Thursday, 26 March 2020

Corporate Finance Notes

Corporate Finance Definition

To start a firm you need to make an investment in assets such as inventory, machinery, land and labor. This is called investment decision. And, you can finance your investment by borrowing and selling some shares of the firm. This is called financing decision. And, when your firm begins operation, it will generate cash. This is the basis of value creation. The purpose of the firm is to create value for the owner.
Corporate Finance is the study of investment and financing decision making, and how should a firm manage its short-term operating cash flows in order to increase the value of the firm to the owner.

Business Structures

Business can take many forms. But, the three basic forms are:
  1. The Sole Proprietorship
  2. The Partnership, and
  3. The Corporation
The Sole Proprietorship
A sole proprietorship is a business owned by one person. The person, owner, is liable for all business debts and obligations. And, the profits of the business are taxed as individual income.
The Partnership
When two or more people get together to carry out business, they form a partnership. The partners (except limited partners who have limited liability) are liable for all business debts and obligations. The profits of the business are taxed as personal income to the partners.
The two main advantages of the sole proprietorship and the partnership are that it is easy to start with limited budget and have to pay taxes only on personal incomes. But, it is difficult for large business to exist as a sole proprietorship or a partnership, because of:
  • Unlimited liabilities to the sole proprietors and the partners
  • Limited life of the business, as it depends on the life, mood and the circumstances of the sole proprietors or the partners
  • Difficulty of transferring ownership, and
  • Limited budget and difficulty in raising cash


What is a corporation? How it is formed and what are its main functions? Who own the corporation and who run a corporation?
How corporations are formed?
Suppose you decide to start a firm to make some goods. To do this you hire managers to buy raw material, and you assemble a work force that will produce and sell finished goods. You can finance your investment by borrowing and selling some shares of the firm. A large corporation may have hundreds of thousands of shareholders, who become owners of the fraction of the firm by their fraction of investment. And your business set-up is called a “corporation”.
What is a corporation?
A corporation is a legal entity owned by its shareholders and run by its managers. According to the law, it is a legal person that is owned by its shareholders. As a legal person, a corporation can have a name and enjoy many of the legal powers of natural persons. The corporation can make contracts, carry on a business, borrow or lend money, and sue or be sued. One corporation can make a takeover bid for another and then merge the two businesses. Corporations pay taxes but cannot vote!
Functions of a corporation
Corporations invest in real assets, which generate cash inflows and income. The shareholders, who own the corporation, wants its managers, who run the corporation, to maximize its overall value and the current price of its shares.
To maximize the value for the owners, corporations face two principal decisions:
  1. Investment decision: what investments should the corporation make?
  2. Financing decision: how should it pay for the investments?Investment decision: what investments should the corporation make?

Corporation Investment Decision

The investment decision is one of the two principal decisions a corporation has to take. The investment decisions of a corporation are of two types:
1. Smaller Investment Decisions
Corporations make thousands of smaller and simpler investment decisions every year. These investments decisions are for example purchase of a vehicle, machine tools or any other regular running equipment. Usually managers themselves take these decisions.
2. Larger Investment Decisions
Larger investment decisions are also called capital budgeting or capital expenditure (CAPEX) because usually these investments list in a company’s annual budget. Managers do not take these decisions by themselves only. These decisions are taken after intensive research, in consultation with engineering, manufacturing and marketing department, and with the approval of board of governance.

Corporation Financing Decision

The investment decision is the first principal decision a corporation has to take. The second is Financing decision which means how to raise money for this investment. A corporation can raise money from:
A. Lenders, and
B. Shareholders
A. Borrowing Money from Lenders
A corporation can borrow money from:
1. Banks
A corporation can borrow money from a bank, where the corporation has to repay the cash back plus a fixed rate of interest for the use of capital.
2. Issuing Bonds
A corporation can also borrow by issuing bonds. In this case, the corporation also has to repay the cash back plus a fixed rate of interest for the use of capital.
The corporations often pay interest rate to bond holders less than the interest rate they have to pay to the banks. However, it is very difficult for young corporations to sell their bonds. So, usually they have to rely on bank loans.
B. Shareholders
Corporations can raise money either by:
1. Reinvesting the cash flow in the shape profits. In this case the corporation is investing on behalf of existing shareholders.
2. Issuing new shares. The investors who buy new shares contribute cash in exchange for a fraction of the corporation’s future cash flow and profits.
In both the cases the shareholders are equity investors, who contributes equity financing.

