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

MCQs Class 11

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

Answer

D

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

Answer

D

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

Answer

C

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. 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

Answer

A

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

Answer

A

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

Answer

D

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

Answer

B

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

Answer

D

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

Answer

C

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

Answer

A

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

Answer

A

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

Answer

D

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

Answer

C

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

Answer

D

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

Answer

C

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

Answer

A

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

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) None of these

Answer

A

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

Answer

B

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

Answer

A

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

Answer

C

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

Answer

D

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

Answer

A

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

Answer

B

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

Answer

D

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

Answer

A

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

Answer

B

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 

Answer

B

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

Answer

C

Fill in the blanks:

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

Answer

social responsibility

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

Answer

advertising

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

Answer

uncertainties 

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

Answer

Profit 

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

Answer

Corporate

True / False:

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

Answer

True

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

Answer

False

Question. Transport is removing hindrance of funds.

Answer

False

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

Answer

True

 Question. Extraction industries draw products from natural resources

Answer

True

Match the following: 

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

AB
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
Answer

1-c, 2-b, 3-d, 4-a

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

AB
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
Answer

1-b, 2-a, 3-c, 4-d

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

AB
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
Answer

1-d, 2-e, 3-a, 4-c

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

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

1-c, 2-e, 3-b, 4-a

Pictorial Questions: 

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

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

Wholesale trade

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

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

Natural Cause

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

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

Economic Cause

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

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

Human Cause

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.

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