Free Nature and Purpose of Business 03 Practice Test - 11th Grade - Commerce
Question 1
Mr.Ronald owns a shoe store. He has 50 employees working for him. He buys the leather from suppliers, gets them stitched and designed from outside, and sells them at his store. The customers were happy with the quality of shoes they purchased and visited the store frequently.
What are the characteristics that can be seen from the above passage?
1. An economic activity
2. Uncertainty of returns
1. Production or procurement of goods and services
2. An economic activity
1. An economic activity
2. Production or procurement of goods and services
3. Sale or exchange of goods and services for the satisfaction of human needs
1. An economic activity
2. Sale or exchange of goods and services for the satisfaction of human needs
SOLUTION
Solution : C
From the above passage, the following business activities can be seen:
1. An economic activity2. Production or procurement of goods and services
3. Sale or exchange of goods and services for the satisfaction of human needs
Question 2
Trade is buying and selling of goods and services.
True
False
SOLUTION
Solution : A
True. Trade is the buying and selling of goods and services.
Question 3
Risk is not an essential part of a business.
True
False
SOLUTION
Solution : B
False. Risk is an essential part of a business. Business risks arise because of uncertainties.
Question 4
Risk are caused by
natural, human, capital
natural, human, economic
natural, human, political
natural, human, civil
SOLUTION
Solution : B
Risk are caused by natural, human or economic causes.
Question 5
Raj Pal is a hardworking man, he is putting a lot of efforts in his new startup company. What kind of economic activity is he following?
Business
Profession
Employment
None of the above
SOLUTION
Solution : A
Raj Pal is a businessman. The economic activity that he is following is business. Business refers to those economic activities, which are connected with the production or purchase and sales of goods or supply of services with the objective of making profits.
Question 6
Rita has special knowledge and skill that she applies in her occupation. Is she an employee of a big firm?
True
False
SOLUTION
Solution : B
False. Rita is engaged in a profession, which requires an application of special knowledge and skill.
Question 7
Sita's mother takes care of the household errands. What kind of activity is she performing?
Economic activity
Non- economic activity
Both of the above
None of the above
SOLUTION
Solution : B
Sita's mother takes care of the household errands. She is performing a non-economic activity.
Question 8
Market standing refers to the position of an enterprise in relation to its competitors.
True
False
SOLUTION
Solution : A
True. Market standing refers to the position of an enterprise in relation to its competitors. A business enterprise must have a strong standing in terms of offering competitive products to the customers and also serve them to their satisfaction.
Question 9
The occupation where people work for others and receive a remuneration in return is known as _______________.
Business
Employment
Profession
None of the above
SOLUTION
Solution : B
The occupation where people work for others and receive a remuneration in return is known as employment.
Question 10
The degree of risk does not depend mainly on the nature and size of the business.
True
False
SOLUTION
Solution : B
False. The degree of risk does depend mainly upon the nature and size of the business.