About Business and Commerce

Following are some of the multiple choice questions on the Business and Commerce with answers that will help the students in developing their knowledge.

Business and Commerce MCQ

1. Which of the following is NOT an economic activity?

  • a doctor practicing
  • a lawyer practicing law
  • a professional cricketer playing cricket
  • a student playing cricket

2. What kind of contract may be difficult to execute because of its flexibility?

  • formal
  • informal
  • regular
  • irregular

3. ......... is a promise written on a paper that is signed, sealed and delivered.

  • formal contract
  • informal contract
  • law contract
  • court contract

4. Business law include which type of laws. (Select ALL that applies)

  • administrative regulations
  • federal
  • state
  • local

5. In a law of contract, a counter offer operate as

  • an acceptance
  • a consensus
  • a rejection
  • a contract

6. SELECT the essential elements of a valid contract.(Choose all that applies)

  • voidable contract
  • intention to create legal relations
  • possibility of performance
  • certainty of term
  • dissolution of contract

7. .What is a contract?

  • an agreement between two or more people which has a legal backing
  • an agreement between two or more people
  • an agreement between two or more people which does not have a legal backing
  • a disagreement between two or more people which has a legal backing

8. A contract which is devoid of legal effect is

  • void contract
  • unenforceable contract
  • voidable contract
  • valid contract

9. A contract in which all parties to the contract have carried out their obligation is said to be terminated by

  • breach of contract
  • frustration
  • operation of the law
  • voluntary agreement
  • performance

10. An offer can be terminated in the following way. (Select all that applies)

  • When the offeree notifies the offeror that he does not wish to accept the offer.
  • Lapse of offer.
  • Withdrawal of the offer(revocation)
  • A refusal of counter offer.
  • When the offeree and offeror are unhappy

11. During Ancient times, the place where skilled artisans worked and converted raw material into finished goods were known as_________________________.

  • Workshops
  • Karkhana
  • workshops/karkhana

12. The students of class XI were asked to describe the various types of intermediaries who played a prominent role in the promotion of trade. Arun, one of the student, spoke in particular, about the members of the wealthy business, banking and money lender family institution that exercised great influence during the Mughal period and the days of the East India Company. Identify the type of intermediaries being highlighted by Arun.

  • Commission Agents
  • Brokers
  • Jagat Seths
  • Distributors

13. It was the capital of the Pandayas who controlled the pearl fisheries of the Gulf of Mannar. It attracted foreign merchants, particularly Romans, for carrying out overseas trade.

  • Mathura
  • Tamralipti
  • Surat
  • Madura

14. Which city was famous for 'Gold silk cloth'?

  • Varanasi
  • Mithila
  • Tamralipti
  • Ujjain

15. The institution of ________ also played an important role during Mughal period and days of east India company, as intermediaries.

  • Nagar Seths
  • Commercial and Industrial Banks
  • Commission Agents
  • Jagat Seths

16. Hundi that is payable on order following a fixed term is called________.

  • Dhani-jog (Darshani)
  • Jokhmi (Muddati)
  • Firman-jog (Muddati)
  • Dhani-jog (Muddati)

17. Oil refinery is a example of

  • Synthetical industry
  • Assembling industry
  • Analytical industry
  • Processing industry

18. Which of the broad categories of industries covers oil refinery and sugar mills?

  • (i) Primary
  • (ii) Secondary
  • (iii) Tertiary
  • (iv) None of them

19. A contract can be a .......... or .............. agreement.

  • written or spoken
  • written, spoken
  • written spoken
  • spoken or written
  • spoken written

20. Which of the following does not characterise business activity?

  • (i) Production of goods and services
  • (ii) Presence of risk
  • (iii) Sale or exchange of goods and services
  • (iv) Salary or wages

21. The industries which provide support services to other industries are known as

  • (i) Primary industries
  • (ii) Secondary industries
  • (iii) Commercial industries
  • (iv) Tertiary industries

22. Which of the following cannot be classified as an objective of business?

  • (i) Investment
  • (ii) Productivity
  • (iii) Innovation
  • (iv) Profit earning