Agency Problem

Shareholders who owns the company are called principals and management who runs the company on behalf of the shareholders are called shareholder’s agents.
Conflicts between shareholders and management’s objectives create agency problem. Because, shareholders’ main priority involves seeking new investments to raise share value, while management may pursue job security, corporate luxury, and high compensation at the expense of shareholders.
Agency Cost
Conflicts of interests between principal and agent results in agency cost which include:
  • Corporate expenditure that benefits management, but costs stockholders. For example, a company buying an unneeded corporate jet.
  • The expense that arises from the need to monitor management actions. For example, an outside auditor hired to review financial statements.
  • Lost opportunities. For example, a company not taking a merger which could benefit the shareholders but not the management.
How to Mitigate Agency Problem?
Agency problems are mitigated by good systems of corporate governance. The most important measure is managerial compensation which could gather the interests of shareholders and management. For example, managers are spurred on by incentive schemes that produce big return if shareholders gain but are valueless if they do not. Besides, managers who pursue shareholders’ goals are in greater demand

Goals of a Corporation

All shareholders agree on one point and that is to maximize the current profit and overall value of the firm. But, for management there are two questions and decisions to take:
  1. A corporation may be able to increase current profit by cutting some investment which could benefit the corporation in the long-term and increase the value of the firm and thus increase future’s profit. Shareholders will not welcome increased current profit if long-term profits are damaged.
  2. A corporation may be able to increase corporation’s value which will increase future’s profit by cutting current year’s profit. In this case, the shareholders will not welcome current profit less than opportunity cost of their capital.
Should Firms Be Managed for Shareholders or All Stakeholders?
Shareholders want managers to maximize their wealth, but it does not mean they want maximum profit through unfair means.
The most successful corporations are those who not only satisfy their shareholders but also satisfy their employees and customers. Corporations can add value by building long-term relationships with their customers and establish a reputation for fair dealing and financial integrity.

From Sole Proprietorship to a Corporation

Suppose you decide to start a business from your personal savings of $1 million to produce some goods. You hired some work force for this purpose and start the business. In other words, you have created a sole proprietorship. You soon realize that the business would be more beneficial if it be carried out at a larger scale and by more people. You ask your friend, a rich person, for investment and partnership. Your friend was impressed with your business and invested $1.2 million into the business and became owner of the 50% of your business. In other words, you are your friend have created a partnership. Fortunately, this partnership was successful and you can spend your business to very large extent. And for this, your partnership needs continuous investment into the business. You and your friend (the two partners) divide the value of the firm into 1 million shares and register your business as a corporation (also called company or firm). So,
Total value of the firm = 1 million shares
So, in this newly created firm there are two members in the board of directors (you and your friend), a few managers (including you both) and dozens of workers. Now, your company can raise more capital either by:
A. Angel Investors, or
B. Venture Capital Firms
A. Angel Investors
Angel investors are wealthy individuals who invest in adolescent firms.
Suppose your company decide to raise capital from angel investor. The investor purchased 200,000 new shares for $10 each and became the third member in the board of directors. So, it was the first market price of the company’s shares ($10). Now, company’s number of shares are
1,000,000 (1 million) + 200,000 = 1,200,000
And, the value of the company is
1,200,000 x 10 = $12,000,000
B. Venture Capital Firms
These firms invest in adolescent firms, and then work with them to increase the value of the firm.
Suppose your company decide to raise capital from a venture capital firm. The firm purchased half of million new shares for $11 each, posted some of its specialist managers and got seat of the board of directors in your company. Now, company’s number of shares are
1,000,000 (1 million) + 500,000 = 1,500,000
And, the value of the company is
1,500,000 x 11 = $16,500,000


A bond is an asset that pays the regular interest payments and repay the original investment at the expiry date of the bond.
Regular interest payments are called coupon. The original investment is called the face value and the date of expiry is called maturity or the date of maturity.
A bond is an asset that pays the regular coupon, and repay the face value at the maturity.
There could be several types of bonds depends on the terms and conditions of the bonds. A bond issued by a government is called government bond, and a bond issued by a corporation is called corporate bond.

Bond Valuation

In financing decision we learned that bonds are issued to raise cash. Governments and corporations borrow money by issuing bonds. The bond issuer pays the bond holder regular interest payments and repay the original amount at the expiry date of the bond. For example, a company issued a bond of $100 for 5 years which pays regular payments of 10% of the investment (10% of 100 = 10) to the person who purchased the bond. In this case, the company received cash of $100 and will have to pay $10 each year for five years to the bond holder and have to repay the investment of $100 at the end of 5 years.
Regular interest payments are called coupon. The original investment is called the principal or face value and the date of expiry is called maturity or the date of maturity.

