Test: Nature & Significance Of Management - 1


10 Questions MCQ Test Business Studies (BST) Class 11 | Test: Nature & Significance Of Management - 1


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This mock test of Test: Nature & Significance Of Management - 1 for Commerce helps you for every Commerce entrance exam. This contains 10 Multiple Choice Questions for Commerce Test: Nature & Significance Of Management - 1 (mcq) to study with solutions a complete question bank. The solved questions answers in this Test: Nature & Significance Of Management - 1 quiz give you a good mix of easy questions and tough questions. Commerce students definitely take this Test: Nature & Significance Of Management - 1 exercise for a better result in the exam. You can find other Test: Nature & Significance Of Management - 1 extra questions, long questions & short questions for Commerce on EduRev as well by searching above.
QUESTION: 1

Which one of the following is NOT an Auxiliary to trade? 

Solution:

Auxiliary to trade helps in smooth flow of trade. Insurance, warehouses and transport helps in smooth flow of trade but mining does not helps in smooth flow of trade.

QUESTION: 2

Name the activity of commerce that removes the hindrance of time.

Solution:

Warehousing activities remove hindrance of time by facilitating holding of stocks of goods to be sold when required.

QUESTION: 3

Which of the following is not a characteristic of a business activity?

Solution:

Business activity is an activity which is an engaged in primary purpose of making a profit, salary and wages are expenses to a business. Hence it is not a primary business activity. 

QUESTION: 4

Which one of the following is NOT the objective of the business?

Solution:

Investment is an input as it has to be made to start and run a business.

QUESTION: 5

What reward does an entrepreneur get for risk bearing in business?

Solution:

Profit is an exclusive reward for the entrepreneur, for making business decisions under unpredictable and uncertain economic conditions. In short, Knight theory implies that uninsurable risks are uncertainty of a business and profit is the reward for uncertainty bearing.

QUESTION: 6

Which one of the following is an economic activity in which specialized knowledge is required?

Solution:

Profession requires specialized knowledge as an economic activity. Examples can be teacher, doctor, advocate and many more.

QUESTION: 7

Why should a business earn profit?

Solution:

Profit is a requirement for business because it helps in the development of the company positions in the market. Given that most firms and entrepreneurs invest in order to make a return, the profit earned by a business can be used to measure the success of that investment.

QUESTION: 8

Which one of the following economic activity is directed towards producing or acquiring wealth through buying and selling of goods?

Solution:

Profession is concerned with rendering services Employment is concerned with working for others and getting rewarded with salary or wages. Management is concerned with achieving the described goals.

QUESTION: 9

Bad debts due to non-payment of debt by debtor are an example of which type of business risk?

Solution:

Debtors are humans and when they convert into bad debts i.e they are not in position to pay back to the business entrepeneurs, it causes loss to the firm.

QUESTION: 10

The latest generation of mobile phones has many features like faster internet browsing, Bluetooth etc. This is an example of which objective of business?

Solution:

Innovative business can gain much profit easily . And new generation likes to purchase new and latest technology product. So innovation is usually considered the objective of a business that wants to earn profit.