MCQs For NCERT Class 11 Business Studies Chapter 1 Business Trade and Commerce

Please refer to the MCQ Questions for Class 11 Business Studies Chapter 1 Business Trade and Commerce with Answers. The following Business Trade and Commerce Class 11 Business Studies MCQ Questions have been designed based on the latest syllabus and examination pattern for Class 11. Our experts have designed MCQ Questions for Class 11 Business Studies with Answers for all chapters in your NCERT Class 11 Business Studies book.

Business Trade and Commerce Class 11 MCQ Questions with Answers

See below Business Trade and Commerce Class 11 Business Studies MCQ Questions, solve the questions and compare your answers with the solutions provided below.

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

Question. Which of the following involves maximum risk?
(a) An industry
(b) A commerce activity
(c) A trade
(d) none of these

Question. Business is :
(a) Art
(b) Science
(c) Both (a) and (b)
(d) None of these

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

Question. Following are the characteristics of business risks. One of them is not correct. Please identify it.
(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

Question. Which of the following does not characterize business activity?
(a) Production of goods & services
(b) Presence of risk
(c) Sale or exchange of goods and services
(d) Salary and wages

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

Question. The word marketing standing is concerned with _____
(a) Position of an enterprise
(b) Supply of the product
(c) Customers
(d) Competitors

Question. Tea is mainly produced in Assam; Cotton in Gujarat and Maharashtra; Jute in west Bengal and Orissa; Sugar in U.P, Bihar and Maharashtr(a) 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. Which of the following cannot be classified as an auxiliary to trade?
(a) Transport
(b) Insurance
(c) Mining
(d) Warehousing

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. 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

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

Question. Which of the following cannot be classified as an auxiliary to trade?
(a) Mining
(b) Insurance
(c) Warehousing
(d) Transport

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

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

Question. _______ is the sum total of all those processes which are engaged in the removal of hindrance of person, place or time.
(a) Commerce
(b) Industry
(c) Business
(d) Retail

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

Question. Which of the following cannot be classified as an auxiliary to trade? C
(a) Transport
(b) Insurance
(c) Mining
(d) Warehousing

Question. In business, why it is essential to make a profit?
(a) It provides a return to investors.
(b) It provides funds for future extension
(c) It increases the reputation of a company
(d) All the above

Question. The partnership entity is __________.
(a) legal entity
(b) legal entity and accountable entity
(c) neither entity nor accountable entity
(d) group of individuals without legal status

Question. Liability of partners in respect of the firms debts is _______.
(a) limited up to the amount of his capital in the business
(b) Unlimited
(c) limited up to the amount of guarantee given by the partner
(d) limited up the amount of his capital and loan to the firm if any

Question. Name the type of manufacturing industry in which basic raw material is broken into different parts to produce finished goods.
(a) Analytical
(b) Synthetic
(c) Processing
(d) Assembly

Question. To what category of industries can sugar mill or oil refinery be put?
(a) Primary
(b) Secondary
(c) Tertiary
(d) None Of The Above

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. A certain percentage of the sum assured is paid periodically according to the terms of policy is known as ________ .
(a) Term policy
(b) Endowment policy
(c) Money-Back Policy
(d). Group insurance policy

Question. Soaps are included under which type of industry
(a) Synthetical Industry.
(b) Analytical Industry.
(c) Processing Industry.
(d) Assembling Industry.

Question. The possibilities of inadequate profits or even losses due to uncertainties are known as ____________
(a) Business contingencies
(b) Business risks
(c) Business ventures
(d) None of these

Question. Changes in market conditions, changes in price or changes in fashion and tastes of  customers refers to which type of risk?
(a) Pure risk.
(b) High Risk.
(c) Low Risk.
(d) Speculative Risk.

