CBSE Class 11 Business Studies Nature and Purpose Of Business MCQs Set 03

Question: Which is the most important way to promote the sale of business products?
a) Warehousing
b) Bank balance
c) Government policy
d) Advertising & promotions
Answer: d

Question: Which thing can protect a business from risk?
a) Insurance
b) Banking
c) Taxes
d) None of the options
Answer: a

Question: Characteristic of secret partner?
a) Unknown to the general public
b) Contributes to capital
c) Takes part in the management
d) All of the options
Answer: d

Question: Identify the feature of coordination being highlighted in the given statement: “Coordination is not a one-time function, it begins at the planning stage and continues till controlling.”
a) Coordination ensures unity of action.
b) Coordination is an all-pervasive function.
c) Coordination is a continuous process.
d) Coordination is a deliberate function.
Answer: c

Question: What is the major role of commerce in business?
a) Manufacturing & construction
b) Facilitating the exchange of goods & services
c) Both Manufacturing & construction and Facilitating the exchange of goods & services
d) None of the options
Answer: b

Question: Between whom does commerce provide necessary links?
a) Producer & Consumer
b) Wholesaler & Retailer
c) Option Producer & Consumer& Wholesaler & Retailer
d) None of the options
Answer: a

Question: Characteristics of business activity?
a) Religious activity
b) Government activity
c) Profession
d) Social activity
Answer: c

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: Free guidance by a teacher to his son is:
a) An economic activity
b) Profession
c) Employment
d) A non-economic activity
Answer: d

Question: For which part of commerce is trade referred?
a) Transfer of goods
b) For paperwork
c) Option Transfer of goods and For paperwork
d) None of the options
Answer: a

Question: What is a limitation of a sole proprietorship?
a) Limited resources
b) Limited financial help
c) Both Limited resources and Limited financial help
d) None of the options
Answer: a

Question: What is an active partner?
a) Who contributes its capital
b) Who participates in the firm
c) Both Who contributes its capital & Who participates in the firm
d) None of the options
Answer: a

Question: Characteristics of a sleeping partner?
a) Not taking part in day-to-day life
b) Contributes capital
c) Shares profit and losses
d) All of the options
Answer: d

Question: For which part of the business are industries concerned?
a) Production of goods and materials
b) For trade purposes
c) For wholesale and retail use
d) None of the options
Answer: a

Question: Which of the following involves maximum risk?
a) An industry
b) A commerce activity
c) A trade
d) None of the options
Answer: a

Question: __________ is an economic activity.
a) Non-employment
b) Employment
c) Non-profit organisation
d) None of the options
Answer: b

Question: Characteristics of karta?
a) Controlled by the head of the family
b) Every person has an equal ownership
c) Known as co-parceners
d) All of the options
Answer: d

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: Which of the problems can be identified as a business risk?
a) Competition
b) Price
c) Product Value
d) All of the options
Answer: d

Question: In which profession do people work for others and get their salary in return?
a) Employment
b) Business
c) Profession
d) All of the options
Answer: a

Question: Characteristics of a nominal partner?
a) Contributes to the capital
b) Takes part in the firm
c) Shares profit and losses
d) Allows them to use his name
Answer: d

Question: Which kinds of industries come under extractive industries?
a) Fishing, farming, mining
b) Chemical industries
c) Meat production
d) None of the options
Answer: a

Question: Which one is a characteristic of business?
a) Multiple jobs
b) Trustees
c) Option Multiple jobs and Trustees
d) Entrepreneurship
Answer: d

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

Question: Which things help businesses to save themselves from risk?
a) Changes in need of people
b) Government plans
c) Good management
d) Power failure
Answer: c

Question: Management contains a series of interrelated functions that include
a) Planning
b) Organising
c) Directing
d) All of the options
Answer: d

Question: Management is essential for the organisations which are
a) Non-profit organisations
b) Service organisations
c) Social organisations
d) All of the options
Answer: d

Question: What is the main purpose of economic activity?
a) Donations
b) To save taxes
c) To earn profit
d) To provide services
Answer: c

Question: For which concern does the word 'marketing' stand?
a) For competitor
b) To save taxes
c) Position of enterprises
d) None of the options
Answer: c