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#1
By TheQuizWire
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Medium
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Fact Checked
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27 Jan 2026
The conflict arising from managers pursuing self-interest instead of owner goals is best defined as:
💡 Explanation:The Principal-Agent Problem (or Agency Problem) describes the conflict of interest between a person or group (the principal, e.g., shareholders) and another person or group (the agent, e.g., managers) who is working on their behalf. The agent may prioritize personal gains over the principal's objectives.
#2
By TheQuizWire
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Medium
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Fact Checked
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18 Jan 2026
What is the core characteristic distinguishing Venture Capital from traditional bank debt for a startup?
💡 Explanation:Venture Capital (VC) is a form of equity financing where the investor, a venture capitalist, receives an ownership stake (equity) in the company in return for the capital. This means the return for the VC depends on the company's growth and profitability (realized via an exit like an IPO or acquisition). Traditional bank debt is a loan that must be repaid with interest regardless of the business's success or failure, and it does not involve an ownership stake.
#3
By TheQuizWire
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Medium
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Fact Checked
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15 Jan 2026
A company increases long-term Corporate Social Responsibility (CSR) spending. What is the most likely financial effect?
💡 Explanation:High Corporate Social Responsibility (CSR) spending, while reducing immediate cash flows (making option A and B incorrect in the short term), is strongly associated with long-term benefits. By establishing a positive reputation with stakeholders and the community, a company can reduce its risk of legal issues, boycotts, and regulatory fines. This reduction in non-financial/business risk translates into a lower overall risk profile, which in turn leads to a lower cost of capital (both equity and debt) and higher firm valuation in the long run.
#4
By TheQuizWire
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Medium
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Fact Checked
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14 Jan 2026
What is the nature of the owner’s liability for business debts in a sole proprietorship?
💡 Explanation:A sole proprietorship is a business structure where the business is not a separate legal entity from its owner. This means the owner is personally responsible for all business debts and obligations, which is known as unlimited personal liability. If the business incurs debts, the owner's personal assets (like home or savings) are at risk.
#5
By TheQuizWire
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Hard
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Fact Checked
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14 Dec 2025
A new app disrupts a taxi firm, causing its demise but spurring new self-driving fleet jobs. This is an example of what?
💡 Explanation:Creative Destruction, a concept popularized by economist Joseph Schumpeter, describes the process where entrepreneurial innovation (the new app) incessantly revolutionizes the economic structure from within, destroying old structures (the taxi firm's traditional model) and simultaneously creating new ones (the self-driving fleet jobs/sector). This cycle of destruction and creation is central to economic dynamism under capitalism.
#6
By TheQuizWire
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Medium
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19 Nov 2025
Which corporate entity was established in 2015 as the parent company of Google and its various other ventures, including Waymo and DeepMind?
💡 Explanation:Google restructured its operations in 2015, placing the core search, ads, and YouTube businesses under Alphabet Inc., allowing experimental divisions and subsidiaries to operate distinctly under the parent company.
#7
By TheQuizWire
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Medium
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18 Nov 2025
Which innovation by Henry Ford in 1913 revolutionized automobile production?
💡 Explanation:Henry Ford introduced the moving assembly line in 1913, which drastically reduced the time required to build a Model T chassis.
#8
By TheQuizWire
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Medium
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15 Nov 2025
What was Netflix’s primary business model when founded?
💡 Explanation:Netflix launched as a subscription service that mailed DVDs directly to customers' homes.
#9
By TheQuizWire
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Medium
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11 Nov 2025
Which iconic technology company, known for launching the Macintosh computer and the iPhone, was initially co-founded in 1976 by Steve Jobs, Steve Wozniak, and Ronald Wayne?
💡 Explanation:Apple Inc. (originally Apple Computer Company) was co-founded by Steve Jobs, Steve Wozniak, and Ronald Wayne on April 1, 1976. Wayne, however, sold his stake back to the other two co-founders just twelve days later.
#10
By TheQuizWire
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Medium
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09 Nov 2025
Which specific category of goods did Amazon, founded by Jeff Bezos in 1994, originally specialize in selling as it launched as an online retailer?
💡 Explanation:Amazon began exclusively as an online bookstore. Jeff Bezos chose books because they were a standardized product with a massive existing catalog, making them ideal for the early stages of e-commerce.
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