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

Please refer to MCQ Questions Chapter 1 Business Trade and Commerce Class 11 Business Studies with answers provided below. These multiple-choice questions have been developed based on the latest NCERT book for class 11 Business Studies issued for the current academic year. We have provided MCQ Questions for Class 11 Business Studies for all chapters on our website. Students should learn the objective based questions for Chapter 1 Business Trade and Commerce in Class 11 Business Studies provided below to get more marks in exams.

Chapter 1 Business Trade and Commerce MCQ Questions

Please refer to the following Chapter 1 Business Trade and Commerce MCQ Questions Class 11 Business Studies with solutions for all important topics in the chapter.

MCQ Questions Answers for Chapter 1 Business Trade and Commerce Class 11 Business Studies

Question. Which of the following is an example of a company incorporated by a special act of parliament?
(a) Delhi cloth and general mills ltd
(b) Tata iron and steel Co Ltd
(c) Industrial Finance Corporation of India Ltd
(d) Swadesh Cotton Mills Ltd

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 following companies may issue share warrants?
(a) Companies limited by guarantee
(b) Private limited companies
(c) Public limited companies
(d) Trust

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. ‘Earning of profit is considered to be the subsidiary objective of the business.’ The given statement is
(a) True
(b) false
(c) cannot say
(d) None

Question. Which has the large scope :
(a) Trade
(b) Commerce
(c) Industry
(d) Business

Question. Capital is not an essential element in :
(a) Employment
(b) Profession
(c) Business
(d) None of these

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

Question. Free Guidance by a teacher to his son is :
(a) An economic activity
(b) Profession
(c) Employment
(d) A non-economic activity

Question. 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

Question. Which of the following methods is not used for raising capital through the sale of new securities?
(a) By issue of prospectus
(b) Rights issue
(c) Stock exchange placing
(d) Private placing

Question. Transfer of interest exists in the case of
(a) Profession
(b) employment
(c) business
(d) none of these

Question. Which of the following broad categories of industries covers oil refinery and sugar mills ?
(a) Primary industries
(b) Secondary industries
(c) Commercial industries 
(d) Tertiary industries 

Question. Business Risk generated out of carelessness or negligence of employees would emerge due to which of the following cause:
(a) Natural cause.
(b) Human Cause.
(c) Economic cause
(d) Other cause.

Question. Due to which characteristic of business there is always a possibility of losses being incurred, despite the best efforts put into the business:
(a) Uncertainty of returns
(b) Production or procurement of goods and services .
(c) Economic activity
(d) Profit earning.

Question. The main objective of business is
(a) Manager Performance
(b) Earning Profit
(c) Social Responsibility
(d) innovation

Question. Due to which characteristic of business there is always a possibility of losses being incurred, despite the best efforts put into the business:
(a) Uncertainty of returns
(b) Production or procurement of goods and services .
(c) Economic activity
(d) Profit earning.

Question. There is a time gap between production and consumption of goods therefore warehousing is required which overcomes the problem of..
(a) Funds
(b) Storage
(c) Time
(d) place

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. In which economic activity capital is not required
(a) Business 
(b) Employment
(c) Profession
(d) Trade 

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 transfer of interest is not possible
(a)Trade 
(b) Employment
(c) Business 
(d) Industry 

Fill in the blanks:

Question. No business can survive for long without _________. 

Question. Pepper was particularly valued in the Roman Empire and was known as _________ . 

Question. The reward for taking risk is _________. 

Question. The term used for activities in which mechanical appliances and technical skills are involved is _________ . 

Question. Documents such as _________ and_________ were in use for carrying out the transactions in ancient times. 

True / False:

Question. Risk can be minimized but cannot be eliminated.

Question. Industry may be divided into broad categories namely analytical synthetical and processing industry

Question. Human causes include such unexpected events like flood, famine, earthquake etc.

Question. Inraprastha was the social junction on the royal road where most routes leading to the east, west, south and north converged.

Question. Engineering and architectural skills are as import part in construction industries

Match the following:  

Question. Example of manufacturing industry

A	B
1. Analytical industry	(a) Cement
2. Synthetically industry	(b) Television
3. Processing industry	(c) Oil refinery
4. Assembling industry	(d) Sugar

Question. Classification of secondary industry

A	B
1. These industries are engaged in productive goods	(a) Construction industry
2. These industries are involved in the construction of dams , bridge	(b) Analytical industry
	(c) Synthetically industry
	(d) Manufacturing

Question.

A	B
1. Reproduction and development of living organism, plants	(a) Secondary
2. Concerned with the extraction and productive of natural resources	(b) Extraction
	(c) Manufacturing
	(d) Genetic

Question.

A	B
1. Define in concrete term what the business is going to do achieve	(a) Social responsibility
2. Obligation of business firms to contributed resources for solving social problem	(b) Objective

Pictorial Questions:

Question. Identify the type of manufacturing industry shown in the image given below:

Question. Identify the major category of industry shown below:

Question. Which primary industry is depicting in the picture:

Question. Which type of secondary industry is shown below:

One word Answer type Questions :

Question. What is meant by Hundi? 
Ans. A Hundi is a financial instrument that developed in Medieval India in order to facilitate trade and credit transactions.

Question. Name the risk which involves both the possibility of loss as well as the possibility of profit. 
Ans. Speculative risk.

Question. XYZ Ltd. is planting trees every month on the road side. Name the objective it is trying to accomplish? 
Ans. It is trying to achieve ‘Social objective’.

Question. Aarushi cooks food at home for her family but Kshitij cooks food and sells it to others in a restaurant. Who is engaged in business activity? 
Ans. Kshitij is engaged in business activity.

Question. Give two examples of economic activities. 
Ans. (a) A doctor operating in her clinic. (b) A worker working in a factory.

Question. Name the professional body whose guidelines or code of conduct are to be followed by lawyers.
Ans. Bar Council of India.

Question. Mention two types of primary industries. 
Ans. (a) Extractive industries. (b) Genetic industries.

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