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Which of the following does not characterise business activity?
Production of goods and services
Presence of risk
Sale or exchange of goods and services
Salary or wages
ANSWER - D
EXPLANATION - Business activities include any activity engaged in the primary purpose of making a profit. This is a general term that encompasses all the economic activities carried out by a company during the course of business.
Which of the broad categories of industries covers oil refinery and sugar mills?
Secondary industry
Primary Industry
Tertiary industry
None of these
ANSWER - A
EXPLANATION - The secondary industry involves manufacturing products using raw materials from primary industries. The industry that converts the raw materials provided by the primary industry into commodities and products for the consumer; manufacturing industry.
Which of the following cannot be classified as an auxiliary to trade?
Warehousing
Transport
Mining
Insurance
ANSWER - C
EXPLANATION - Auxiliaries to trade or aids to trade also provide the necessary support to trade. Such as transport, warehousing, banking and finance, and insurance. Mining is the primary industry.
The occupation in which people work for others and get remunerated in return is known as:
Business
Profession
Employment
None of these
ANSWER - C
EXPLANATION - Employment is a relationship between two parties, usually based on a contract where work is paid for, where one party, which may be a corporation, for-profit, not for profit organization, co-operative or other entity is the employer and the other is the employee. Employees work for others/ 'Employer' for remuneration.
The industries which provide support services to other industries are known as
Primary industries
Commercial industries
Tertiary industries
Secondary industries
ANSWER - C
EXPLANATION - Tertiary industries provide services which are auxiliary to trade and ensure the smooth transfer of goods from producer to consumer. Auxiliaries to trade or aids to trade also provide the necessary support to trade. Such as transport, warehousing, banking and finance, and insurance.
Which of the following cannot be classified as an objective of a business?
Profit earning
Productivity
Innovation
Investment
ANSWER - D
EXPLANATION - Business objectives are the stated, measurable targets of how to achieve business aims. Investment is one of the features of the business and not the objective.
Business risk is not likely to arise due to:
Good management
Employee dishonesty
Changes in government policy
Power failure
ANSWER - A
EXPLANATION - Business risk is the possibilities a company will have lower than anticipated profits or experience a loss rather than making a profit. Business risk is influenced by numerous factors, including sales volume, per-unit price, input costs, competition, and the overall economic climate and government regulations. Good management means taking proper decisions avoiding risk.
The term business is derived from the word ________.
financial markets
buy and selling
busy
Proprietorship
ANSWER - C
EXPLANATION - A business (also known as an enterprise, a company or a firm) is an organizational entity involved in the provision of goods and services to consumers. Keeping busy in the activities earning profit.
Business is considered to be ________.
Social Activity
Economic Activity
None of these
Political Activity
ANSWER - B
EXPLANATION - Economic activities are related to production, distribution, exchange and consumption of goods and services. The primary aim of economic activity is the production of goods and services with a view to make them available to the consumer. Since earning profit is the major objective of business, it is an economic activity.
Which of the following can be considered as an economic activity?
Business
All of these
Employment
Profession
ANSWER - B
EXPLANATION - Economic activities are related to production, distribution, exchange, and consumption of goods and services. Since Business, Profession and Employment are activities carried out to earn one's livelihood, they are all called economic activities.
The main purpose of economic activities is ________.
to provide free services
to earn less profit
to earn profit
to avoid loss
ANSWER - B
EXPLANATION - Making money is the purpose of any economic activity and to reach higher goals/targets in the amount earned is the continuous process. Economic activities create an economic or financial gain by producing goods or services.
Which of the following is an economic activity?
Social Activities
Religious Activities
Patriotic Activities
Profession
ANSWER - D
EXPLANATION - Economic activities are related to production, distribution, exchange, and consumption of goods and services(profession). Professionals involved in their profession to make money or earn their livelihood, hence it is an economic activity.
Which of the following is not a characteristic of business?
Regularity of dealing
Non economic activities
Creation of utilities
Entrepreneurship
ANSWER - B
EXPLANATION - Business refers to the purchase and sales of goods with the objective of earning profit. Business activity is an economic activity because it is related to money. Business is an economic activity.
Which of the following is not concerned with the profession?
A specialised body of knowledge and skill
Manufacturing goods and services
Code of conduct
Formal training
ANSWER - B
EXPLANATION - A profession is a vocation founded upon specialized educational training, the purpose of which is to supply disinterested objective counsel and service to others, for direct and definite compensation, wholly apart from expectation of another business gain. Manufacturing comes under industry/business.
________ is an economic activity.
Non profit organisation
Social service
None of these
Employment
ANSWER - D
EXPLANATION - Employment provides salary and an opportunity to earn a livelihood. Making money is the purpose of any economic activity and to reach higher goals/targets in the amount earned is the continuous process.
