This quiz works best with JavaScript enabled. Home > Cbse > Class 11 > Commerce > Business Studies > Class 11 Business Studies Chapter 1 Business, Trade And Commerce – Quiz 1 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 11 Business Studies Chapter 1 Business, Trade And Commerce Quiz 1 (60 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Earning profits cannot be the only objective of business. A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: A) True. 2. The reward of risk is: A) Loss. B) Failure. C) Success. D) Profit. Show Answer Correct Answer: D) Profit. 3. Which of the following is a type of risk in business? A) Emotional risk. B) Cultural risk. C) Social risk. D) Natural risk. Show Answer Correct Answer: D) Natural risk. 4. Which of the following is NOT a characteristic of business? A) Profit earning. B) Regular dealings. C) Emotional satisfaction. D) Economic activity. Show Answer Correct Answer: C) Emotional satisfaction. 5. The chance of strike by the workers of factory is an example of A) Speculative Risk. B) Pure Risk. C) No Risk. D) None of the above. Show Answer Correct Answer: B) Pure Risk. 6. What is the primary function of banking in commerce? A) To manage human resources. B) To offer financial assistance. C) To facilitate transportation. D) To provide insurance. Show Answer Correct Answer: B) To offer financial assistance. 7. Lower the risk involved in business, ..... is the chance of profit. A) Lower. B) More. C) Higher. D) Less. Show Answer Correct Answer: A) Lower. 8. What is the primary focus of strategic thinking in business? A) Basic procedures. B) Routine tasks. C) Simple recall of facts. D) Reasoning and planning. Show Answer Correct Answer: D) Reasoning and planning. 9. What is the main purpose of advertising in commerce? A) To increase production. B) To provide financial assistance. C) To inform consumers. D) To regulate prices. Show Answer Correct Answer: C) To inform consumers. 10. Among the following famous travelers who belong to country "MOR0CCO" ? A) FrenchmanFrancois. B) IbnBatuta. C) Al Beruni. D) Faxian (Fa Hien). Show Answer Correct Answer: B) IbnBatuta. 11. Business risk is not likely to arise due to: A) Change in govt, policy. B) Power failure. C) Good management. D) Employee dishonesty. Show Answer Correct Answer: C) Good management. 12. Risk is the result of ..... A) Certainties. B) Uncertainties. C) Both of the above. D) None of the above. Show Answer Correct Answer: B) Uncertainties. 13. Market standing means A) Business standing in market. B) Location of business. C) Position of business. D) Position of business in relation to its competitors. Show Answer Correct Answer: D) Position of business in relation to its competitors. 14. Why does business risk arise? A) Due to natural causes. B) Due to human cause. C) Due to economic causes. D) All of the above. Show Answer Correct Answer: D) All of the above. 15. 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. Show Answer Correct Answer: B) Business risks. 16. Following are the characteristics of business risks. One of then 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. Show Answer Correct Answer: A) Loss is the reward for risk bearing. 17. In which year and date "Make in India" was launched by the Government of India? A) 25 September 2015. B) 15 August 2014. C) 25 September 2014. D) 15 August 2050. Show Answer Correct Answer: C) 25 September 2014. 18. Reward/return for profession is known as A) Profit. B) Salary. C) Can't say. D) Fees. Show Answer Correct Answer: D) Fees. 19. Which of the following Cover sugar mills? A) Primary. B) Secondary. C) Tertiary. D) None of these. Show Answer Correct Answer: B) Secondary. 20. ..... refers to obligation of business firms to contribute resources for solving social problems and work in a socially desirable manner. A) Responsibility. B) Social Work. C) Social Responsibility. D) Sociology. Show Answer Correct Answer: C) Social Responsibility. 21. Ethics are most important in A) Business. B) Profession. C) Employment. D) All of these. Show Answer Correct Answer: B) Profession. 22. Hundi that is payable on order following a fixed term is called ..... A) Jokhmi (Muddati). B) Dhani-jog (Muddati). C) Dhani-jog (Darshani). D) Firman-jog (Muddati). Show Answer Correct Answer: D) Firman-jog (Muddati). 23. Pisciculture comes under which industry? A) Extractive. B) Genetic. C) Constructive. D) Manufacturing. Show Answer Correct Answer: B) Genetic. 24. Two broad categories of business activities are- A) Trade and commerce. B) Trade and auxiliaries to trade. C) Industry and commerce. D) Trade and industry. Show Answer Correct Answer: C) Industry and commerce. 25. What is the role of intermediaries in trade? A) To regulate prices. B) To produce goods. C) To facilitate trade. D) To provide financial security. Show Answer Correct Answer: C) To facilitate trade. 26. 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. Show Answer Correct Answer: D) Salary and wages. 27. What is the significance of profit in business? A) It ensures employee satisfaction. B) It is a source of income. C) It reduces competition. D) It eliminates risks. Show Answer Correct Answer: B) It is a source of income. 28. Oil refinery is an example of ..... A) Primary Industry. B) Secondary Industry. C) Tertiary Industry. D) None of the above. Show Answer Correct Answer: B) Secondary Industry. 29. Commerce = ..... + ..... A) Trade + Auxiliaries to Trade. B) Trade + Industry. C) Business + Trade. D) Industry + Business. Show Answer Correct Answer: A) Trade + Auxiliaries to Trade. 30. Who was Jagat Seths? A) Wool business. B) Financial institution. C) Accountancy of Mughal. D) Intermediaries. Show Answer Correct Answer: B) Financial institution. 