CBSE CLASS XI: BUSINESS STUDIES
CHAPTER 1: NATURE & PURPOSE OF BUSINESS

Answer the following objective type questions:

Instructions: Choose the correct alternative out of the given 3 or 4 options.


1. 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
Ans: 2

2. 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
Ans:1

3. Name the two broad categories of business activities.
(a) Trade and commerce
(b) trade and industry
(c) industry and commerce
(d) none of these
Ans:3

4. Commerce includes activities relating to trade and _________________ to trade.
(a) Supporting
(b) subsidiaries
(c) auxiliaries
(d) none of these
Ans:3

5. 'Earning of profit is considered to be the subsidiary objective of the business.' The given statement is
(a) True
(b) false
(c) cannot say
Ans:2

6. 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
Ans:1

7. Transfer of interest exists in the case of
(a) Profession
(b) employment
(c) business
(d) none of these
Ans:3

8. Human activities are of ____________ types
(a) One
(b) two
(c) three
(d) four
Ans:2

9. Which of the following is not an example of non-economic activity?
(a) Patriotism
(b) teaching
(c) sentiment
(d) sympathy
Ans:2

10. Economic activities may be classified into business, ___________ and employment
(a) Profession
(b) occupation
(c) vocation
(d) work
Ans:1