CBSE Class 11 Business Studies Business Trade and Commerce Worksheet

Mcq Questions for Ncert Class 11 Business Studies Nature And Purpose Of Business

Question. Which of the following is not a characteristic of business?
(a) Production
(b) Exchange or sale
(c) Wages or salaries
(d) Risk element

Answer : C

Question. Which place was prominent for skilled artisans to work and convert raw material into finished goods which were high in demand?
(a) Village
(b) Karkhana
(c) Jhopari
(d) Chopal

Answer : B

Question. Support services to industrial\business activities are clubbed under
(a) commercial industries
(b) secondary industries
(c) primary industries
(d) tertiary industries

Answer : D

Question. There is a time gap between production and consumption of goods, therefore warehousing is required, which overcomes the problem of ……… .
(a) funds
(b) storage
(c) time
(d) place

Answer : B

Question. Commerce includes activities relating to trade and ……… to trade.
(a) supporting
(b) subsidiaries
(c) auxiliaries
(d) None of these

Answer : C

Question. Apoorvi, from a young age had a deep connection with traditional Indian textiles and craftsmanship. She fulfilled her life long dream of making a career in fashion by leaving her professional life behind and pursued a design programme at the Los Angeles School of Design and Merchandising. 
Thus, Apoorvi got real world fashion exposure. With her love for Indian fabrics and her arsenal of fashion knowledge, she now intends to glorify these national treasures with her readymade store ‘Armaniya’. 
‘Armaniya’ is an initiative to incorporate a perfect mix of latest trends, luxury fabrics, Indian traditional weaves and culture, all under one roof. 
She manages the business along with two employees i.e., salesman and a cashier. She usually takes advice from her father in case of any managerial issue. Now-a-days, Apoorvi is facing a lot of problem as trends in the field are continuously changing, this ever-changing market along with strong competition has added to the trouble of declining sales.
Furthermore, One day Apoorvi found her cashier doing some embezzlement of funds. Which type of risk is she facing in the above said case?
(a) Pure risk
(b) Speculative risk
(c) Partial risk
(d) None of these

Answer : A

Question. Advertising makes it possible for producers and trades to promote the goods and services available in the market, thus removing the hindrance of risk.
(a) True
(b) False
(c) Can’t say
(d) Partially false

Answer : B

Question. “Greater the risk involved in a business, higher is the chance of profit”. This statement is true or false.
(a) True
(b) False
(c) Can’t say
(d) Partially false

Answer : A

Question. Business risk generated out of carelessness or negligence of employees would emerge due to which of the following cause?
(a) Natural cause
(b) Human cause
(c) Economic cause
(d) Other cause

Answer : B

Question. Mariah had done a diploma in fashion designing. She is very creative. She saw a picture of a party gown in an international fashion magazine, having a price tag of ` 50,000. She decided to make that gown herself with some customisation. She calculated that for making of gown, she has spent ` 4,000. Her friend liked the gown very much, so Mariah sold that gown to her friend for ` 8,500 and made a profit of ` 4,500.
Due to this transaction, Mariah decided to open a boutique of making gowns and selling them in the market with nominal profit. On the basis of the given information, identify the relevant feature of business highlighted here.
(a) Production of goods and services
(b) Profit earning
(c) Dealing in goods and services on regular basis
(d) Uncertainty of return

Answer : C

Question. Neha cooks food at home for her family but Asha cooks food and sells it to others in a restaurant. Who is engaged in business activity?
(a) Neha
(b) Asha
(c) Both Neha and Asha
(d) None of these

Answer : B

Question. Katherine wants to start a retail business of fashion items but changes in taste and preferences of customers may result in loss in such type of business. 
She is hesitating as she is aware of risks which are inherent in every business. She approaches her friend Kristina who is the owner of a retail shop. Kristina advises her to go ahead with her idea as she will get profit as return for undertaking risk. She also told her that some risks in business can be insured by taking insurance policy.
On the basis of the given information about Katherine, identify the main features of business risk discussed in the above case.
(a) Uncertainties
(b) Degree of risk depends upon nature of business
(c) Size of business
(d) None of the above

