Evolution and Fundamentals of Business MCQ Class 11 Business Studies are covered in this Article. Evolution and Fundamentals of Business MCQs Test contains 60 questions. Answers to MCQs on Evolution and Fundamentals of Business Class 11 Business Studies are available after clicking on the answer. These MCQ have been made for Class 11 students to help check the concept you have learnt from detailed classroom sessions and application of your knowledge.
MCQ on Fundamentals of Partnership
1. Business activities starts with production and ends with _______:
a) Consumption
b) Marketing
c) Sales
d) Both A and C
Answer
Answer: A) Consumption
2. The work of production of goods is covered under______:
a) Industry
b) Trade
c) Auxiliary to trade
d) Manufacturing
Answer
Answer: A) Industry
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
Answer
Answer: B) Business
4. Economic activities include:
a) Exchange
b) Distribution
c) Consumption
d) All of these
Answer
Answer: 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
Answer
Answer: C) Both of these
6. Literal meaning of Hundi system was:
a) To collect
b) To exchange
c) To distribute
d) To transfer
Answer
Answer: A) To collect
7. The important exporting centre for wool and for importing horses in the ancient times was:
a) Pataliputra
b) Taxila
c) Peshawar
d) Mathura
Answer
Answer: C) Peshawar
8. Different types of clothes were exported from the city ______, during ancient period
a) Surat
b) Ujjain
c) Mithila
d) Broach
Answer
Answer: B) Ujjain
9. When were economic reforms introduced in India
a) 1991
b) 1947
c) 1872
d) 1965
Answer
Answer: A) 1991
10. Which of these was not the main objective of the economic reforms:
a) Liberalisation
b) Privatisation
c) Globalisation
d) Stabilisation
Answer
Answer: D) Stabilisation
Evolution and Fundamentals of Business MCQ Class 11 Business Studies
11. FDI means:
a) Foreign Direct Investment
b) Fixed Direct Investment
c) Full Direct Investment
d) Foreign Disinvestment
Answer
Answer: A) Foreign Direct Investment
12. In which year ‘Make in India’ program was launched:
a) 2016
b) 2015
c) 2018
d) 2014
Answer
Answer: 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
Answer
Answer: B) Business
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
Answer
Answer: B) Non-economic
15. A Chartered Accountant providing services to his client is an example of:
a) Employment
b) Profession
c) Business
d) Trade
Answer
Answer: B) Profession
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
Answer
Answer: A) Economic activity
17. A nurse providing first aid to a child in her neighbourhood who fell from the stairs is which activity:
a) Economic
b) Non-economic
c) Profession
d) None
Answer
Answer: .B) Non-economic
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
Answer
Answer: A) Non-economic 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
Answer
Answer: B) Non-economic
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
Answer
Answer: C) Fees
Evolution and Fundamentals of Business MCQ Class 11 Business Studies
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
Answer
Answer: A) Uncertainty of returns
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
Answer
Answer: D) All of these
23. Can business activity be carried on without occurring risks:
a) True
b) False
c) Partially true
d) Partially false
Answer
Answer: B) 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
Answer
Answer: B) Salary
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
Answer
Answer: A) Yes
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
Answer
Answer: B) Business & profession; 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
Answer
Answer: D) Industry and commerce
28. Conversion of resources into useful goods comes under:
a) Industry
b) Commerce
c) Trade
d) None
Answer
Answer: A) Industry
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
Answer
Answer: A) Primary
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
Answer
Answer: A) Extractive industry
Evolution and Fundamentals of Business MCQ Class 11 Business Studies
31. Manufacturing of steel is an example of:
a) Primary industry
b) Tertiary industry
c) Secondary Industry
d) Extractive industry
Answer
Answer: C) Secondary industry
32. Industries which produce goods through processing of raw material is:
a) Extractive industry
b) Genetic industry
c) Manufacturing industry
d) Tertiary industry
Answer
Answer: C) Manufacturing industry
33. Industries engaged in breeding of plants and animals:
a) Genetic
b) Extractive
c) Manufacturing
d) Tertiary
Answer
Answer: A) Genetic
34. Industry where various ingredients are combined to form a new product is called______industry:
a) Analytical
b) Synthetical
c) Processing
d) Assembling
Answer
Answer: B) Synthetical
35. Industry which assembles different components parts to make a new product is called:
a) Synthetical
b) Analytical
c) Assembling
d) Processing
Answer
Answer: C) Assembling
36. Sugar and paper are manufactured in a _______ industry:
a) Processing
b) Analytical
c) Synthetical
d) Assembling
Answer
Answer: A) Processing
37. Industries involved in construction of bridges, dam, roads etc are:
a) Analytical industry
b) Tertiary industry
c) Construction industry
d) None
Answer
Answer: C) Construction industry
38. Tertiary industries are also called as:
a) Primary industry
b) Trade
c) Auxiliaries to trade
d) Business
Answer
Answer: C) Auxiliaries to trade
39. An example of tertiary industry is:
a) Sugar industry
b) Steel industry
c) Banking industry
d) Mineral industry
Answer
Answer: C) Banking industry
40. Trade and auxiliaries to trade are a part of:
a) Business
b) Commerce
c) Both
d) None
Answer
Answer: B) Commerce
Evolution and Fundamentals of Business MCQ Class 11 Business Studies
41. Activities involving the removal of hindrances occuring during the process of exchange are included in:
a) Commerce
b) Business
c) Profession
d) Employment
Answer
Answer: A) Commerce
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
Answer
Answer: D) Both A and B
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
Answer
Answer: B) Barter
44. Setting of one’s own business is called as:
a) Entrepreneurship
b) Business
c) Trade
d) Promoting
Answer
Answer: A) Entrepreneurship
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
Answer
Answer: C) Advertisement of a product
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
Answer
Answer: B) Advertising and Public relation
47. _______ is not the objective of a business activity:
a) Social responsibility
b) Marketing standing
c) Profit earning
d) Trade
Answer
Answer: 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
Answer
Answer: B) Objective; introduction of new ideas
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.
Answer
Answer: C) The possibility of inadequate profits or losses 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
Answer
Answer: C) Pure
Evolution and Fundamentals of Business MCQ Class 11 Business Studies
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
Answer
Answer: D) Speculative
52. Risks arise due to_____:
a) Business activities
b) Wrong decision making
c) Uncertainties
d) Mismanagement
Answer
Answer: C) Uncertainties
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
Answer
Answer: D) Human cause
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
Answer
Answer: B) Higher; profit
55. More is the size of business,_______ is the risk:
a) Less
b) More
c) Uncertain
d) None
Answer
Answer: B) More
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
Answer
Answer: 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
Answer
Answer: 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
Answer
Answer: C) Select the type of business he wants to do
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
Answer
Answer: B) There are a number of tax laws in the country
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
Answer
Answer: B) Micro Small and Medium Enterprise
Class 11 Business Studies MCQs
Term 1 – MCQ of Business Studies Class 11
Part A – Foundations of Business
- Evolution and Fundamentals of Business
- Forms of Business Organisations
- Public, Private and Global Enterprises
- Business Services
- Emerging Modes of Business
- Social Responsibility of Business and Business Ethics
Term 2 – NCERT Business Studies MCQ
Part B – Finance and Trade