Business and Technology MCQ Quiz - Objective Question with Answer for Business and Technology - Download Free PDF

Last updated on Jun 12, 2025

Latest Business and Technology MCQ Objective Questions

Business and Technology Question 1:

Comprehension:

EcoHarvest, a medium-sized organic food producer, is facing pressure to enhance its sustainability practices while simultaneously addressing internal cultural resistance to new, digitally integrated workflows. The company prides itself on sourcing ethically and locally, but its current decentralized purchasing model leads to inconsistent supplier vetting and occasional quality control issues. The CEO, Mr. Lee, a firm believer in long-term value, wants to foster a culture of accountability and continuous improvement.

 

Part 2: Cultural Dynamics and Management Control (2 marks)

EcoHarvest's internal survey reveals that a significant portion of its long-serving staff prefers familiar, manual processes and shows resistance to adopting new digital tools, despite clear managerial directives. This resistance impacts efficiency and data accuracy. According to Hofstede's Cultural Dimensions, which dimension is most likely contributing to this staff resistance, and which component of internal control would be most directly weakened by this prevailing attitude?

  1. Cultural Dimension: Individualism; Internal Control Component: Information System and Communication.
  2. Cultural Dimension: High Uncertainty Avoidance; Internal Control Component: Control Activities. 
  3. Cultural Dimension: Masculinity; Internal Control Component: Monitoring of Controls.
  4. Cultural Dimension: Low Power Distance; Internal Control Component: Control Environment.

Answer (Detailed Solution Below)

Option 2 : Cultural Dimension: High Uncertainty Avoidance; Internal Control Component: Control Activities. 

Business and Technology Question 1 Detailed Solution

The Correct Option is option 2

Additional Information:

  • Cultural Dimension: High Uncertainty Avoidance
  • The staff's "resistance to adopting new digital tools" and preference for "familiar, manual processes" despite directives indicates a strong dislike for ambiguity and change. This aligns with High Uncertainty Avoidance in Hofstede's model, where cultures "dislike uncertainty" and "will not like to act outside their normal job descriptions or roles".
  • Internal Control Component: Control Activities
  • Control Activities are the "policies and procedures that help ensure that management directives are carried out". If staff resist new digital tools and processes (which would be the basis for new control activities for efficiency and data accuracy), these activities cannot be effectively implemented or followed, directly weakening this component of internal control.
  • Explanation of Incorrect Options for Part 2:
  • Option 1. Cultural Dimension: Individualism; Internal Control Component: Information System and Communication. Individualism relates to integration into groups, which isn't the primary driver of resistance to new tools/processes. While the Information System might be affected, Control Activities are more directly impacted by resistance to new procedures.
  • Option 3. Cultural Dimension: Masculinity; Internal Control Component: Monitoring of Controls. Masculinity relates to values like competitiveness and material wealth, which isn't the direct cause of resistance to new workflows. Monitoring of Controls assesses the quality of internal control over time, but the problem is with the execution of controls (activities), not just monitoring them.
  • Option 4. Cultural Dimension: Low Power Distance; Internal Control Component: Control Environment. Low Power Distance would imply a desire for less hierarchical authority and more involvement in decision-making, which is not what's described as causing resistance to tools/processes. The Control Environment is the overall attitude of management to internal controls, which is influenced by leadership, but staff resistance to specific procedures more directly impacts control activities.

Business and Technology Question 2:

Comprehension:

EcoHarvest, a medium-sized organic food producer, is facing pressure to enhance its sustainability practices while simultaneously addressing internal cultural resistance to new, digitally integrated workflows. The company prides itself on sourcing ethically and locally, but its current decentralized purchasing model leads to inconsistent supplier vetting and occasional quality control issues. The CEO, Mr. Lee, a firm believer in long-term value, wants to foster a culture of accountability and continuous improvement.

 

Part 1:  (2 marks)

EcoHarvest is exploring a new integrated supply chain system to enhance its sustainable practices and improve overall efficiency. Which of the following statements best describes the most suitable Porter's Value Chain primary activity for implementing this system to reduce inconsistent supplier vetting and quality issues, and identifies the relevant "capital" from Integrated Reporting that EcoHarvest aims to enhance through improved sustainability?

  1. Value Chain Activity: Outbound Logistics; Integrated Reporting Capital: Intellectual Capital.
  2. Value Chain Activity: Operations; Integrated Reporting Capital: Manufactured Capital. 
  3. Value Chain Activity: Inbound Logistics; Integrated Reporting Capital: Natural Capital.
  4. Value Chain Activity: Service; Integrated Reporting Capital: Financial Capital.

