Please refer to Business Trade and Commerce Class 11 Business Studies Important Questions with solutions provided below. These questions and answers have been provided for Class 11 Business Studies based on the latest syllabus and examination guidelines issued by CBSE, NCERT, and KVS. Students should learn these problem solutions as it will help them to gain more marks in examinations. We have provided Important Questions for Class 11 Business Studies for all chapters in your book. These Board exam questions have been designed by expert teachers of Standard 11.
Class 11 Business Studies Important Questions Business Trade and Commerce
Very Short Answer Type Questions
Question. Give an example of activity which is economic in one side and noneconomic on other side.
State different type of economic activities
Name the economic activity in which specialized knowledge is required.
Answer : Example of economic activity is Cricket Academy and non-economic on the other side is coaching his own son for cricket
Different type of economic activities are Business, Profession and Employment
Profession is the economic activity in which specialized knowledge is required
Question. Why is the insurance known as a tertiary industry?
Which industries provide support services to other industries?
Answer : Insurance is support service to the primary and secondary services.
Tertiary industries are concerned with providing support services to primary and secondary industries as well as activities relating to trade. These industries provide service facilities.
Hence insurance is known as Tertiary industry
Question. Categories the following into business, profession and employment.
(i) A farmer
(ii) An advocate
(iii) A clerk
(iv) A hawker selling toys for children
(v) A doctor
(vi) A person working in scooter repair shop on roadside
(i) A Farmer-Business
(ii) An advocate- Profession
(iii) A clerk- Employment
(iv) A hawker selling toys for children-Business
(v) A doctor- Profession
(vi) A person working in scooter repair shop on roadside- Employment
Question. What reward does the businessman get for bearing risks?
Answer : Businessman undertakes risk in business activities because of the reward of earning profit
Short /Long Answer Type Questions :
Question. Rajagopalan is running a take away fast food joint in Assam under the name ‘Taste of Assam’. Recently, when his cousin Devidayal organised a party at his place he had placed an order for food at ‘Taste of Assam’ worth ₹ 7,500. However, Rajagopalan decided not to take the money from Devidayal because of his love and affection for him.
(i) Will this activity related to the supply of food from Rajagopalan’s restaurant to Devidayal be classified as a business activity? Why or why not?
(ii) State the feature of business reflected above.
Ans. (i) No. This activity related to the supply of food from Rajagopalan’s restaurant to Devidayal will not be classified as a business activity because it was undertaken out of love and
affection and does not involve transfer or exchange of goods and services for value.
(ii) Sale or exchange of goods or services.
Question. “An activity can be an economic activity in one situation and non-economic in another situation.”
Do you agree? Give an example to justify the given statement.
Ans. Yes, I agree with the given statement. For example, if a doctor treats her patients at the clinic, then it is an economic activity as the doctor gets fees for that. However, if the doctor treats her daughter at home, then it is non-economic activity.
Question. Identify the different auxiliaries to trade highlighted in the following statements:
(a) Jute bags produced in Kolkata are sold across India.
(b) Companies send all original documents related to sale or purchase transaction through courier or speed post.
(c) The Central Warehousing Corporation provides safe and reliable storage facilities for about 120 agricultural and industrial commodities.
(d) Manufacture or traders provide information about their product to the customer through radio.
Ans. (a) Transport. (b) Communication.
(c) Warehousing. (d) Advertising.
Question. ‘Only sale or exchange of goods/services for profit is business.’ Do you agree with the statement?
Give reason in support of your answer.
Ans. No, we do not agree with the given statement because business involves dealings in goods or services on a regular basis. One single transaction of purchase or sale does not constitute business. For example, the sale of one’s old motorcycle even at a profit is not business.
Question. Jasbir is farmer. His younger brother Ajeet is a Company Secretary while his sister Geeta is a nurse in a hospital. Name the economic activities in which they are engaged and differentiate among them on the basis of :
(a) Nature of work. (b) Transfer of Interest.
(c) Risk Element.
Ans. Jasbir is engaged in business, Ajeet is engaged in Profession and Geeta is engaged in employment.
Question. Mr. Liyaquat Ali Khan runs a departmental store in Bhopal. He procures different kinds of products from all over India through railways, roadways and airways. He also owns a godown to hold the stocks. He has also taken an insurance policy worth ₹ 15 crores for his business. Moreover, he has taken a loan of ₹ 3,00,000 from Axis Bank in order to meet short-term financial needs of his business. He has placed information about his store on the hoardings, bill boards, etc. in order to popularise them.
(i) Define auxiliaries to trade.
(ii) Identify the different auxiliaries to trade that are being used by Mr. Liyaquat in his business by quoting the lines.
Ans. (i) Activities that help in the smooth flow of trade are called auxiliaries to trade.
(ii) The different auxiliaries to trade that are being used by Mr. Liyaquat in his business are :
(a) Transport — “He procures ……. railways, roadways and airways.”
(b) Warehousing — “He also owns ….. the stocks.”
(c) Insurance — “He has also taken an insurance policy …. ₹ 15 crores for his business.”
(d) Banking and Finance — “Moreover, he has taken a loan of ₹ 3,00,000….. financial needs of his business.”
(e) Advertising — “He has placed information….. to popularise them.”