MCQ Based Questions on Class 11 Business studies for chapter-1 Nature and Purpose of the Business
Find below MCQ-Based Questions on Class 11 Business studies for chapter Nature and Purpose of the Business all the MCQ questions are explained with correct answers and explanations. To check the correct answer click on the answer.
Find MCQ questions for class 11 Business studies Nature and Purpose of the Business
Business Studies - MCQ on Nature and Purpose of the Business
Class XI
Q. 1.The primary aim of business is:
I. To earn profit
II. To help its employees
III. To help society
IV. None of these
Answer:
: To earn profit
Explanation: Business may be defined as human activities directed towards providing of acquiring wealth through buying and selling goods
Q. 2. Non economic activities aim at:
I. Social Service
II. Profit maximization
III. Consumer satisfaction
IV. None of these
Answer:
(a) I. Social Service
Explanation: Non economic activities are in the form of religion, culture & social activities
Q. 3.Business includes only
I. Social Activities
II. Institutional activities
III. Economic Activities
IV. None of these
Answer:
Economic Activities
Explanation: Economic activities are related to production of wealth and the business aims at profit maximization
Q. 4.Industry is related to:
I. Manufacturing of Goods
II. Trading
III. Exchange of goods
IV. None of these
Answer:
(a) Manufacturing of Goods
Explanation: Industry is related to production of goods
Q. 5.Commerce is related to?
I. Production of goods
II. Providing services
III. Exchange of goods
IV. None of these
Answer:
.Exchange of goods
Explanation: Commerce is related to all those activities which facilitate the firms
Q. 6. Internal Trade takes place?
I. Between two counties
II. Inside a country
III. Both of these
IV. None of these
Answer:
(a) Inside a country
Explanation: Internal trade is exchange of goods and services with thin the boundaries of a country
Q. 7.Profession involves
I. Rendering of personal services
II. Undertaking business
III. Undertaking a contract
IV. None of these
Answer:
(a)Rendering of personal services
Explanation: Profession involves those activities, which require special
Knowledge and skill to be applied by individuals in their occupation.
Q. 8. Business means exchange of goods and services for mutual?
I. Benefits
II. Loss
III. Activities
IV. None of these
Answer:
Benefits
Explanation: Business may be defined as human activities directed towards providing of acquiring wealth through buying and selling goods
Q. 9. An________ transaction will not be called business
I. Regular
II. Isolated
III. Mutual
IV. None of these
Answer:
(a) Isolated
Explanation: In isolation business cannot run as it is exchange of goods and services between persons
Q. 10. A business should aim at serving the _____at large.
I. Employee’s society
II. Weaker Section
III. Bank
IV. Society
Answer:
Society
Explanation: Business is a social activity and it should be done in a good faith
Q. 11. Trade is the process of taking goods from _________to customers
I. Wholesaler
II. Producer
III. Retailer
IV. None of these
Answer:
Producer
Explanation: The goods are produced and transferred to consumer
Q. 12. When demand of goods is limited to a place it is called?
I. Local
II. External
III. Necessity
IV. None of these
Answer:
Local
Explanation: When the demand of goods is limited to boundaries then it is Local
Q. 13. Business Risk is removed by
I. Government
II. Insurance
III. Banks
IV. None of these
Answer:
Insurance
Explanation: Insurance companies cover the risk by giving protection against a mishappening
Q. 14. Growing of plants comes under
I. Extractive Industry
II. Genetic Industry
III. Primary Industry
IV. None of these
Answer:
Primary Industry
Explanation: This activity comes under primary industry because primary industry is concerned with natural reproduction of living plants and organisms
Q. 15. Growth of commerce is closely linked with
I. Mankind
II. Insurance
III. Banking
IV. None of these
Answer:
Mankind
Explanation: As mankind is developing business is also developing
Q. 16.A size of business unit affects
I. Efficiency
II. Production
III. Profit
IV. Loss
Answer:
Efficiency
Explanation: The size of business and number of employs clearly shows the efficiency of the business
Q. 17. Plant location means selecting
I. City
II. Site
III. Town
IV. State
Answer:
Site
Explanation: Whenever a plant is set its site is fixed means its location is fixed
Q. 18. An ideal organization should be
I. Fixed
II. Flexible
III. Big
IV. Small
Answer:
Flexible
Explanation: It should be flexible because according to change in external and internal environment its should adjust and survive
Q. 19. Launching an enterprise means
I. Registration
II. Production
III. Profit
IV. Expenses
Answer:
(a) Production
Explanation: Starting producing goods means that the business has commenced
Q. 20. Which of the following is not a feature of business?
I. Production of goods
II. Risk
III. Exchange of goods
IV. Salary
Answer:
Salary.