Answer (Detailed Solution Below)

Option 3 : Value Chain Activity: Inbound Logistics; Integrated Reporting Capital: Natural Capital.

Business and Technology Question 2 Detailed Solution

The Correct Option is option 3

Additional Information:

  • Value Chain Activity: Inbound Logistics
  • The problem states EcoHarvest needs to address "inconsistent supplier vetting and occasional quality control issues" related to its "decentralized purchasing model." Inbound Logistics in Porter's Value Chain deals with "receiving, storing and handling raw material inputs". Implementing an integrated supply chain system here would directly improve supplier management, vetting, and quality control of incoming materials, which are crucial for an organic food producer focused on sustainability.
  • Integrated Reporting Capital: Natural Capital
  • EcoHarvest is an "organic food producer" and the CEO believes in "long-term value" and enhancing "sustainability practices." Natural Capital in Integrated Reporting is defined as "any stock or flow of energy and material within the environment that produces goods and services," including "resources of a renewable and non-renewable materials e.g. land, water, energy". Improved sustainable practices for an organic food producer directly enhance and depend on the health of natural capital.
  • Explanation of Incorrect Options for Part 1:
  • Option 1. Value Chain Activity: Outbound Logistics; Integrated Reporting Capital: Intellectual Capital. Outbound logistics involves distributing finished goods to customers, which is not the primary activity for supplier vetting and input quality. Intellectual Capital refers to knowledge and proprietary information, not directly enhanced by improved sustainability practices in the supply chain for an organic food producer.
  • Option 2. Value Chain Activity: Operations; Integrated Reporting Capital: Manufactured Capital. Operations involve transforming raw materials into finished goods. While quality control is part of operations, the inconsistent supplier vetting points more directly to the input stage. Manufactured Capital refers to physical goods like tools and buildings, which is less directly tied to the sustainability aspect of supplier vetting than natural capital.
  • Option 4. Value Chain Activity: Service; Integrated Reporting Capital: Financial Capital. Service activities occur after the point of sale. Financial Capital refers to shares, bonds, or banknotes, and while sustainability can impact financial performance, Natural Capital is a more direct fit for an organic food producer's sustainability focus.

Business and Technology Question 3:

Comprehension:

Quantum Innovations, a successful medium-sized software development company, is considering a strategic pivot from desktop applications to a fully cloud-based service model. This shift is driven by rapid technological advancements and changing customer preferences. The CEO, Ms. Anya Sharma, is a charismatic leader who inspires her team through a shared vision of transforming the industry. However, some long-serving employees are resistant to adopting new programming languages and collaborative tools, preferring their established individual workflows.

Quantum Innovations has a relatively flat organizational structure, encouraging direct communication. The company's audit committee is comprised of a mix of executive and non-executive directors, but no one external auditor is included.

Considering Ms. Sharma's leadership style and Quantum Innovations' governance structure, which of the following statements accurately characterizes her approach to leadership based on Bennis's Theory, and identifies a key area where the company's audit committee structure deviates from best practice for ensuring robust oversight?

  1. Leadership Style: Transactional; Audit Committee Deviation: Inclusion of executive directors.
  2. Leadership Style: Transformational; Audit Committee Deviation: Lack of external auditor presence.
  3. Leadership Style: Transactional; Audit Committee Deviation: Lack of independent non-executive directors.
  4.  Leadership Style: Transformational; Audit Committee Deviation: Inclusion of executive directors.

Answer (Detailed Solution Below)

Option 4 :  Leadership Style: Transformational; Audit Committee Deviation: Inclusion of executive directors.

Business and Technology Question 3 Detailed Solution

The correct option is option 4

Additional Information:

