Pharmacist in relation to trade MCQs With Answer

Introduction: Pharmacist in relation to trade MCQs With Answer explores the pharmacist’s role in pharmaceutical trade, distribution, licensing, inventory management, pricing, regulations and quality assurance. This topic covers practical concepts such as wholesale and retail licensing, Good Distribution Practices (GDP), batch traceability, cold chain, MRP, taxation (GST), expiry management (FIFO/FEFO), import/export documentation, recalls, and regulatory authorities like CDSCO. Designed for B.Pharm students, these MCQs reinforce key principles required for pharmacy practice, supply chain decisions, and compliance with pharmaceutical regulations. Focused, keyword-rich questions help strengthen theoretical knowledge and practical trade skills. Now let’s test your knowledge with 30 MCQs on this topic.

Q1. What is the primary objective of pharmaceutical trade for a pharmacist?

• Maximizing profit at any cost
• Ensuring continuous availability of safe, effective and quality medicines
• Limiting access to medicines to control usage
• Exporting all locally produced drugs

Correct Answer: Ensuring continuous availability of safe, effective and quality medicines

Q2. Which license is required to operate a retail pharmacy in most jurisdictions?

• Wholesale drug license
• Manufacturing license
• Retail drug license
• Import license

Correct Answer: Retail drug license

Q3. Which authority typically issues wholesale drug licenses at the state level?

• Central bank
• State Drug Control Authority
• Local municipal corporation
• Food and Agriculture Organization

Correct Answer: State Drug Control Authority

Q4. Good Distribution Practices (GDP) primarily aim to:

• Increase retail margins
• Maintain product quality and integrity during storage and transport
• Reduce packaging costs
• Standardize advertising

Correct Answer: Maintain product quality and integrity during storage and transport

Q5. Which inventory method is most appropriate to minimize drug expiry-related losses?

• Last In First Out (LIFO)
• First Expiry First Out (FEFO)
• Random selection
• Price-based selection

Correct Answer: First Expiry First Out (FEFO)

Q6. MRP on a medicine label stands for:

• Minimum Retail Price
• Maximum Retail Price
• Manufacturer’s Recommended Profit
• Market Retail Percentage

Correct Answer: Maximum Retail Price

Q7. EDL in pharmaceutical trade refers to:

• Electronic Drug Ledger
• Essential Drugs List
• Export Duty List
• Expiry Date Log

Correct Answer: Essential Drugs List

Q8. What does Schedule H classification generally indicate?

• Over-the-counter safe medicines
• Prescription-only medicines that require a prescription
• Herbal supplements
• Cosmetic items

Correct Answer: Prescription-only medicines that require a prescription

Q9. Schedule X drugs require which of the following additional measures?

• No record-keeping is needed
• Strict record-keeping and restricted sale for habit-forming or highly controlled drugs
• They are sold only online
• They are exempt from taxation

Correct Answer: Strict record-keeping and restricted sale for habit-forming or highly controlled drugs

Q10. Which document is mandatory for customs clearance when importing pharmaceuticals?

• Delivery challan only
• Bill of entry or import license as per regulatory requirements
• Patient prescription
• Retail invoice

Correct Answer: Bill of entry or import license as per regulatory requirements

Q11. For most vaccines, the recommended cold chain storage temperature is:

• Room temperature (20–25°C)
• Below -20°C
• 2–8°C
• Above 30°C

Correct Answer: 2–8°C

Q12. How is percentage markup typically calculated for a drug?

• (Selling price / Cost price) × 100
• ((Selling price − Cost price) / Cost price) × 100
• ((Cost price − Selling price) / Selling price) × 100
• (Cost price × Selling price) / 100

Correct Answer: ((Selling price − Cost price) / Cost price) × 100

Q13. Which tax system replaced many indirect taxes for pharmaceutical sales in India?

• Service Tax
• Value Added Tax (VAT)
• Goods and Services Tax (GST)
• Sales Tax only

Correct Answer: Goods and Services Tax (GST)

Q14. What is the role of pharmacovigilance in pharmaceutical trade?

• Promoting sales strategies
• Monitoring and reporting adverse drug reactions for marketed products
• Calculating distributor margins
• Packaging design

Correct Answer: Monitoring and reporting adverse drug reactions for marketed products

Q15. What does a batch recall involve?

• Permanent discontinuation of all drug brands
• Removal of a specific defective or unsafe batch from distribution and sale
• Discounting old stock
• Advertising a medicine again

Correct Answer: Removal of a specific defective or unsafe batch from distribution and sale

Q16. ‘Shelf life’ of a pharmaceutical product is defined as:

• The period during which the product remains within approved quality specifications under recommended storage
• The time until first sale
• The warranty period from the supplier
• The time until packaging changes

Correct Answer: The period during which the product remains within approved quality specifications under recommended storage

Q17. What does a consignment sale typically mean in pharmaceutical trade?

