CBSE Class 11 Business Studies Nature And Purpose of Business Worksheet Set B

NATURE AND PURPOSE OF BUSINESS

I.MULTIPLE CHOICE QUESTIONS (Choose the Correct Alternative)

1. Which of the following is not a characteristic of business?

(a) Production of goods and services                  (c) Risk element

(b) Sale or exchange of goods and services        (d) wages and salaries

2. Which broad category of industry involves assembling of parts to make a new product?

(a)Primary                                                      (c) Secondary

(b)Tertiary                                                      (d) Genetic

3. Which of these category of industries covers sugar mill and oil refinery?

(a) Primary                                                    (c) Secondary

(b) Tertiary                                                    (d) Genetic

4. The occupation in which people work for others and get remunerated.

(a) Business                                                  (c) Employment

(b) Profession                                                (d) Proprietor

5. The industries which provide support services to other industries.

(a) Primary                                                   (c) Secondary

(b) Tertiary                                                   (d) Commercial

6. The following broad category of industry covers fishing and fish hatchery.

(a) Primary                                                  (c) Secondary

(b) Tertiary                                                  (d) Construction

7. ------------- refers to economic activities which are connected with the conversion of resources into useful goods.

(a) Commerce                                            (c) Industry

(b) Auxiliaries to trade                                (d) Transportation

8. The possibility of inadequate profits and even losses due to uncertain environment is known as :

(a) Business risk                                        (c) Operations management

(b) Business operations                              (d) Merchandising

9. --------------- is an auxiliary to trade which helps to remove the hindrances of risk.

(a) Transportation                                     (c) Warehousing

(b) Banking                                              (d) Insurance

10. Trade and auxiliaries to trade are the two activities included in-------------.

(a) Industry                                             (c) Warehousing

(b) Commerce                                         (d) Transportation

II. VERY SHORT ANSWER QUESTIONS

11. Explain the concept of business.

12. Explain why business is called an economic activity.

13. What is meant by commerce?

14. Name the auxiliaries to trade which helps to remove the hindrances of risk, finance and place.

15. Explain trade with its types.

16. Rahul, a student of higher class, sells his old books to a second-hand bookshop. Is it a business activity? Why?

17. A person sold his old painting at a profit. Will it be considered as business? Why?

III. LONG ANSWER QUESTIONS

18. Describe the role of profit in business.

19. Discuss the characteristics of business.

20. After completing MBA Nikhil joined his neighbour Rakesh’s business on a salary of Rs. 1 lakh per month. One of Nikhil’s friend gives legal consultancy to Rakesh for a fee. Name and explain the different types of economic activities in which all three of them are involved.

21. Explain the term industry and its various types with examples.

22. Describe ‘Business risk’.

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