Which of the following is a cause of business risks?
Economic Cause
Human Cause
All of these
Natural Cause
ANSWER - C
EXPLANATION - Main Causes of Business Risk, Natural Causes, Human Causes, Competition, use of modern technology, government policies.
Which of the following is not a natural cause of business risks?
Strikes
Heavy Rains
Famine
Earthquake
ANSWER - A
EXPLANATION - Natural Causes: Risks which arise due to the actions of Nature (and hence uncontrollable) are called natural risks. For example, the risk of rainfall not occurring on time or excessive rainfall causing flood is a serious risk for farmers.
Which of the following is a human cause of business risks?
Strikes
Riots
Dishonesty
All of these
ANSWER - D
EXPLANATION - Human causes are very important causes of business risks. These causes include dishonesty, carelessness, and negligence of employees, riots, strikes, etc. The irrational approach of the management or the owners of the business is also a type of human failure which causes business risk.
Which of the following is an economic cause of business risks?
Price
Competition
Demand for goods
All of these
ANSWER - D
EXPLANATION - Economic causes relate to fluctuations in demand and price or changes in the market condition. There may be a loss because of price fluctuations, trade cycle, severe competition, and unforeseen changes in the techniques of production.
The term ________ refers to the possibility of inadequate profits or even losses due to uncertainties or unexpected events.
entrepreneurship
social responsibility
marketing
business risks
ANSWER - D
EXPLANATION - Business risk is the possibilities a company will have lower than anticipated profits or experience a loss rather than making a profit. Business risk is influenced by numerous factors, including sales volume, per-unit price, input costs, competition, and the overall economic climate and government regulations.
The word marketing standing is concerned with ________.
position of an enterprise
customers
competitors
supply of the product
ANSWER - A
EXPLANATION - The percentage of total sales for a product in a particular market that business accounts for is the market standing for that company. The word marketing standing is concerned with the Position of an enterprise.
Trade is an essential part of commerce. It refers to ________.
small business
profession
none of these
Sale
ANSWER - D
EXPLANATION - Trade involves the transfer of goods or services from one person or entity to another, often in exchange for money. Trade is an essential part of commerce.
Usually, goods are not sold or consumed immediately after production. They are held in stock to make them available as and when required. For this purpose ________ is important.
warehousing
banking
finance
Advertising
ANSWER - A
EXPLANATION - A warehouse is a commercial building for storage of goods. Warehouses are used by manufacturers, importers, exporters, wholesalers, transport businesses, customs, etc. They are usually large plain buildings in industrial areas of cities, towns, and villages.
Business involves various types of risks. To protect a business against these risks ________ is required.
banking
transport
advertising
Insurance
ANSWER - D
EXPLANATION - Insurance is a means of protection from financial loss. It is a form of risk management primarily used to hedge against the risk of a contingent, uncertain loss.
________ is one of the most important methods of promoting the sale of products.
Banking and finance
Advertising
Warehousing
Insurance
ANSWER - B
EXPLANATION - Advertising is an audio or visual form of marketing communication that employs an openly sponsored, non-personal message to promote or sell a product, service, or idea.
Tea is mainly produced in Assam; Cotton in Gujarat and Maharashtra; Jute in West Bengal and Orissa; Sugar in U.P, Bihar, and Maharashtra. But these goods are required for consumption in different parts of the country. For this purpose ________ is very important.
insurance
transportation
banking and finance
Advertising
ANSWER - B
EXPLANATION - Transport or transportation is the movement of humans, animals, and goods from one location to another.
Activities which are meant for assisting trade are known as ________.
banking and finance
auxiliaries to trade
advertising
profession
ANSWER - B
EXPLANATION - Auxiliaries to trade or aids to trade also provide the necessary support to trade. Such as transport, warehousing, banking and finance, and insurance.
Commerce provides the necessary link between ________.
None of these
retailers and consumers
wholesaler and consumers
producers and consumers
ANSWER - D
EXPLANATION - Consumers buy things that producers make or sell. Commerce provides the necessary link between producers and consumers.
Commerce includes two types of activities ________.
trade and auxiliaries to trade
profession and employment
banking and finance
none of these
AANSWER - A
EXPLANATION - uxiliaries to trade or aids to trade also provide the necessary support to trade. Such as transport, warehousing, banking and finance, and insurance. Trade, or commerce, involves the transfer of goods or services from one person or entity to another, often in exchange for money.
________ industries remain engaged in breeding plants and animals for their use in further production.
Genetic industries
Synthetical industry
Processing industry
Extractive industries
ANSWER - A
EXPLANATION - Genetic industries are those industries which are engaged in re-production and multiplication of species of plants and animals with the sole objective of sale. These industries are engaged in activities such as animal breeding, cattle breeding, etc.
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