Check the below NCERT MCQ Questions for Class 11 Business Studies Chapter 1 Nature and Purpose of Business with Answers Pdf free download. MCQ Questions for Class 11 Business Studies with Answers were prepared based on the latest exam pattern. We have provided Nature and Purpose of Business Class 11 Business Studies MCQs Questions with Answers to help students understand the concept very well. https://mcqquestions.guru/mcq-questions-for-class-11-business-studies-chapter-1/
Nature and Purpose of Business Class 11 MCQs Questions with Answers
MCQ Questions For Class 11 Business Studies Chapter 1 Question 1.
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
Class 11 Business Studies Chapter 1 MCQ Question 2.
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
Business Studies Class 11 Chapter 1 MCQ Question 3.
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
Nature And Purpose Of Business MCQ Chapter 1 Question 4.
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
Business Studies Class 11 MCQ Chapter 1 Question 5.
Economic activities may be classified into business, ___________ and employment
(a) Profession
(b) occupation
(c) vocation
(d) work
Answer
Answer: (a) Profession
Nature And Purpose Of Business Class 11 MCQs Question 6.
Human activities are of ____________ types
(a) One
(b) two
(c) three
(d) four
Answer
Answer: (b) two
Chapter 1 Business Studies Class 11 MCQ Question 7.
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
Ch 1 Business Studies Class 11 MCQ Question 8.
Commerce includes activities relating to trade and _________________ to trade.
(a) Supporting
(b) subsidiaries
(c) auxiliaries
(d) none of these
Answer
Answer: (c) auxiliaries
Nature And Purpose Of Business Class 11 MCQ Question 9.
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
MCQ Of Business Studies Class 11 Chapter 1 Question 10.
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
Class 11 Business Chapter 1 MCQ Question 11.
Which of the following cannot be classified as an auxiliary to trade?
(a) Mining
(b) Insurance
(c) Warehousing
(d) Transport
Answer
Answer: (a) Mining
MCQ Business Studies Class 11 Chapter 1 Question 12.
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
MCQ Of Chapter 1 Business Studies Class 11 Question 13.
Which of the following is not an example of non-economic activity?
(a) Patriotism
(b) teaching
(c) sentiment
(d) sympathy
Answer
Answer: (b) teaching
Business Studies Class 11 Chapter 1 MCQ Question 14.
Transfer of interest exists in the case of
(a) Profession
(b) employment
(c) business
(d) none of these
Answer
Answer: (c) business
Question 15.
‘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
Question 16.
Name the two broad categories of business activities.
(a) Trade and commerce
(b) trade and industry
(c) industry and commerce
(d) none of these
Answer
Answer: (c) industry and commerce
Question 17.
The possibilities of inadequate profits or even losses due to uncertainties are known as ____________
(a) Business contingencies
(b) Business risks
(c) Business ventures
(d) None of these
Answer
Answer: (b) Business risks
One Mark Questions
1. What is Economic activity?
Answer
Answer: Human activities which are performed in exchange for money or money’s worth are called economic activities
2. Name any one type of economic activity.
Answer
Answer: Business
3. What is business?
Answer
Answer: Business refers to an occupation in which people regularly engage in activities related to purchase, production and/or sale of goods and services with a view to earning profits.
4. Write any one characteristics of business activity.
Answer
Answer: Economic activity
5. Mention the two broad categories of business activity.
Answer
Answer: Industry and Commerce
6. Name any one type of Primary industry.
Answer
Answer: Extractive industry
7. Name any one type of Secondary industry.
Answer
Answer: Manufacturing
8. Give an example for Extractive Industries.
Answer
Answer: Mining
9. Give an example for Genetic Industries.
Answer
Answer: Poultry farming
10. Give an example for Manufacturing Industries.
Answer
Answer: Sugar Industry
11. Give an example for Construction Industries.
Answer
Answer: Construction of dams
12. What is trade?
Answer
Answer: Buying and selling of goods is termed as trade.
13. What do mean by Auxiliary to trade?
Answer
Answer: Activities which are meant for assisting trade are known as auxiliaries to trade.
14. Mention any one objective of business.
Answer
Answer: It is a source of income for business person.
15. Give an example for Service industry.
Answer
Answer: Transport
16. What do you mean by hindrance of trade?
Answer
Answer: All those obstacles that business man faces for conducting business activities or trade activities termed as hindrance of trade.
17. State any one type of hindrance of trade?
Answer
Answer: Hindrance of Place
18. State any one type of business risk.
Answer
Answer: Operational risk
19. What is meant by non economic activity?
Answer
Answer: Non-economic activities are those performed out of love, sympathy, sentiments, patriotism etc.
20. Give an example for non-economic activity?
Answer
Answer: A Worker working in factory
21. Give an example for profession.
Answer
Answer: Lawyer
22. Give an example for analytical industry.
Answer
Answer: Crude oil processed and separated into petrol, diesel, kerosene etc.
23. Give an example for synthetic industry.
Answer
Answer: Cement is produced by mixing concrete, gypsum, coal etc.
24. Give an example for processing industry.
Answer
Answer: Textile industry
25. Give an example for assembly line industry.
Answer
Answer: Manufacturing vehicles
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