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Business Studies-[Class 11-MCQ ]-Chapter 1- Nature and Purpose of Business
Choose a topic to test your knowledge and improve your Business Studies skills
1. Business risk is not likely to arise due to
Changes in government policy
Good management
Employee dishonesty
Power failure
2. The industries which provide support services to other industries are known as
Primary industries
Secondary industries
Commercial industries
Tertiary industries
3. The occupation in which people work for others and get remunerated in return is known as
Business
Profession
Employment
None of these
4. Which of the following does not characterize business activity?
Production of goods & services
Presence of risk
Sale or exchange of goods and services
Salary and wages
5. Economic activities may be classified into business, ____ and employment
Profession
occupation
vocation
work
6. Human activities are of ____________ types
One
two
three
four
7. Following are the characteristics of business risks. One of then is not correct. Please identify it.
Loss is the reward for risk bearing
Business risks are due to uncertainties
Risk is an essential component of every business
Degree of risk depends mainly upon the nature and size of business
8. Commerce includes activities relating to trade and ____ to trade.
Supporting
subsidiaries
auxiliaries
none of these
9. Which one of the following may not be a factor behind starting a business?
Routine workload
size of the firm
 finance
 location of the business
10. Which of the following cannot be classified as an objective of business?
 Investment
Productivity
 Innovation
 Profit earning
11. Which of the following cannot be classified as an auxiliary to trade?
Mining
Insurance
Warehousing
Transport
12. Which of the broad categories of industries covers oil refinery and sugar mills?
Primary
Secondary
Tertiary
None of these
13. Which of the following is not an example of non-economic activity?
Patriotism
teaching
sentiment
sympathy
14. Transfer of interest exists in the case of
Profession
employment
business
none of these
15. Earning of profit is considered to be the subsidiary objective of the business.’ The given statement is
TRUE
FALSE
cannot say
None
16. Name the two broad categories of business activities.
Trade and commerce
trade and industry
 industry and commerce
none of these
17. The possibilities of inadequate profits or even losses due to uncertainties are known as ______
Business contingencies
Business risks
Business ventures
None of these
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