Bond Pricing (Valuing Bonds)

The value or price of a bond can be calculated as the present value of all the cash flows that will received by the bond holder. Suppose that a 4-year bond with a face value of $100 provides an annual coupon at the rate of 8% per annum. The cash flow from the bond is as follows:
Time (in years)1234
Cash Payments$8$8$8$108
NOTE: At the end of fourth year the bond holder will receive coupon and principal.
We can find value of the bond by calculating present value of the cash flow (suppose interest rate is 5% per annum).
Bond Pricing
Now, suppose that a 3-year bond with a face value of $100 provides a bi-annual coupon at the rate of 6% per annum. The cash flow from the bond is as follows:
Time (in years)
Cash Payments$6$6$6$6$6$106
We can find value of the bond by calculating present value of the cash flow (again suppose interest rate is 5% per annum)
Valuing Bonds

Risk and Return

Risk in investments means future returns are unpredictable. There is risk in all investments, and even all transactions. In general, the greater the risk involved, the greater the expected return, and similarly, the smaller the risk involved the smaller is the expected return.
Consider the following three types of investments:
1. Treasury Bills
These are short-term government debt securities. These are the safest investment, and because of short maturity their prices are relatively stable.
2. Government Bonds
These are long-term government debt securities. Bonds’ prices are inversely proportional to the interest rates (Bond prices fall when interest rates rise and rise when interest rates fall).
3. Common Stocks (Shares in a corporation)
The investor who invests in common stocks shares in all the ups and downs of the issuing companies. And thus, it is the most risky investment among these three investments.
The following table shows the average annual rate of return on these three investments in United States over the period from 1900 to 2008.
Treasury Bills4.0
Government bonds5.5
Common stocks11.1
The above historical evidence confirms that the higher the risk means the higher the return, but remembers it also means higher the chances of loosing the money.
Risk Premium
The risk premium is the amount of money (or reward) the investor receive for taking on a risk.
The table above shows the average annual rate of return. So, the average risk premium, taking treasury bills as base, can be given as
Treasury Bills0
Government bonds1.5 (5.5 − 4.0)
Common stocks7.1 (11.1 − 4.0)

Sociology MCQs

The following Sociology quizzes are from the topics like, why sociability is necessary to man, manifestations of sociability of man, culture, society, social interaction, social control, socio-cultural change, social institutions, sociological theory, sociological research and related theory.You could see the answer after each 10 questions.

1. Sociological perspective means
(A) Understanding human behavior in broader context of society
(B) Understanding human behavior in narrower context of society
(C) Both ‘a & b’
(D) None of these
2. Social Location is the group membership that people have because of their
(A) Status in society
(B) Location in history and society
(C) Location in a town
(D) None of these
3. Which of the following shape our ideas more than the other
(A) Hereditary traits
(B) Social groups interaction
(C) Both ‘a & b’
(D) None of these
4. Sociology is a
(A) Social science
(B) Natural science
(C) Behavioral science
(D) None of these
5. Which of the followings are included in primary goals of a social science?
(A) Experimentation
(B) Generalization
(C) Prediction
(D) All of these
6. Positivism was first proposed by
(A) Augustus Comte
(B) Emily Durkheim
(C) Herbert Spencer
(D) None of these
7. Positivism is applying which method in social world?
(A) Natural method
(B) Non-scientific method
(C) Scientific method
(D) None of these
8. Who is credited as founder of sociology?
(A) Herbert Spencer
(B) Augustus Comte
(C) Max Weber
(D) None of these
9. The concept of Social Darwinism was coined by
(A) Herbert Spencer
(B) Augustus Comte
(C) Max Weber
(D) None of these
10. Karl Marx gave the sociological concept of
(A) Social Darwinism
(B) Positivism
(C) Class conflict
(D) None of these
1. A
2. B
3. B
4. A
5. D
6. A
7. C
8. B
9. A
10. C
11. Emily Durkheim is known for his work on
(A) Socialization
(B) Politics
(C) Suicide
(D) All of these
12. Which one of the following sociologists worked on religion in sociology?
(A) Max Weber
(B) Durkheim
(C) Augustus Comte
(D) None of these
13. ‘Replication’ in sociological research means
(A) Repetition of study to test the findings
(B) Cancelling the old findings
(C) Both ‘a & b’
(D) None of these
14. Durkheim’s term of ‘Social Facts’ means
(A) Factors determining socialization
(B) A group’s pattern behavior
(C) Both ‘a & b’
(D) None of these
15. In which university Sociology was first taught as a discipline?
(A) University of Cambridge
(B) Oxford University
(C) University of Kansas
(D) Punjab University
16. What jeopardized the work of women sociologists in history?
(A) Sexism
(B) Racism
(C) Feudalism
(D) None of these
17. Which of the following sociologist was victim of racism?
(A) Hebert Spencer
(B) Karl Marx
(C) Augustus Comte
(D) W. E. B. Du Bios
18. Use of sociology to solve the problems of society is
(A) Basic sociology
(B) Applied sociology
(C) Both ‘a & b’
(D) None of these
19. Public Sociology is the sociology used for
(A) Public good
(B) Private good
(C) Individual good
(D) None of these
20. Identify the type(s) of culture
(A) Material Culture
(B) Non-Material Culture
(C) Both ‘a & b’
(D) None of these
11. C
12. A
13. A
14. B
15. C
16. A
17. D
18. B
19. A
20. C

