MCQ Questions For Class 11 Business Studies Chapter 1 Business Trade and Commerce

Check the below NCERT MCQ Class 11 Business Studies Chapter 1 Business Trade and Commerce with Answers available with PDF free download. MCQ Questions for Class 11 Business Studies  with Answers were prepared based on the latest syllabus and examination pattern issued by CBSE, NCERT and KVS. Our teachers have provided below Business Trade and Commerce Class 11 Business Studies  MCQs Questions with answers which will help students to revise and get more marks in exams

Business Trade and Commerce Class 11 Business Studies MCQs Questions with Answers

Refer below for MCQ Class 11 Business Studies Chapter 1 Business Trade and Commerce with solutions. Solve questions and compare with the answers provided below.

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

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

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 these

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

Question. Which one of the following is an economic activity in which specialized knowledge is required?
(a) Profession
(b) Business
(c) Employment
(d) None of the above

Questio. Bad debts due to non-payment of debts by debtors is an example of which type of business risk?
(a) Human
(b) Natural
(c) Physical
(d) Economic

Question. Business risk is not likely to arise due to
(a) Power failure
(b) Employee dishonesty
(c) Changes in government policy
(d) Good management

Question. __________ is an economic activity
(a) Non-employment
(b) Employment
(c) Non profit organisation
(d) None of the above

Question. Why a business should earn a profit?
(a) To provide a return to investors
(b) To increase the reputation of the business
(c) To provide funds for future growth
(d) All of the above

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

Question. Name the occupation in which people work for others in return for wages or salaries?
(a) Employment
(b) Business
(c) Profession
(d) None of the above

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 these

Question. Tea is mainly produced in Assam; Cotton in Gujarat and Maharashtra; Jute in West Bengal and Orissa; Sugar in U. P, Bihar, and Maharashtra. But these goods are required for consumption in different parts of the country. For this purpose ________ is very important.
(a) Banking and Finance
(b) Advertising
(c) Insurance
(d) Transport and Communication

Question. The industries which provide support services to other industries are known as
(a) Primary industries
(b) Commercial industries
(c) Tertiary industries
(d) Secondary industries

Question. Support services to industrial \business activities are clubbed under?
(a) Commercial industries
(b) Primary industries
(c) Secondary industries
(d) Tertiary industries

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

Question. Which one of the following is NOT the objective of the business?
(a) Investment
(b) Innovation
(c) Creation of customers
(d) Profit-making

Question. Industries like sugar mill or oil refinery are put under which category-
(a) Primary
(b) Secondary
(c) Tertiary
(d) None of the above

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) None of these

Question. Which of the following is not a natural cause of business risks?
(a) Earthquake
(b) Strikes
(c) Famine
(d) Heavy Rains

Question. Bad debts due to non-payment of debt by the debtor are an example of which type of business risk?
(a) Human
(b) Natural
(c) Physical
(d) Economic

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 & machinery
(d) None of these

Question. Which of the following is an economic cause of business risks?
(a) Demand for goods
(b) Competition
(c) Price
(d) All of the above

Question. Which of the following is not concerned with the profession?
(a) Manufacturing goods and services
(b) Specialised body of knowledge and skill
(c) Code of conduct
(d) Formal Training

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

Question. Which of the following is an instrument of exchange, which was prominent in the subcontinent?
(a) Copper
(b) Hundi
(c) Gold
(d) Silver

Question. Identify the activity which is not an auxiliary to trade?
(a) Banking
(b) Warehousing
(c) Insurance
(d) Mining

Question. Commerce includes activities relating to trade and _________________ to trade.
(a) Auxiliaries
(b) Subsidiaries
(c) Supporting
(d) None of the above

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

Question. Which of the broad categories of industries covers oil refinery and sugar mills?
(a) Primary
(b) Secondary
(c) Tertiary
(d) None of the above 

Question. Which of the following is an economic activity?
(a) Social Activities
(b) Patriotic Activities
(c) Profession
(d) Religious Activities

Fill in the blanks:

Question. Obligation of business firm to contribute resource for solving social problem and work in a desirable manner is called _________ . 

Question. The auxiliary to trade which provides vital information about goods and services to customers is called _________. 

Question. Business risks refers to the possibility of inadequate profits or even losses due to _________ or unexpected events. 

Question. It is generally believed that business activity is carried out for _________ 

Question. Guild Merchants undertook the task of building temples and made donations by levying a _________ Tax on their members. 

True / False:

Question. Secondary industries process such material to produce goods for final consumption by other industrial units

Question. The first five year plan was implemented in the year 1950.

Question. Transport is removing hindrance of funds.

Question. Greater the risk involved in a business , higher is the choice of profit.

 Question. Extraction industries draw products from natural resources

Match the following: 

Question. Relate the following items with the concept written below:

A	B
1. Services to trade	(a) buying and selling of goods and activities required to do this process
2. Entrepot trade	(b) one of the type of foreign trade
3. Communication	(c) transportation, advertising etc.
4. Commerce	(d) helps in exchange of information
	(e) Removes hindrance of time

Question. Join the following services to trade with the examples given:

A	B
1. Transport	(a) bharti Airtel
2. Communication	(b) haryana Roadways
3. Finance	(c) ICICI IDBI
4. Insurance	(d) oriental Insurance Company Limited
	(e) Bhakti Storage house

Question. Match the following terms with the options given describing them:

A	B
1. Commerce	(a) removes hindrance of storage and information
2. Trade	(b) buying and selling of goods and services
3. Warehousing and Advertising	(c) includes import export and and report
4. Foreign trade	(d) trade and auxiliaries to trade
	(e) buying and selling of goods

Question. Join the following services to trade with the hindrances which they remove:

A	B
1. Transport	(a) information
2. Insurance	(b) storage
3. warehousing	(c) place
4. advertising	(d) person
	(e) risk

Pictorial Questions: 

Question. Identify the type of Internal trade in the given image:

Question. Identify the causes of Business Risk in each of the following pictures.

Question. Identify the causes of Business Risk in each of the following pictures.

Question. Identify the causes of Business Risk in each of the following pictures.

One word Answer type Questions :

Question. Name the economic activity which involves specialised knowledge and in which entry is restricted.
Ans. Profession.

Question. Why do we insure goods? 
Ans. We insure goods in order to minimise the risk of loss. Goods may be damaged or destroyed by fire, theft and natural calamities in the process of transport and storage. Insurance protects against such loss.

Question. Name the industry which is concerned with extraction of natural resources and reproduction of living organisms. 
Ans. Primary industry.

Question. Mention the two types of human activities. 
Ans. (a) Non-economic activities. (b) Economic activities.

Question. Mining of iron ore is an example of which industry? 
Ans. Primary industry.

Question. Name the industries which provide various support services to primary and secondary industries.
Ans. Tertiary industries.

Question. Mention any two categories of manufacturing industries. 
Ans. (a) Processing industry. (b) Assembling industry.

Question. Give any two examples of genetic industries. 
Ans. (a) Dairy farming. (b) Animal husbandry.