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Nature and Purpose of Business Class 11 MCQs Questions with Answers
Question 1.
Which one of the following is NOT the objective of the business?
(a) Investment
(b) Innovation
(c) Creation of customers
(d) Profit-making
Answer
Answer: (a) Investment
Question 2.
Which one of the following is an economic activity in which specialized knowledge is required?
(a) Profession
(b) Business
(c) Employment
(d) None of the above
Answer
Answer: (a) Profession
Question 3.
Commerce includes activities relating to trade and _________________ to trade.
(a) Auxiliaries
(b) Subsidiaries
(c) Supporting
(d) None of the above
Answer
Answer: (a) Auxiliaries
Question 4.
Bad debts due to non-payment of debt by the debtor are an example of which type of business risk?
(a) Human
(b) Natural
(c) Physical
(d) Economic
Answer
Answer: (a) Human
Question 5.
Which of the following is an economic cause of business risks?
(a) Demand for goods
(b) Competition
(c) Price
(d) All of the above
Answer
Answer: (d) All of the above
Question 6.
Business risk is not likely to arise due to
(a) Power failure
(b) Employee dishonesty
(c) Changes in government policy
(d) Good management
Answer
Answer: (d) Good management
Question 7.
The word marketing standing is concerned with __________
(a) Position of an enterprise
(b) Supply of the product
(c) Customers
(d) Competitors
Answer
Answer: (a) Position of an enterprise
Question 8.
Why a business should earn a profit?
(a) To provide a return to investors
(b) To increase the reputation of the business
(c) To provide funds for future growth
(d) All of the above
Answer
Answer: (d) All of the above
Question 9.
Which one of the following is NOT an Auxiliary to trade?
(a) Mining
(b) Warehousing
(c) Insurance
(d) Transport
Answer
Answer: (a) Mining
Question 10.
Which of the following is not a natural cause of business risks?
(a) Earthquake
(b) Strikes
(c) Famine
(d) Heavy Rains
Answer
Answer: (b) Strikes
Question 11.
Which of the following is not concerned with the profession?
(a) Manufacturing goods and services
(b) Specialised body of knowledge and skill
(c) Code of conduct
(d) Formal Training
Answer
Answer: (a) Manufacturing goods and services
Question 12.
Which of the broad categories of industries covers oil refinery and sugar mills?
(a) Primary
(b) Secondary
(c) Tertiary
(d) None of the above
Answer
Answer: (b) Secondary
Question 13.
Which of the following is an instrument of exchange, which was prominent in the subcontinent?
(a) Copper
(b) Hundi
(c) Gold
(d) Silver
Answer
Answer: (b) Hundi
Question 14.
The occupation in which people work for others and get remunerated in return is known as:
(a) Profession
(b) Employment
(c) Business
(d) None of the above
Answer
Answer: (b) Employment
Question 15.
The industries which provide support services to other industries are known as
(a) Primary industries
(b) Commercial industries
(c) Tertiary industries
(d) Secondary industries
Answer
Answer: (c) Tertiary industries
Question 16.
Which one of the following is an economic activity in which specialized knowledge is required?
(a) Profession
(b) Business
(c) Employment
(d) None of the above
Answer
Answer: (a) Profession
Question 17.
The term business is derived from the word ______________
(a) Buy and selling
(b) Financial markets
(c) Proprietorship
(d) Busy
Answer
Answer: (d) Busy
Question 18.
Which of the following is an economic activity?
(a) Social Activities
(b) Patriotic Activities
(c) Profession
(d) Religious Activities
Answer
Answer: (c) Profession
Question 19.
Which of the following is not a characteristic of business activity?
(a) Wages
(b) Sale of product
(c) The factor of risk
(d) Manufacturing goods and services
Answer
Answer: (a) Wages
Question 20.
__________ is an economic activity
(a) Non-employment
(b) Employment
(c) Non profit organisation
(d) None of the above
Answer
Answer: (b) Employment
Question 21.
Bad debts due to non-payment of debts by debtors is an example of which type of business risk?
(a) Human
(b) Natural
(c) Physical
(d) Economic
Answer
Answer: (a) Human
Question 22.
Tea is mainly produced in Assam; Cotton in Gujarat and Maharashtra; Jute in West Bengal and Orissa; Sugar in U.P, Bihar, and Maharashtra. But these goods are required for consumption in different parts of the country. For this purpose ________ is very important.
(a) Banking and Finance
(b) Advertising
(c) Insurance
(d) Transport and Communication
Answer
Answer: (d) Transport and Communication
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