MCQ Questions for Class 11 Business Studies Chapter 1 Nature and Purpose of Business with Answers

We have compiled NCERT MCQ Questions for Class 11 Business Studies Chapter 1 Nature and Purpose of Business with Answers Pdf free download. MCQ Questions for Class 11 Business Studies with Answers were prepared according to the latest question paper pattern. Practicing these Nature and Purpose of Business Class 11 Business Studies MCQs Questions with Answers really effective to improve your basics and learn all the key concepts.

Nature and Purpose of Business Class 11 MCQs Questions with Answers

Choose the correct answer

Question 1.
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 or wages.

Answer

Answer: (d) Salary or wages.


Question 2.
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

Answer: (d) Tertiary industries.


Question 3.
Which of the following cannot be classified as an objective of business :
(a) Investment
(b) Productivity
(c) Innovation
(d) Profit Earning.

Answer

Answer: (a) Investment


Question 4.
Business risk is not likely to arise due to :
(a) Change in govt, policy
(b) Good management
(c) Employee dishonesty
(d) Power failure.

Answer

Answer: (b) Good management


Question 5.
Specialized knowledge and skill is needed in :
(a) Employment
(b) Non-Economic activity
(c) Profession
(d) None of these.

Answer

Answer: (c) Profession


Question 6.
The rework of risk is :
(a) Success
(b) Failure
(c) Profit
(d) Loss

Answer

Answer: (c) Profit


Question 7.
It is not included in code of conduct:
(a) Rules
(b) Dishonesty
(c) Integrity
(d) Morality

Answer

Answer: (b) Dishonesty


Question 8.
Which has the large scope :
(a) Trade
(b) Commerce
(c) Industry
(d) Business

Answer

Answer: (b) Commerce


Question 9.
Which of the following cannot be classified as an auxiliary to trade :
(a) Mining
(b) Insurance
(c) Warehousing
(d) Transport.

Answer

Answer: (a) Mining


Question 10.
Which of the broad categories of industries covers oil refinery and sugar mills :
(a) Primary
(b) Secondary
(c) Tertiary
(d) None of these.

Answer

Answer: (b) Secondary


Question 11.
The occupation in which people work for others and get remunerated in return is known as :
(a) Business
(b) Employment
(c) Profession
(d) None of them.

Answer

Answer: (b) Employment


Question 12.
Free Guidance by a teacher to his son is :
(a) An economic activity
(b) Profession
(c) Employment
(d) A non-economic activity.

Answer

Answer: (d) A non-economic activity.


Question 13.
Capital is not an essential element in :
(a) Employment
(b) Profession
(c) Business
(d) None of these

Answer

Answer: (a) Employment


Question 14.
Economic activity = ……….. + ………. :
(a) Business + Profession
(b) Profession + Employment
(c) Business + Employment
(d) Business + Profession + Employment

Answer

Answer: (d) Business + Profession + Employment


Question 15.
Business is :
(a) Art
(b) Science
(c) Both (a) and (b)
(d) None of these

Answer

Answer: (c) Both (a) and (b)


True or false

1. Human activities directed towards acquisition of wealth are called economic activities.

Answer

Answer: True


2. All business risk are controllable.

Answer

Answer: Flase


3. Risk element is compulsory for business.

Answer

Answer: True


4. Commerce is an indifferent part of business.

Answer

Answer: Flase


5. Doctors treats her mother is a economic activity.

Answer

Answer: Flase


6. Business needs economic activities at regular interval.

Answer

Answer: True


7. Teacher teaches his son at home is a economic activity.

Answer

Answer: False


15. Postal Department is a part of Tertiary Sector.

Answer

Answer: True


16. Activities performed for self-satisfaction and to fulfil social obligations are known as economic activities.

Answer

Answer: True


17. Activities based on specialized knowledge, training and experience is called profession.

Answer

Answer: True


18. Only economic activities are included in business.

Answer

Answer: True


19. Non-Economic activities are those which gives mental satisfaction.

Answer

Answer: True


20. The main reason of risk in business is uncertainty of business.

Answer

Answer: True


21. Creating new customer is a important objective of business.

Answer

Answer: Flase


22. Employment needs capital.

Answer

Answer: Flase


Fill in the blanks :

1. Business is a …….. activities.

Answer

Answer: Economic


2. There are some ……. of business towards society.

Answer

Answer: Moral duties


3. A human activities of business which is related with sale or purchase of goods is for earning …….

Answer

Answer: Wealth


4. The risk element in business is called ……..

Answer

Answer: Business risk


5. For getting services on the basis of contract from men or Institution is called ……….

Answer

Answer: Service


6. Business is …… both.

Answer

Answer: Art and science


7. Business is undertaking within the boundries of a country is called ……

Answer

Answer: Internal Trade.


8. External Trade are of …….. types.

Answer

Answer: 3

9. Parameter of profession is …..

Answer

Answer: Earning profit


10. Commerce, Industries and ……. are the elements of business.

Answer

Answer: Trade


11. Profit is the reward of …….

Answer

Answer: Risk


12. ………. activities measured in monetary terms.

Answer

Answer: Economic


13. The economic activities on the basis of special knowledge, training and experiences are called ………

Answer

Answer: Profession.


14. Profession needs ……… skill.

Answer

Answer: Specific.


15. In business all the ……… services of men are included.

Answer

Answer: Economic activities


16. Business gives inspiration of ……..

Answer

Answer: Skill


17. ……. is a base of industry.

Answer

Answer: Commerce


18. Services are provided for ……….

Answer

Answer: Payment


19. ….. is transferable.

Answer

Answer: Business.


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