Free Nature and Purpose of Business 02 Practice Test - 11th Grade - Commerce 

Question 1

Which are the two kinds of innovation?

A.

1. Product innovation 
2. Technology innovation 

B.

1. Performance innovation
2. Supply innovation. 

C.

1. Product innovation
2. Supply innovation. 

D.

None of the above 

SOLUTION

Solution : C

The two kinds of innovation are 1. Product innovation 2. Supply innovation. 

Question 2

Which of the following is not a part of auxiliaries to trade.

A.

Transportation

B.

Communication 

C.

Profit

D.

Banking

SOLUTION

Solution : C

Profits are not a part of auxiliaries to trade. 

Question 3

State True or False. Advertising helps in providing information about the goods and services. 

A.

True 

B.

False

SOLUTION

Solution : A

True. Advertising helps in providing information about the goods and services and help in persuading customers to purchase them. 

Question 4

The activities that are connected with the extraction and production of natural resources and reproduction and development of living organisms is called ___

A.

primary industry

B.

secondary industry

C.

tertiary industry

D.

all of the above

SOLUTION

Solution : A

The activities that are connected with the extraction and production of natural resources and reproduction and development of living organisms is called primary industry. 

Question 5

Which industry is engaged in producing goods for intermediate or final consumption through processing of raw materials?

A.

Manufacturing Industries

B.

Genetic Industries

C.

Secondary Industries

D.

All of the above

SOLUTION

Solution : A

 Manufacturing industries are engaged in producing goods through processing of raw material.

Question 6

___ industry includes all those activities which are connected with using the materials which have already been extracted from an earlier stage.

A.

Primary

B.

Secondary

C.

Tertiary

D.

All of the above

SOLUTION

Solution : B

Secondary industry includes all those activities which are connected with using the materials which have already been extracted from an earlier stage.

Question 7

Mr. Singh has a denim store at the market. There was a theft at his store and he lost 3lakh rupees. What kind of risk did he face? 

A.

Speculative risk 

B.

Pure risk 

C.

Natural risk 

D.

None of the above 

SOLUTION

Solution : B

Mr. Singh faced pure risk, which involves the possibility of loss or no loss.

Question 8

An industry that assembles different component parts to make a new product, as in the case of television,  computer etc. 

A.

Analytical industry 

B.

Synthetical industry 

C.

Processing industry 

D.

Assembling industry

SOLUTION

Solution : D

An industry that assembles different component parts to make a new product, as, in the case of television, car,  computer is known as assembling industry. 

Question 9

An industry that draws out product from natural resources is known as ________________. 

A.

Genetic industry 

B.

Extractive industry 

C.

Analytical industry 

D.

Assembling industry 

SOLUTION

Solution : B

An industry that draws out product from natural resources is known as the extractive industry.  It supplies some basic raw material that are mostly products of the geographical location or natural environment.  

Question 10

State True or False. Employment requires capital investment. 

A.

True

B.

False

SOLUTION

Solution : B

False. Employment refers to an occupation, where people work for others and get remunerated in return. Employment does not require capital investment.