Nature and Purpose of the Business

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.