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

Read and download free pdf of CBSE Class 11 Business Studies Nature And Purpose Of Business Worksheet Set A. Students and teachers of Class 11 Business Studies can get free printable Worksheets for Class 11 Business Studies in PDF format prepared as per the latest syllabus and examination pattern in your schools. Standard 11 students should practice questions and answers given here for Business Studies in Grade 11 which will help them to improve your knowledge of all important chapters and its topics. Students should also download free pdf of Class 11 Business Studies Worksheets prepared by school teachers as per the latest NCERT, CBSE, KVS books and syllabus issued this academic year and solve important problems provided here with solutions on daily basis to get more score in school exams and tests

Nature And Purpose Of Business Class 11 Business Studies Worksheet Pdf

Class 11 Business Studies students should refer to the following printable worksheet in Pdf for Nature And Purpose Of Business in standard 11. This test paper with questions and answers for Grade 11 Business Studies will be very useful for exams and help you to score good marks

Class 11 Business Studies Worksheet for Nature And Purpose Of Business

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.

Chapter 1 Nature And Purpose Of Business_1

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.

Capture Nature And Purpose Of Business_2

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 :

 
Question : Name the economic activity which involves specialised knowledge and in which entry is restricted.
Answer : Profession.
 
Question : Name any two professions and professionals.
Answer : (a) Accounting profession-CA. (b) Medical profession-Doctor.
 
Question : Differentiate between business, profession and employment on the basis of reward/return. 
Answer : Business : In a business, profit is the return for undertaking business activities.
Profession : In a profession, the reward is in the form of professional fee for rendering professional services.
Employment : In case of employment, the return is remuneration in the form of wages/salary/benefit etc.
 
Question : Name the risk which involves both the possibility of loss as well as the possibility of profit.
Answer : Speculative risk.
 
Question : Devesh is planning to set up a factory for manufacturing ready-made garments. List any two risks that he might face.
Answer : (a) Change in government policies. (b) Change in demand.
 
Question : Name the industry which is concerned with extraction of natural resources and reproduction of living organisms.
Answer : Primary industry.
 
Question : Mention two types of primary industries.
Answer : (a) Extractive industries. (b) Genetic industries.
 
Question : Name the industries which is concerned with using the materials extracted at the primary stage to manufacture goods either for final consumption or for further processing by other industrial companies.
Answer : Secondary industry.
 
Question : Name the industries which provide various support services to primary and secondary industries.
Answer : Tertiary industries.
 
Question : Name two broad categories into which various business activities can be classified.
Answer : (a) Industry. (b) Commerce.
 
Question : Give any two examples of extractive industries
Answer : (a) Mining. (b) Lumbering.
 
Question : Give two example of manufacturing industries.
Answer : (a) Sugar industry (b) Cotton industry.
Evolution and Fundamentals of Business 32 
 
Question : Name the type of manufacturing industry in which one material is separated into several useful products. 
Answer :  Analytical industry. 
 
Question : Name the type of industry which combines various ingredients to form a new product. 
Answer :  Synthetical industry. 
 
Question : Name the type of manufacturing industry in which a raw material is processed through various stages of production for obtaining finished products. 
Answer :  Processing industry. 
 
Question :Name the type of manufacturing industry in which manufactured parts are brought together to produce a new product?
Answer :  Assembling industry. 
 
Question : Internal or inland trade may be classified into two categories. Name the category which involves buying and selling of goods in bulk quantities. 
Answer : Wholesale trade. 
 
Question : Name the auxiliary to trade which removes the hindrance of place. 
Answer :  Transport and communication. 
 
 
 

Short /Long Answer Type Questions  :

 
Question : Different situations in different business are being elaborated below:
(a) Sahil had a match stick factory in Nepal which got destructed by the recent earthquake.
(b) Samsung company was charged with evasion of tax and asked to pay fine in crores which would lead to heavy losses for the company.
(c) Mr. Manish, a senior manager in a telecom company shared confidential information about the company with a competitor which led to huge losses for the company.
(d) Typewriters is becoming redundant.
Identify and explain types of business risk being referred to in all the above cases. 
Answer :  (a) Pure risks. (b) Speculative risks.
(c) Non-insurable risks. (d) Insurable risks. 
 
