the following statements is correct?

AMC will equal ATC when ATC is at its minimum amount, but will not equal AVC when AVC is at its minimum.BMC will equal AVC when AVC is at its minimum amount, but will not equal ATC when ATC is at its minimum.CMC will equal ATC when ATC is at its minimum amount and AVC when AVC is at its minimum, which is at the same output level.DMC will equal ATC when ATC is at its minimum amount and AVC when AVC is at its minimum, but this will occur at different output levels.

Q205Business & Commercial Knowledge

A product needs to be relevant, meaning:

AIt must be low-pricedBUsers must have an immediate need and good qualityCIt must be digital onlyDIt should not adapt to trends