Explanation: Salary is indirect means of obtaining factors of production
Q. 21. Refinery comes under which category
I. Primary
II. Secondary
III. Tertiary
IV. none of them
Answer:
Secondary
Explanation: Secondary categories deals with production and machineries
Q. 22. Which of is not an auxiliary to trade?
I. Mining
II. Insurance
III. Warehousing
IV. Transport
Answer:
(a) Mining
Explanation: Other factor facilitates factors of trade.
Q. 23. The occupation in which people work for others and get salaried is called
I. Business
II. Employment
III. Trading
IV. None of them
Answer:
Employment
Explanation: Benefits attached with per heads supports salary to employment.
Q. 24. The industries which provide support services to other industries are
Known as
I. Primary industries
II. Secondary industries
III. Commercial industries
IV. Tertiary industries
Answer:
Tertiary Industries
Explanation: Services sectors fall in tertiary sector.
Q. 25. Which of the following is not an objective of business?
I. Investment
II. Productivity
III. Religious service
IV. Profit earning
Answer:
Religious service
Explanation: Religious service is not an objective of business
Q. 26. Business risk cannot arise due to
I. Changes in government policy
II. Good management
III. Employee dishonesty
IV. Power failure
Answer:
Good management
Explanation: Good Management helps in making the investments safe.
Q. 27.In wholesale trade goods are exchanged
I. In small Quantities
II. In large Quantities
III. Both of these
IV. None of These
Answer:
Large Quantities
Explanation: When goods are purchased and sold in bulk, it is known as wholesale trade.
Q. 28. Business credits various types of _______in goods
I. Benefits
II. Utilities
III. Rating
IV. None of these
Answer:
Utilities
Explanation: Through business various needs develops
Q. 29. What is uncertainty of returns?
I. Profit is unknown
II. Predictable profit
III. No profit
IV. None of these
Answer:
Profit is unknown
Explanation: Uncertainty of return refers to the lack of knowledge relating to the amount of money that
The business is going to earn in a given period.
Q. 30. Risk is the associated ________with an exposure to loss.
I. Uncertainty
II. Certainty
III. Flexibility
IV. None of these
Answer:
Uncertainty
Explanation: Risk is uncertainty which occurs due to undesirable events
Q. 31. What are primary industries concerned with
I. Production
II. Processing
III. Services
IV. None of these
Answer:
Production
Explanation: All those activities, which are concerned with the extraction and production of natural resources
Q. 32. Hunting comes under which industry
I. Extractive Industry
II. Genetic Industry
III. Primary Industry
IV. Manufacturing
Answer:
Extractive Industry
Explanation: These Industries extract or draw out Products from natural sources.
Q. 32. What is external trade?
I. Exchange of goods and services in a country
II. Exchange of goods and services between two countries
III. Exchange of goods and services between two states
IV. All of them
Answer:
(a) Exchange of goods and services between two countries
Explanation: Exchange of gods and services between two countries or international borders comes under external trade.
Q. 33. Which does not fall under Economic activity?
I. Business
II. Profession
III. Employment
IV. Mother care
Answer:
Mother care
Explanation: Any activity which is not related to money is not and economic activity.
Q. 34. Identify which point does not fall in prominent professional bodies.
I. Medical
II. Legal
III. Accountancy
IV. Begging
Answer:
Begging
Explanation: Begging does not fall in prominent professional bodies.
Q. . 35. Which one of the below statement is False:
I. A profession requires specialized knowledge and training.
II. The membership of the professional body is compulsory in case of a profession.
III. Regulation of profession , the existence of a recognized professional body is a must
IV. Profession gives top priority to Money and selfish gain.
Answer:
Profession gives top priority to Money and selfish gain
Explanation: Services motive of a profession is to provide services to client.
Q. 36. Exchange of goods for goods was practice during.
I. Hunting stage
II. Pastoral Stage
III. Barter Stage
IV. Agricultural state
Answer:
Barter Stage.
Explanation: During Barter Stage the best medium of exchange was goods.
Q. 37. Rising of wealth from soil, climate etc relates.
I. Manufacturing Ind.
II. Extracting industries
III. Synthetic Industry
IV. None Of These
Answer:
Extracting Indy
Explanation: Drawing out resources from nature falls under extracting Industry
Q. 38. Business should use ______________natural resources properly.
I. Surplus
II. Scarce
III. Additional
IV. None of these
Answer:
Scarce
Explanation: Natural resources are limited that’s why they should be used properly.
Q. 39.: Which factor is not involved in taking up employment
I. Motive
II. Qualification
III. Capital
IV. Code Of conduct
Answer:
Capital
Explanation: No capital is involved in taking up employment.
Q. 40. What are the two major heads of business Industries
I. Industry and Commerce
II. Industry and Trade
III. Trade and Commerce
IV. None of the above
Answer:
(a) Industry and Commerce
Explanation: Industry and Commerce are the two major head for Business industry.