CBSE Class 11 Business Studies Nature And Purpose Of Business Worksheet Set A

Mcq Questions for Ncert Class 11 Business Studies Nature And Purpose Of Business

Question. One of the functions of financial intermediaries includes liability-asset transformation under which they accept deposits as liability and convert them into assets, such as loan.
(a) True
(b) False
(c) Can’t say
(d) Partially true

Answer : A

Question. ……… includes activities which are connected with production, purchase and sale of goods with the aim of earning profit.
(a) Business
(b) Profession
(c) Employment
(d) Job

Answer : A

Question. Go Earth Ltd. manufactures jute bags and its factory has been set-up in a residential area. The company has employed unskilled and semi-skilled workers and it pays them lower wages on the pretext of at least providing jobs as the employment opportunities in the area is quite limited. During the production process, lots of residu is left. In order to decrease cost and increase profitability, the company dumps this residu in the residential area which is sold after a substantial time gap.
This practice causes lot of inconvenience to the residents of that area. Identify and explain the objective of management which is ignored by the company.
(a) Organisational
(b) Social
(c) Personal
(d) All of the above

Answer : B

Question. Name the two broad categories of business activities.
(a) Trade and Commerce
(b) Trade and Industry
(c) Industry and Commerce
(d) None of the above

Answer : C

Question. The maritime route linked the east and the west by Sea and were used for the trade of spices is known as ……… .
(a) Sea route
(b) Spice route
(c) Railway route
(d) None of these

Answer : B

Question. Mr. Naresh Batra a businessman, incurred some financial loss due to the dishonesty of his workers. This loss is caused due to ……… .
(a) natural
(b) financial
(c) human
(d) economic

Answer : C

Question. Patliputra was popularly known as commercial centre for ………. .
(a) export of stones
(b) import of horses
(c) centre of learning
(d) centre of textiles

Answer : A

Question. Match the various types of manufacturing industry given in column I with their respective example given in column II.

Codes
       A    B   C 
(a)  (i)  (ii) (iii)
(b) (iii) (ii)  (i)
(c) (iii)  (i)  (ii)
(d) (ii)  (i)  (iii)

Answer : C

Question. Economic activities may be classified into business, ……… and employment.
(a) profession
(b) occupation
(c) vocation
(d) work

Answer : A

Question. ……… is used for carrying out transactions in which money is passed from hand to hand in ancient times.
(a) Cheques
(b) Bill of exchange
(c) Hundi
(d) Demand draft

Answer : C

Question. Identify the activity which is not an auxiliary to trade?
(a) Banking
(b) Warehousing
(c) Insurance
(d) Mining

Answer : D

Question. Changes in market conditions, changes in price or changes in fashion and tastes of customers refer to which type of risk?
(a) Pure risk
(b) High risk
(c) Low risk
(d) Speculative risk

Answer : D

Question. Industries like sugar mill or oil refinery are put under which category?
(a) Primary
(b) Secondary
(c) Tertiary
(d) None of these

Answer : B

Question. Which of the following is not a true statement?
(a) The scope of commerce is narrower than business.
(b) Commerce includes trade and auxiliaries to trade.
(c) Foreign trade is purchase and sale by the traders of the same country.
(d) Traders serve as a link between producers and consumers.

Answer : C

Question. Match the following.

Codes
      A     B    C     D 
(a) (i)   (ii)  (iii)  (iv)
(b) (iv) (iii)  (i)   (ii)
(c) (i)   (iii) (iv)  (ii)
(d) (iv)  (i)  (ii)  (iii)

Answer : B

Question. No business can survive without enough amount of funds. Banks are providing financial assistance to the businesses to overcome one of the following hindrance of trade.
(a) Hindrance of place
(b) Hindrance of time
(c) Hindrance of finance
(d) Hindrance of information

Answer : C

Question. Which of the following is not a business activity?
(a) Production of goods
(b) Work in a factory for wages
(c) Exchange of goods
(d) Transportation

