CBSE Class 11 Business Studies Business Trade and Commerce MCQs Set 01

Question. The liability of members of a co-operative society is _________.
(a) limited to the amount of nominal value of capital held
(b) limited to the amount of paid up value of the capital held
(c) unlimited
(d) limited or unlimited depending upon what the society has opted for it

Answer: D

Question. In which of the following, interest / dividend is payable even if the company does not earn profit?
(a) Equity capital
(b) Preference capital
(c) Debentures
(d) All of the options

Answer: C

Question. Which one of the following is NOT the objective of the business?
(a) Investment
(b) Innovation
(c) Creation of customers
(d) Profit-making

Answer: A

Question. Which one of the following is NOT an Auxiliary to trade?
(a) Mining
(b) Warehousing
(c) Insurance
(d) Transport

Answer: A

Question. The term business is derived from the word ______________
(a) Buy and selling
(b) Financial markets
(c) Proprietorship
(d) Busy

Answer: D

Question. 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: D

Question. Tea is mainly produced in Assam; Cotton in Gujarat and Maharashtra; Jute in west Bengal and Orissa; Sugar in U.P, Bihar and Maharashtra. But these goods are required for consumption in different parts of the country. For this purpose ________ is very important.
(a) Banking and Finance
(b) Advertising
(c) Insurance
(d) Transport and Communication

Answer: D

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

Answer: A

Question. Commerce includes activities relating to trade and _________________ to trade.
(a) Auxiliaries
(b) Subsidiaries
(c) Supporting
(d) None of the options

Answer: A

Question. Which of the following is not concerned with the profession?
(a) Manufacturing goods and services
(b) Specialised body of knowledge and skill
(c) Code of conduct
(d) Formal Training

Answer: A

Question. Bad debts due to non-payment of debts by debtors is an example of which type of business risk?
(a) Human
(b) Natural
(c) Physical
(d) Economic

Answer: A

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

Answer: B

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

Answer: B

Question. Which of the following is an economic cause of business risks?
(a) Demand for goods
(b) Competition
(c) Price
(d) All of the options

Answer: D

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

Answer: C

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

Answer: A

Question. When the name of the transferee is not filled in not filled in the transfer deed, without filling in the name of the transferee it is called _______.
(a) option dealing
(b) forward dealing
(b) blank transfers
(d) carry over

Answer: C

Question. The word marketing standing is concerned with __________
(a) Position of an enterprise
(b) Supply of the product
(c) Customers
(d) Competitors

Answer: A

Question. Memorandum of association of a firm contains _______.
(a) rules regarding the internal management of the company
(b) rules regarding the constitution and activities of the company
(c) rules regarding the external management
(d) rules regarding the constitution

Answer: B

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

Answer: A

Question. Which of the following is an instrument of exchange, which was prominent in the subcontinent?
(a) Copper
(b) Hundi
(c) Gold
(d) Silver

Answer: B

Question. Which of the below-mentioned item does not follow the scalar chain?
(a) Functional structure
(b) Divisional structure
(c) Formal organization
(d) Informal organization

Answer: D

Question. Which of the following is not a characteristic of business activity?
(a) Wages
(b) Sale of product
(c) The factor of risk
(d) Manufacturing goods and services

Answer: A