NCERT Solutions for Class 11 Business Studies Chapter 1

Nature and Purpose of Business Class 11

Chapter 1 Nature and Purpose of Business Exercise Solutions

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Multiple choice questions : Solutions of Questions on Page Number : 19

Q1 :  

Which of the following does not characterise a business activity?

(a) Production of goods and services

(b) Presence of risk

(c) Sale or exchange of goods and services

(d) Salary or wages


Answer :

Salary or wages is not a characteristic of business. In a business activity, the entrepreneurs work for themselves, solely for the profit motive. A business involves production and exchange of goods and services. Risk is also involved in carrying on a business because of the unpredictable events associated with it.

Hence, the correct answer is option (d).

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Q2 :  

Which of the broad categories of industries covers oil refinery and sugar mills?

(a) Primary

(b) Secondary

(c) Tertiary

(d) None of them


Answer :

An oil refinery and a sugar factory are categorised as secondary industries as their raw materials (crude oil and sugarcane) are processed into finished goods (oil and sugar).

Hence, the correct answer is option (b).

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Q3 :  

Which of the following cannot be classified as an auxiliary to trade?

(a) Mining

(b) Insurance

(c) Warehousing

(d) Transport


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Q4 :  

The occupation in which people work for others and get remunerated in return is known as

(a) Business

(b) Employment

(c) Profession

(d) None of them

 


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Q5 :  

The industries which provide support services to other industries are known as

(a) Primary industries

(b) Secondary industries

(c) Commercial industries

(d) Tertiary industries


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Short answerslong answersmultiple choice questions : Solutions of Questions on Page Number : 20

Q1 :  

State the different types of economic activities.


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Q2 :  

Explain the characteristics of business.


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Q3 :  

Why is business considered an economic activity?


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Q4 :  

Compare business with profession and employment.


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Q5 :  

Explain the concept of business.


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Q6 :  

Explain with examples the various types of industries.


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Q7 :  

How would you classify business activities?


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Q8 :  

Describe the activities relating to commerce.


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Q9 :  

What are the various types of industries?


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Q10 :  

Why does business need multiple objectives? Explain any five such objectives.


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Q11 :  

Explain any two business activities which are auxiliaries to trade.


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Q12 :  

Explain the concept of business risk and its causes.


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Q13 :  

Which of the following cannot be classified as an objective of business?

(a) Investment

(b) Productivity
(c) Innovation

(d) Profit earning


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Q14 :  

What is the role of profit in business?


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Q15 :  

What factors are important to be considered while starting a business? Explain.


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Q16 :  

Business risk is not likely to arise due to

(a) Changes in government policy

(b) Good management
(c) Employee dishonesty

(d) Power failure


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Q17 :  

What is business risk? What is its nature?


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Next Chapter 2 : Forms of Business Organisation >>

Business Studies : CBSE NCERT Exercise Solutions for Class 11th for Nature and Purpose of Business will be available online in PDF book form soon. The solutions are absolutely Free. Soon you will be able to download the solutions.

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