  • Leadership Style: Transformational
  • Ms. Sharma "inspires her team through a shared vision of transforming the industry." According to Bennis's Theory, transformational leaders inspire and motivate others to work at levels beyond mere compliance, often by communicating a compelling cause or vision. This contrasts with transactional leaders who focus on rewards for compliance. 
  • Audit Committee Deviation: Inclusion of executive directors.
  • The scenario states the audit committee is "comprised of a mix of executive and non-executive directors." Best practice in corporate governance strongly recommends that an audit committee should consist of independent non-executive directors only. The inclusion of executive directors compromises the committee's independence and objectivity, creating a significant deviation from best practice.
  • Explanation of Incorrect Options for Part 2:
  • Option 1. Leadership Style: Transactional; Audit Committee Deviation: Inclusion of executive directors. The leadership style described is clearly transformational, not transactional. The deviation identified is correct. 
  • Option 2. Leadership Style: Transformational; Audit Committee Deviation: Lack of external auditor presence. While an external auditor liaises with the audit committee, the committee's composition (presence of executive directors) is the primary structural deviation from best practice regarding independence, not the mere "lack of external auditor presence" on the committee. 
  • Option 3. Leadership Style: Transactional; Audit Committee Deviation: Lack of independent non-executive directors. The leadership style is transformational. The scenario implies the presence of some non-executive directors (as it states a "mix"), but the deviation is the inclusion of executive directors and the CEO also being the Chair, rather than a total lack of independent NEDs

Business and Technology Question 4:

Comprehension:

Quantum Innovations, a successful medium-sized software development company, is considering a strategic pivot from desktop applications to a fully cloud-based service model. This shift is driven by rapid technological advancements and changing customer preferences. The CEO, Ms. Anya Sharma, is a charismatic leader who inspires her team through a shared vision of transforming the industry. However, some long-serving employees are resistant to adopting new programming languages and collaborative tools, preferring their established individual workflows.

Quantum Innovations has a relatively flat organizational structure, encouraging direct communication. The company's audit committee is comprised of a mix of executive and non-executive directors, but no one external auditor is included.

Part 1: 

Which of the following statements best describes the primary technology enabling Quantum Innovations' strategic pivot, and identifies the type of information system that would become most critical for monitoring the performance of their new cloud-based services and providing strategic insights to Ms. Sharma?

  1. Primary Technology: Artificial Intelligence (AI); Most Critical Information System: Expert System (ES).
  2. Primary Technology: Blockchain Technology; Most Critical Information System: Transaction Processing System (TPS).
  3. Primary Technology: Cloud Computing; Most Critical Information System: Executive Information System (EIS).
  4. Primary Technology: Big Data Analytics; Most Critical Information System: Decision Support System (DSS).

Answer (Detailed Solution Below)

Option 3 : Primary Technology: Cloud Computing; Most Critical Information System: Executive Information System (EIS).

Business and Technology Question 4 Detailed Solution

The Correct Option is option 3

Additional Information:

  • Primary Technology: Cloud Computing
  • The scenario explicitly states Quantum Innovations is shifting "from desktop applications to a fully cloud-based service model". Cloud computing uses the internet to access, store, and process data on remote servers, enabling software to be delivered as a service, which is precisely what a "cloud-based service model" entails.
  • Most Critical Information System: Executive Information System (EIS)
  • Ms. Sharma, as the CEO, needs "strategic insights" and to monitor the overall performance of the new cloud-based services. An Executive Information System (EIS) provides strategic managers with flexible access to summarized information from the entire business, as well as relevant external information, to aid strategic decision-making and overall business modeling. This makes it most critical for her role in monitoring the strategic pivot.
  • Explanation of Incorrect Options for Part 1:
  • Option 1. Primary Technology: Artificial Intelligence (AI); Most Critical Information System: Expert System (ES). While AI is transformative, the core enabler for moving to a cloud-based service model is cloud computing itself. Expert Systems (ES) hold specialist knowledge for non-experts, which isn't the primary system for general strategic performance monitoring. 
  • Option 2. Primary Technology: Blockchain Technology; Most Critical Information System: Transaction Processing System (TPS). Blockchain technology is about secure, distributed ledgers and transaction verification, not the primary technology for shifting a software model to the cloud. A Transaction Processing System (TPS) records daily transactions and is critical for operational level activities, but less so for strategic insights to the CEO. 
  • Option 4. Primary Technology: Big Data Analytics; Most Critical Information System: Decision Support System (DSS). Big Data Analytics is a tool for processing large datasets to find trends and insights. While useful, it's enabled by cloud computing and would support other systems, rather than being the primary technology enabling the shift itself. A Decision Support System (DSS) helps with semi- or unstructured decisions, but an EIS is typically more suited for a CEO's broader strategic oversight. 

Business and Technology Question 5:

Comprehension:

StellarTech, a prominent software company, is facing an ethical dilemma. A new product, "Horizon," is highly anticipated to boost company profits significantly. However, internal testing has revealed a minor bug that, while unlikely to cause serious harm, could occasionally lead to data inaccuracies for a small percentage of users. Fixing it would delay the launch by six months, jeopardizing crucial year-end financial targets and potentially impacting executive bonuses. The Head of Product is pushing for an immediate launch, arguing the bug is "immaterial" and the market opportunity is too critical to miss.

