Practice Test GeeksICET - Integrated Common Entrance Test Practice Test
← All ICET Flashcard Decks

Business and Commerce Fundamentals Flashcards

6 cards from real ICET practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.

Read the first 6 Business and Commerce Fundamentals flashcards as text

  1. Which market structure is characterized by a few large firms that dominate an industry?

    Answer: Oligopoly

    An oligopoly is characterized by a small number of large firms that have significant market power.

  2. What is the fundamental accounting equation?

    Answer: Assets = Liabilities + Equity

    The fundamental accounting equation is Assets = Liabilities + Equity, forming the basis of double-entry bookkeeping.

  3. What does 'price elasticity of demand' measure?

    Answer: The responsiveness of quantity demanded to a change in price

    Price elasticity of demand measures how responsive the quantity demanded is to a change in price.

  4. Which of the following is NOT a current asset?

    Answer: Machinery

    Machinery is a fixed (non-current) asset, while cash, receivables, and inventory are all current assets.

  5. What is the primary purpose of a cash flow statement?

    Answer: Track inflows and outflows of cash

    The cash flow statement tracks cash inflows and outflows from operating, investing, and financing activities.

  6. What does the law of diminishing returns state?

    Answer: Adding more of one input eventually yields smaller and smaller increases in output

    The law of diminishing returns states that adding more of one variable input, while others remain fixed, eventually produces smaller incremental output gains.

How this page was made: written with AI tools and published by Nathan Beja, founder of Practice Test Geeks, who is responsible for its content. Exam facts are checked against the official sources listed below. Not reviewed by a subject-matter expert. Editorial policy

Sources & references

Exam facts on this page (fees, format, dates, passing scores) are checked against these official sources; the date is our last check. Editorial policy

  1. cets.apsche.ap.gov.in — Eligibility, fees, exam format, passing score, time limit, score validity · verified Oct 2026