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 help in smooth flow of trade but mining does not helps in smooth flow of trade. So, option d is correct option

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:

Wages is not a characteristic of a business activity. The payment of receipt of wages is not a proof of a business activity, so it is not one of the characteristics of business.

QUESTION: 4

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

Solution:

Being Innovative, creation of customer base and profit making are basic business objectives. 

Investment is required to achieve the other options, but not an objective.

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, for example- doctor, engineer, teacher, advocate etc.are different professions.

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:

“Business is a human activity directed towards producing or acquiring wealth through buying and selling goods”.Sale or Exchange of Goods and Services, directly or indirectly, business involves transfer of exchange of goods and services for value.

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.