Mutiple Choice Questions with Solution:
1. _ established as a result of exchange.
(a) Employment
(b) Profession
(c) Business
(d) None of these
2. _ starts with interdependence.
(a) Dependency
(b) Purchase
(c) Sales
(d) Exchange
3. The word ‘Karobar’ is a _
(a) Greek word
(b) French word
(c) Latin word
(d) Bengali word
4. An example of local business is _
(a) Wool industry of Kashmir
(b) Neighborhood grocery
(c) Export of mineral oil
(d) Import of coffee
5. Which of the following is not a characteristic of business?
(a) Capital
(b) Organisation
(c) Earning profit
(d) Social service
6. Hawker is a _
(a) Businessman
(b) Professional
(c) Employee
(d) None of these
7. Contractual work in exchange for salary or wages is called _
(a) Business
(b) Employment
(c) Profession
(d) Non-business work
8. The purpose of business is only _
(a) Social
(b) Personal
(c) Economic
(d) Versatile
9. The production activities of the business are _
(a) Industry
(b) Trade
(c) Commerce
(d) Auxiliaries to trade
10. Mineral oil refining is a _
(a) Analytical Industry
(b) synthetic Industry
(c) Processing Industry
(d) Assembling Industry
11. Car Industry is a _
(a) Processing Industry
(b) Assembling Industry
(c) Construction Industry
(d) Synthetic Industry
12. Domestic Trade is _
(a) Import Trade
(b) Export Trade
(c) Re-export Trade
(d) Internal Trade
13. _ systems are particularly helpful in removing spatial constraints.
(a) Bank
(b) Transport
(c) Insurance
(d) Warehousing
14. _ objective of business is to increase employment opportunities.
(a) National
(b) Human
(c) Economic
(d) Social
15. The primary objective of business is _
(a) Regarding profit
(b) Regarding labour
(c) Regarding capital
(d) Regarding procurement of materials
16. What kind of business is the business that extends across the country?
(a) Local business
(b) National business
(c) International business
(d) Re-export business
17. What kind of work is the establishment of schools, colleges, and libraries?
(a) Public welfare
(b) Economic
(c) Political
(d) Personal
18. What type of organisation a separate business entity is?
(a) Religious institution
(b) Social institution
(c) Humanitarian institution
(d) Political institution
19. What does business do for people?
(a) Fulfills demand
(b) Gives ideological education
(c) Teaches secularism
(d) Teaches sense of discipline
20. Reading books, listening to the radio, watching movies and TV – What kind of needs of people?
(a) Cultural needs
(b) Human needs
(c) Religious needs
(d) Economic needs
21. What is the primary basis of business?
(a) Buyer
(b) Seller
(c) Buyer and Seller both
(d) Supplier
22. What is the profit generated by deducting the purchase price from the total selling price?
(a) Gross profit
(b) Net profit
(c) Manufacturing profit
(d) Distributable profit
23. A Nursery company belongs to which industry?
(a) Genetic Industry
(b) Extraction Industry
(c) Construction Industry
(d) Assembling Industry
24. Which of the following is a business activity?
(a) Profiteering
(b) Social service
(c) Political work
(d) Work for profit
25. Which is the division of commerce?
(a) Industry and Trade
(b) Production and Industry
(c) Production and Trade
(d) Trade and Auxiliaries to trade activities
26. Computer belongs to which industry?
(a) Analytical Industry
(b) Synthetic industry
(c) Assembling Industry
(d) Processing Industry
27. Fishing from the sea belongs to which industry?
(a) Extraction Industry
(b) Manufacturing Industry
(c) Synthetic Industry
(d) Processing Industry
28. Under what category of business does the insurance system belong?
(a) Industry
(b) Trade
(c) Marketing
(d) Commerce
29. “People’s needs change with the change of time”- What is such a risk called?
(a) Economic risk
(b) Human risk
(c) Natural risk
(d) Political risk
30. What is the distributional activity called?
(a) Industry
(b) Commerce
(c) Production
(d) A combination of Industry and Commerce
31. When a business meets the needs of the local population from the confines of a particular place, it is called _
(a) National business
(b) International business
(c) Export business
(d) Local business
32. Which of the following is not a characteristic of business activity?
(a) Production and distribution of goods
(b) Taking risk
(c) Payment of wages
(d) Exchange of goods
33. What is the risk of business loss due to employee dishonesty called?
(a) Economic risk
(b) Market risk
(c) Natural risk
(d) Human risk
34. Lack of what sense of responsibility of business resulted in the Bhopal gas accident?
(a) Political responsibility
(b) Professional responsibility
(c) Social responsibility
(d) Business responsibility
35. Industry that is engaged in service work, they are what type of industry?
(a) Primary Industry
(b) Secondary Industry
(c) Tertiary Industry
(d) None of these
36. “Risk-bearing is the task of entrepreneurs”- Who said this?
(a) Professor Hampton
(b) Alfred Marshall
(c) Adam Smith
(d) P. F. Drucker
37. “The foundation of business is a proper organisation”- Who said this?
(a) P. F. Drucker
(b) Woodrow Wilson
(c) J. Bossard
(d) Urwick
38. What industry does a bank belong to?
(a) Primary
(b) Secondary
(c) Tertiary
(d) None of these
39. As the level of risk increases, the variability of profits _
(a) Increases
(b) Decreases
(c) Remains the same
(d) Reaches zero
40. The risk that arises due to changes in market conditions is called _
(a) Time risk
(b) Personal risk
(c) Natural risk
(d) Economic risk
41. Who cannot advertise the service?
(a) Businessman
(b) Professionals
(c) Employees
(d) Social workers
42. Railway and dam construction belongs to what type of industry?
(a) Mechanical Industry
(b) Construction Industry
(c) Assembling Industry
(d) Synthetic Industry
43. In the case of profession, money received in return for labour is called _
(a) Profit
(b) Fees
(c) Business
(d) Import
44. Which of the following is not a characteristic of business?
(a) Forcast
(b) Risk &uncertainty
(c) Setting policy
(d) Paying interest to the investor
45. Which of the following is not a characteristic of profession?
(a) Specialised education
(b) Specific code of conduct
(c) Professional Freedom
(d) Transferability
46. Which of the following is a characteristic of profession?
(a) Specialised education
(b) Professional Freedom
(c) Specific code of conduct
(d) All of these
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