Question : Identify the characteristics of business in the following statements: 
(a) Departmental stores purchasing goods from small manufacturers and selling under one roof.
(b) A car dealer buys and sells cars on regular basis.
(c) A furniture dealer buys office chairs at Rs. 500 each and sells them for Rs. 650 each. Rs. 150 per chair is the extra money earned to meet business expenses and for future growth.
(d) Workers at Maruti Udyog Ltd. went on strike for more than a month demanding raises in wages. The company suffered huge losses due to loss of production and sale.
Answer :  (a) Production or procurement of goods and services.
(b) Dealing in goods and services on a regular basis.
(c) Profit earning.
(d) Element of risk. 
 
Question : Organic Tea Ltd. is a Singapore based company dealing in import of tea from India and re-exporting it to many South East Asian countries. It has a huge godown near the sea port where it has made scientific arrangements for storing tea till it is re-exported. 
(a) Name the type of trade in the above case.
(b) Name the aids to trade being utilised by Organic Tea Ltd. and which utility does it create.
Answer :  (a) Entrepot trade.
(b) Warehousing services, time utility.
 
Question : Phoenix Technologies Ltd. have developed such a washing machine through years of research which requires very less water for washing clothes and cleans them without damaging the cloth, as compared to other washing machines presently sold in the market. The profit margins are kept
low to motivate people from lower middle class to buy the product. The company wants to provide information about new features, price, availability and brand name to the target market.
Name and state the service/facility/aids to trade which the company can utilise and what hindrance does it remove? 
Answer :  Advertising, hindrance of information.    
 
Question : Yash is a student of class xii commerce and he is good in studies. His father gifted him a pen on his birthday. The cost of pen is RS. 80. After few days Sumit sold his pen to his friend Rounaq for RS. 100. He was very happy to earn profit of RS. 20. After completed his studies he has started a pen manufacturing company in the name of M/s Sumit Pvt. Ltd. Due to good image of his pen his sales increasing day by day and he is earning huge profits. Then he has decided to give scholarship to week girls child of his school.
(a) Can the transaction between Yash and Rounaq be termed as business transaction? Why?
(b) Can the transaction made by M/s Yash Pvt. Ltd. be termed as business transaction?
(c) Identify the one value involved here. 
Answer : (a) No. Reason : Single transaction cannot constitute business.
(b) Yes. Reason : Regular transaction by M/s Yash Pvt. Ltd. to earn profits.
(c) Value Point : Promoting girls education.
 
Question : All human beings fulfill their different needs by performing certain activities. Can you suggest and explain the activities undertaken by them? 
Answer : Explain economic and non-economic activities. 
 
Question : Darshan Sharma prepares ‘Sohanpapri’ for customers during Diwali season every year. He prepared more ‘Sohanpapri’ due to increased demand with adulterated ingredients. He employeed women and children for packing and paid them less salary. This way he generated good profit from himself.
(a) Which objective of business is not fulfilled?
(b) Give any two values neglected by Darshan Sharma. 
Answer : Social objective.
Value Points:
(i) Child labour. (ii) Pure ingredients.
 
Question : Name and explain the two characteristics of business which involve possibility of loss. 
Answer : The two characteristics of business which involve possibility of loss are:
(a) Uncertainty of Return. (b) Element of Risk. 
 
Question : Vijay sells his mobile to his friend at a profit of RS. 1,000. Will it be considered as a business? Name and explain the characteristic of business which is being highlighted in the given example. 
Answer : No, it will not be considered as a business as it is a single transaction of sale. To be a business activity, dealing of goods must be on a regular or daily basis. The characteristic highlighted in the given example is ‘Dealings in goods and services on a regular basis’.  
 
