Olete.in – MCQs, Mock Tests & Government Job Prep | Business Studies Business Studies-[Class 11-MCQ ]-Chapter 1- Nature and Purpose of Business

Business risk is not likely to arise due to

1. Changes in government policy
2. Good management
3. Employee dishonesty
4. Power failure

✅ Correct Answer: 2

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

1. Primary industries
2. Secondary industries
3. Commercial industries
4. Tertiary industries

✅ Correct Answer: 4

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

1. Business
2. Profession
3. Employment
4. None of these

✅ Correct Answer: 3

Which of the following does not characterize business activity?

1. Production of goods & services
2. Presence of risk
3. Sale or exchange of goods and services
4. Salary and wages

✅ Correct Answer: 4

Economic activities may be classified into business, ____ and employment

1. Profession
2. occupation
3. vocation
4. work

✅ Correct Answer: 1

Human activities are of ____________ types

1. One
2. two
3. three
4. four

✅ Correct Answer: 2

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

1. Loss is the reward for risk bearing
2. Business risks are due to uncertainties
3. Risk is an essential component of every business
4. Degree of risk depends mainly upon the nature and size of business

✅ Correct Answer: 1

Commerce includes activities relating to trade and ____ to trade.

1. Supporting
2. subsidiaries
3. auxiliaries
4. none of these

✅ Correct Answer: 3

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

1. Routine workload
2. size of the firm
3. finance
4. location of the business

✅ Correct Answer: 1

Which of the following cannot be classified as an objective of business?

1. Investment
2. Productivity
3. Innovation
4. Profit earning

✅ Correct Answer: 1

Which of the following cannot be classified as an auxiliary to trade?

1. Mining
2. Insurance
3. Warehousing
4. Transport

✅ Correct Answer: 1

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

1. Primary
2. Secondary
3. Tertiary
4. None of these

✅ Correct Answer: 2

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

1. Patriotism
2. teaching
3. sentiment
4. sympathy

✅ Correct Answer: 2

Transfer of interest exists in the case of

1. Profession
2. employment
3. business
4. none of these

✅ Correct Answer: 3

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

1. TRUE
2. FALSE
3. cannot say
4. None

✅ Correct Answer: 2

Name the two broad categories of business activities.

1. Trade and commerce
2. trade and industry
3. industry and commerce
4. none of these

✅ Correct Answer: 3

The possibilities of inadequate profits or even losses due to uncertainties are known as ______

1. Business contingencies
2. Business risks
3. Business ventures
4. None of these

✅ Correct Answer: 2