MCQ Questions for Class 11 Business Studies Chapter 1 Nature and Purpose of Business with Answers

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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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