Chapter Exam

Unit 1: Fundamentals of Business — Online MCQ Test

Q: Which of the following is an economic activity?

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.

Q: Business is mainly concerned with the production and sale of goods and services for ______.

Answer: B. profit — Business activities are undertaken with the primary objective of earning profit. Profit is one of the most important aims of business.

Q: Economic activities are mainly undertaken to earn ______.

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.

Q: Which of the following pairs is correctly matched?

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.

Q: A trader insures his stock against fire. This is mainly done to reduce:

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.

COMMERCE & ACCOUNTANCY · CLASS 11 INTERMEDIATE 1 YEAR · Telangana State Board

Practice Unit 1: Fundamentals of Business with a free chapter-wise online MCQ test for Telangana State Board CLASS 11 INTERMEDIATE 1 YEAR COMMERCE & ACCOUNTANCY. This chapter covers: This chapter covers basic economic activities human activities classification business concepts objectives trade aids to trade and business risk fundamentals.. AI-generated questions from basic to board-exam level, with instant results and explanations.

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Unit 1: Fundamentals of Business — Important Questions & Answers (FAQ)

Frequently asked questions from Telangana State Board CLASS 11 INTERMEDIATE 1 YEAR COMMERCE & ACCOUNTANCY — Unit 1: Fundamentals of Business, 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. 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.

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.

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.

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.

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.

Next Chapter →

Unit 2: Forms of Business Organizations