21. ‘Clothes’ being wore in a society is an example of
(A) Material culture
(B) Non-material culture
(C) Both ‘a & b’
(D) None of these
22. Non-Material culture is also called
(A) Apparent culture
(B) Implicit culture
(C) Symbolic culture
(D) None of these
23. Taking one’s own culture as standard of judging others’ cultures is
(A) Ethnocentrism
(B) Xenocentrism
(C) Cultural shock
(D) None of these
24. People face cultural shock when they
(A) Practice old customs
(B) Come in contact with different culture
(C) Don’t practice norms
(D) None of these
25. Judging another’s culture can lead a person to
(A) Ethnocentrism
(B) Xenocentrism
(C) Both ‘a & b’
(D) None of these
26. Language is an example of
(A) Material culture
(B) Symbolic culture
(C) Both ‘a & b’
(D) None of these
27. Which one of the following is not an example of material culture?
(A) Buildings
(B) Cars
(C) Arts
(D) Norms
28. Which one of the following is not an example of symbolic culture?
(A) Norms
(B) Gestures
(C) Clothes
(D) Language
29. Sanction is the way to enforce
(A) Values
(B) Norms
(C) Both ‘a & b’
(D) None of these
30. A sanction can be
(A) Positive
(B) Negative
(C) Only negative
(D) Both positive and negative
21. A
22. C
23. A
24. B
25. C
26. B
27. D
28. C
29. B
30. D

31. ‘Folkway’ is an example of
(A) Social Norm
(B) Social value
(C) Social sanction
(D) None of these
32. Which is from the following is the least strictly enforced?
(A) Folkway
(B) Mores
(C) Taboos
(D) None of these
33. Which one of the following is most strictly enforced?
(A) Folkway
(B) Mores
(C) Taboos
(D) None of these
34. A group which has its values contradicting with the broader culture forms
(A) Subculture
(B) Counterculture
(C) Both ‘a & b’
(D) None of these
35. A society with different cultural values is
(A) Pluralistic
(B) Singular
(C) Both ‘a & b’
(D) None of these
36. Values shaped together from a larger whole forms
(A) Value Group
(B) Value Cluster
(C) Both ‘a & b’
(D) None of these
37. Values that run opposite to each other forms
(A) Value contradictions
(B) Value clusters
(C) Value groups
(D) None of these
38. Ideal culture is
(A) Norms being manifested
(B) Norms ought to be manifested
(C) Norms violation
(D) None of these
39. The way in which people actually follow norms is
(A) Manifest culture
(B) Ideal culture
(C) Both ‘a & b’
(D) None of these
40. The spread of cultural traits and patterns in space is called
(A) Assimilation
(B) Acculturation
(C) Diffusion
(D) None of these
31. A
32. A
33. C
34. B
35. A
36. B
37. A
38. B
39. A
40. C
41. A Stimulus-Response Condition between two persons is called
(A) Exchange
(B) Dialogue
(C) Interaction
(D) None of these
42. Polyandry is a form of marriage in which
(A) Many women marry one man
(B) Many men are husbands of one woman
(C) One man marries a woman
(D) None of these
43. A verified and verifiable proposition is
(A) Hypothesis
(B) Design
(C) Fact
(D) None of these
44. Who strongly believed in social DARWINISM particularly the “survival of the fittest”?
(A) Karl Marx
(B) Spencer
(C) Ibn-i-Khaldun
(D) George Hegel
45. Fact may be defined as
(A) A commonly shared reality
(B) What everyone knows as true
(C) That speaks itself
(D) Verified and verifiable statement
46. Research design is
(A) The developing of techniques of data collection
(B) An overall outline of the procedures and operations that includes methods, techniques and tools of the study
(C) The decisions that a researcher makes/takes to verify the data
(D) The way to participate in an ongoing research project
47. Social Mobility Means
(A) Traveling of groups from one place to another
(B) Participation in the cultural activities of modern age
(C) Migration from rural to urban areas
(D) Movement of people between positions on different levels
48. Monotheism refers to
(A) The worship of one God
(B) The worship of many gods
(C) The followers of a magician
(D) None of these
49. By Sorcery we mean
(A) General practice to cure sick
(B) Magic in a more neutral term
(C) Both ‘a & b’
(D) None of these
50. Who coined the term “residues”?
(A) Robert K. Merton
(B) V.F.D. Pareto
(C) A.R. Radcliffe Brown
(D) None of these
41. C
42. B
43. C
44. B
45. D
46. B
47. D
48. A
49. B
50. B

