Nature and Purpose of Business
NCERT Solution
MCQ Answer
Question 1: Which of the following does not characterize business activity?
- Production of goods & services
- Presence of risk
- Sale or exchange of goods and services
- Salary and wages
Answer: (d) Salary and wages
Question 2: Which of the broad categories of industries covers oil refinery and sugar mills?
- Primary
- Secondary
- Tertiary
- None of these
Answer: (b) Secondary
Question 3: The occupation in which people work for others and get remunerated in return is known as
- Business
- Profession
- Employment
- None of these
Answer: (c) Employment
Question 4: Which of the following cannot be classified as an auxiliary to trade?
- Mining
- Insurance
- Warehousing
- Transport
Answer: (a) Mining
Question 5: The industries which provide support services to other industries are known as
- Primary industries
- Secondary industries
- Commercial industries
- Tertiary industries
Answer: (d) Tertiary industries
Question 6: Which of the following cannot be classified as an objective of business?
- Investment
- Productivity
- Innovation
- Profit earning
Answer: (a) Investment
Question 7: Business risk is not likely to arise due to
- Changes in government policy
- Good management
- Employee dishonesty
- Power failure
Answer: (b) Good management