StellarTech's board structure includes both executive and non-executive directors. The CEO, an executive director, also chairs the board. The company prides itself on strong corporate governance.

Considering StellarTech's board structure and commitment to strong corporate governance, which of the following statements correctly identifies a key area where its current structure deviates from best practice recommendations, and a primary purpose of the committee best positioned to oversee the "Horizon" product launch decision, ensuring ethical considerations are paramount?

  1. Deviation from Best Practice: CEO also chairs the board; Committee Purpose: To review accounting policies and ensure they are appropriate.
  2. Deviation from Best Practice: Presence of executive directors; Committee Purpose: To decide on remuneration levels for executives. 
  3. Deviation from Best Practice: CEO also chairs the board; Committee Purpose: To review systems of internal controls and risk management.
  4. Deviation from Best Practice: Presence of non-executive directors; Committee Purpose: To oversee the strategic direction of the company.

Answer (Detailed Solution Below)

Option 3 : Deviation from Best Practice: CEO also chairs the board; Committee Purpose: To review systems of internal controls and risk management.

Business and Technology Question 5 Detailed Solution

The Correct Option is option 3

Additional Information:

  • Deviation from Best Practice: CEO also chairs the board
  • Good corporate governance recommends that the role of Chair (responsible for the Board's activities) should be distinct from the Chief Executive Officer (CEO), who runs the day-to-day operations. If one person holds both roles, it gives them too much power and allows them to individually dominate the running of the company.
  • Committee Purpose: To review systems of internal controls and risk management.
  • The Audit Committee, typically comprised of independent non-executive directors, is responsible for monitoring and reviewing the company's internal financial controls and the integrity of the financial statements. They also review systems of internal controls and risk management within the organization. Overseeing a product launch's risks (like the bug's potential impact on data accuracy and reputation) falls under this purview, ensuring ethical considerations are addressed.
  • Explanation of Incorrect Options for Part 2:
  • Option 1. Deviation from Best Practice: CEO also chairs the board; Committee Purpose: To review accounting policies and ensure they are appropriate. While the deviation is correct, reviewing accounting policies is one purpose of the audit committee, but it doesn't fully capture the breadth of overseeing the risk and control aspects of a new product launch with a known bug.
  • Option 2. Deviation from Best Practice: Presence of executive directors; Committee Purpose: To decide on remuneration levels for executives. The presence of executive directors is standard for a board. The deviation is the CEO also being Chair. The purpose of deciding executive remuneration is for the remuneration committee, not primarily for overseeing product launch risks.
  • Option 4. Deviation from Best Practice: Presence of non-executive directors; Committee Purpose: To oversee the strategic direction of the company. The presence of non-executive directors is a best practice, not a deviation. While NEDs contribute to strategy, the primary purpose of overseeing specific launch risks for ethical considerations would fall to the Audit Committee's risk and control function.

Top Business and Technology MCQ Objective Questions

Business and Technology Question 6:

Which of the following is a key characteristic of a partnership?

  1. Shares are sold to the public
  2. The business is run by a single person
  3. Owners have unlimited liability
  4. In a traditional partnership, partners share profits, control, and responsibility, including liability.

Answer (Detailed Solution Below)

Option 3 : Owners have unlimited liability

Business and Technology Question 6 Detailed Solution

The correct option is option 3 

Additional Information:

In a traditional partnership, partners share profits, control, and responsibility, including liability.

Business and Technology Question 7:

Which of the following statements is/are true?


(1) An informal organisation exists within every formal organisation

(2) Objectives of the informal organisation are broadly the same the formal organisation

(3) A strong, close-knit informal organisation is desirable within the formal organisation

  1. Statement (1) only

  2. Statements (1) and (3) only

  3. Statements (2) and (3) only

  4. Statement (3) only

Answer (Detailed Solution Below)

Option 1 :

Statement (1) only

Business and Technology Question 7 Detailed Solution

Correct Answer: A

Explanation:
 

Statement (2) is not true, because the informal organisation has its own agenda.

Statement (3) is not true, because a strong informal organisation with its own agenda can undermine the formal organisation: create damaging rumours, safety/quality shortcuts, distractions from task goals etc.

Business and Technology Question 8:

Which of the following is an advantage of a flat organisational structure?