51. By Penology we mean
(A) Studies of social structure
(B) Study of Punishments
(C) Alternative methods of social control
(D) None of these
52. Mills, C.Wright wrote the book
(A) White Collar
(B) The Language of Social Research
(C) Value in Social Theory
(D) None of these
53. The sex ratio is
(A) The number of women per hundred men
(B) The number of children a woman has
(C) The number of men per hundred women
(D) The number of children biologically possible for a woman
54. The term used to refer to the biological maximum number of birth is
(A) Sex ratio
(B) Fertilitys
(C) Fecundity
(D) Natural increase
55. From the stand point of its role in society, one of the great potential capability of religion is
(A) Lessening confusion by providing a system of beliefs
(B) Taking over the socialization process of children
(C) Strengthening the other institutions in society
(D) The promotion of group cohesion
56. Children assumed to have raised by animals are called
(A) Abnormal children
(B) Feral children
(C) Both ‘a & b’
(D) None of these
57. The case of ‘Jack & Oscar’ was helpful in studying
(A) Impact of environment on socialization
(B) Impact of hereditary on socialization
(C) Both ‘a & b’
(D) None of these
58. Children reared in special centers of care are
(A) Feral children
(B) Institutionalized children
(C) Both ‘a & b’
(D) None of these
59. A social position inherited by an individual is a status called
(A) Achieved Status
(B) Ascribed Status
(C) Both ‘a & b’
(D) None of these
60. A social position earned in life shapes
(A) Achieved Status
(B) Ascribed Status
(C) Both ‘a & b’
(D) None of these
51. B
52. A
53. C
54. C
55. A
56. B
57. C
58. B
59. B
60. A
61. Position occupied by someone in society is recognized as his
(A) Status
(B) Post
(C) Both ‘a & b’
(D) None of these
62. Things used to identify one’s social status are called
(A) Status determinants
(B) Social indignation
(C) Status symbols
(D) None of these
63. The behavior attached to social status is described as
(A) Role
(B) Performance
(C) Duties
(D) None of these
64. People of society who share commonness in several things form
(A) Cluster
(B) Gathering
(C) Group
(D) None of these
65. Social integration is level to which members of a society feel
(A) United
(B) Alienated
(C) Separated
(D) None of these
66. Specifying a task for a person is
(A) Social integration
(B) Social alienation
(C) Division of labor
(D) None of these
67. Stereotype is an
(A) Habit
(B) Assumption
(C) Custom
(D) None of these
68. Stereotype is an assumption that is
(A) Always true
(B) Always false
(C) Either true or false
(D) None of these
69. Collaboration of two or more people in a work is called
(A) Teamwork
(B) Division of labor
(C) Both ‘a & b’
(D) None of these
70. Dyad is
(A) Social custom
(B) Norm
(C) The smallest possible group
(D) The largest possible group
61. A
62. A
63. A
64. C
65. A
66. C
67. B
68. C
69. A
70. C

