Nature and Purpose of Business Class 11 Revision Quiz

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Questions and Answers

What are the two broad categories under which business activities are classified?

Industry and Commerce (correct)
Sales and Marketing
Public and Private
Services and Production

Which term refers to the uncertainties that may result in loss for a business?

Business Objectives
Business Risks (correct)
Business Ventures
Business Investments

What are the possible causes of Business Risks according to the text?

Natural, Human, Economic (correct)
Physical, Virtual, Emotional
Political, Social, Technological
Local, National, International

In the context of business, what do we refer to by 'objective'?

Goals that a business wants to achieve (B) Signup and view all the answers

What is the difference between business and profession as highlighted in the text?

Business is for profit, profession is for service. (B) Signup and view all the answers

Which term refers to the basic requirements needed to initiate a business?

Business Imperatives (C) Signup and view all the answers

Discuss the characteristics that help in identifying the nature of business.

Characteristics such as economic activity, production or procurement of goods and services, sale or exchange of goods and services for a profit, presence of risk and uncertainty, and continuity are key in identifying the nature of business. Signup and view all the answers

Explain the differences between industry and commerce.

Industry involves the production of goods, whereas commerce involves the distribution of goods. Industry is concerned with the creation or extraction of goods, while commerce focuses on buying and selling of goods. Signup and view all the answers

What are the multiple objectives of a business?

The multiple objectives of a business include profit maximization, increasing market share, growth and expansion, customer satisfaction, and social responsibility. Signup and view all the answers

Describe the types of business risks and their characteristics.

Business risks can be classified as insurable and non-insurable risks. Insurable risks have definite possibility of loss, while non-insurable risks have an uncertain possibility of loss. Signup and view all the answers

Explain the causes of business risks with examples.

Business risks can stem from natural causes like earthquakes, human causes like theft, and economic causes like inflation. Other causes include changes in government regulations or technological advancements. Signup and view all the answers

Discuss the methods businesses can use to deal with risks.

Businesses can deal with risks by risk avoidance, risk reduction, risk transfer, and risk retention. Risk avoidance means avoiding activities that carry high risks, while risk reduction involves minimizing the impact of risks. Signup and view all the answers