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MCQs on Business Studies Class 11 Chapter 1 - Nature and Purpose of Business
By Mohit Yadav Last updated : April 29, 2023
MCQs on Business Studies (CBSE) Class 11 (Chapter 1) Nature and Purpose of Business. Practice these multiple-choice questions and answers with explanations to learn, revise, and enhance your skills in Class 11 (Chapter 1) Nature and Purpose of Business. All these questions are prepared by experts based on the current NEP exam pattern.
List of Business Studies Class 11 Chapter 1 (Nature and Purpose of Business) MCQs
1. For which part of the business industries are concerned?
- Production of goods and materials
- For trade purposes
- For wholesale and retail use
- None of them
Answer: A) Production of goods and materials
Explanation:
Industries are concerned with the production and processing of goods and materials.
2. What is the major role of commerce in business?
- Manufacturing & construction
- Facilitating the exchange of goods & services
- Both A and B
- None of them
Answer: B) acilitating the exchange of goods & services
Explanation:
commerce control facilitating the exchange of goods & services.
3. Which kinds of industries come under extractive industries?
- Fishing, farming, mining
- Chemical industries
- Meat production
- None of them
Answer: A) Fishing, farming, mining
Explanation:
Extractive industries include fishing, farming, and mining.
4. What are the examples of genetics industries?
- Import & export
- Wholesale & retail
- Both A and B
- Poultry farm, fish hatching, and cattle breeding
Answer: D) Poultry farm, fish hatching, and cattle breeding
Explanation:
Poultry farms, fish hatching, and cattle breeding are examples of genetics industries.
5. What are the natural causes of business risk?
- Machine failure
- Riots
- Earthquake
- None of them
Answer: C) Earthquake
Explanation:
Earthquake is the natural causes of business risk.
6. Characteristics of human causes in business risk?
- Carelessness, strikes
- Thunderstorm
- Both A & B
- None of them
Answer: A) Carelessness, strikes
Explanation:
Carelessness and strikes are the Characteristics of human causes in business risk.
7. Which one is the sole proprietorship?
- Small-scale business or activity
- Factory owner
- Franchise owner
- All of the above
Answer: A) Small-scale business or activity
Explanation:
A sole proprietorship refers to a small business or individual.
8. What is the limitation of a sole proprietorship?
- Limited resources
- Limited financial help
- Both A and B
- None of the above
Answer: A) Limited resources
Explanation:
A sole proprietorship is not free from limitation and there few reasons are limited resources and financial issues.
9. What are the characteristics of a joint Hindu family business?
- Owned and carried by a Hindu undivided family ( HUD )
- Sold by family
- Bought by a Hindu family member
- All of the above
Answer: A) Owned and carried by a Hindu undivided family ( HUD )
Explanation:
Owned and carried by a Hindu family business.
10. characteristics of karta?
- Controlled by the head of the family
- Every person has an equal ownership
- Known as co- parceners
- All of the above
Answer: D) All of the above
Explanation:
Karta is the oldest member of the family and controlled all the work. equally distribution of ownership and also known as co- parceners
11. Which person in the family is responsible to bear all the liabilities?
- The karta
- Second generation
- Third generation
- All of the above
Answer: A) The karta
Explanation:
karta suffers from the disadvantages of liabilities
12. What is an active partner?
- Who contributes its capital
- Who participates in the firm
- Both A & B
- None of the above
Answer: A) Who contributes its capital
Explanation:
active partners contribute their capital.
13. Characteristic of sleeping partner?
- Not taking part in day-to-day life
- Contribute capital
- Share profit and losses
- All of the above
Answer: D) All of the above
Explanation:
Characteristics of a sleeping partner are Not taking part in day-to-day life, Contributing capital, and sharing profit and losses.
14. Characteristic of secret partner?
- unknown to the general public
- contribute to capital
- take part in the management
- all of the above
Answer: D) all of the above
Explanation:
Secret partners are unknown to the general public, contribute to capital, and also take part in the management
15. Characteristics of a nominal partner?
- contribute to the capitol
- take part in the firm
- Share profit and losses
- allows them to use his name
Answer: D) allows them to use his name
Explanation:
A person who allows his name
16. Which things help businesses to save themself from risk?
- Changes in need of people
- Government plans
- Good management
- Power failure
Answer: C) Good management
Explanation:
Good management helps businesses to save themself from risk.
17. Which one is the economic activity?
- Donation
- Nonprofit organization
- Option A and B
- Employment
Answer: D) Employment
Explanation:
Employment is economic activity.
18. Which one is characteristic of business?
- Multiple jobs
- Trustees
- Option A and B
- entrepreneurship
Answer: D) entrepreneurship
Explanation:
Entrepreneurship is a characteristic of business
19. What is the main purpose of economic activity?
- Donations
- To save taxes
- To earn profit
- To provide services
Answer: C) To earn profit
Explanation:
Earning money or earning profit is the main business reason.
20. What is the name of industries which support services to other industries?
- Primary industries
- Secondary industries
- Tertiary industries
- None of the above
Answer: C) Tertiary industries
Explanation:
Tertiary industries give all support services to other industries.
21. Which industry covers sugar mills and oil refineries?
- Primarily industries
- Secondary industries
- Tertiary industries
- None of the above
Answer: B) Secondary industries
Explanation:
Secondary industries cover mills and oil refineries.
22. In which profession do people work for others and get their salary in return?
- Employment
- Business
- Profession
- All of the above
Answer: A) Employment
Explanation:
Employment is a profession where people work for others and get their salary in return.
23. Characteristics of business activity?
- Religious activity
- Government activity
- Profession
- Social activity
Answer: C) Profession
Explanation:
Professional involvement in their own business to make money is called a business activity.
24. Which of the problems can be identified as a business risk?
- Competition
- Price
- Product Value
- All of these
Answer: D)All of these
Explanation:
Competition, Price, and Product value are the problems that can be identified as business risks.
25. Which term can be referred to as profit and loss due to unexpected risk?
- Family expenses
- Taxes
- Business risk
- All of the above
Answer: C) All of the above
Explanation:
Business risk can be referred to as unexpected risk
26. For which concern marketing word stand for?
- For competitor
- To save taxes
- Position of enterprises
- None of these
Answer: C) Position of enterprises
Explanation:
Word marketing stands for the position of enterprises.
27. For which part of the commerce trade is referred?
- Transfer of goods
- For paperwork
- Option A and B
- None of the above
Answer: A) Transfer of goods
Explanation:
Trade refers to the transfer of goods.
28. Which thing can protect a business from risk?
- Insurance
- Banking
- Taxes
- None of these
Answer: A) Insurance
Explanation:
Insurance can protect any business from risk.
29. Which is the most important way to promote the sale of business products?
- Warehousing
- Bank balance
- Government policy
- Advertising & promotions
Answer: D) Advertising & promotions
Explanation:
Advertisements & promotions are the most important way to promote the sale of business products.
30. Between whom commerce provides necessary links?
- Producer & Consumer
- Wholesaler & retailer
- Option A & B
- None of these
Answer: A) Producer & Consumer
Explanation:
Between Producer & consumer