CBSE Class 11 Business Studies - MCQ and Online Tests - Unit 1 - Nature and Purpose of Business

CBSE Class 11 Business Studies – MCQ and Online Tests – Unit 1 – Nature and Purpose of Business

Every year CBSE schools conducts Annual Assessment exams for 6,7,8,9,11th standards. These exams are very competitive to all the students. So our website provides online tests for all the 6,7,8,9,11th standard’s subjects. These tests are also very effective and useful for those who preparing for any competitive exams like Olympiad etc. It can boost their preparation level and confidence level by attempting these chapter wise online tests.

These online tests are based on latest CBSE syllabus. While attempting these our students can identify the weak lessons and continuously practice those lessons for attaining high marks. It also helps to revise the NCERT textbooks thoroughly.

 

CBSE Class 11 Business Studies – MCQ and Online Tests – Unit 1 – Nature and Purpose of Business

Question 1.
Following are the characteristics of business risks. One of then is not correct. Please identify it.
(a) Loss is the reward for risk bearing
(b) Business risks are due to uncertainties
(c) Risk is an essential component of every business
(d) Degree of risk depends mainly upon the nature and size of business

Answer

Answer: (a) Loss is the reward for risk bearing

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Question 2.
Commerce includes activities relating to trade and _________________ to trade.
(a) Supporting
(b) subsidiaries
(c) auxiliaries
(d) none of these

Answer

Answer: (c) auxiliaries

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Question 3.
Which of the following cannot be classified as an objective of business?
(a) Investment
(b) Productivity
(c) Innovation
(d) Profit earning

Answer

Answer: (a) Investment

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Question 4.
The occupation in which people work for others and get remunerated in return is known as
(a) Business
(b) Profession
(c) Employment
(d) None of these

Answer

Answer: (c) Employment

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Question 5.
Which of the following does not characterize business activity?
(a) Production of goods & services
(b) Presence of risk
(c) Sale or exchange of goods and services
(d) Salary and wages

Answer

Answer: (d) Salary and wages

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Question 6.
Economic activities may be classified into business, ___________ and employment
(a) Profession
(b) occupation
(c) vocation
(d) work

Answer

Answer: (a) Profession

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Question 7.
Human activities are of ____________ types
(a) One
(b) two
(c) three
(d) four

Answer

Answer: (b) two

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Question 8.
Transfer of interest exists in the case of
(a) Profession
(b) employment
(c) business
(d) none of these

Answer

Answer: (c) business

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Question 9.
‘Earning of profit is considered to be the subsidiary objective of the business.’ The given statement is
(a) True
(b) false
(c) cannot say
(d) None

Answer

Answer: (b) false

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Question 10.
Which one of the following may not be a factor behind starting a business?
(a) Routine workload
(b) size of the firm
(c) finance
(d) location of the business

Answer

Answer: (a) Routine workload

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Question 11.
Business risk is not likely to arise due to
(a) Changes in government policy
(b) Good management
(c) Employee dishonesty
(d) Power failure

Answer

Answer: (b) Good management

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Question 12.
The industries which provide support services to other industries are known as
(a) Primary industries
(b) Secondary industries
(c) Commercial industries
(d) Tertiary industries

Answer

Answer: (d) Tertiary industries

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Question 13.
Which of the following cannot be classified as an auxiliary to trade?
(a) Mining
(b) Insurance
(c) Warehousing
(d) Transport

Answer

Answer: (a) Mining

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Question 14.
Which of the broad categories of industries covers oil refinery and sugar mills?
(a) Primary
(b) Secondary
(c) Tertiary
(d) None of these

Answer

Answer: (b) Secondary

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Question 15.
Which of the following is not an example of non-economic activity?
(a) Patriotism
(b) teaching
(c) sentiment
(d) sympathy

Answer

Answer: (b) teaching

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