Answer : A

Question. Monica Khanna is a jewellery designer. She started her career from the scratch and took advanced designing course at jewellry product development center. On the completion of the course, she got a job at Gitanjali Gems. Being an experienced jewellery designer, Monica Khanna focuses on maintaining the originality and creativity of the ornaments that are custom designed and developed by her.
On the basis of the given information about Monica Khanna, identify the type of economic activity that Monica Khanna is engaged in.
(a) Profession
(b) Business
(c) Employment
(d) All of these

Answer : C

Question. Which one is considered with production or processing of goods and materials?
(a) Trade
(b) Industry
(c) Commerce
(d) None of these

Answer : B

Question. The process of exchanging ideas, information by speaking, writing etc. is termed as
(a) Sender
(b) Medium
(c) Communication
(d) None of the above

Answer : C

Question. Mr. Y told Mr. T that for business, we need physical resources. Identify the physical resources given below.
(a) Bank
(b) Warehouse
(c) Plant and machinery
(d) None of these

Answer : C

Question. Which auxiliary to trade bridges the time gap between production and consumption?
(a) Advertising
(b) Banking
(c) Insurance
(d) Warehousing

Answer : D

Question. Match the various types of Industries given in column I with their respective example given in column II.

Codes
       A   B  C 
(a) (iii) (i) (ii)
(b) (ii)  (i) (iii)
(c) (i)  (ii) (iii)
(d) (iii) (ii) (i)

Answer : A

Question. Occupation in which people work for others and get salary or wages in return is termed as business.
(a) True
(b) False
(c) Can’t say
(d) Partially true

Answer : B

Question. The type of industry which is engaged in breeding plants and animals for their use in further reproduction is ……… .
(a) extractive industry
(b) manufacturing industry
(c) genetic industry
(d) construction industry

Answer : C

Question. Following are the characteristics of business risks. Identify the incorrect one.
(a) Loss is the reward for risk bearing.
(b) Business risks are due to uncertainties.
(c) Risk is an essential component of every business.
(d) Degree of risk depends mainly upon the nature and size of business.

Answer : A

Question. Start-ups are usually small and initially financed and operated by a handful of founders or one individual.
These companies offer a product or service that is not currently being offered elsewhere in the market, or that the founders believe that it is being offered in an inferior manner. What does it take to Start-ups? A brilliant idea? A great team? Money?
Yes. All of those things. But more than anything what it takes, is belief. A belief that there is significance to the problem being addressed, and that the solution is something which the consumer wants. It is really amazing how most large companies have such humble stories of starting up.
All of them started with nothing but just plain conviction. Even with such conviction, they fail because of an inherent factor present in business. On the basis of the given information about Start-ups, Identify this inherent factor which leads to failure of business enterprise.
(a) Industry
(b) More of import trade
(c) Business risk
(d) None of the above

Answer : C

Question. Match the various causes of business risk in column I with their respective statement in column II.

Codes
      A    B   C 
(a) (i)  (ii) (iii)
(b) (ii) (i)  (iii)
(c) (iii) (ii) (i)
(d) (ii) (iii) (i)

Answer : A

Question. The best example of analytical industry is
(a) cement
(b) computer
(c) sugar mill
(d) oil refinery

Answer : D

Question. Human activities are of ……… types.
(a) one
(b) two
(c) three
(d) four

Answer : B

Question. Mechanical failures, political disturbances and other unforeseen events are
(a) natural causes
(b) economic causes
(c) human causes
(d) other causes

Answer : D

Question. Rohit and Gurvinder are partners selling electronic products across India. They import the components from their friend Atul who operates his business from China and assembles them in their factory established in a rural area of Jharkhand. Most of the workers in the factory are children and women. 
They are paid very less salaries thus owners save on labour cost. They store their stocks in a warehouse but do not take proper safety measures against fire, burglary etc. There was a short circuit in the factory and as a result most of the stock was damaged.
On the basis of the given information about Rohit and Gurvinder, specify the type of business activity being performed by Atul.
(a) Import trade
(b) Entrepot trade
(c) Industry
(d) Export trade

Answer : D

Question. Transfer of interest exists in the case of
(a) profession
(b) employment
(c) business
(d) None of these

Answer : C

Question. Match the concepts in column I with their respective statement in column II.

