Test: Nature And Purpose Of Business - 2


20 Questions MCQ Test Business Studies (BST) Class 11 | Test: Nature And Purpose Of Business - 2


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This mock test of Test: Nature And Purpose Of Business - 2 for Commerce helps you for every Commerce entrance exam. This contains 20 Multiple Choice Questions for Commerce Test: Nature And Purpose Of Business - 2 (mcq) to study with solutions a complete question bank. The solved questions answers in this Test: Nature And Purpose Of Business - 2 quiz give you a good mix of easy questions and tough questions. Commerce students definitely take this Test: Nature And Purpose Of Business - 2 exercise for a better result in the exam. You can find other Test: Nature And Purpose Of Business - 2 extra questions, long questions & short questions for Commerce on EduRev as well by searching above.
QUESTION: 1

Which one of the following may not be a factor behind starting a business?

Solution:

Options B, C and D are the factors behind starting a business.

QUESTION: 2

Which of the following is an economic activity?

Solution:

Profession is an economic activity as it performed with the motive of earning money.

QUESTION: 3

Which of the following is not a characteristic of business?

Solution:

An activity can be considered as business, if it involves production, exchanged and distribution of goods and services with some economic objectives. Non-economic activities e.g., charitable or religious, etc., are not considered business.

QUESTION: 4

Which of the following is not concerned with profession?

Solution:

In Profession a person has to acquire a specialised body of knowledge and skill and has to follow a code of conduct and must have a formal training of the particular activity.
In a profession a person provides services but does not manufacture any good. 
E.g. Doctor, CA,  Teacher etc. they do not manufacture any goods.

QUESTION: 5

_______________ is an economic activity

Solution:

It is true that employment is an economic activity which is carried out with the main objective of earning profits. Any work which results in the profit in its result is known as economic activity. Here by doing job he is generating profit . Therefore it an economic activity

QUESTION: 6

Which of the following was not cited as a reason for starting a new business?

Solution:

A person does not start a business to fill his leisure time. There is always a valid and a strong reason to start a business. A person doesn’t start a business because he is free.

QUESTION: 7

Which of the following is not a natural cause of business risks?

Solution:

Strikes are not considered natural cause of business risk because nature is not involved with them but earthquake, rains, famine are all natural phenomenon.

QUESTION: 8

Which of the following is a human cause of business risks?

Solution:

Business risk is the possibility a company will have lower than anticipated profits or experience a loss rather than taking a profit. Business risk is influenced by numerous factors, including sales volume, per-unit price, input costs, competition, the overall economic climate and government regulations.

QUESTION: 9

Which of the following is an economic cause of business risks?

Solution:

Economic cause of business are those risk which directly reduces the profit earned by a firm so your decrease in demand ,increase in competition and price decrease profit

QUESTION: 10

The term ___________ refers to the possibility of inadequate profits or even losses due to uncertainties or unexpected events.

Solution:

Business risk means any kind of external or internal force which could affect the company’s or organizations’ profits or Loss.

QUESTION: 11

The word marketing standing is concerned with ___________

Solution:

The percentage of the total sales of a product in a particular market that a business stands in, is known as the market standing or the market share for that company. This shows the position of the business in the market by calculating their coverage in the market

QUESTION: 12

Trade is an essential part of commerce. It refers to _____________

Solution:

Trade is an essential part of commerce. It refers to sale, transfer or exchange of goods. As trade refers to buying and selling of goods and services with the aim of earning profits.

QUESTION: 13

Usually, goods are not sold or consumed immediately after production. They are held in stock to make them available as and when required. For this purpose _______ is important.

Solution:

Warehousing is important for this. A warehouse is a place used for the storage or accumulation of goods. It may also be defined as an establishment that assumes responsibility for the safe custody of goods. Warehousing or storage refers to the holding and preservation of goods until they are dispatched to the consumers.

QUESTION: 14

Business involves various types of risks. To protect a business against these risks _____ is required.

Solution:
QUESTION: 15

________ is one of the most important methods of promoting the sale of products.

Solution:
QUESTION: 16

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.

Solution:

Transport and communication are very important for this purpose as communication is requires to know that where the products are to be delivered and transport is important to deliver the product.

QUESTION: 17

Activities which are meant for assisting trade are known as __________

Solution:

Activities which are meant for assisting trade are known as auxiliaries to trade. These do not comprise of mining as it is not a support service for trade.

QUESTION: 18

Commerce provides the necessary link between _____________

Solution:

Commerce is the chain of wholesalers and retailers and through this chain a link is made between the producers and consumers. They help us in providing necessary goods and services.

QUESTION: 19

Commerce includes two types of activities _______________

Solution:
QUESTION: 20

 Name the two broad categories of business activities.

Solution:

The two broad categories of business activities are industry and commerce.