23. Name the two broad categories of business activities.

  •  Trade and commerce 
  •  trade and industry 
  • industry and commerce
  • none of these

24. Cattlebreeding farms, poultry farms, andfish hatchery come under which type of industries?

  • Manufacturing industries
  • Extractive industries
  • Secondary industries
  • Genetic industries

25. Commerce includes activities relating to trade and ____________

  • Supporting 
  • subsidiaries 
  • auxiliaries to trade
  • none of these

26. Economic Activities =

  • Business + Profession
  • Business + Employment
  • Business + Employment
  • Business + Profession + Employment

27. Transfer of interest exists in the case of

  • Profession
  • employment 
  • business 
  • none of these

28. What was known as‘Black Gold’ ?

  • jute
  • cinnamon
  • Black Pepper
  • Saffron

29. In which year and date "Make in India" was launched by the Government of India ?

  • 15 August 2014
  • 25 September 2015
  • 25 September 2014
  • 15 August 2050

30. Which of the following is not a Cause of Business Risks?

  • Natural causes
  • Human causes
  • Economic causes
  • artistic causes

31. Mohenjodaro werefounded in

  • Second millennium B.C.
  • third millennium B.C.
  • Fourth millennium B.C.
  • third millennium A.D.

32. Which is not a Nature of Business Risks?

  • Business risks arise due touncertainties
  • Risk is an essential part of every business
  • Degree of risk not depends mainlyupon the nature and size ofbusiness
  • Profit is the reward for risktaking

33. What type of cause is fluctuation of price in the market?

  • Physical
  • Human
  • Economic
  • Natural

34. Choose all that is an e-commerce website

  • GimKit
  • eBay
  • View Fruits
  • Sincerely Nuts
  • Zalora

35. The advantage of a private limited liability company is

  • large capital than the partnership
  • it cannot sue and be sued
  • shareholders have unlimited liability
  • it discourages expansion

36. One the following is NOT a source of finance to limited liability companies

  • loans and overdraft
  • retained profits
  • trade credit
  • savngs

37. ___ is the document which allows a company to commence business activities

  • memorandum of association
  • articles of association
  • certificate of trading
  • prospectus

38. All are types of cooperative society EXCEPT

  • producers cooperative society
  • consumers cooperative society
  • credit and thrift cooperative society
  • managers' cooperative society

39. Profit made in cooperative society is shared on the basis

  • patronage
  • shares invested
  • members' interest
  • attendance

40. ___, ____ and __ are the three kinds of companies

  • quasi government department and state government department and local enterprise
  • Companies limited by shares, Companies limited by guarantee, Unlimited companies

41. ___ is the organisation set up, owned and financed by individuals to promote the welfare of the members

  • limited company
  • public enterprise
  • cooperative society
  • partnership business

42. A distinguishing characteristics of a limited liability company is that it

  • is a collection of many sole proprietors
  • is a multiple partnership
  • can sue and be sued
  • has limited resources

43. ____ is a legal person or entity created by the association of a number of people in accordance with the law for the purpose of a defined object.

  • A company
  • company
  • companies
  • limited company
  • limited liability company

44. What are the limitations (to consumer) of using e-commerce?

  • Need a strong internet connection
  • Increasing product return
  • Delays in receiving goods
  • Need to worry about postal charges

45. True or False? B2C uses the simplest IT system.

  • True
  • False

46. What are the benefits of e-commerce to business?

  • Cheap
  • Can reach worldwide audience
  • Ability of business bid
  • More people are using computers (online)
  • Websites must be kept up to date

47. Which one of this business model uses a complex IT system?

  • B2C
  • B2B
  • C2C

48. B2C means business to consumer

  • True
  • False

49. What is the issue of place in marketing mix when a business decides to sell online?

  • Consumer safety
  • Product design
  • Price
  • Product delivery and distribution

50. Select all the features of e-commerce

  • Interactivity
  • One way communication
  • Ubiquity
  • Global reach
  • Persuasive

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