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