Nature and Purpose of Business

NCERT Solution

MCQ Answer

Question 1: Which of the following does not characterize business activity?

  1. Production of goods & services
  2. Presence of risk
  3. Sale or exchange of goods and services
  4. Salary and wages

    Answer: (d) Salary and wages

Question 2: Which of the broad categories of industries covers oil refinery and sugar mills?

  1. Primary
  2. Secondary
  3. Tertiary
  4. None of these

    Answer: (b) Secondary

Question 3: The occupation in which people work for others and get remunerated in return is known as

  1. Business
  2. Profession
  3. Employment
  4. None of these

    Answer: (c) Employment

Question 4: Which of the following cannot be classified as an auxiliary to trade?

  1. Mining
  2. Insurance
  3. Warehousing
  4. Transport

    Answer: (a) Mining

Question 5: The industries which provide support services to other industries are known as

  1. Primary industries
  2. Secondary industries
  3. Commercial industries
  4. Tertiary industries

    Answer: (d) Tertiary industries

Question 6: Which of the following cannot be classified as an objective of business?

  1. Investment
  2. Productivity
  3. Innovation
  4. Profit earning

    Answer: (a) Investment

Question 7: Business risk is not likely to arise due to

  1. Changes in government policy
  2. Good management
  3. Employee dishonesty
  4. Power failure

    Answer: (b) Good management

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