Business Trade And Commerce(11th Grade > Business Studies ) Questions and answers for exam Preparation

11th Grade > Business Studies

BUSINESS TRADE AND COMMERCE MCQs

Total Questions : 30 | Page 1 of 3 pages

State True or False: Activities, where people work to earn income, are called non-economic activities.

False
True

Discuss Question

Answer: Option A. -> False
:
A
False. Activities, where people work to earn income, are called economic activities. For eg: People working at schools, offices etc.

Question 2.

State True or False: In any business is there a certain amount of risk involved.

False
True

Discuss Question

Answer: Option B. -> True
:
B

True. There is always an element of risk involved in doing business. There could arise a change in tastes of customers because of change in trends. This could lead to loss in terms of sales and revenue.

Question 3.

State True or False: Stationery, grocery, dairy products are capital goods.

True
False

Discuss Question

Answer: Option B. -> False
:
B
False. Stationery, grocery, dairy products are consumable goods.These items are used on a daily personal use.

Question 4.

What is innovation?

It is the introduction of new ideas or methods in the way something is made or done.
It is the introduction of old ideas to form something new.
It means replacing technology with people
None of these

Discuss Question

Answer: Option A. -> It is the introduction of new ideas or methods in the way something is made or done.
:
A

It is the introduction of new ideas or methods in the way something is made or done. There are two kinds of innovation: 1. innovation in product or service 2. innovation in various skills and activities.

Question 5.

Transportation, warehousing, communication are part of auxiliaries to trade.

False
True
It means replacing technology with people
None of these

Discuss Question

Answer: Option B. -> True
:
B

True. Transportation, warehousing, communication are part of auxiliaries to trade.

Question 6.

Define 'business risk'.

The chance a business will incur a slight loss in business is called risk.
The probability or chance a business incurs a loss is called risk.
The chance a business will incur no loss in business is called risk.
All of the above

Discuss Question

Answer: Option B. -> The probability or chance a business incurs a loss is called risk.
:
B

Risk in a business is the probability or chance a business incurs a loss.

Question 7.

What reward does a businessman get for bearing the risk?

The reward of bearing risk is loss.
The reward of bearing risk is profit.
The reward if bearing risk is neutral.
None of the above

Discuss Question

Answer: Option B. -> The reward of bearing risk is profit.
:
B

The term 'risk' refers to the possiblitiy of inadequate profits or even losses due to uncertainties or unexpected events.The reward of bearing the risk is profit.

Question 8.

State True or False. Doing social work and delivering competitive goods and services would certainly help in building a good reputation of the business.

True
False
Social activities
Environment activities

Discuss Question

Answer: Option A. -> True
:
A

True. Doing social work and delivering competitive goods and services would certainly help in building a good reputation of the business.

Question 9.

State True or False.

If Mr.Peter plan to borrow funds, then he will have to compensate the lender by paying some monetary charge or share from the earnings of his business.

True
False
The chance a business will incur no loss in business is called risk.
All of the above

Discuss Question

Answer: Option A. -> True
:
A

True. Mr.Peter plan to borrow funds, then he will have to compensate the lender by paying some monetary charge or share from the earnings of his business.

Question 10.

Identify the activities that are undertaken to earn a living?