CBSE Class 11 Business Studies Nature and Purpose Of Business MCQs Set B

Question: Business is considered to be _________________.
a) Social Activity
b) An Economic Activity
c) Political Activity
d) None of the options
Answer: b

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

Question: The reward of risk is:
a) Success
b) Failure
c) Profit
d) Loss
Answer: c

Question: Dell Inc. manufactures computers and related items. Which type of industry is this?
a) Genetic Industry
b) Extractive Industry
c) Processing Industry
d) Assembly Industry
Answer: d

Question: Which of the following is/are treated as Auxiliaries to Trade?
a) Banking Industry
b) Insurance Industry
c) Transportation Industry
d) All of the options
Answer: d

Question: Which of the broad categories of industries covers oil refineries and sugar mills?
a) Primary
b) Secondary
c) Tertiary
d) None of the options
Answer: b

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

Question: “Amrut” is an NGO providing medical help in rural areas. What type of human activity is this?
a) Economic Activities
b) Non-Economic Activities
c) Spiritual Activities
d) None of the options
Answer: b

Question: Nutan General Store sells Nestle products in bulk to small shopkeepers. What type of trade is this?
a) Wholesale Trade
b) Retail Trade
c) International Trade
d) Entrepot Trade
Answer: a

Question: Ruchi is a Chartered Accountant providing tax and GST services. What type of economic activity is she involved in?
a) Business
b) Profession
c) Employment
d) None of the options
Answer: b

Question: Sankalp deals in two-wheelers and constantly earns and reinvests profits. What kind of business activity is this?
a) Tertiary industries
b) Secondary industries
c) Trade
d) Auxiliaries to trade
Answer: c

Question: The industry type involving oil refining and sugar production is:
a) Analytical Industry
b) Synthetic Industry
c) Processing Industry
d) Assembly Industry
Answer: c

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

Question: Which of the following does not characterise business activity?
a) Presence of risk
b) Production of goods and services
c) Salary or wages
d) Sale or exchange of goods and services
Answer: c

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: c

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

Question: Identify the process that provides the requisite amount, quality, timing, and sequence of efforts, which ensures that planned objectives are achieved with a minimum of conflict.
a) Management
b) Planning
c) Coordination
d) Controlling
Answer: c

Question: Successful organisations do not achieve goals by chance but by following a deliberate process known as
a) Planning
b) Co-ordination
c) Controlling
d) Management
Answer: d

Question: Coordination is considered to be the essence of management because ______.
a) It is a common thread that runs through all the activities within the organisation.
b) It is implicit and inherent in all functions of the organisation.
c) It is a force that binds all the functions of management.
d) All of the options.
Answer: d

Question: Efficiency is concerned with
a) Doing the right thing
b) Doing things right
c) Achieving end results
d) None of the options
Answer: b

Question: This function of management related to placing the right person at the right job is____.
a) Organising
b) Staffing
c) Planning
d) Controlling
Answer: b

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

Question: Which of the following can be considered as an economic activity?
a) Employment
b) Business
c) Profession
d) All of the options
Answer: d

Question: Business risk is not likely to arise due to:
a) Change in government policy
b) Good management
c) Employee dishonesty
d) Power failure
Answer: b

Question: Supervision, communication, motivation, and leadership are the key elements of this function of management.
a) Directing
b) Controlling
c) Planning
d) Organising
Answer: a

Question: People in the organisations carry out diverse tasks with the aim to achieve
a) Different objectives
b) Common objectives
c) Both of the above
d) None of the options
Answer: b

Question: It is a force that binds all the functions of management.
a) Cooperation
b) Coordination
c) Planning
d) Management hierarchy
Answer: b

Question: Successful management ensures that
a) Goals are achieved with least cost
b) Timely achievement of goals
c) Both of the options
d) None of the options
Answer: c

Question: Capital is not an essential element in:
a) Employment
b) Profession
c) Business
d) None of the options
Answer: a

Question: Which 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 is the economic activity?
a) Donation
b) Nonprofit organization
c) Option Donation and Nonprofit organization
d) Employment
Answer: d

Question: Which term can be referred to as profit and loss due to unexpected risk?
a) Family expenses
b) Taxes
c) Business risk
d) All of the options
Answer: c

Question: Which one is the sole proprietorship?
a) Small-scale business or activity
b) Factory owner
c) Franchise owner
d) All of the options
Answer: a

Question: Which person in the family is responsible to bear all the liabilities?
a) The karta
b) Second generation
c) Third generation
d) All of the options
Answer: a

Question: Characteristics of human causes in business risk?
a) Carelessness, strikes
b) Thunderstorm
c) Both Carelessness, strikes & Thunderstorm
d) None of the options
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: What are the examples of genetics industries?
a) Import & export
b) Wholesale & retail
c) Both Import & export and Wholesale & retail
d) Poultry farm, fish hatching, and cattle breeding
Answer: d

Question: What are the characteristics of a joint Hindu family business?
a) Owned and carried by a Hindu undivided family (HUD)
b) Sold by family
c) Bought by a Hindu family member
d) All of the options
Answer: a

Question: What are the natural causes of business risk?
a) Machine failure
b) Riots
c) Earthquake
d) None of the options
Answer: c

Question: What is the name of industries which support services to other industries?
a) Primary industries
b) Secondary industries
c) Tertiary industries
d) None of the options
Answer: c