Class 11 Business Studies Chapter 1 Nature and Purpose Of Business MCQ Questions with Answer

Nature and Purpose Of Business Class 11 MCQ is one of the best strategies to prepare for the CBSE Class 11 Board exam. If you want to complete a grasp concept or work on one’s score, there is no method except constant practice. Students can improve their speed and accuracy by doing more Nature and Purpose Of Business class 11 MCQ which will help them all through their board test.

Nature and Purpose Of Business Class 11 MCQ Questions with Answer

Class 11 Business Studies MCQ with answers are given here to Chapter 1 Nature and Purpose Of Business . These MCQs are based on the latest CBSE board syllabus and relate to the latest Class 11 Business Studies syllabus. By Solving these Class 11 MCQs, you will be able to analyze all of the concepts quickly in the Chapter and get ready for the Class 11 Annual exam.

Learn Nature and Purpose Of Business Class 11 MCQ with answers pdf free download according to the latest CBSE and NCERT syllabus. Students should prepare for the examination by solving CBSE Class 11 Nature and Purpose Of Business MCQ with answers given below.

Question 1: A business firm in India buy toys from China to sell it to Nepal. Identify the type of trading activity mentioned above?

• a) Entreport
• b) Export
• c) Import
• d) Retail trade

Answer: Entreport

Question 2: Code of conduct DOES NOT include

• a) Dishonesty
• b) Rules
• c) Morality
• d) Integrity

Answer: Dishonesty

Question 3: Which of the following creates form utility?

• a) Industry
• b) Trade
• c) Commerce
• d) Business

Answer: Industry

Question 4: Risk is the result of

• a) Uncertainties
• b) None of the options
• c) Both of the above
• d) Certainties

Answer: Uncertainties

Question 5: Commerce includes

• a) Trade and aids to trade
• b) Business and industry
• c) Business and Trade
• d) None of the options

Question 6: Name the auxiliary to trade which removes the hindrance of time

• a) Warehousing
• b) Trade
• c) Transportation.
• d) Banking

Answer: Warehousing

Question 7: Soaps are included under which type of industry

• a) Synthetical Industry.
• b) Analytical Industry.
• c) Processing Industry.
• d) Assembling Industry.

Answer: Synthetical Industry.

Question 8: The economic activity in which specialized knowledge is required is

• a) Profession
• b) Business
• c) Employment
• d) None of the options

Answer: Profession

Question 9: Everest Textile Ltd is involved in manufacturing textile products. In which industry is the company involved?

• a) Processing industry.
• b) Analytical industry
• c) Synthetic industry
• d) Extractive industry

Answer: Processing industry.

Question 10: The industries which provides support services to other industries are known as

• a) Tertiary
• b) Secondary
• c) Manufacturing
• d) Primary

Question 11: Which one of the following is NOT the objective of the business?

• a) Investment
• b) Innovation.
• c) Creation of customers.
• d) Profit making

Answer: Investment

Question 12: What reward an entrepreneur gets for risk bearing in business?

• a) Profit
• b) Fees
• c) Salary
• d) Interest

Answer: Profit

Question 13: Why a business should earn profit?

• a) All the above.
• b) To increase the reputation of business.
• c) To provide funds for future growth.
• d) To provide return to investors.

Answer: All the above.

Question 14 : 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: Human

Question 15: Which one of the following is NOT a characteristic of business?

• a) Managing Business
• b) Customer satisfaction
• c) Profit Earning
• d) Risk bearing.

Answer: Managing Business

Whoever needs to take the CBSE Class 11 Board Exam should look at this MCQ. To the Students who will show up in CBSE Class 11 Business Studies Board Exams, It is suggested to practice more and more questions. Aside from the sample paper you more likely had solved. These Nature and Purpose Of Business Class 11 MCQ are ready by the subject specialists themselves.

Question 16: 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 options

Answer: Profession

Question 17 : Which one of the following is NOT an Auxiliary to trade?

• a) Mining
• b) Warehousing
• c) Insurance
• d) Transport

Answer: Mining

Question 18 : Name the activity of commerce that removes the hindrance of time.

• a) Warehousing
• b) Advertising
• c) Transportation
• d) Banking

Answer: Warehousing

Question 19 : The latest generation of mobile phones has many features like faster internet browsing, Bluetooth etc. This is an example which objective of business?

• a) Innovation
• b) Earning profits
• c) Market standing
• d) Productivity

Answer: Innovation

Question 20 : Business =

• a) Industry + Commerce
• b) Industry + Trade
• c) Trade + Aids to Trade
• d) Trade + Commerce

Question 21 : Transfer of interest exists in the case of

• a) Business
• b) None of these
• c) Employment
• d) Profession

Answer: Business

Question 22 : 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

Answer: Loss is the reward for risk bearing

Question 23 : Earning of profit is considered to be the subsidiary objective of the business.The given statement is

• a) FALSE
• b) TRUE
• c) Cannot say
• d) None of these

Answer: FALSE

Question 24 : Commerce includes activities relating to trade and _________________ to trade.

• a) Auxiliaries
• b) Subsidiaries
• c) Supporting
• d) None of these

Answer: Auxiliaries

Question 25 : Name the two broad categories of business activities.

• a) Industry and commerce
• b) Trade and industry
• c) Trade and commerce
• d) None of these

Question 26 : 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: Routine workload

Question 27 : The possibilities of inadequate profits or even losses due to uncertainties are known as

• a) Business risks
• b) Business contingencies
• c) Business ventures
• d) None of these

Answer: Business risks

Question 28 : Which one of the following economic activity is directed towards producing or acquiring wealth through buying and selling of goods?

• a) Business.
• b) Profession
• c) Employment
• d) Management

Answer: Business.

Question 29 : Match the following type industries in Column 1 and Column 2

	Column 1		Column 2
I	Genetic industry	A	Packaging
II	Processing	B	Cement
III	Synthetical	C	Sugar mills
IV	Tertiary	D	Animal Husbandry

• a) I-D; II-C; III-B ; IV-A
• b) I- A; II-B; C-III; D-IV
• c) I-B; II-C; III-D; IV-A
• d) I-C; II-D;III-A; IV-B

Answer: I-D; II-C; III-B ; IV-A

Question 30 : Economic activities may be classified into business, ___________ and employment

• a) Profession
• b) Vocation
• c) Occupation
• d) Work

Answer: Profession

Question 31 : Which of the following is not an example of non-economic activity

• a) Teaching
• b) Sentiment
• c) Patriotism
• d) Sympathy

Answer: Teaching

Question 32 : Human activities are of ____________ types

• a) Two
• b) One
• c) Three
• d) Four

Answer: Two

You can easily get good marks If you study with the help of Class 11 Nature and Purpose Of Business MCQ. We trust that information provided is useful for you. NCERT MCQ Questions for Class 11 Nature and Purpose Of Business PDF Free Download would without a doubt create positive results. 

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