Chapter Exam

Chapter 2: Objectives of Business — Online MCQ Test

Q: What is the main economic objective of a business?

Answer: A. To maximize profit — The primary economic objective of business is profit maximization. Profit is necessary for survival, growth, and continuity of business.

Q: Which of the following is a characteristic of business?

Answer: B. Regularity in economic activities — Business involves regular and continuous economic activities. It is not a one-time or casual activity.

Q: A business that aims to provide fair wages and good working conditions is pursuing a

Answer: A. Human objective — Human objectives are related to employees and labour welfare. Fair wages and good working conditions are part of this goal.

COMMERCE · CLASS 11th · Tamil Nadu State Board

Practice Chapter 2: Objectives of Business with a free chapter-wise online MCQ test for Tamil Nadu State Board CLASS 11th COMMERCE. This chapter covers: Focusing on fundamental commercial concepts this chapter details economic activities and characteristics of business. Students examine primary objectives including economic social.... AI-generated questions from basic to board-exam level, with instant results and explanations.

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Chapter 2: Objectives of Business — Important Questions & Answers (FAQ)

Frequently asked questions from Tamil Nadu State Board CLASS 11th COMMERCE — Chapter 2: Objectives of Business, with answers and explanations. These are sample questions; the exam has its own separate question set.

What is the main economic objective of a business?

A. To maximize profit ✓
B. To provide free education
C. To promote only cultural values
D. To avoid competition

Answer: A. To maximize profit
The primary economic objective of business is profit maximization. Profit is necessary for survival, growth, and continuity of business.

Which of the following is a characteristic of business?

A. Production for self-use only
B. Regularity in economic activities ✓
C. No risk is involved
D. Only charitable motive

Answer: B. Regularity in economic activities
Business involves regular and continuous economic activities. It is not a one-time or casual activity.

A business that aims to provide fair wages and good working conditions is pursuing a

A. Human objective ✓
B. Economic objective
C. National objective
D. Speculative objective

Answer: A. Human objective
Human objectives are related to employees and labour welfare. Fair wages and good working conditions are part of this goal.

Which statement is correct regarding business objectives?

A. Only one objective exists in business
B. Business objectives may differ according to the nature of the firm ✓
C. Business has no social responsibilities
D. Profit is always the only objective

Answer: B. Business objectives may differ according to the nature of the firm
Business objectives are multiple and may vary depending on the type, size, and goals of the organization.

Which one of the following pairs is correctly matched?

A. Economic objective - Labour welfare
B. Human objective - Profit maximization
C. National objective - Balanced regional development ✓
D. Social objective - Internal survival of business

Answer: C. National objective - Balanced regional development
Balanced regional development is a national objective because it supports the economic development of the country. The other pairs are incorrectly matched.

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