  1. Greater control by top management
  2. Longer communication channels
  3. Reduced layers of management
  4. Increased bureaucracy

Answer (Detailed Solution Below)

Option 3 : Reduced layers of management

Business and Technology Question 8 Detailed Solution

The correct option is option 3

Additional Information:

  • Flat structures simplify hierarchy, promoting faster communication.
  • Fewer levels = quicker decisions and better teamwork.

Business and Technology Question 9:

Which of the following states the four cultural types identified by Handy?

  1. Person, role, task, power
  2. Power, uncertainty, task, bureaucratic
  3. Individualism, uncertainty, power, dynamism
  4. Power, role, task, resource

Answer (Detailed Solution Below)

Option 1 : Person, role, task, power

Business and Technology Question 9 Detailed Solution

Correct Answer: A

Explanation: 

Resource, individualism, uncertainty, dynamism and bureaucratic are not cultural types per Handy.

Business and Technology Question 10:

Machine learning is an example of which of the following?

  1. Artificial intelligence
  2. Automation
  3. Data analytics
  4. Blockchain

Answer (Detailed Solution Below)

Option 1 : Artificial intelligence

Business and Technology Question 10 Detailed Solution

Correct Answer: A

Explanation:

Machine learning uses networks, statistics and operational research to identify insights in data without being programmed what to conclude and is an example of artificial intelligence.

Business and Technology Question 11:

Which of the following statements are true?


(1) With a shared service centre services are likely to be less tailored

(2) The IT function is commonly provided using shared service approach

(3) A shared service centre is not part of the organisation

  1. Statement (1) and (3) only

  2. Statements (1) and (2) only

  3. Statements (2) and (3) only

Answer (Detailed Solution Below)

Option 2 :

Statements (1) and (2) only

Business and Technology Question 11 Detailed Solution

Correct Answer: B

Explanation:
 

The shared service centre is created within the organisation and is a part of it, although its relationship is similar to that of an external service provider.

Business and Technology Question 12:

An organisation would consider offshoring its manufacturing operation in order to lower costs and gain access to skilled production labour. 

Is this statement true or false? 

  1. True
  2. False

Answer (Detailed Solution Below)

Option 1 : True

Business and Technology Question 12 Detailed Solution

Correct answer: A.

Explanation:

This is a true statement. Offshoring is a viable alternative if an organisation is attempting to reduce costs and/or seeking skilled labour.

Business and Technology Question 13:

In order to discharge their duties ethically, finance directors must ensure that the information published by their organisations provides a complete and precise view of the
position of the business, without concealing negative aspects that may distort the reader’s perception of its position.
This duty describes which of the following ethical principles?
 

  1. Probity
  2.  Honesty
  3. Independence
  4. Objectivity 

Answer (Detailed Solution Below)

Option 4 : Objectivity 

Business and Technology Question 13 Detailed Solution

The correct option is option 4 

Additional Information:

A professional accountant acting in accordance with fundamental ethical principles is demonstrating objectivity when they give a complete and precise view, which by implication means that negative aspects should not be concealed or positive aspects accentuated. 

Business and Technology Question 14:

Penny has recently placed some of his earnings into a scheme which is designed to reduce the amount of tax he pays to the Government. The scheme is legal, but a Government minister has described it as ‘frustrating the intentions of Parliament’. The scheme is therefore an example of:

  1. Tax evasion 
  2. Tax mitigation
  3. Tax avoidance
  4. None of the above

Answer (Detailed Solution Below)

Option 3 : Tax avoidance

Business and Technology Question 14 Detailed Solution

The correct option is option 3 

Additional Information:

  •  Tax evasion is illegal. Tax avoidance is used to describe schemes that frustrate the intentions of Parliament, while tax mitigation describes schemes that do not frustrate the intentions of Parliament. 

Business and Technology Question 15:

BZ Ness Ltd is an organisation with a strongly traditional outlook. It is structured and managed according to classical principles: specialisation, the scalar chain of command, unity of command and direction.


Personnel tend to focus on their own distinct tasks, which are strictly defined and directed. Communication is vertical, rather than lateral. Discipline is much prized and enshrined in the rule book of the company.


From the scenario, what sort of culture does BZ Ness Ltd have, using Harrison’s classifications?

  1. Role culture

  2. Task culture

  3. Existential culture

  4. Power culture

Answer (Detailed Solution Below)

Option 1 :

Role culture

Business and Technology Question 15 Detailed Solution

Correct Answer: A

Explanation:
 

The role culture is a bureaucratic or mechanistic culture, as described in the scenario. Task culture is project-focused; existential culture is person-focused; and power culture is leader-focused.

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