NCERT Class 11 Business Studies 

Chapter 1 MCQ Answer

Nature and Purposes of Business Chapter 1 20 MCQ Answer




1. Transfer of interest exists in the case of ___________

   (a) Employment 

   (b) Profession 

   (c) Business 

   (d) None of the above 

Answer: (c) Business


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

    (a) Primary Industries 

   (b) Secondary Industries 

   (c) Tertiary Industries 

   (d) Commercial Industries  

Answer: (c) Tertiary Industries 


3. Business risk are not likely to arise due to ____________

   (a) Good management 

   (b) Changes in government policy 

   (c) Power failure

   (d) Employee dishonesty

Answer: (a) Good management   


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

   (a) Auxilliaries 

   (b) Supporting 

   (c) Subsidiaries 

   (d) None of these 

Answer: (a) Auxilliaries 


5. Economic activities  may be classified into business __________ and employment 

   (a) Occupation

   (b) Vacation

   (c) Work 

   (d) Profession 

Answer: (d) Profession 


6. For which part of the business industries are concerned? 

   (a) For wholesale and retail use 

   (b) Production of goods and materials 

   (c) For trade purposes 

   (d) None of them 

Answer: (b) Production of goods and materials 


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

   (a) Primary Industries 

   (b) Secondary Industries 

   (c) Tertiary Industries (a

   (d) None of the above 

Answer: (b) Secondary Industries 


8. Soaps are included under in which type of industry? 

   (a) Synthetical Industry 

   (b) Analytical Industry 

   (c) Assembling Industry 

   (d) Processing Industry 

 Answer: (a) Synthetic Industry 


9. Which of the following is not a characteristics of business activity? 

   (a) Manufacturing goods and services 

   (b) Wages 

   (c) The factor of risk 

   (d) Sale of  Product

Answer: (b) Wages 


10. Bad debts due to non-payment of debts by debtor is an example of which type of business risk?                   

   (a) Natural 

   (b) Human 

   (c) Economic 

   (d) Physical 

Answer: (b) Human   


11. The industries which provides support services to other industries are known as 

   (a) Primary 

   (b) Secondary 

   (c) Tertiary 

   (d) Manufacturing 

Answer: (c) Tertiary  


12. Which one of the Following is not an auxiliary to trade?

   (a) Warehousing 

   (b) Banking 

   (c) Mining 

   (d) Transportation 

Answer: (c) Mining 


 13. Which one of the following is not the objective of the business? 

   (a) Innovation 

   (b) Investment 

   (c) Profit-making 

   (d) Creation of customers 

Answer: (b) Investment


14. The term business is derived from the word _____________

   (a) Financial markets 

   (b) Selling and buying 

   (c) Busy 

   (d) Proprietorship 

Answer: (c) Busy 


15. Which are the examples of genetics industries? 

   (a) Poultry farming, Fish hatching, and cattle breeding 

   (b) Wholesail and retail

   (c) Import and export

   (d) Buy and sell 

Answer: (a) Poultry farming, Fish hatching, and cattle breeding 


16. Which one of the following is not the characteristics of business risks?

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

   (b) Loss is the reward for risk bearing 

   (c) Risk is an essential component of every business      

   (d) Business risks are due to uncertatnies

Answer: (b) Loss is the reward for risk bearing. 


17. Transfer of interest exists in the case of.

    (a) Employment 

    (b) Business 

    (c) Profession 

    (d) None of these 

Answer: (b) Business 


18. Name 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) Industry and commerce 


19. Which one of the following is not a natural cause of business?

   (a) Famine

   (b) Heavy Rainfall 

   (c) Earthquakes

   (d) Strikes 

Answer: (d) Strikes 


20. Which of the following is an economic cause of business risks?

   (a) Competition

   (b) Price 

   (c) Demand for goods 

   (d) All of the above 

Answer: (d) All of the above 



Answered by: Suraj Nath