Grade: XI

Subject : BUSINESS STUDIES

Class: XI/I PUC Topic : Evolution & Fundamentals of Business
1. Business activities starts with production and ends with _______:
a) Consumption
b) Marketing
c) Sales
d) Both A and C

2. The work of production of goods is covered under______:

a) Industry
b) Trade
c) Auxiliary to trade
d) Manufacturing

3. Among business, trade and commerce which of these is considered as a wider term:
a) Commerce
b) Business
c) Trade
d) All are considered as the same

4. Economic activities include:

a) Exchange
b) Distribution
c) Consumption
d) All of these

5. In the old age the document which was used to facilitate transfer of money from one
hand to another for trading activities is called:
a) Hundi
b) Chitties
c) Both of these
d) None of these

6. Literal meaning of Hundi system was:

a) To collect
b) To exchange
c) To distribute
d) To transfer

7. The important exporting center for wool and for importing horses in the ancient times
was:
a) Pataliputra
b) Taxila
c) Peshawar
d) Mathura

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8. Different types of clothes were exported from the city ______, during ancient period
a) Surat
b) Ujjain
c) Mithila
d) Broach

9. When were economic reforms introduced in India

a) 1991
b) 1947
c) 1872
d) 1965

10. Which of these was not the main objective of the economic reforms:
a) Liberalization
b) Privatization
c) Globalization
d) Stabilization

11. FDI means:

a) Foreign Direct Investment
b) Fixed Direct Investment
c) Full Direct Investment
d) Foreign Disinvestment

12. In which year ‘Make in India’ program was launched:

a) 2016
b) 2015
c) 2018
d) 2014

13. An activity performed with a view of obtaining profit is called a:

a) Non-economic activity
b) Business
c) Both
d) None

14. Mrs. Seema is a teacher in a primary school. She also teaches her son at home, which
of the following activities Mrs. Seema is performing while teaching her son:
a) Economic
b) Non-economic
c) Business
d) None of these

15. A Chartered Accountant providing services to his client is an example of:

a) Employment
b) Profession
c) Business
d) Trade

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16. A housewife doing household work in Mrs. Lalita’s home is:
a) Economic activity
b) Non-economic activity
c) Both of these
d) None of these

17. A nurse providing first aid to a child in her neighborhood who fell from the stairs is
which activity:
a) Economic
b) Non-economic
c) Profession
d) None

18. Shyam is a taxi driver, while going out for work he gave a lift to his aunt. This is a:
a) Non-economic activity
b) Skilled activity
c) Economic activity
d) Unskilled activity

19. Mr. Kumar gave donations to the City Healthcare Club for distributing free masks and
sanitizers to poor people is ______ activity:
a) Economic
b) Non-economic
c) NGO
d) Donating activity

20. Which of these is not a characteristic of business activities

a) Profit earning
b) Production or procurement of goods and services
c) Fees
d) Uncertainty of returns

21. Ram wants to start a business of his own, he thinks that starting a business would give
him profits for sure. Which characteristic do you think Ram is lacking to understand in
order to start a business:
a) Uncertainty of returns
b) Profit earning
c) Production and procurement of goods and services
d) Element of risk

22. Which of the following situations could arise a risk for the business:
a) Change in taste and preferences
b) Change in production method
c) Increased competition
d) All of these

23. Can business activity be carried on without occurring risks:

a) True
b) False

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c) Partially true
d) Partially false

24. Vipin is working in a company as an assistant manager. What reward/return will he

receive for his services:
a) Profit
b) Salary
c) Fees
d) Interest

25. Subhash’s son is not well educated and hence cannot find a good job. Subhash is now
thinking of starting a business for his son so that he can earn his living. Is Subash’s son
eligible to carry on a business activity:
a) Yes
b) No
c) Yes, but after having certain qualifications
d) None of these

26. Capital investment is required in _______&______ and not in _______:

a) Business & employment; profession
b) Business & profession; employment
c) Employment & profession; business
d) Business & trade; employment

27. Business activities can be classified into:

a) Trade and commerce
b) Auxiliary to trade and trade
c) Business and manufacturing
d) Industry and commerce

28. Conversion of resources into useful goods comes under:

a) Industry
b) Commerce
c) Trade
d) None

29. Those industries which are concerned with the extraction and production of natural
resources and reproduction and development of living organisms and plants are:
a) Primary
b) Secondary
c) Tertiary
d) Productive

30. The industry which supplies raw materials out of the natural resources is:
a) Extractive industry
b) Manufacturing industry
c) Raw material industry
d) Tertiary industry
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31. Manufacturing of steel is an example of:
a) Primary industry
b) Tertiary industry
c) Secondary Industry
d) Extractive industry

32. Industries which produce goods through processing of raw material is:
a) Extractive industry
b) Genetic industry
c) Manufacturing industry
d) Tertiary industry