• Goods are sold without documentation
• Goods are supplied to a consignee who sells on behalf of the consignor; ownership remains with consignor until sold
• Immediate purchase and transfer of ownership
• Sale only for export markets

Correct Answer: Goods are supplied to a consignee who sells on behalf of the consignor; ownership remains with consignor until sold

Q18. If a label states the price is tax inclusive, it means:

• Taxes will be added at billing
• The listed price already includes applicable taxes like GST
• Price excludes shipping
• Tax will be deducted from the price

Correct Answer: The listed price already includes applicable taxes like GST

Q19. What is the main purpose of Economic Order Quantity (EOQ) in inventory management?

• Maximize stock levels regardless of cost
• Minimize the total of ordering and holding costs by optimizing order quantity
• Ensure daily ordering
• Remove expired stock immediately

Correct Answer: Minimize the total of ordering and holding costs by optimizing order quantity

Q20. For Schedule H drugs, pharmacies are commonly required to:

• Dispense without record
• Retain copies of prescriptions and maintain records for a specified period (e.g., three years)
• Give free samples to customers
• Export them only

Correct Answer: Retain copies of prescriptions and maintain records for a specified period (e.g., three years)

Q21. Why is batch number important on pharmaceutical labels?

• For price calculation only
• Traceability, quality control and targeted recall of defective batches
• To indicate manufacturing company’s logo
• To show retail margin

Correct Answer: Traceability, quality control and targeted recall of defective batches

Q22. Which body is primarily responsible for approval of new drugs and marketing authorization in India?

• National Pharmacy Council
• Central Drugs Standard Control Organization (CDSCO)
• World Health Organization
• State Medical Council

Correct Answer: Central Drugs Standard Control Organization (CDSCO)

Q23. The term “trade price” typically refers to the price paid by:

• The final consumer
• Wholesaler or distributor purchasing from manufacturer
• The regulatory authority
• The marketing team

Correct Answer: Wholesaler or distributor purchasing from manufacturer

Q24. What is considered “dead stock” in pharmacy inventory?

• Fast-moving, high-demand products
• Inventory that cannot be sold due to expiry, obsolescence, or lack of demand
• Samples given to doctors
• Stock currently on promotion

Correct Answer: Inventory that cannot be sold due to expiry, obsolescence, or lack of demand

Q25. Which information is mandatory on medicine packaging for effective trade and safety?

• Batch number, manufacturing date and expiry date
• Only company logo
• Exclusive distributor name only
• Retail margin percentage

Correct Answer: Batch number, manufacturing date and expiry date

Q26. The First In First Out (FIFO) principle in pharmacy inventory is used to:

• Sell the newest stock first
• Reduce holding costs by selling oldest receipts first to avoid expiry
• Ignore expiry dates permanently
• Price the oldest stock higher

Correct Answer: Reduce holding costs by selling oldest receipts first to avoid expiry

Q27. Which details must a GST invoice generally include for pharmaceutical sales?

• Only the product name
• Supplier and recipient GSTIN, HSN/SAC code, tax amounts and invoice value
• Only the batch number
• Only the physician’s name

Correct Answer: Supplier and recipient GSTIN, HSN/SAC code, tax amounts and invoice value

Q28. When returning defective pharmaceutical goods to a supplier, which document is commonly issued to record the transaction?

• Prescription copy
• Credit note or return authorization document
• Patient consent form
• Advertising leaflet

Correct Answer: Credit note or return authorization document

Q29. Who authorizes shelf-life extension or changes to expiry dating for a marketed drug?

• Local pharmacist only
• Regulatory authority based on stability data and review
• Distributor manager
• Retail customer

Correct Answer: Regulatory authority based on stability data and review

Q30. Good Manufacturing Practice (GMP) impacts pharmaceutical trade by:

• Only increasing production speed
• Ensuring consistent quality of products released to the market and facilitating regulatory approval and trade
• Focusing solely on marketing techniques
• Eliminating the need for quality checks during distribution

Correct Answer: Ensuring consistent quality of products released to the market and facilitating regulatory approval and trade

G S Sachin

I am a Registered Pharmacist under the Pharmacy Act, 1948, and the founder of PharmacyFreak.com. I hold a Bachelor of Pharmacy degree from Rungta College of Pharmaceutical Science and Research. With a strong academic foundation and practical knowledge, I am committed to providing accurate, easy-to-understand content to support pharmacy students and professionals. My aim is to make complex pharmaceutical concepts accessible and useful for real-world application.

Mail- Sachin@pharmacyfreak.com