Please refer to Chapter 1 Business Trade and Commerce MCQ Class 11 Business Studies with answers below. These multiple-choice questions have been prepared based on the latest NCERT book for Class 11 Business Studies. Students should refer to MCQ Questions for Class 11 Business Studies with Answers to score more marks in Grade 11 Business Studies exams. Students should read the chapter 1 Business Trade and Commerce and then attempt the following objective questions.

MCQ Questions Class 11 Business Studies Chapter 1 Business Trade and Commerce

The Business Trade and Commerce MCQ Class 11 Business Studies provided below covers all important topics given in this chapter. These MCQs will help you to properly prepare for exams.

Question. Code of conduct DOES NOT include
(a) Dishonesty
(b) Rules
(c) Morality
(d) Integrity

Question. The rework of risk is –
(a) Success
(b) Failure
(c) Profit
(d) Loss.  

Question. Which of the following securities is not redeemable?
(a) Equity shares
(b) Preference shares
(c) Cumulative preference shares
(d) Debentures  

Question. Who among the following can only be beneficiary of Business and does not have unlimited liability?
(a) Secret Partner
(b) Minor Partner
(c) Active Partner
(d) Sleeping Partner  

Question. The maximum number of partners in a firm carrying on banking business is_________.
(a) 7
(b) 10
(c) 50
(d) 20  

Question. Business is :
(a) Art
(b) Science
(c) Both (i) and (ii)
(d) None of these  

Question. Which has the large scope –
(a) Trade
(b) Commerce
(c) Industry
(d) Business.  

Question. Which of the following is not a characteristic of a business activity?
(a) Wages
(b) Sale of product
(c) The factor of risk
(d) Manufacturing goods and services  

Question. Support services to industrial usiness activities are clubbed under?
(a) Commercial Industries
(b) Primary Industries
(c) Secondary Industries
(d) Tertiary Industries  

Question. Everest Textile Ltd is involved in manufacturing textile products. In which industry is the company involved?
(a) Processing industry.
(b) Analytical industry
(c) Synthetic industry
(d) Extractive industry  

Question. Economic activity = ……….. + ………. :
(a) Business + Profession
(b) Profession + Employment
(c) Business + Employment
(d) Business + Profession + Employment  

Question. When a partnership is dissolved?
(a) In any case of death of any of the partner
(b) By mutual consent
(c) By insolvency of any of the partner
(d) All of above

Question. An industry which is concerned with the extraction of natural resources from the earth .
(a) Synthetically industry
(b) Assembling Industry
(c) Genetic Industry 
(d) Primary Industry 

Question. This trade refers to purchase of goods from one country for the purpose of selling them to another country. Identify it.
(a) import Trade
(b) entrepot trade
(c) wholesale trade
(d) export trade

Question. Which place was prominent for skilled artisans to work and convert raw material into finished goods which were high in demand?
(a) Village,
(b) Karkhana,
(c) Jhopari,
(d) Chopal.

Question. Business Risk generated out of carelessness or negligence of employees would emerge due to which of the following cause:
(a) Natural cause.
(b) Human Cause.
(c) Economic cause
(d) Other cause.

Question. The position of an enterprise in relation to its competitor are called
(a) Worker Performance
(b) Productivity
(c) Earning Profit
(d) Market Standing

Question. How many types of risk does a business enterprise get exposed to :
(a) One.
(b) Two
(c) Three
(d) Four

Question. Commerce is a combination of two types of activities these are
(a) industry and trade
(b) trade and Commerce
(c) Trade and auxiliaries to trade
(d) production and consumption of goods

Question. Which type of duty was used to be charged on imported articles by King in ancient times?
(a) Import Duty,
(b) Sales Tex,
(c) Export Duty,
(d) Octroi.

