WORKSHEET 2

1. Cyclone caused lots of damages to the street vendors and retail stores in the state. Rahim,
owner of a Grocery Shop suffered a lot because of cyclonic effect. Government declared a
relief package to the affected people of the affected areas. Identify the type of risk caused to
the Shopkeepers highlighted in the above case.
(A) Natural Cause
(B) Human Cause
(C) Economic Cause
(D) None of the above

2. The possibilities of inadequate profits or even losses due to uncertainties are known as
____________
(A) Business contingencies
(B) Business risks
(C) Business ventures
(D) None of these

3. Which of the following does not characterize business activity :

(A) Production of goods and services
(B) Presence of risk
(C) Sale or Exchange of goods and services
(D) Salary or wages.

4. Which of the following cannot be classified as an objective of business?

(A) Investment
(B) Productivity
(C) Innovation
(D) Profit Earning.

5. Specialized knowledge and skill is needed in:

(A) Employment
(B) Non-Economic activity
(C) Profession
(D) None of these.

6. The reward of risk is:

(A) Success
(B) Failure
(C) Profit
(D) Loss

7. Which of the following cannot be classified as an auxiliary to trade?

(A) Mining
(B) Insurance
(C) Warehousing
(D) Transport.
8. Business risk is not likely to arise due to:
(A) Change in govt, policy
(B) Good management
(C) Employee dishonesty
(D) Power failure.

9. Name the two broad categories of business activities.

(A) Trade and commerce
(B) trade and industry
(C) industry and commerce
(D) none of these

11. Earning of profit is considered to be the subsidiary objective of the business.’ The given
statement is
(A) True
(B) false
(C) cannot say
(D) None

12. Transfer of interest exists in the case of

(A) Profession
(B) employment
(C) business
(D) none of these

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

(A) Patriotism
(B) teaching
(C) sentiment
(D) sympathy

14. Which of the broad categories of industries covers oil refinery and sugar mills?
(A) Primary
(B) Secondary
(C) Tertiary
(D) None of these