Codes
      A   B   C
(a) (i) (ii) (iii)
(b) (ii) (i) (iii)
(c) (iii) (i) (ii)
(d) (iii) (ii) (i)

Answer : D

Question. In which form of economic activity, code of conduct is prescribed?
(a) Business
(b) Employment
(c) Profession
(d) None of these

Answer : C

Question. Chettis community is specialised in trading and moving from one place to another place, sometimes with thousands of oxen, heavily loaded with food grains, salt and other daily use stuff.
(a) True
(b) False
(c) Can’t say
(d) Partially false

Answer : B

Question. Which of the following cannot be classified as an objective of business?
(a) Investment
(b) Productivity
(c) Discovery
(d) Profit earning

Answer : C

Question. The lack of knowledge about what is going to happen in the future is
(a) risk
(b) uncertainty
(c) Both (a) and (b)
(d) None of these

Answer : B

Question. The industry concerned with using the material which have already been extracted at the primary stage is
(a) primary industry
(b) tertiary industry
(c) secondary industry
(d) None of these

Answer : C

Question. Match the concepts in column I with their respective statement in column II.

Codes
      A  B    C 
(a) (i) (ii) (iii)
(b) (ii) (iii) (i)
(c) (ii) (i) (iii)
(d) (i) (iii) (ii)

Answer : B

Question. Which of the following comes under economic causes of risk?
(a) Flood, famine
(b) Negligence of workers, stoppage of work
(c) Demand for goods, competition
(d) None of the above

Answer : C

Question. Recognise the assembling industry out of these.
(a) Poultry, cattlefarms
(b) Cement, brick
(c) Sugar, cotton
(d) Television, computer

Answer : D

Question. The position of an enterprise in relation to its competitors is termed as
(a) Market survival
(b) Growth
(c) Market standing
(d) None of the above

Answer : C

Question. Profit can be re-invested in business. It is a good source of finance for expansion and growth of business.
(a) True
(b) False
(c) Can’t say
(d) Partially true

Answer : A

Question. The amount of loss or damage and compensation for injury can be recovered by using which auxiliary to trade?
(a) Advertising
(b) Premium
(c) Insurance
(d) Policy

Answer : C

Question. The banking system in India dated back to 1750 BC. In ancient India, there is evidence of loans from the Vedic period. From the writing of many foreign travellers during Mughal period we came to know about the use of various instruments in the then great commercial centres. In the Mughal period, historians found the evidence of loan deeds which were called dastawez. There were two types of dastawez – one was payable on demand and other was payable after a stipulated time. The most important class of credit instruments of exchange evolved in India at that time. Their use was most widespread in the twelfth century, and has continued till today.
On the basis of the given information about the banking system in India, identify the instrument of exchange prominent in the great ancient commercial centres of India.
(a) Bills of exchange
(b) Hundi
(c) Promissory note
(d) None of these

Answer : B

Question. Activities which are meant for assisting trade are known as
(a) Trade
(b) Trade assistance
(c) Auxiliaries to trade
(d) None of these

Answer : C

Question. The obligation of business firms to contribute for society and work for it refers to
(a) social responsibility
(b) human responsibility
(c) company responsibility
(d) None of the above

Answer : A

Question. Sunstar Steel Ltd., a leading manufacturer of iron and steel decided to setup a new factory in a remote area in Rajasthan, so that unemployed youth from the rural areas could get same opportunities as those available in the urban areas.
This initiative has raised the standard of living of people in rural areas. All children in these families are getting good education and these families are also actively contributing to nation building process through their dedicated work. On the basis of the given information, identify the objective of business being followed by the company.
(a) Organisational
(b) Social
(c) Personal
(d) All of the above

Answer : B

Question. Sunstar Steel Ltd., a leading manufacturer of iron and steel decided to setup a new factory in a remote area in Rajasthan, so that unemployed youth from the rural areas could get same opportunities as those available in the urban areas. This initiative has raised the standard of living of people in rural areas. All children in these families are getting good education and these families are also actively contributing to nation building process through their dedicated work. Identify the activity discussed in the given case.
(a) Economic
(b) Non-economic
(c) Both (a) and (b)
(d) None of these

Answer : A

Question. The production of goods takes place in particular locations but they are used at different places. So, the obstacle of place is removed by
(a) banking
(b) advertising
(c) insurance
(d) transport

Answer : D

Question. Which one of the following may not be a factor behind starting a business?
(a) Routine workload
(b) Size of the firm
(c) Finance
(d) Location of the business

