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

We have completed the NCERT/CBSE chapter-wise Multiple Choice Questions for Class 11 Business Studies book Chapter 1 Nature and Purpose of Business with Answers by expert subject teacher for latest syllabus and examination. You can Prepare effectively for the exam, Taking the help of the Class 11 Business Studies Objective Questions PDF free of cost from here. Students can take a free test of the Multiple Choice Questions of Nature and Purpose of Business. Each Questions has four options followed by the right answer. Download the Business Studies Quiz Questions with Answers for Class 11 free Pdf and prepare to exam and help students understand the concept very well.

MCQ Questions for Class 11 Business Studies with Answers

Q1. Which of the following is an economic cause of business risks?

(i) Demand for goods
(ii) Competition
(iii) Price
(iv) All of the above

(iv) All of the above

Q2. Which of the broad categories of industries covers oil refinery and sugar mills?

(i) Primary
(ii) Secondary
(iii) Tertiary
(iv) None of the above

(ii) Secondary

Q3. Which of the following cannot be classified as an objective of business :

(i) Investment
(ii) Productivity
(iii) Innovation
(iv) Profit Earning.

(i) Investment

Q4. The industries which provide support services to other industries are known as

(i) Primary industries
(ii) Secondary industries
(iii) Commercial industries
(iv) Tertiary industries

(iv) Tertiary industries

Q5. Soaps are included under which type of industry

(i) Synthetical Industry.
(ii) Analytical Industry.
(iii) Processing Industry.
(iv) Assembling Industry.

(i) Synthetical Industry.

Q6. Which one of the following may not be a factor behind starting a business?

(i) Routine workload
(ii) size of the firm
(iii) finance
(iv) location of the business

(i) Routine workload

Q7. Business risk is not likely to arise due to

(i) Power failure
(ii) Employee dishonesty
(iii) Changes in government policy
(iv) Good management

(iv) Good management

Q8. Which of the following is not a characteristic of a business activity?

(i) Wages
(ii) Sale of product
(iii) The factor of risk
(iv) Manufacturing goods and services

(i) Wages

Q9. The rework of risk is :

(i) Success
(ii) Failure
(iii) Profit
(iv) Loss

(iii) Profit

Q10. Which of the following does not characterize business activity?

(i) Production of goods & services
(ii) Presence of risk
(iii) Sale or exchange of goods and services
(iv) Salary and wages

(iv) Salary and wages

Q11. Everest Textile Ltd is involved in manufacturing textile products. In which industry is the company involved?

(i) Processing industry.
(ii) Analytical industry
(iii) Synthetic industry
(iv) Extractive industry

(i) Processing industry.

Q12. Why a business should earn a profit?

(i) To provide a return to investors
(ii) To increase the reputation of the business
(iii) To provide funds for future growth
(iv) All of the above

(iv) All of the above

Q13. The word marketing standing is concerned with

(i) Position of an enterprise
(ii) Supply of the product
(iii) Customers
(iv) Competitors

(i) Position of an enterprise

Q14. Which has the large scope :

(i) Trade
(ii) Commerce
(iii) Industry
(iv) Business

(ii) Commerce

Q15. Following are the characteristics of business risks. One of then is not correct. Please identify it.

(i) Loss is the reward for risk bearing
(ii) Business risks are due to uncertainties
(iii) Risk is an essential component of every business
(iv) Degree of risk depends mainly upon the nature and size of business

(i) Loss is the reward for risk bearing

Q16. The industries which provides support services to other industries are known as

(i) Tertiary
(ii) Secondary
(iii) Manufacturing
(iv) Primary

(i) Tertiary

Q17. Which of the following is not a natural cause of business risks?

(i) Earthquake
(ii) Strikes
(iii) Famine
(iv) Heavy Rains

(ii) Strikes

Q18. Why a business should earn profit?

(i) To provide return to investors.
(ii) To increase the reputation of business.
(iii) To provide funds for future growth.
(iv) All of the above.

(iv) All of the above

Q19. Which of the following cannot be classified as an auxiliary to trade :

(i) Mining
(ii) Insurance
(iii) Warehousing
(iv) Transport.

(i) Mining

Q20. Which one of the following may not be a factor behind starting a business?

(i) Routine workload
(ii) size of the firm
(iii) finance
(iv) location of the business

(i) Routine workload

Q21. Code of conduct DOES NOT include

(i) Dishonesty
(ii) Rules
(iii) Morality
(iv) Integrity

(i) Dishonesty

Q22. The occupation in which people work for others and get remunerated in return is known as:

(i) Profession
(ii) Employment
(iii) Business
(iv) None of the above

(ii) Employment

Q23. Which of the following is an instrument of exchange, which was prominent in the subcontinent?

(i) Copper
(ii) Hundi
(iii) Gold
(iv) Silver

(ii) Hundi

Q24. Free Guidance by a teacher to his son is :

(i) An economic activity
(ii) Profession
(iii) Employment
(iv) A non-economic activity.

(iv) A non-economic activity.

Q25. Which of the following is not an example of non-economic activity?

(i) Patriotism
(ii) teaching
(iii) sentiment
(iv) sympathy

(ii) teaching

Q26. Risk is the result of

(i) Uncertainties
(ii) None of the options
(iii) Both of the above
(iv) Certainties

(i) Uncertainties

Q27. Which of the following is an economic activity?

(i) Social Activities
(ii) Patriotic Activities
(iii) Profession
(iv) Religious Activities

(iii) Profession

Q28. Which one of the following is NOT the objective of the business?

(i) Investment
(ii) Innovation.
(iii) Creation of customers.
(iv) Profit making

(i) Investment

Q29. Business is :

(i) Art
(ii) Science
(iii) Both (i) and (ii)
(iv) None of these

(iii) Both (i) and (ii)

Q30. Earning of profit is considered to be the subsidiary objective of the business.’ The given statement is

(i) True
(ii) false
(iii) cannot say
(iv) None

(ii) false

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MCQ Questions for Class 11 Business Studies with Answers

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