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The MCQs below are drawn from the Business Administration subject category.
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21
When an owner invests cash into the business, the correct double-entry is:
A. Debit Capital, Credit Cash
B. Debit Cash, Credit Revenue
C. Debit Cash, Credit Owner's Capital
D. Debit Expense, Credit Capital
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Explanation
Owner's investment increases business cash (debit) and increases owner's equity (credit Owner's Capital), following double-entry rules.
22
Which historic script was commonly used by Sindhi Hindus for accounting and business records?
A. Khojki
B. Khudabadi
C. Nastaliq
D. Devanagari
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Explanation
Khudabadi (a Landa-derived script) was traditionally used by Sindhi Hindu traders for mercantile records.
23
One significant advantage of e‑governance in public administration is that it
A. eliminates the need for public managers
B. increases transparency and reduces opportunities for corruption by improving access to information
C. guarantees equal digital access for all citizens regardless of capacity
D. removes the requirement for accountability mechanisms
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Explanation
E-governance enhances transparency and access to information, which can reduce corruption and improve citizen oversight of public services.
24
The principle of subsidiarity in public administration means that
A. central government should retain all decision-making powers
B. decisions should be made only by international bodies
C. public functions should be performed by the lowest level competent to do them effectively
D. private actors should always replace public institutions
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Explanation
Subsidiarity holds that responsibilities should be assigned to the lowest competent level to enhance responsiveness and efficiency.
25
Public choice theory in the study of public administration primarily assumes that
A. bureaucrats are perfectly altruistic and always place public interest first
B. individuals in public institutions act largely as self-interested agents responding to incentives
C. collective decision-making always yields socially optimal outcomes
D. administrative decisions are unaffected by institutional incentives
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Explanation
Public choice theory applies economic assumptions of self-interest and incentives to public actors, explaining behavior as responses to those incentives.
26
Which characteristic most closely reflects Max Weber’s ideal-type bureaucracy?
A. Impersonality and rule-bound decision-making based on formal rules
B. Personalized leadership and ad hoc decision-making
C. Appointment based on kinship or favoritism
D. Absence of hierarchical authority
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Explanation
Weber’s bureaucracy is characterized by impersonal, rule-based procedures and merit-based authority to ensure predictable administration.
27
The principal–agent problem in public administration primarily arises because
A. agents (bureaucrats) often have more information than principals (political officials) and may pursue divergent interests
B. principals always have complete information about administrative processes
C. agents are always perfectly aligned with the public interest
D. principals directly control every administrative decision
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Explanation
The principal–agent problem stems from information asymmetry and differing objectives between principals and agents, enabling agents to act in their own interest.
28
Which reliability coefficient is most appropriate for assessing the temporal stability of a psychological test when the same test is administered to the same group twice over time?
A. Internal consistency (e.g., Cronbach’s alpha) measuring item homogeneity.
B. Test–retest reliability measuring stability of scores over time.
C. Inter-rater reliability assessing agreement between different scorers.
D. Split-half reliability correlating two halves of a single administration.
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Explanation
Test–retest reliability evaluates whether test scores remain consistent across administrations separated by time, indicating temporal stability.
29
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.
30
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.