Answer : A

Question. It was in the early 1970s, when Sh. M.P. Sharma started the journey towards a brighter future. Then the small sweet shop has now flourished into a family owned enterprise which consists of many outlets in Delhi. These outlets serve sweets and cuisines spanning Indian, Continental, Chinese, South Indian and Regional foods. Mehar Sweets follows the casual dining concept and provides a warm and hospitable ambience in the outlets. 
Today, Mehar Sweets is a food business group with special ventures focused on Bengali Sweets and Multicuisine. During Diwali season this year, the shop owner employed women and children to meeting urgent orders and paid there marginal and limited salary. He prepared more Bengali Sweets then what he had sold last year. This way, Mehar Sweets generated more than the expected profit. On the basis of the given information about Mehar Sweets, which objective of business is not being fulfilled?
(a) Organisational
(b) Social
(c) Personal
(d) All of these

Answer : B

Question. The merchant community derived power and prestige from guilds. Even kings were supposed to accept and respect the rules of these guilds. The guild chief dealt directly with the king or tax collectors and settled the market toll on behalf of its fellow merchants at a fixed sum of money.
The guild merchants also acted as custodians of religious interests. They undertook the task of building temples and made donations by levying a corporate tax on their members. The commercial activity enabled big merchants to gain power in the society. Identify the guild being specified in the above case.
(a) Intermediaries
(b) Zamindars
(c) Merchant corporations
(d) None of the above

Answer : C

Question. Which of the following is not an example of non-economic activity?
(a) Patriotism
(b) Teaching
(c) Sentiment
(d) Sympathy

Answer : B

Assertion-Reasoning MCQs :

Question. Assertion (A) Obsessed with profit, business managers may neglect all other responsibilities towards customers, employees, investors and society at large.
Reason (R) There is hardly any sizable business enterprise whose only objective is maximisation of profit.
(a) Both the Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A)
(b) Both the Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A)
(c) Assertion (A) is true, but Reason (R) is false
(d) Assertion (A) is false, but Reason (R) is true

Answer : A

Question. Assertion (A) Business follows only one objective and expect to achieve excellence.
Reason (R) Objectives are needed in every area where performance and results affect the survival and prosperity of business.
(a) Both the Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A)
(b) Both the Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A)
(c) Assertion (A) is true, but Reason (R) is false
(d) Assertion (A) is false, but Reason (R) is true

Answer : D

Question. Assertion (A) For centuries, pepper remained the reason for rivalry and conflict between various empires and trade powers to dominate the route for its trade.
Reason (R) It was in the search for an alternate route to India for spices that led to the discovery of America by Columbus in the closing years of 15th century and also brought Vasco da Gama to the shores of Malabar in 1498.
(a) Both the Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A)
(b) Both the Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A)
(c) Assertion (A) is true, but Reason (R) is false
(d) Assertion (A) is false, but Reason (R) is true

Answer : A

Question. Assertion (A) Every profession restricts the entry on the basis of examination or education.
Reason (R) A strict code of conduct exists in every profession.
(a) Both the Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A)
(b) Both the Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A)
(c) Assertion (A) is true, but Reason (R) is false
(d) Assertion (A) is false, but Reason (R) is true

Answer : B

Question. Assertion (A) Speculative risks involve both the possibility of gain, as well as, the possibility of loss.
Reason (R) Speculative risks arise due to changes in market conditions, including fluctuations in demand and supply.
(a) Both the Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A)
(b) Both the Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A)
(c) Assertion (A) is true, but Reason (R) is false
(d) Assertion (A) is false, but Reason (R) is true

Answer : A

Case Based MCQs :

Sampat Prasad, a small shopkeeper in Jaipur, Rajasthan used to sell the famous ‘Bhujia-Sev’. It was a quick-selling product for local customers. His son after completing his studies joined his father’s business and wanted to expand the business by forming a company named Sampat Bhujia Ltd, offering a wide range of products to its local and to foreign customers like namkeen, sweets, bakery items, etc. under the same brand name. For fulfilling all the legal formalities to form the company, he appointed professionals. Now ‘Sampat Bhujia Ltd., is a renowned name in snacks industry which offered its products at competitive prices even while offering customer services like gift packaging and free home delivery to become a household name.
‘Sampat Bhujia’ has an efficient marketing department working on minimising business risks from their competitors by making effective marketing plans, related to physical
distribution, promotion of the brand, effective pricing policies and product development. It has also worked upon managing public opinion by developing relations with the masses through sponsoring cultural and sporting events, maintenance of public parks, etc.

