Students of class 11 Business Studies should refer to MCQ Questions Class 11 Business Studies Business Trade and Commerce with answers provided here which is an important chapter in Class 11 Business Studies NCERT textbook. These MCQ for Class 11 Business Studies with Answers have been prepared based on the latest CBSE and NCERT syllabus and examination guidelines for Class 11 Business Studies. The following MCQs can help you to practice and get better marks in the upcoming class 11 Business Studies examination

Chapter 1 Business Trade and Commerce MCQ with Answers Class 11 Business Studies

MCQ Questions Class 11 Business Studies Business Trade and Commerce provided below have been prepared by expert teachers of grade 11. These objective questions with solutions are expected to come in the upcoming Standard 11 examinations. Learn the below provided MCQ questions to get better marks in examinations.

Question. 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 above

Question. Bad debts due to non-payment of debt by the debtor are an example of which type of business risk?
(a) Human
(b) Natural
(c) Physical
(d) Economic

Question. Business risk is not likely to arise due to
(a) Power failure
(b) Employee dishonesty
(c) Changes in government policy
(d) Good management

Question. Why a business should earn a profit?
(a) To provide a return to investors
(b) To increase the reputation of the business
(c) To provide funds for future growth
(d) All of the above

Question. Which of the following is not a natural cause of business risks?
(a) Earthquake
(b) Strikes
(c) Famine
(d) Heavy Rains

Question. Which of the broad categories of industries covers oil refinery and sugar mills?
(a) Primary
(b) Secondary
(c) Tertiary
(d) None of the above

Question. The occupation in which people work for others and get remunerated in return is known as:
(a) Profession
(b) Employment
(c) Business
(d) None of the above

Question. 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 above

Question. Which of the following is an economic activity?
(a) Social Activities
(b) Patriotic Activities
(c) Profession
(d) Religious Activities

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

Question. Tea is mainly produced in Assam; Cotton in Gujarat and Maharashtra; Jute in West Bengal and Orissa; Sugar in U.P, Bihar, and Maharashtra. But these goods are required for consumption in different parts of the country. For this purpose ________ is very important.
(a) Banking and Finance
(b) Advertising
(c) Insurance
(d) Transport and Communication

Question. The industries which provide support services to other industries are known as :
(a) Primary industries
(b) Secondary industries
(c) Commercial industries
(d) Tertiary industries.

Question. Which of the following cannot be classified as an auxiliary to trade :
(a) Mining
(b) Insurance
(c) Warehousing
(d) Transport.

Question. Specialized knowledge and skill is needed in :
(a) Employment
(b) Non-Economic activity
(c) Profession
(d) None of these.

Question. It is not included in code of conduct:
(a) Rules
(b) Dishonesty
(c) Integrity
(d) Morality

Question. The occupation in which people work for others and get remunerated in return is known as :
(a) Business
(b) Employment
(c) Profession
(d) None of them.

Question. If a person want complete confidentiality in his business and want no interference of any other person then suitable form is
(a) Sole Proprietorship
(b) Partnership
(c) Joint Hindu Family
(d) Coopperative Society

Question. Which of the following is an extractive industry?
(a) Cattle breeding
(b) Forest cultivation
(c) Hunting.
(d) Flour mills

Question. A valid definition of a business purpose is to ______.
(a) Create a customer
(b) Maximize profits
(c) Serve the society
(d) Increase the wealth of the firm

Question. Who is dormant partner?
(a) One who takes no active part in business
(b) A working partner
(c) Partner for profits
(d) Minor partner

Question. A private company should have at least _________ members.
(a) 2
(b) 7
(c) 10
(d) 50

Question. Which of the following is the characteristic of a business?
(a) Production
(b) Exchange or sale
(c) Risk element
(d) All the above

Question. Which of the following is an instrument of exchange, which was prominent in the subcontinent?
(a) Copper
(b) Hundi
(c) Gold
(d) Silver

Question. An association of 25 people not registered under the companies act, but carrying on business, is a/an _________.
(a) partnership
(b) private company
(c) public company
(d) illegal association

One word Answer type Questions :

Question. Name the business activity which is concerned with holding goods in stock for sale in future. 
Ans. Warehousing.

Question. Give two examples of tertiary industries. 
Ans. (a) Banking. (b) Transportation.

Question. Name the business activity which involves movement of goods from the place of production to the place of consumption. 
Ans. Transportation.

Question. Name the business activity which is concerned with conversion of resources into useful products.
Ans. Industry.

Question. Name the auxiliary to trade which removes the hindrance of knowledge. 
Ans. Advertising.

Question. Name the economic activity in which transfer of interest is possible. 
Ans. Business.

Question. Devesh is planning to set up a factory for manufacturing ready-made garments. List any two risks that he might face. 
Ans. (a) Change in government policies. (b) Change in demand.

Question. What is the primary objective of business?
Ans. Profit earning.

We hope the above multiple choice questions for Class 11 Business Studies for Chapter 1 Business Trade and Commerce provided above with answers based on the latest syllabus and examination guidelines issued by CBSE, NCERT and KVS are really useful for you. Business Trade and Commerce is an important chapter in Class 11 as it provides very strong understanding about this topic. Students should go through the answers provided for the MCQs after they have themselves solved the questions. All MCQs have been provided with four options for the students to solve. These questions are really useful for benefit of class 11 students. Please go through these and let us know if you have any feedback in the comments section.