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The MCQs below are drawn from the Business Administration subject category.
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31
The principal–agent problem in public administration primarily refers to:
A. Tension between different political parties over policy
B. The risk that agents (e.g., bureaucrats) will pursue their own interests rather than the principals' (e.g., elected officials') objectives
C. Conflicts between the judiciary and the legislature
D. The difficulty citizens face in monitoring elections
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Explanation
The principal–agent problem describes delegation risks where agents may shirk or pursue private goals contrary to principals' interests.
32
Which administrative change implemented during the Umayyad period had a lasting impact on governance across their territories?
A. Abolition of all provincial administrations
B. Adoption of Persian as the court language
C. Standardization of Arabic as the official language of administration
D. Introduction of democratic elections for governors
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Explanation
The Umayyad administration standardized Arabic as the official language for governance and administration, which had long-term institutional effects across their domains.
33
Which Umayyad caliph instituted Arabic as the administrative language of the caliphate and reformed coinage to reflect Islamic identity?
A. Muawiya I
B. Abd al-Malik ibn Marwan
C. Marwan II
D. Al-Walid I
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Explanation
Abd al-Malik (r. 685–705) introduced Arabic in administration and replaced Byzantine-Sassanian coinage with Islamic coinage as part of state centralization.
34
In the context of public administration, the principal–agent problem is most directly caused by which of the following?
A. Excessive political interference
B. Information asymmetry between principals and agents
C. Insufficient financial resources
D. Lack of legal frameworks
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Explanation
The principal–agent problem arises when agents possess more information than principals and have different incentives, leading to shirking or divergent actions.
35
Where is Headquarter of Pakistan railways?
A. Fasilabad
B. Karachi
C. Islamabad
D. Lahore
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Explanation
Pakistan Railways' central administration and headquarters are located in Lahore.
36
A tax system usually comprises :
A. Tax policy and audit
B. Tax reforms and automation
C. Tax policy and revenue administration
D. None
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Explanation
A tax system combines tax policy (the rules and rates) with revenue administration (the collection and enforcement arm) to raise taxes.
37
The business ________ was looking for an opportunity to destroy him.
A. rival
B. enemy
C. opponent
D. none of these
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Explanation
Rival means a competing business adversary, which matches someone looking for an opportunity to destroy him.
38
Assets-Liabilities =
A. Debt
B. Profit
C. Equity
D. None
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Explanation
Equity is the owner's residual interest in a business and equals total assets minus total liabilities.
39
The long- run pattern of economic growth and recession is called :
A. a business cycle
B. An annual budget
C. A project cycle
D. None
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Explanation
A business cycle describes the long-run pattern of economic expansions and recessions, showing periodic growth and contraction.
40
His scheme sounds plausible for the new business. (Identify the modal verb)
A. Sounds
B. Plausible
C. For
D. Seems
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Explanation
Seems denotes appearance or assessment and is the option the question lists as the verb indicating modality/possibility.
