Chapter 3: Classification of Business Activities — Online MCQ Test
COMMERCE · CLASS 11th · Tamil Nadu State Board
Practice Chapter 3: Classification of Business Activities with a free chapter-wise online MCQ test.
This chapter covers: This chapter classifies business activities into industry commerce and trade. Students explore primary secondary and tertiary industries alongside trade auxiliaries like transport....
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Chapter 3: Classification of Business Activities — Important Questions & Answers
Which of the following is the correct classification of business activities?
- A. Industry, Commerce and Trade
- B. Production, Distribution and Consumption
- C. Agriculture, Manufacturing and Services
- D. Import, Export and Warehousing
Answer: A. Industry, Commerce and Trade
Business activities are broadly classified into industry, commerce and trade. Trade is a part of commerce, not a separate main classification.
Business activities are broadly classified into industry, commerce and trade. Trade is a part of commerce, not a separate main classification.
What is the main activity of industry?
- A. Exchange of goods between buyers and sellers
- B. Production and processing of goods
- C. Advertising of goods and services
- D. Providing credit facilities
Answer: B. Production and processing of goods
Industry refers to activities connected with production, extraction, and processing of goods. It creates utility by converting raw materials into finished products.
Industry refers to activities connected with production, extraction, and processing of goods. It creates utility by converting raw materials into finished products.
Which of the following is not a primary industry?
- A. Fishing
- B. Forestry
- C. Mining
- D. Handloom weaving
Answer: D. Handloom weaving
Primary industries are concerned with extracting and producing natural resources. Handloom weaving is a secondary industry because it involves manufacturing.
Primary industries are concerned with extracting and producing natural resources. Handloom weaving is a secondary industry because it involves manufacturing.
A sugar mill buys sugarcane from farmers and converts it into sugar. Which pair of activities is shown here?
- A. Commerce and transport
- B. Primary and secondary industry
- C. Trade and banking
- D. Internal and foreign trade
Answer: B. Primary and secondary industry
Buying sugarcane from farmers is linked to the primary sector, while converting it into sugar is a secondary or manufacturing activity. The business involves both stages.
Buying sugarcane from farmers is linked to the primary sector, while converting it into sugar is a secondary or manufacturing activity. The business involves both stages.
A student says, 'All trade is commerce, but all commerce is not trade.' Which of the following best supports this statement?
- A. Trade includes only buying and selling, while commerce also includes transport, banking and insurance
- B. Commerce includes only manufacturing and mining
- C. Trade is broader than commerce because it includes services
- D. Commerce and trade are completely unrelated
Answer: A. Trade includes only buying and selling, while commerce also includes transport, banking and insurance
Trade is a part of commerce, whereas commerce has a wider scope because it includes auxiliaries to trade. This makes the statement correct.
Trade is a part of commerce, whereas commerce has a wider scope because it includes auxiliaries to trade. This makes the statement correct.