Test: Nature & Significance Of Management - 3


10 Questions MCQ Test Business Studies (BST) Class 11 | Test: Nature & Significance Of Management - 3


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This mock test of Test: Nature & Significance Of Management - 3 for Commerce helps you for every Commerce entrance exam. This contains 10 Multiple Choice Questions for Commerce Test: Nature & Significance Of Management - 3 (mcq) to study with solutions a complete question bank. The solved questions answers in this Test: Nature & Significance Of Management - 3 quiz give you a good mix of easy questions and tough questions. Commerce students definitely take this Test: Nature & Significance Of Management - 3 exercise for a better result in the exam. You can find other Test: Nature & Significance Of Management - 3 extra questions, long questions & short questions for Commerce on EduRev as well by searching above.
QUESTION: 1

The possibilities of inadequate profits or even losses due to uncertainties are known as

Solution:

The possibilities of inadequate profits or even losses due to uncertainties are known as business risk.Business risk refers to the possibility of inadequate profits or even losses due to uncertainties or unexpected events.

QUESTION: 2

Name the two broad categories of business activities.

Solution:

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

QUESTION: 3

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: 4

Following are the characteristics of business risks. One of then is not correct. Please identify it.

Solution:

Option A is wrong as profit is the reward for risk bearing. 

QUESTION: 5

Human activities are of __________ types

Solution:

Human activities are of two types economic and non-economic.

QUESTION: 6

Economic activities may be classified into business, ___________ and employment

Solution:

Economic activities may be classified into business, profession and employment.

QUESTION: 7

Commerce includes activities relating to trade and _________________ to trade.

Solution:

Commerce includes activities relating to trade and auxiliaries to trade.

QUESTION: 8

Which of the following is not an example of non-economic activity

Solution:

The correct option is A.

Working out of sentiments  or patriotism or sympathy pays nothing.It is out of concern and does not involve money to be received in return. So, its a non economic activity. Since teaching involves payment of salary . Hence it it an economic activity.

QUESTION: 9

Earning of profit is considered to be the subsidiary objective of the business.The given statement is

Solution:

The given statement is false as Earning of profit is considered to be the prime objective of business. Profit earning: One of the main purpose of business is to earn income by way of profit.

QUESTION: 10

Transfer of interest exists in the case of

Solution:

Transfer of interest i.e. transfer of ownership is only possible in case of business with some legal formalities.A person engaged in profession cannot transfer his professional certificate to any other person ,so transfer of interest is not possible in profession.Similarly An employee cannot transfer his job to anyother person because he has got the job due to special skills ,knowledge and qualification which are nontransferable.