Business Studies MCQs for CBSE Class 11th and 12th

Business Studies is one of the Commerce subjects that covers topics related to business, marketing, finance, economics, accountancy and organisational studies. Business Studies is not just about business and money-making. It is also about making correct choices and therefore, balancing it with the money and improving an individual’s overall well-being.

Given below are important MCQs on Business studies to analyse your understanding of the topic. The answers are also given for your reference.

Business Studies MCQs:

1. Which of the following is not an economic activity?

  1. Production
  2. Social service
  3. Professional
  4. Trading in goods

Answer: B

2. Which option is not a business activity?

  1. Production of goods
  2. Transportation
  3. Exchange of goods
  4. Work in a factory for wages

Answer: D

3. Which of the following is the characteristic of a business?

  1. Production
  2. Exchange or sale
  3. Risk element
  4. All the above

Answer: D

4. Oil refinery and sugar mill are classified under which industries?

  1. Primary
  2. Secondary
  3. Tertiary
  4. None of the above

Answer: B

5. Identify the activity which does not support trade.

  1. Banking
  2. Warehousing
  3. Insurance
  4. Mining

Answer: D

6. In which occupation do people get salary or wages in return for their work?

  1. Employment
  2. Business
  3. Profession
  4. None of the above

Answer: A

7. Which item does not cause any business risk?

  1. Breakdown of machinery
  2. Efficient management
  3. Riot
  4. Changing government policy

Answer: B

8. In which business, the support service activities are categorized?

  1. Commercial industries
  2. Primary industries
  3. Secondary industries
  4. Tertiary industries

Answer: D

9. In business, why is it essential to make a profit?

  1. It provides a return to investors.
  2. It provides funds for future extension
  3. It increases the reputation of a company
  4. All the above

Answer: D

10. Which of the following is a false statement?

  1. The scope of commerce is narrower than business.
  2. Commerce includes trade and auxiliaries to trade.
  3. Foreign trade is purchase and sale by the traders of the same country.
  4. Traders serve as a link between producers and consumers.

Answer: C

11. Which of the following is not a management function?

  1. Planning
  2. Staffing
  3. Cooperating
  4. Controlling

Answer: C

12. Policy formulation comes under which role?

  1. Top-level managers
  2. Middle-level managers
  3. Operational management
  4. All of the above

Answer: A

13. Management is defined as?

  1. An art
  2. A science
  3. Both art and science
  4. None of the above

Answer: C

14. Which of the below-mentioned items does not follow the scalar chain?

  1. Functional structure
  2. Divisional structure
  3. Formal organisation
  4. Informal organisation

Answer: D

15. What is Centralisation?

  1. Retention of decision-making authority
  2. Dispersal of decision-making authority
  3. Creating division as a profit centre
  4. Opening the new centre of branches

Answer: A

16. To have an effective delegation is important to have a responsibility along with?

  1. Authority
  2. Manpower
  3. Incentives
  4. Promotion

Answer: A

17. Grouping of activities on the basis product lines is a part of.

  1. Delegated organization
  2. Divisional organization
  3. Functional organization
  4. Autonomous organization

Answer: B

18. Policy formulation is a task of?

  1. Top-level managers
  2. Middle-level managers
  3. Operational management
  4. All of the above

Answer: A

19. Which of the elements is not a part of the communication process?

  1. Decoding
  2. Communication
  3. Channel
  4. Receiver.

Answer: B

20. Name the process that converts a message into communication symbols.

  1. Media
  2. Encoding
  3. Feedback
  4. Decoding

Answer: B

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