Chapter Exam

Chapter 1 COMMERCE : Concepts of Business and Business Activities — Online MCQ Test

Q: Which of the following is an economic activity?

Answer: B. Teaching in a school for salary — Teaching for salary is done to earn income, so it is an economic activity. The other activities are not performed for monetary gain.

Q: Business is mainly concerned with the production and exchange of goods and services for the purpose of:

Answer: C. Profit — The main objective of business is to earn profit through production and exchange. Profit is a key motive that distinguishes business from many other activities.

Q: A farmer grows paddy and sells it in the market. In this case, farming is classified as:

Answer: B. Industry — Growing paddy is a production activity, so it comes under industry. The sale of paddy is a commercial activity under trade.

Q: A textile company converts cotton into cloth and then sells it through retailers. Which set of activities is correct?

Answer: A. Industry and commerce — Converting cotton into cloth is industry, while selling it through retailers is commerce. Business activities often include both production and distribution.

COMMERCE · CLASS 11 INTER I YEAR · Andhra State Board

Practice Chapter 1 COMMERCE : Concepts of Business and Business Activities with a free chapter-wise online MCQ test for Andhra State Board CLASS 11 INTER I YEAR COMMERCE. This chapter covers: This chapter covers human activities economic versus non-economic activities definitions characteristics objectives and classification of business activities into industry and comm.... AI-generated questions from basic to board-exam level, with instant results and explanations.

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Chapter 1 COMMERCE : Concepts of Business and Business Activities — Important Questions & Answers (FAQ)

Frequently asked questions from Andhra State Board CLASS 11 INTER I YEAR COMMERCE — Chapter 1 COMMERCE : Concepts of Business and Business Activities, with answers and explanations. These are sample questions; the exam has its own separate question set.

Which of the following is an economic activity?

A. Reading a book for pleasure
B. Teaching in a school for salary ✓
C. Playing cricket in the evening
D. Helping a friend without expecting anything

Answer: B. Teaching in a school for salary
Teaching for salary is done to earn income, so it is an economic activity. The other activities are not performed for monetary gain.

Business is mainly concerned with the production and exchange of goods and services for the purpose of:

A. Entertainment
B. Social welfare only
C. Profit ✓
D. Personal hobbies

Answer: C. Profit
The main objective of business is to earn profit through production and exchange. Profit is a key motive that distinguishes business from many other activities.

A farmer grows paddy and sells it in the market. In this case, farming is classified as:

A. Commerce
B. Industry ✓
C. Trade
D. Personal activity

Answer: B. Industry
Growing paddy is a production activity, so it comes under industry. The sale of paddy is a commercial activity under trade.

A textile company converts cotton into cloth and then sells it through retailers. Which set of activities is correct?

A. Industry and commerce ✓
B. Only commerce
C. Only industry
D. Non-economic activity and trade

Answer: A. Industry and commerce
Converting cotton into cloth is industry, while selling it through retailers is commerce. Business activities often include both production and distribution.

Which of the following is the best example of a business activity that combines both industry and commerce, but is often misunderstood as only one of them?

A. A factory manufacturing soap and selling it in the market ✓
B. A student studying for an exam
C. A mother preparing food only for the family
D. A farmer resting in the evening

Answer: A. A factory manufacturing soap and selling it in the market
Manufacturing soap is industry, and selling it in the market is commerce. Such combined activities are common in business and are often confused with only production.