Answer : B

Question. Name the occupation in which people work for others in return for wages or salaries?
(a) Employment
(b) Business
(c) Profession
(d) None of these

Answer : A

Question. Which of the following is not a cause of business risk?
(a) Break down of machinery
(b) Efficient management
(c) Riot
(d) Changing government policy

Answer : B

Question. Due to which characteristic of business, there is always a possibility of losses being incurred, despite the best efforts put into the business.
(a) Uncertainty of returns
(b) Production or procurement of goods and services
(c) Economic activity
(d) Profit earning

Answer : A

Question. Which type of duty was used to be charged on imported articles by king in ancient times?
(a) Import Duty
(b) Sales Tax
(c) Export Duty
(d) Octroi

Answer : D

Question. Earning of profit is considered to be the subsidiary objective of the business. The given statement is
(a) True
(b) False
(c) Can’t say
(d) Partially true

Answer : B

Question. Unorganised sector is not directly controlled by the RBI. This sector includes money lenders, indigenous bankers, pawn brokers, traders and landlords.
(a) True
(b) False
(c) Can’t say
(d) Partially true

Answer : A

Question. Which of the following is not an economic activity?
(a) Production
(b) Trading in goods
(c) Professional
(d) Social service

Answer : D

Question. Why should a business earn profit?
(a) To provide return to investors.
(b) To provide funds for future growth
(c) To increase the reputation of business
(d) All of the above

Answer : D

Question. Mr X started business of buying and selling of refrigerators. The business of Mr X will be considered as ……… .
(a) commerce
(b) trade
(c) selling 
(d) transaction

Answer : B

Question. Vijay Plastic Pvt. Ltd. are makers of plastic toys for children; earning a huge profit. A research conducted by The Indian Council of Child Welfare on the toys shows that colours used in manufacturing toys are harmful for the children. The test was conducted on toys manufactured by the company and case was filed against Vijay Plastic Pvt. Ltd. for using sub-standard colours. 
However, managing director assured that the company will use standard colours only after certification from the research laboratory and the company will expand its production capacity by employing labour from unprivileged sections of the society. On the basis of the given information about Vijay Plastic Pvt. Ltd., specify the type of business activity performed by Vijay Plastic Pvt. Ltd.
(a) Trade
(b) Commerce
(c) Industry
(d) None of these

Answer : C

Question. The possibilities of inadequate profits or even losses due to uncertainties are known as ……… .
(a) Business contingencies
(b) Business risks
(c) Business ventures
(d) None of the above

Answer : B

QuestionQuestion. 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 the company. Identify which type of economic activity is highlighted in the case?
(a) Profession
(b) Employment
(c) Business
(d) None of these

Answer : C

Question. GMR Industries entered the airports space in early 2000 and is today counted amongst the top 5 private airport developer and operators globally.
GMR Industries presently owns and operates Delhi International Airport and Hyderabad International Airport. Apart from being the largest private airport company in India, GMR Industries is the only Indian airport developer to have developed and operated airports outside India. Identify the type of industry being discussed in above case.
(a) Primary
(b) Secondary
(c) Tertiary
(d) None of the above

Answer : B

Very Short Answer Type Questions :

1) Name the economic activity in which specialized knowledge is required.

2) What reward does the businessman get for bearing risks ?

3) Name the industry which provides service to other industries.

4) What type of industry is fishing ?

5) ABC Ltd. is planting trees on the roadside. What objective is it trying to acheive ?

6) Name the occupation in which people work for others and get remunerated in return.

7) What type of industry are poultry farms and plant nurseries ?

8) How do trader remove the hindrance of person ?

9) Which one of the broad categories of industries covers oil refinery and sugar mills ?

10) “Profit is not an objective but a requirement of business.” Do you agree with the statement ? Support your answers with reasons .

11) “Business is an institution organized to provide goods and services under the incentive of private gain.” Discuss.

“Commerce comprises of trade and all the services that make trade possible.” Discuss.