Q1. Which of the following alternative is true?

(i) The class midpoint is equal to:

a. The average of the upper class limit and the lower class limit.

b.The product of upper class limit and the lower class limit.

c. The ratio of the upper class limit and the lower class limit

d.None of the above.

(ii) The frequency distribution of two variables is known as

a. Univariate Distribution Bivariate Distribution

b. Multivariate Distribution d. None of the above

(iii) Statistical calculations in classified data are based on

a. the actual value of observations

b.the upper class limits

c. the lower class limits

d.the class midpoints

(vi) Under Exclusive method,

a. the upper class limit of a class is excluded in the class interval

b.the upper class limit of a class is included in the class interval

c. the lower class limit of a class is excluded in the class interval

d.the lower class limit of a class is included in the class interval

(v) Range is the

a. difference between the largest and the smallest observation

b.difference between the smallest and the largest distribution

c. average of the largest and the smallest observations

d.ratio of the largest to the smallest observation

Answer: a. difference between the largest and the smallest observation

Explanation: Range is equal to largest value minus the smallest value. i.e. R= L-S

Bar diagram is a
i. one-dimensional diagram

ii. two-dimensional diagram

iii. diagram with no dimension

iv. none of the above

2. Data represented through a histogram can help in finding graphically the

i. mean

ii. mode

iii. median

iv. non-of the above

Ogives can be helpful in locating graphically the

i. mean

ii. mode

iii. median

iv. non-of the above

Ogives can be helpful in locating graphically the

i. mean

ii. mode

iii. median

iv. non-of the above

Data represented through arithmetic line graph help in understanding

(i) Long term trend

(ii) Cyclicity in data

(iii) seasonality in data

(iv) all the above

State whether the following statements are True or False.

(i) Width of bars in a bar diagram need not to be equal.

(ii) Width of rectangles in a histogram should essentially be equal

(iii) Histogram can only be formed with continuous classification of data.

(iv) Histogram and column diagram are the same method of presentation of data.

(v) Mode of a frequency distribution can be known graphically with the help of a

histogram.

(vi) Median of a frequency distribution cannot be known from the ogives.

What kinds of diagrams are more effective in representing the following?

(i) Monthly rainfall in a year.

(ii) Composition of the population of Delhi by religion

(iii) Components of cost in a factory

Question 1. Which of the following is an economic activity?

(a) Cooking food for self consumption (b) Cooking food for sale

(c) Cooking food for donation (d) All of the above

Question 2. Which of the following is not a business activity?

(a) Production of goods (b) Trading of goods

(c) Storage of goods (d) Working in a hospital for wages

Question 3. Which of the following is not a feature of employment?

(a) Fixed wages (b) Agreement between employer and employee

(c) Terms and conditions (d) Element of risk

Question 4. Choose the odd one out:

(a) Insurance (b) Warehousing

(c) Mining (d) Banking

Question 5. Which of the following is not an insurable risk?

(a) Risk of theft

(b) Risk of fire

(c) Risk of change in pattern of demand

(d) All of these

Question 6. Which of the following is a cause of business risk?

(a) Natural causes (6) Political causes

(c) Economic causes (d) All of the above

Question 7. Profits are necessary for:

(a) Expansion (b) Survival

(c) Innovation (d) All of the above

Question 8. Objectives of business do not include:

(a) Higher returns to investors (b) Employee satisfaction

(c) Maximum price-from consumers (d) Market standing.

Question 9. Which of the following is an example of genetic industry?

(a) Mining (b) Lumbering

(c) Animal husbandry (d) Hunting

Question 10. Which of the following is an example of secondary industry?

(a) Genetic industry (b) Extractive industry

(c) Synthetic industry (d) All of the above

Answers: 1. (b) 2. (d) 3. (d) 4. (c) 5. (c)

6. (d) 7. (d) 8. (c) 9. (c) 10. ©

Tick the appropriate answer.

Question 1. The structure in which there is separation of ownership and management is

called

(i) Sole proprietorship (ii) Partnership

(iii) Company (iv) All business organizations

Question 2. The Karta in Joint Hindu family business has:

(i) Limited liability (ii) Unlimited liability

(iii) No liability for debts (iv) Joint liability

Question 3. In a cooperative society the principle followed is:

(i) One share one vote (ii) One man one vote

(iii) No vote (iv) Multiple votes

Question 4. The board of directors of a joint stock company is elected by:

(i) General public (ii) Government bodies

(iii) Shareholders (iv) Employees

Question 5. The maximum number of partners allowed in the banking business are:

(i) Twenty (ii) Ten

(iii) No limit (i v) Two

Question 6. Profits do not have to be shared. This statement refers to:

(i) Partnership (ii) Joint Hindu family business

(iii) Sole proprietorship (iv) Company

Question 7. The capital of a company is divided into number of parts each one of which are

called:

(i) Dividend (ii) Profit

(iii) Interest (ii) Share

Question 8. The Head of the Joint Hindu family Business is called (i) Proprietor (ii) Director

(iii) Karta (iv) Manager

Question 9. Provision of residential accommodation to the members at reasonable rates is

the objective of

(i) Producer’s cooperative (ii) Consumer’s objective

(iii) Housing cooperative (iv) Credit cooperative

Question 10. A partner whose association with the firm is unknown to the general public is

called

(i) Active partner (ii) Sleeping partner

(iii) Nominal partner (iv) Secret partner

Answer:

1. (iii) 2. (ii) 3. (ii) 4. (iii) 5. (ii)

6. (iii) 7. (iv) 8. (iii) 9. (iii) 10. (iv)

I. Multiple Choice Questions

Question 1. Name the form of business organization found only in India.

(a) Sole Proprietorship (6) Partnership

(c) Joint Hindu Family (d) Cooperatives

Question 2. Choose the type of business in which sole proprietorship is very suitable.

(a) CA Firm (b) Beauty Parlour

(c) A shopping mall (d) All of these

Question 3. Name the person who manages a Joint Hindu Family Business.

(a) Manager (b) Minor

(c) Members (d) Karta

Question 4. Name the law which governs Joint Hindu Family Business.

(a) Partnership Act (b) Hindu Law

(c) Companies Act, 1956 (d) Contract Act

Question 5. Which document is called charter of a company?

(a) Memorandum of Association (b) Articles of Association

(c) Prospectus (d) All of the above

Question 6. What is the minimum number of persons required to form a co-operative

society?

(a) 2 (6) 7

(c) 10 (d) 20

Question 7. Which of the following has unlimited liability in business?

(a) Sole Proprietor (b) Karta

(c) Partners (d) All of the above

Question 8. Name the type of company which must have a minimum paid up capital of 5

lacks,

(a) Public Company (b) Private Company

(c) Government Company (d) All of the above

Question 9. Which of the following has a separate legal entity?

(a) Joint Stock Company (b) Co-operative Society

(c) Both of the above (d) None of the above

Question 10. Minor can be full-fledged member of:

(a) Co-operative Society (b) Joint Stock Company

(c) Joint Hindu Family (d) Partnership

Answer:

1. (c) 2. (b) 3. (d) 4. (b) 5. (a)

6. (b) 7. (d) 8. (a) 9. (c) 10. ©

(MCQ) CBSE CLASS XI: BUSINESS STUDIES CHAPTER 1: NATURE & PURPOSE OF
BUSINESS

CBSE CLASS XI: BUSINESS STUDIES

CHAPTER 1: NATURE & PURPOSE OF BUSINESS

Answer the following objective type questions:

Instructions: Choose the correct alternative out of the given 3 or 4 options.

1. The possibilities of inadequate profits or even losses due to uncertainties are known as
____________

(a) Business contingencies

(b) Business risks

(c) Business ventures

(d) None of these

Ans: 2

2. Which one of the following may not be a factor behind starting a business?
(a) Routine workload

(b) size of the firm

(c) finance

(d) location of the business

Ans:1

3. Name the two broad categories of business activities.

(a) Trade and commerce

(b) trade and industry

(c) industry and commerce

(d) none of these

Ans:3

4. Commerce includes activities relating to trade and _________________ to trade.

(a) Supporting

(b) subsidiaries

(c) auxiliaries

(d) none of these

Ans:3

5. 'Earning of profit is considered to be the subsidiary objective of the business.' The given
statement is

(a) True

(b) false

(c) cannot say

Ans:2
6. Following are the characteristics of business risks. One of then is not correct. Please identify
it.

(a) Loss is the reward for risk bearing

(b) Business risks are due to uncertainties

(c) Risk is an essential component of every business

(d) Degree of risk depends mainly upon the nature and size of business

Ans:1

7. Transfer of interest exists in the case of

(a) Profession

(b) employment

(c) business

(d) none of these

Ans:3

8. Human activities are of ____________ types

(a) One

(b) two

(c) three

(d) four

Ans:2

9. Which of the following is not an example of non-economic activity?

(a) Patriotism

(b) teaching

(c) sentiment

(d) sympathy
Ans:2

10. Economic activities may be classified into business, ___________ and employment

(a) Profession

(b) occupation

(c) vocation

(d) work

Ans:1