Bihar Board Class 11 Commerce Business Studies · Ch 1: Business, Trade and Commerce

Topics in this test

Difficulty: 3 easy · 7 medium · 20 hard

Sample questions with answers

The first 5 questions of this free test.

1. Q1. Which of the following statements about the characteristics of business is correct?

   • A. Business is always free from any element of risk
   • B. Business requires dealings in goods and services on a regular basis
   • C. Business is carried on only to render social service without profit
   • D. A single isolated transaction of sale is called business
   Solution

   Business requires dealings in goods or services on a regular basis; a single isolated transaction of sale or purchase is not treated as business.

2. Q2. A doctor runs a clinic and charges fees for treating patients, while her friend works in a hospital for a fixed monthly salary. Which pair of economic activities do they respectively represent?

   • A. Profession and employment
   • B. Business and employment
   • C. Business and profession
   • D. Employment and business
   Solution

   A doctor working independently for fees follows a profession, while a person working for another under a contract for salary is in employment.

3. Q3. Assertion (A): Warehousing is treated as an auxiliary to trade. Reason (R): Warehousing creates time utility by storing goods until they are demanded. Choose the correct option.

   • A. Both A and R are true but R is not the correct explanation of A
   • B. Both A and R are true and R is the correct explanation of A
   • C. A is true but R is false
   • D. A is false but R is true
   Solution

   Both statements are true and the reason correctly explains why warehousing helps trade by bridging the time gap between production and consumption.

4. Q4. A person buys 100 shirts at $\overline{200}$ each and sells all of them at $\overline{260}$ each. Transport and other expenses amount to $\overline{2,000}$. What is the profit earned on this trading activity?

   • A. $\overline{4,000}$
   • B. $\overline{2,000}$
   • C. $\overline{6,000}$
   • D. $\overline{8,000}$
   Solution

   Profit = total sales $-$ (total cost + expenses) = $26{,}000 - (20{,}000 + 2{,}000) = 4{,}000$.

5. Q5. Identify the 'odd one out' among the following, keeping in mind the classification of economic activities.

   • A. Business
   • B. Industry
   • C. Employment
   • D. Profession
   Solution

   Business, profession and employment are three types of economic activities, while industry is a part of business, so it does not belong with the others.

Frequently asked questions

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