Question. In which economic activity rendering of personalized expert service is required .
(a) Profession 
(b) Business
(c) Employment
(d) Trade

Question. An industry which is concerned with the nature of various material to form single product.
(a) Analytical Industry
(b) Assembling Industry
(c) Synthetically industry 
(d) Primary Industry

Question. Which among the following is not a characteristic of a business activity:
(a) Production or procurement of goods and services.
(b) Sale or exchange of goods and services.
(c) Donation of a percentage of profit for charity.
(d) Uncertainty of returns.

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

Question. Patliputra was popularly known as commercial centre for……….
(a) Export of stones,
(b) Import of Horses,
(c) Centre of learning,
(d) Centre of Textiles.

Question. An industry which is concerned with breeding , reproduction and multiplication of species.
(a) Analytical Industry
(b) Genetic Industry
(c) Process Industry 
(d) Tertiary Industry 

Question. How many crops were raised by ancient people in a year?
(a) One to two,
(b) Four to five,
(c) three to four,
(d) two to three.

Question. How many types of risk does a business enterprise get exposed to :
(a) One.
(b) Two
(c) Three
(d) Four

Question. No business can survive without enough amount of funds.Banks are providing financial assistance to the businesses to overcome one of the following hindrance of trade.
(a) hindrance of place
(b) hindrance of time
(c) hindrance of finance
(d) hindrance of information

Fill in the blanks:

Question. Auxiliaries to trade are helpful in the removal of _________ in the process of exchange.  

Question. In which economics activity salary is reward or return _________. 

Question. The type of manufacturing industry which analyses and separate different elements from the same materials is _________ . 

Question. The maritime routes linked the east and the west by Sea and were used for the trade of spices is known as _________ . 

Question. Pure risk involve only the possibility of _________ or no loss. 

True / False:

Question. Documents such as Hundi and Chitti were used for carrying out transactions in which barter system used.

Question. Economic activities are those by which we can earn our livelihood.

Question. Workers performance and attitude determine their contribution towards Productivity and Profitability of any enterprise

Question. If goods are produced even for personal consumption, it can be called a business activity.

Question. Initially, Europeans come to punder but soon they realised the rewards of trade in exchange of gold and silver.

Match the following:  

Question.

A	B
1. Which objective of business need managers to conduct and co-ordinate business activity .	(a) Business
2. No business enterprise can flourish in a competitive environment without	(b) Profession
3. In which economic activity of goods and service are sold	(c) Innovation
4. Fee is reward for which economic activity	(d) Manager performance

Question.

A	B
1. For which economic activity salary is a reward	(a) Profit
2. Position of an enterprise in relation to its competitor are called	(b) Innovation
3. The excess of revenue over cost	(c) Marketing Standing
4. Introduction of new idea or method in a way some thing done or made is called	(d) Employment

Question.

A	B
1. Entrepreneur‟s decision & other legal formalities is needed in	(a) Business
2. In which economic activity no capital I required	(b) Employment

Question.

A	B
1. In which objective of business ascertained by comparing the value of input	(a) Earning Profit
2. In which objective important for its survival & growth	(b) Productivity

Pictorial Questions:

Question. link the image with their economic activity .

Question. link the image with their economic activity .

Question. link the image with their economic activity .

Question. link the image with their economic activity .

One word Answer type Questions :

Question. Why is business considered as an economic activity? 
Ans. Business is considered to be an economic activity because it is undertaken with the object of earning money or livelihood. Activities done out of sympathy, love and affection or for any charitable purpose do not fall under the category of business.

Question. “Business activities are undertaken under conditions of uncertainty.” Which characteristic of business is highlighted in this statement? 
Ans. Element of risk.

Question. Give any two examples of extractive industries
Ans. (a) Mining. (b) Lumbering.

Question. Name that element of business which cannot be avoided by the business units, but can be reduced.
Ans. Risk.

Question. Which economic activity requires minimum academic and other qualifications? 
Ans. Profession.

Question. Is dairying a genetic or an extractive industry? 
Ans. Genetic industry.

Question. Name the type of manufacturing industry in which manufactured parts are brought together to produce a new product? 
Ans. Assembling industry.