Question : Identify the service which is related to the following cases: 
(a) The service which helps in removing hindrance of time.
(b) The service which helps in removing hindrance of risk.
(c) The service which helps in removing hindrance of knowledge.
(d) The service which helps in removing hindrance of place.
(e) The service which helps in removing hindrance of exchange of information among producers, consumers and traders.
Answer :(a) Warehousing. (b) Insurance.
(c) Advertising. (d) Transport.
(e) Banking.
 
Question : Categorise the following into business, profession and employment.
(a) A person repairing motorcycles on roadside.
(b) A doctor.
(c) A salesman.
(d) An advocate.
(e) A hawker selling toys for children.
(f) Anandpal is the advocate of High Court.
(g) Vikram is the manager of a car company.
(h) Vinayak sells mobile phones on behalf of his employer.
(i) Angad working as labour in a factory.
(j) Rahul running a shop to sell stationery items.
Answer : (a) Business. (b) Profession. (c) Employment.
(d) Profession. (e) Business. (f) Profession.
(g) Employment. (h) Employment. (i) Employment.
(j) Business.
 
 

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.

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Chapter 1 Business Trade and Commerce
CBSE Class 11 Business Studies Nature And Purpose Of Business Worksheet Set A
CBSE Class 11 Business Studies Nature And Purpose Of Business Worksheet Set B
Chapter 2 Forms of Business Organisation
CBSE Class 11 Business Studies Forms Of Business Organisation Worksheet
Chapter 3 Private Public and Global Enterprises
CBSE Class 11 Business Studies Private Public And Global Enterprises Worksheet Set A
CBSE Class 11 Business Studies Private Public And Global Enterprises Worksheet Set B
Chapter 4 Business Services
CBSE Class 11 Business Studies Business Services Worksheet
CBSE Class 11 Business Studies Types Of Business Services Worksheet
Chapter 5 Emerging Modes of Business
CBSE Class 11 Business Studies Emerging Modes Of Business Worksheet
Chapter 6 Social Responsibilities of Business and Business Ethics
CBSE Class 11 Business Studies Business And Business Ethics Worksheet
CBSE Class 11 Business Studies Social Responsibilities Worksheet Set A
CBSE Class 11 Business Studies Social Responsibilities Worksheet Set B
Chapter 7 Formation of a Company
CBSE Class 11 Business Studies Formation Of Company Worksheet
Chapter 8 Sources of Business Finance
CBSE Class 11 Business Studies Sources Of Business Finance Worksheet Set A
CBSE Class 11 Business Studies Sources Of Business Finance Worksheet Set B
Chapter 9 MSME and Business Entrepreneurship
CBSE Class 11 Business Studies Small Business Worksheet
Chapter 10 Internal Trade
CBSE Class 11 Business Studies Internal Trade Worksheet Set A
CBSE Class 11 Business Studies Internal Trade Worksheet Set B
CBSE Class 11 Business Studies Internal Trade Worksheet Set C
Chapter 11 International Business
CBSE Class 11 Business Studies International Business Worksheet
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CBSE Class 11 Business Studies Classification Of Business Activities Worksheet
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CBSE Class 11 Business Studies E Banking Worksheet
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CBSE Class 11 Business Studies General Insurance Worksheet
CBSE Class 11 Business Studies Insurance Worksheet
CBSE Class 11 Business Studies Long Term Source Of Finance Worksheet
CBSE Class 11 Business Studies Principles Of Insurance Worksheet
CBSE Class 11 Business Studies Revision Worksheet Set A
CBSE Class 11 Business Studies Revision Worksheet Set B
CBSE Class 11 Business Studies Revision Worksheet Set C
CBSE Class 11 Business Studies Revision Worksheet Set D
CBSE Class 11 Business Studies Revision Worksheet Set E
CBSE Class 11 Business Studies Revision Worksheet Set F
CBSE Class 11 Business Studies Revision Worksheet Set G
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