71. Emigration means
(A) Going out of home country
(B) Going out of home district
(C) Going out of home village
(D) None of these
72. Life span means
(A) Passing form one year to next year
(B) Maximum number of years that one can live
(C) Average life that one can life
(D) None of these
73. Within the year group, the major emphasis is upon
(A) Achievement
(B) Conformity
(C) Individual conviction
(D) None of these
74. “Brain washing” consists of extreme and intensive
(A) Reciprocal roles
(B) Identification
(C) Disorientation
(D) Re-socialization
75. The sociogram is best described as a sociological
(A) Concept
(B) Fact
(C) Theory
(D) Technique
76. A caste system as a pure theoretical type is based upon
(A) Ascribed status
(B) Social status
(C) Achieved status
(D) Both Achieved and Ascribed status
77. Social class position in a true “open class” structure is based upon
(A) Ascribed criteria
(B) Race
(C) Family position
(D) Achieved criteria
78. A close connection between religion and economic forces was presented by
(A) Max Weber
(B) Karl Max
(C) Emile Durkheim
(D) Wright Mill
79. A large kinship group whose members inhabit one geographic area and believe they are descendant from a common area is known as
(A) Clan
(B) Tribe
(C) Kin group
(D) Class
80. A social condition in which values are conflicting, weak or absent is
(A) Assimilation
(B) Hawthorne effect
(C) Invasion
(D) Anomie
71. A
72. B
73. D
74. C
75. D
76. A
77. D
78. A
79. C
80. D

81. In theoretical field social research aims at
(A) finding problems of human being
(B) identifying delinquent behaviour
(C) reducing social conflict
(D) None of these
82. WID approach believes in
(A) Gender mainstreaming
(B) Gender Segregation
(C) Incorporating women in development activities
(D) None of these
83. Is Pakistan a signatory of CEDAW?
(A) Yes
(B) No
(C) Both ‘a & b’
(D) None of these
84. Human Rights pertain to caring for the rights of
(A) Women
(B) Men
(C) Minorities
(D) All of these
85. The essential function of punishment in society is
(A) Reform
(B) Revenge
(C) Affirmation of moral standards
(D) None of these
86. The most pervasive of the social processes are
(A) Cooperation
(B) Overt Conflict
(C) Competition
(D) None of these
87. The trend toward urbanization is most advanced in
(A) America
(B) England
(C) Japan
(D) None of these
88. In a highly intra-competitive situation, individual can guarantee the trust of peers by
(A) Self modesty
(B) Genuine goodwill
(C) Withholding praise of superior
(D) None of these
89. A counter culture
(A) Has to be against the existing cultural ethos/values
(B) May not be against the existing cultural ethos/values
(C) If different from the existing culture may never succeed to survive
(D) None of these
90. Family Laws Ordinance was passed for the first time in
(A) 1961
(B) 1973
(C) 1985
(D) None of these
81. B
82. C
83. A
84. D
85. C
86. C
87. A
88. B
89. A
90. A

91. Those who cannot compete have no right for higher learning and must be refused accordingly who believed in the above thesis? (Social Darwinism)
(A) Augustus Comte
(B) Spencer
(C) Karl max
(D) None of these
92. Cultural Shock is caused by
(A) Playing is different role and getting role strain
(B) finding values, norms and customs against ones cultural socialization usually opposite to what one has been socialized in and they turn out to be dysfunctional
(C) Both (a) and (b)
(D) None of these
93. Society as a complex organization of parts that functions to fulfill the requirement a..’1d promote the needs of the whole, is a concept of
(A) Structural Functionalism
(B) Interaction School of thought
(C) Phenomenology
(D) None of these
94. The concepts of “Protestant” and “Bourgeoise” were presented by
(A) Talcat parson
(B) Karl Marx
(C) Max Weber
(D) Emile Durkheim
95. In “The Division of Labor in Society”, Emile Durkheim presented the idea of
(A) Mechanical & organic solidarity
(B) Social & psychological solidarity
(C) Physical & social solidarity
(D) Psychological & mechanical solidarity
96. The phenomena when educated and highly skilled people emigrate to a new country, their home country loses, is referred as
(A) Chain migration
(B) Life-time migration
(C) Brain Drain
(D) Mover
97. A social condition in which values are conflicting, weak or absent is called
(A) Assimilation
(B) Hawthorne effect
(C) Invasion
(D) Anomie
98. The item alien to the concept of mass is
(A) Vastness
(B) Anonymity
(C) Responsibility
(D) None of these
99. The exception to the typical application of endogamy is
(A) Tribe
(B) Kinship
(C) Race
(D) None of these
100. One of the following is alien to the concept of culture
(A) Religious ritual
(B) Changelessness
(C) Idealized ways of thinking and doing
(D) None of these
91. B
92. B
93. A
94. B
95. A
96. C
97. D
98. C
99. B
100. B

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