31. Human activities are of ..... types A) One. B) Two. C) Four. D) Three. Show Answer Correct Answer: B) Two. 32. ..... provides protection of machinery from possible damage by fire. A) Finance. B) Insurance. C) Banking. D) Warehouse. Show Answer Correct Answer: B) Insurance. 33. Economic Activities = A) Business + Profession + Employment. B) Business + Profession. C) Business + Employment. D) Business + Employment. Show Answer Correct Answer: A) Business + Profession + Employment. 34. The First Five Year Plan was implemented in A) 1952. B) 1947. C) 1948. D) 1950. Show Answer Correct Answer: A) 1952. 35. Which is the economic objective of business out of the following? A) Salary. B) Good working conditions. C) Using eco friendly products. D) Survival. Show Answer Correct Answer: D) Survival. 36. Hindrance of risk is removed by: A) Warehousing. B) Insurance. C) Transport. D) Advertisement. Show Answer Correct Answer: B) Insurance. 37. A teacher helping his/her daughter with school tasks and homework is an example of ..... A) Profession. B) Employment. C) Economic Activity. D) Non-Economic Activity. Show Answer Correct Answer: D) Non-Economic Activity. 38. Which of the following is a common source of business funding? A) All of the above. B) Venture capital. C) Bank loans. D) Personal savings. Show Answer Correct Answer: A) All of the above. 39. What is the primary objective of business? A) To promote social welfare. B) To earn profit. C) To enhance customer satisfaction. D) To provide employment. Show Answer Correct Answer: B) To earn profit. 40. Which of the following is an example of a profession? A) Factory. B) Insurance companies. C) Chartered accountancy. D) Shop. Show Answer Correct Answer: C) Chartered accountancy. 41. It was the capital of the Pandayas who controlled the pearl fisheries of the Gulf of Mannar. It attracted foreign merchants, particularly Romans, for carrying out overseas trade. A) Mathura. B) Amralipti. C) Surat. D) Madura. Show Answer Correct Answer: D) Madura. 42. Business can survive without profit for long. A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: B) False. 43. Wholesale Trade is primarily conducted: A) Directly with retailers or large buyers. B) Between countries. C) Directly with customers. D) Online only. Show Answer Correct Answer: A) Directly with retailers or large buyers. 44. Which of the following is not a type of external trade- A) Retail. B) Export. C) Import. D) Entrepot. Show Answer Correct Answer: A) Retail. 45. Business Risk has less chances of arising due to- A) Negligence of employees. B) Change in policies of the government. C) Lack of electricity. D) Good management. Show Answer Correct Answer: D) Good management. 46. Transportation removes Hindrance of ..... in trading activities. A) Risk. B) Finance. C) Time. D) Place. Show Answer Correct Answer: D) Place. 47. Which of the following is an example of Trade? A) Education. B) Banking services. C) Manufacturing clothes. D) Selling clothes in shop. Show Answer Correct Answer: D) Selling clothes in shop. 48. The occupation in which people work for others and get remunerated in return is known as A) Business. B) Profession. C) Employment. D) None of these. Show Answer Correct Answer: C) Employment. 49. Which of the following factors is NOT considered when starting a business? A) Availability of raw materials. B) Social media presence. C) Location of the business. D) Personal interests of the entrepreneur. Show Answer Correct Answer: B) Social media presence. 50. Fees and wages are same A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: B) False. 51. What is the main purpose of advertising in business? A) To increase production. B) To manage finances. C) To inform consumers. D) To reduce costs. Show Answer Correct Answer: C) To inform consumers. 52. Which of the following is a key factor in determining the success of a business? A) Employee satisfaction. B) Market research. C) Product pricing. D) All of the above. Show Answer Correct Answer: D) All of the above. 53. Which of the following is a type of economic activity? A) Hobbies. B) Employment. C) Household chores. D) Volunteering. Show Answer Correct Answer: B) Employment. 54. What is the significance of innovation in business? A) It helps in scaling up. B) It ensures regular profits. C) It reduces costs. D) It eliminates competition. Show Answer Correct Answer: A) It helps in scaling up. 55. Mohenjodaro werefounded in A) Fourth millennium B.C. B) Third millennium A.D. C) Third millennium B.C. D) Second millennium B.C. Show Answer Correct Answer: C) Third millennium B.C. 56. What does the term 'Hundi' refer to in the context of ancient trade? A) A type of currency. B) A trade route. C) A type of goods. D) A banking instrument. Show Answer Correct Answer: D) A banking instrument. 57. What was known as'Black Gold'? A) Jute. B) Cinnamon. C) Saffron. D) Black Pepper. Show Answer Correct Answer: D) Black Pepper. 58. From which part of India "Chatt" the important business community was belong A) West India. B) North East India. C) South India. D) North India. E) East India. Show Answer Correct Answer: C) South India. 59. In Which state Malabar Coast is situated A) Andhra pradesh. B) Taminladu. C) Karnataka. D) Kerala. Show Answer Correct Answer: D) Kerala. 60. Which of these is an example of entreport trade A) A local vegetable shop. B) A school selling books to students. C) A factory producing shoes. D) Mumbai port trading goods from other countries to neighbouring countries. Show Answer Correct Answer: D) Mumbai port trading goods from other countries to neighbouring countries. 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