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.

Nature and Purpose of Business Class 11 MCQs Questions with Answers

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


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


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


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


Question 5.
Economic activities may be classified into business, ___________ and employment
(a) Profession
(b) occupation
(c) vocation
(d) work

Answer

Answer: (a) Profession


Question 6.
Human activities are of ____________ types
(a) One
(b) two
(c) three
(d) four

Answer

Answer: (b) two


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


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


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


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


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


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


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


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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