Multiple choice questions.
1. Economic activities are undertaken with an ___________ motive.
- economic
- non economic
- profit
- both profit & non-profit
- Wealth producing
- satisfying human wants
- developmental activity
- self satisfaction
3. Fisher gives how many objectives for economic activities?
- A. 2
- B. 3
- C. 4
- D. None of these
Answer: A
Fisher gives two objectives, named as 1) proper allocation of resources 2) optimum use of resources.
4. The resources should be put to their _________ use.
- A. Limited
- B. Unlimited
- C. Maximum
- D. Optimum
Answer: D
Economic resources should be put to their optimum use. Then only best result can be derived.
5. Economic Activities are backed by _________ philosophy and non-economic activities are backed by _________ philosophy.
- A. Idealistic, Pragmatic
- B. Pragmatic, idealistic
- C. Realistic, social
- D. none of these
- A. 2
- B. 4
- C. 3
- D. None of these
(a) Business contingencies
(b) Business risks
(c) Business ventures
(d) None of these
Answer: (b) Business risks
8. Business risk is not likely to arise due to _____.
(a) Changes in government policy
(b) Good management
(c) Employee dishonesty
(d) Power failure
Answer: (b) Good management
9. Name the two broad categories of business activities.
(a) Trade and Commerce
(b) Trade and Industry
(c) Industry and Commerce
(d) None of these
Answer: (c) Industry and Commerce
10. The industries which provide support services to other industries are known as _____.
(a) Primary industries
(b) Secondary industries
(c) Commercial industries
(d) Tertiary industries
Answer: (d) Tertiary industries
11. ‘Earning of profit is considered to be the subsidiary objective of the business.’ The given statement is _____.
(a) True
(b) False
(c) Cannot say
(d) None
Answer: (b) False
12. The occupation in which people work for others and get remunerated in return is known as _____.
(a) Business
(b) Profession
(c) Employment
(d) None of these
Answer: (c) Employment
13. Transfer of interest exists in the case of _____.
(a) Profession
(b) Employment
(c) Business
(d) None of these
Answer: (c) Business
14. Which of the following does not characterise business activity?
(a) Production of goods and services
(b) Presence of risk
(c) Sale or exchange of goods and services
(d) Salary and wages
Answer: (d) Salary and wages
15. Which of the following is not an example of non-economic activity?
(a) Patriotism
(b) Teaching
(c) Sentiment
(d) Sympathy
Answer: (b) Teaching
16. Economic activities may be classified into business, ___________ and employment.
(a) Profession
(b) Occupation
(c) Vocation
(d) Work
Answer: (a) Profession
17. Which of the broad categories of industries covers oil refineries and sugar mills?
(a) Primary
(b) Secondary
(c) Tertiary
(d) None of these
Answer: (b) Secondary
18. Following are the characteristics of business risks. One of them is not correct. Please identify it.
(a) Loss is the reward for risk-bearing
(b) Business risks are due to uncertainties
(c) Risk is an essential component of every business
(d) Degree of risk depends mainly upon the nature and size of business
Answer: (a) Loss is the reward for risk-bearing
19. Which one of the following may not be a factor behind starting a business?
(a) Routine workload
(b) Size of the firm
(c) Finance
(d) Location of the business
Answer: (a) Routine workload
20. Commerce includes activities relating to trade and ___________ to trade.
(a) Supporting
(b) Subsidiaries
(c) Auxiliaries
(d) None of these
Answer: (c) Auxiliaries
21. Which of the following cannot be classified as an objective of a business?
(a) Investment
(b) Productivity
(c) Innovation
(d) Profit earning
Answer: (a) Investment
22. Commerce includes activities relating to trade and
(a) Auxiliaries
(b) Subsidiaries
(c) Supporting
(d) None of the above
Answer: (a) Auxiliaries to trade..
23. Bad debts due to non-payment of debt by the debtor are an example of which type of business risk?
(a) Human
(b) Natural
(c) Physical
(d) Economic
Answer: (a) Human
24. Which of the following is an economic cause of business risks?
(a) Demand for goods
(b) Competition
(c) Price
(d) All of the above
Answer: (d) All of the above
25. Business risk is not likely to arise due to
(a) Failure
(b) Employee dishonesty
(c) Changes in government policy
(d) Good management
Answer: (d) Good management
26. The word marketing standing is concerned with
(a) Position of an enterprise
(b) Supply of the product
(c) Customers
(d) Competitors
Answer: (a) Position of an enterprise
27. Why a business should earn a profit?
(a) To provide a return to investors
(b) To increase the reputation of the business
(c) To provide funds for future growth
(d) All of the above
Answer: (d) All of the above
28. Which one of the following is not an Auxiliary to trade?
(a) Mining
(b) Warehousing
(c) Insurance
(d) Transport
Answer: (a) Mining
29. Which of the following is not a natural cause of business risks?
(a) Earthquake
(b) Strikes
(c) Famine
(d) Heavy Rains
Answer: (b) Strikes
30. Which of the following is not concerned with the profession?
(a) Manufacturing goods and services
(b) Specialised body of knowledge and skill
(c) Code of conduct
(d) Formal Training
Answer: (a) Manufacturing goods and services
31. Which of the broad categories of industries covers oil refinery and sugar mills?
(a) Primary
(b) Secondary
(c) Tertiary
(d) None of the above
Answer: (b) Secondary
32. Which of the following is an instrument exchange, which was prominent in the subcontinent?
(a) Copper
(b) Hundi
(c) Gold
(d) Silver
Answer: (b) Hundi
33.The occupation in which people work for others and get remunerated in return is known as:
(a) Profession
(b) Employment
(c) Business
(d) None of the above
Answer: (b) Employment
34.The industries which provide support services to other industries are known as
(a) Primary industries
(b) Commercial industries.
(c) Tertiary industries
(d) Secondary industries
Answer: (c) Tertiary industries
35. Which one of the following is an economic activity in which specialised knowledge is required?
(a) Profession
(b) Business
(c) Employment
(d) None of the above
Answer: (a) Profession
36. The term business is derived from the word
(a) Buy and selling
(b) Financial markets
(c) Busy
(c) Proprietorship
Answer: (c) Busy
37. Which of the following is not a characteristic of business activity?
(a) Wages
(b) Sale of product
(c) The factor of risk
(d) Manufacturing goods and services
Answer: (a) Wages
