Unit 1: Fundamentals of Business — Online MCQ Test
COMMERCE & ACCOUNTANCY · CLASS 11 INTERMEDIATE 1 YEAR · Telangana State Board
Practice Unit 1: Fundamentals of Business with a free chapter-wise online MCQ test.
This chapter covers: This chapter covers basic economic activities human activities classification business concepts objectives trade aids to trade and business risk fundamentals..
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Unit 1: Fundamentals of Business — Important Questions & Answers
Which of the following is an economic activity?
- A. Teaching in a school for salary
- B. Playing cricket with friends
- C. Sleeping at home
- D. Going for a morning walk
Answer: A. Teaching in a school for salary
Teaching for salary is done to earn income, so it is an economic activity. The other activities are non-economic in nature.
Teaching for salary is done to earn income, so it is an economic activity. The other activities are non-economic in nature.
Business is mainly concerned with the production and sale of goods and services for ______.
- A. charity
- B. profit
- C. hobby
- D. entertainment
Answer: B. profit
Business activities are undertaken with the primary objective of earning profit. Profit is one of the most important aims of business.
Business activities are undertaken with the primary objective of earning profit. Profit is one of the most important aims of business.
Economic activities are mainly undertaken to earn ______.
- A. marks
- B. income
- C. fame
- D. sports awards
Answer: B. income
Economic activities are performed to get income or livelihood. They differ from non-economic activities, which are done out of love, sympathy, or social duty.
Economic activities are performed to get income or livelihood. They differ from non-economic activities, which are done out of love, sympathy, or social duty.
Which of the following pairs is correctly matched?
- A. Trade — manufacturing goods
- B. Commerce — production of goods
- C. Industry — extraction of natural resources
- D. Trade — buying and selling of goods
Answer: D. Trade — buying and selling of goods
Trade means buying and selling of goods and services. The other options describe industry or production-related activities, not trade.
Trade means buying and selling of goods and services. The other options describe industry or production-related activities, not trade.
A trader insures his stock against fire. This is mainly done to reduce:
- A. profit
- B. business risk
- C. competition
- D. production
Answer: B. business risk
Insurance helps protect business against possible losses. It does not remove risk completely, but it reduces the financial burden arising from uncertainty.
Insurance helps protect business against possible losses. It does not remove risk completely, but it reduces the financial burden arising from uncertainty.