CBSE Class 11 Business Studies Nature And Purpose of Business Question Bank

NATURE AND PURPOSE OF BUSINESS

→ QUESTION BANK

1. Why are human activities are performed? 

2 How can the material needs of an individual be satisfied? 

3. How can an individual satisfy his social needs? 

4. Name the activities that are undertaken to earn a living? 

5. Define profession. 

6 How is profession different from employment? 

7 Define business. 

8 What is the primary objective of a business? 

9. Mention any two economic objectives other than profit earning. 

10 Identify the concept that is related with the possibility of loss due to some unforeseeable events.

11 Can you name any two technical causes of business risk? 

12. Which economic activity has unlimited risk? 

13. Define industry. 

14. Give an example of analytical industry. 

15. Identify the aid to trade that is concerned with the movement of goods.

16. Discuss in brief the meaning of commerce. 

17. What type of industries are concerned with extraction of natural resources, breeding and development of living organisms?

18. “Industry and commerce are interchangeable terms.” Do you agree with this statement?

19. Which characteristic of business is hidden in the quoted lines” Directly or indirectly business involves transfer or exchange of goods for human satisfaction.

20. Business involves a series of dealings rather than a single transaction. Which characteristic of business is highlighted here?

21. XYZ Limited Company has captured 52 per cent of the market share. Which type of objective is highlighted here?

22 Why is innovation an important objective of business? 

23 Which responsibility of business implies the obligation to contribute towards the society?

24 AB Limited generated employment for 200 Scheduled Caste people last year. Which objective is achieved by the company?

25. In a market, one trader lowers the price of his articles to increase the sale, the other is also bound to do the same due to competition. Identify the cause of risk being portrayed in the case.

26 PB Jewellers, an Indian firm, sells gold chains to the USA. They are involved in which trade?

27 Is cattle breeding farm an example of a genetic or an extractive industry?

28 What type of industries are engaged in the extraction of useful materials from beneath the surface of the earth?

29. Name the auxiliary to trade that removes the hindrance of time. 

30. What is the reason behind the existence of business? 

31. Discuss in brief the following objectives of business.

i)Market Standing ii)Innovation iii) Manager’s Development

32. Enumerate the political causes of business risk. 

33. List professions, professionals and professional bodies. 

34. Meeta wants to start a business of manufacturing garments from hand made cotton. What possible risks she can face in carrying out this business and if her business is successful, what values will it add to society?

35. Joseph thinks that the only objective of business is to earn money. Is he correct? Explain

36. What do you understand by insurable risks and uninsurable risks? 

37. With the help of suitable example discuss in brief the manufacturing and construction industries.

38. Briefly explain the role of commerce in business. 

39. What do you mean by entrepot trade? 

40. How does commerce remove obstacles in exchange of goods and services?

41. How does commerce help in the removal of hindrance of person, place and time?

42. “Risk is an essential element of a business.” Do you agree? If yes, elaborate the statement with proper reason.

43. Gauri, a housewife, sells old newspapers every month. Her family is a joint family and daily subscribe to 4 newspapers. She is able to sell them for about Rs.800.
Is gauri engaged in business activity?Identify the characteristics of business which are missing in the above act.

44. Raghav had a very good hand at cooking and everyone appreciated his culinary skills. Therefore, he did his graduation in Hotel Management. He got an offer from Hotel Hyatt and got placed there.
1.Which economic activity is presented in this case?
2. Name other two types of economic activities.

45. Rohit sells his playstation to his friend at a profit of Rs.1500. Is it a business activity? Sohan has a shop which sells electronic toys including playstations.
He also buys second hand play stations and sells them to earn profit. Is this a business activity? Explain any two characteristics of business.

46. Rohan is running a petrol pump in his town. In context to it, what possible political causes he can face which may lead to risk in his business?

47. State the activities relating to commerce. 

48. Briefly explain the social objectives of business. 

49. Why is innovation important for a business?

50. After completing his studies, Sarthak decided to enter into business to earn profit and create employment opportunities in the country. Taking advantage of the ` Start-Up’ scheme of the government, he decided to venture into the business of manufacturing `acupressure chairs’. He decided to sell his products not only in India but also abroad.
He established his factory in a remote village of Madhya Pradhesh and initially employed 20 workers. Being of cautious nature , he also insured his machines and factory building against fire, theft and natural calamities.
For the purpose of finance, he obtained a loan from State Bank of India. For creating demand for his products, he gave a contract to an advertising company.

1. In which category of industry did Sarthak venture into?
2. Is Sarthak innovative? Support your answer.
3. “ He decided to sell his products not only in India but also abroad”. Which categories of trade are being referred here?
4. Sarthak used a number of auxiliaries of trade. Identify them.

51. Tripti is a well-known cardiologist of her town. Identify the type of economic activity highlighted in the given case and state its characteristics also.

52. Arnav is working as sales executive in XYZ Limited Company. He is getting `40,000 per month. His job is to enhance the sale of a company. Identify which type of economic activity is highlighted in the case and state some its characteristics.

53. “ An activity can be economic activity in one situation and noneconomic in another situation”. Do you agree? Giver an example to justify your answer.

54. What is the role of profit in business? 

55. Explain the characteristics of business. 

56. Explain the concept of business risk and its causes. 

57. “The purpose of business is the satisfaction of human wants”. Keeping the above statement in mind, explain any five objectives of business.

58. Discuss briefly the various social objectives on business. 

59. “Commerce comprises of trade and auxiliaries to trade”. Elaborate. 

60. What do you mean economic activities? Differentiate between economic and non-economic activities.

61. Describe the activities relating to commerce. 

62. Why does business need multiple objectives? Explain any five such objectives.

63. Compare business with profession and employment. 

64. What are various types of industries? 

65. Explain the concept of business risk and its causes.

Please click on below link to download CBSE Class 11 Business Studies Nature And Purpose of Business Question Bank