Business And Commerce(Commerce ) Questions and Answers

Question 1. Name the two broad categories of business activities
  1.     Trade and commerce 
  2.     trade and industry 
  3.    industry and commerce
  4.    none of these
Explanation:-
Answer: Option C. -> industry and commerce
Question 2. The occupation in which people work for others and get remunerated in return is known as
  1.    Business
  2.    Profession
  3.    Employment
  4.    None of these
Explanation:-
Answer: Option C. -> Employment
Question 3. Economic activities may be classified into business, ___________ and employment
  1.    profession
  2.    Vocation
  3.    Occupation
  4.    Work
Explanation:-
Answer: Option A. -> profession
Question 4. Which of the following does not characterize business activity?
  1.    Production of goods & services
  2.    Presence of risk
  3.    Sale or exchange of goods and services
  4.    Salary and wages
Explanation:-
Answer: Option D. -> Salary and wages
Question 5. Commerce includes activities relating to trade and _________________ to trade
  1.    auxilaries
  2.    Subsidiaries
  3.    Supporting
  4.    None of these
Explanation:-
Answer: Option A. -> auxilaries
Question 6. Earning of profit is considered to be the subsidiary objective of the business
  1.    True
  2.    false
Explanation:-
Answer: Option B. -> false
Question 7. One the following is NOT a source of finance to limited liability companies
  1.    loans and overdraft
  2.    retained profits
  3.    trade credit
  4.    savngs
Explanation:-
Answer: Option D. -> savngs
Question 8. ___, ____ and __ are the three kinds of companies
  1.    quasi government department and state government department and local enterprise
  2.    Companies limited by shares, Companies limited by guarantee, Unlimited companies
Explanation:-
Answer: Option D. -> savngs
Question 9. Profit made in cooperative society is shared on the basis
  1.    patronage
  2.    shares invested
  3.    members' interest
  4.    attendance
Explanation:-
Answer: Option A. -> patronage
Question 10. A distinguishing characteristics of a limited liability company is that it
  1.    is a collection of many sole proprietors
  2.    is a multiple partnership
  3.    can sue and be sued
  4.    has limited resources
Explanation:-
Answer: Option B. -> is a multiple partnership
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