Question. Name the service used by ‘Sampat Bhujia Ltd, to remove the hindrance of information.
(a) Transportation
(b) Warehousing
(c) Promotion
(d) Marketing

Answer : C

Question. For fulfilling all the legal formalities to form the company, he appointed professionals. Who among the following is appointed as a professional? 
(a) Promoter
(b) Broker
(c) Banker
(d) All of these

Answer : D

Question. ‘Sampat Bhujia’ has an efficient marketing department working on minimising business risks from their competitors. Which type of risk is this?
(a) Pure risk
(b) Speculative risk
(c) Financial risk
(d) Insurable risk

Answer : B

Question. It has also worked upon managing public opinion by developing relations with the masses through sponsoring cultural and sporting events, maintenance of public parks, etc.
Identify the objective fulfilled by the company by doing so.
(a) Economic
(b) Social
(c) Ethical
(d) Legal

Answer : B

Question. Which type of industry is ‘Sampat Bhujia Ltd.’?
(a) Genetic
(b) Construction
(c) Manufacturing
(d) Extractive

Answer : C

Saloni, Rupali, Mukesh and Rakesh - all the four are members of the same family. Saloni passed her M.B.B.S examination recently. Immediately, she got the job of a doctor in a government hospital. Rupali has completed her studies in engineering and has given her interview for the post of a production manager in Sharda Cement Limited. She is waiting for the result and is quite hopeful of her getting selected.
Mukesh has his own transport company. His company has about 150 vehicles. He had to suffer a heavy loss because of the pandemic Corona (Covid-19). His company is on the edge of getting closed.
Rakesh is working in the Research and Development Department of Balaji Services Limited. His full attention is focused on effecting innovation in the services provided by his company. He knows that in order to sustain for a long-time in market, it is necessary to do something new and better.

Question. Identify the type of work done by Dr. Saloni.
(a) Employment
(b) Profession
(c) Business
(d) Trade

Answer : A

Question. Identify the class of company in which Rupali has given her interview.
(a) Assembling Industry
(b) Synthetic Industry
(c) Processing Industry
(d) Analytical Industry

Answer : B

Question. Which business risk is Mukesh’s company struggling against?
(a) Human cause
(b) Economic cause
(c) Natural cause
(d) None of these

Answer : C

Question. Identify the objective of business being fulfilled by Balaji Services Limited.
(a) Profit making
(b) Creation of customers
(c) Providing employment
(d) Innovation

Answer : D

Question. Identify the type of work done by Mukesh.
(a) Employment
(b) Profession
(c) Business
(d) None of these

Answer : C

Deepti an electronic engineer after completing her MBA from IIM Kolkata, wants to open her own business of generation of electricity through garbage. She knew that the demand for electricity is increasing day by day whereas it’s generation is not sufficient. Secondly, India is facing the problem of garbage disposal also. She shared her business idea with some of her friends and they all liked it and agreed to join the business as owners. After detailed investigation about the idea, i.e., economically viable, technically feasible, Deepti gave her idea a practical shape and got her company incorporated as ‘‘Eco Electricity Ltd.’’ After incorporation, the company issued share capital of 1 crore in the capital market.

Question. Name the type of business activity eco electricity is engaged in
(a) primary industry
(b) secondary industry
(c) service industry
(d) trade

Answer : B

Question. Deepti wants to open her own business of generation of electricity through garbage. Specify the category of such type of industry.
(a) Analytical
(b) Extractive
(c) Synthetic
(d) Processing

Answer : D

Question. “Deepti an electronic engineer after completing her MBA from IIM Kolkata”. Which type of economic activity highlighted in above lines?
(a) Employment
(b) Profession
(c) Business
(d) Job

Answer : B

Question. Which type of trade can be assumed in above case?
(a) Internal
(b) External
(c) Both (a) and (b)
(d) None of these

Answer : A

Question. In the above case, hindrance of information is being removed by following which auxiliary?
(a) Transportation
(b) Warehousing
(c) Advertising
(d) Banking

Answer : C