Question. Which of the following combinations are correct for internal trade?
(a) Import and export
(b) wholesale trade and entrepot
(c) retail trade and import Trade
(d) wholesale and retail trade

Question. Documents used for carrying out transactions in which money passed from hand to hand in ancient times.
(a) Cheques,
(b) B/E,
(c) Hundi,
(d) Demand Draft.

Fill in the blanks:

Question. The type of manufacturing industry which involves successive stages for manufacturing finished product is _________ .

Question. Commercial Cities like Harappa and Mohenjodaro were founded in the year _________ . 

Question. Business risks can be covered with the help of _________ service of trade. 

Question. Business may be defined as an _________ activity involving the production. 

Question. The type of industry which is engaged in breeding plants and animals for their use in further reproduction is _________ .

True / False:

Question. Trade is buying and selling of goods and services.

Question. Chartered Accountancy is a Profession

Question. Trade is classified into two broad categories- internal and external.

Question. Manufacturing industries may be further divided in to primary , secondary and tertiary  industry.

Question. India relied heavily on borrowings from foreign sources and finally , agreed to economic liberalisation in 1991.

Match the following:  

Question. Match the statement as per the historical events

A	B
1. The economic and commercial evolution of any land depends upon its	(a) Bhats managed the trade in the states of Gujrat and Rajasthan.
2. Indigenous banking system played a promised role in lending money and financing domestic and foreign trade	(b) 18th Century .
3. Punjabi and Multani merchants handled business in the northern region, while	(c) Physical Environment.
4. The British empire began to take roots in India in the mid	(d) With currency and letter of credit.

Question. Match the statement as per the historical events

A	B
1. The group of trading communities, in western India	(a) Collectively represented by their chief called Nagarseth.
2. In urban centers, such as Ahmedabad the Mahajan community	(b) Punjabi and Multani merchant handled business in the Northern Region.
3. Other urban groups included professional classes	(c) Were called Mahajan.
4. The Bhats managed the trade in thestates of Gujrat and Rajasthan, while	(d) Such as Hakim & Vaid (physician), Wakil,Pundit or Mulla,Painters,Musicians, Calligraphers,etc.

Question.

A	B
1. Despite the growing commercial sector, the 18th century India was	(a) Adopted to economic liberalisation in 1991.
2. After independence, the process of rebuilding the economy started and	(b) Made the Europeans embark great voyage of discovery.
3. India relied heavily on borrowings from foreign sources and finally	(c) Far behind western Europe in technology ,innovations and ideas.
4. The pre-colonial period in Indian history was an age of prosperity for Indian economy and	(d) India adopted centralized planning.

Question.

A	B
1. Kaveripatta	(a) It was an emporium of trade and people here subsisted on commerce.
2. Surat	(b) Chinese used to come in foreign ships to purchase pearls, glass and rare stones and in return they sold gold and silk.
3. Mathura	(c) It was the centre of trade for perfumes, cosmetics, scents,silk,wool,cotton,etc…
4. Kanchi	(d) It was the emporium of western trade during the mughal period. Textile was famous for gold borders (Zari).

Pictorial Questions:

Question. Indentify the given picture:

Question. Indentify the given picture:

Question. Indentify the given picture:

Question. link the image with their economic activity

One word Answer type Questions :

Question. State two things which have to be taken into consideration to measure market standing. 
Ans. Market potential and competition.

Question. List any two major trade of ancient India. 
Ans. (i) Patliputra (ii) Peshawar

Question. Name the industries which is concerned with using the materials extracted at the primary stage to manufacture goods either for final consumption or for further processing by other industrial companies.
Ans. Secondary industry.

Question. “Business is undertaken with the object of earning money.” Which characteristic of business is highlighted in this statement? 
Ans. Business is an economic activity.

Question. Which type of risks means chance of loss without any possibility of gain? 
Ans. Pure risks.

Question. Name the auxiliary to trade which removes the hindrance of time.
Ans. Warehousing or storage.

Question. Name the type of human activity in which a teacher teaching his son at home.
Ans. Non-economic activity.

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