33. Industries engaged in breeding of plants and animals:

a) Genetic
b) Extractive
c) Manufacturing
d) Tertiary

34. Industry where various ingredients are combined to form a new product is
called______industry:
a) Analytical
b) Synthetical
c) Processing
d) Assembling

35. Industry which assembles different components parts to make a new product is called:
a) Synthetical
b) Analytical
c) Assembling
d) Processing

36. Sugar and paper are manufactured in a _______ industry:

a) Processing
b) Analytical
c) Synthetical
d) Assembling

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37. Industries involved in construction of bridges, dam, roads etc are:
a) Analytical industry
b) Tertiary industry
c) Construction industry
d) None

38. Tertiary industries are also called as:

a) Primary industry
b) Trade
c) Auxiliaries to trade
d) Business

39. An example of tertiary industry is:

a) Sugar industry
b) Steel industry
c) Banking industry
d) Mineral industry

40. Trade and auxiliaries to trade are a part of:

a) Business
b) Commerce
c) Both
d) None

41. Activities involving the removal of hindrances occuring during the process of exchange
are included in:
a) Commerce
b) Business
c) Profession
d) Employment

42. Activities which are meant for assisting trade are called:
a) Service activities
b) Auxiliaries to trade
c) Business activities
d) Both A and B

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43. A and B are two friends, A told B that he wants to purchase his old car B agreed to it
and asked A to give him his bike that B wants to gift to his son on his birthday. This is a:
a) Business
b) Barter
c) Profession
d) Non-economic activity

44. Setting of one’s own business is called as:

a) Entrepreneurship
b) Business
c) Trade
d) Promoting

45.Which of the following is not termed as trade:

a) Selling of a product
b) Purchasing raw material
c) Advertisement of a product
d) None of these

46. Publicity of price, quality, features, utility of a product or service are done using various
techniques of _______ tools:
a) Marketing
b) Advertising and Public Relation
c) Business
d) Trade

47. _______ is not the objective of a business activity:

a) Social responsibility
b) Marketing standing
c) Profit earning
d) Trade

48. Innovation is an _____ of business which means _______:

a) Obligation; producing new goods
b) Objective; introduction of new ideas
c) Element; introduction of new ideas
d) Objective; producing new goods

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49. Business risk refers to:
a) the possibility of inadequate losses due to uncertainties or unexpected events.
b) the possibility of inadequate profits or even losses due to wrong decisions.
c) the possibility of inadequate profits or losses due to uncertainties or unexpected events.
d) the possibility of inadequate profits due to uncertainties or unexpected events.

50. Lalit is a manufacturer of ACs and coolers, due to less demand of ACs and coolers in
winter is used to store his goods in a godown. Unfortunately, fire broke out in his godown
and all the goods were destroyed. This is a _____ risk:
a) Business
b) Speculative
c) Pure
d) None

51. Mr. Shyam is a manufacturer of computers. Due to increasing demand for laptops,
demand for Mr. Shyam’s computers is decreasing. His friend Mr. Lalit who is a chartered
accountant tells him that this is a situation of______type of business risk:
a) Business
b) Uncertain
c) Pure
d) Speculative

52. Risks arise due to_____:

a) Business activities
b) Wrong decision making
c) Uncertainties
d) Mismanagement

53. The staff of ABC ltd is on a strike because they are unhappy with the incentives given
by the company, because of the strike ABC ltd is occurring losses, this business risk arises
due to:
a) Economic cause
b) Social cause
c) Natural cause
d) Human cause

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54. According to an old saying, greater the risk involved in business,______ is the _____
a) Lower; profit
b) Higher; profit
c) Higher; losses
d) Lower; losses

55. More is the size of business,_______ is the risk:

a) Less
b) More
c) Uncertain
d) None

56. Increase in bank rate leads to an increase in the lending cost of the business, this is an
example of _______ business risk:
a) Human
b) Social
c) Other
d) Economic

57. Mr. A is a businessman providing transportation services to the people, due to the
covid-19 pandemic his suffered huge losses in his business, this business risk is caused
due to:
a) Economic cause
b) Social causes
c) Human causes
d) Other causes

58. Mr. Kumar has been doing a job for the past 5 years and now he wants to start a
business of his own. Advice Mr. Kumar that in order to start a business what should he do
first:
a) Decide the size of business
b) Choose a location for business
c) Select the type of business he wants to do
d) Analyze the market

59. Tax planning is necessary for starting a new business because:

a) It is social responsibility of business to pay tax to the government
b) There are a number of tax laws in the country
c) To fulfill the business objectives
d) All of these

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60. MSME stands for:
a) Micro Small and Medium Exchange
b) Micro Small and Medium Enterprise
c) Medium Small and Micro Entrepreneurship
d) Micro Small and Medium Election

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