BUSINESS STUDIES FOR CLASS 11 CHAPTER 1 NATURE AND PURPOSE OF BUSINESS MCQS ALONG WITH ANSWERS

Free CBSE Business Studies Multiple Choice Questions for Class 11 along with answers, Chapter 1: Nature and Purpose of Business. Business Studies MCQs for Class 11 chapter-wise with answers are prepared based on the current exam pattern. Students can tackle MCQs with answers to realise their spadework level.

1. 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 these

Answer: (b) Business risks

2. Business risk is not likely to arise due to _____.

(a) Changes in government policy

(b) Good management

(c) Employee dishonesty

(d) Power failure

Answer: (b) Good management

3. Name the two broad categories of business activities.

(a) Trade and Commerce

(b) Trade and Industry

(c) Industry and Commerce

(d) None of these

Answer: (c) Industry and Commerce

4. The industries which provide support services to other industries are known as _____.

(a) Primary industries

(b) Secondary industries

(c) Commercial industries

(d) Tertiary industries

Answer: (d) Tertiary industries

5. ‘Earning of profit is considered to be the subsidiary objective of the business.’ The given statement is _____.

(a) True

(b) False

(c) Cannot say

(d) None

Answer: (b) False

6. The occupation in which people work for others and get remunerated in return is known as _____.

(a) Business

(b) Profession

(c) Employment

(d) None of these

Answer: (c) Employment

7. Transfer of interest exists in the case of _____.

(a) Profession

(b) Employment

(c) Business

(d) None of these

Answer: (c) Business

8. Which of the following does not characterise business activity?

(a) Production of goods and services

(b) Presence of risk

(c) Sale or exchange of goods and services

(d) Salary and wages

Answer: (d) Salary and wages

9. Which of the following is not an example of non-economic activity?

(a) Patriotism

(b) Teaching

(c) Sentiment

(d) Sympathy

Answer: (b) Teaching

10. Economic activities may be classified into business, ___________ and employment.

(a) Profession

(b) Occupation

(c) Vocation

(d) Work

Answer: (a) Profession

11. Which of the broad categories of industries covers oil refineries and sugar mills?

(a) Primary

(b) Secondary

(c) Tertiary

(d) None of these

Answer: (b) Secondary

12. Following are the characteristics of business risks. One of them is not correct. Please identify it.

(a) Loss is the reward for risk-bearing

(b) Business risks are due to uncertainties

(c) Risk is an essential component of every business

(d) Degree of risk depends mainly upon the nature and size of business

Answer: (a) Loss is the reward for risk-bearing

13. Which one of the following may not be a factor behind starting a business?

(a) Routine workload

(b) Size of the firm

(c) Finance

(d) Location of the business

Answer: (a) Routine workload

14. Commerce includes activities relating to trade and ___________ to trade.

(a) Supporting

(b) Subsidiaries

(c) Auxiliaries

(d) None of these

Answer: (c) Auxiliaries

15. Which of the following cannot be classified as an objective of a business?

(a) Investment

(b) Productivity

(c) Innovation

(d) Profit earning

Answer: (a) Investment

We trust that the offered Business Studies MCQs for Class 11 with respect to Chapter 1: Nature and Purpose of Business will help you. Assuming you have any questions with respect to CBSE Class 11 Business Studies, Nature and Purpose of Business MCQs, drop a remark underneath, and we will hit you up at the most punctual.

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