Business Studies MCQs: Test Your Knowledge with These Practice Questions
Business Studies is a core subject in the Commerce stream, covering various topics related to business, finance, marketing, economics, accountancy, and organizational studies. Beyond just learning about business and money-making, Business Studies teaches students to make informed decisions and balance financial understanding with personal well-being.
Below are some important multiple-choice questions (MCQs) on Business Studies, complete with answers for your reference. Use these questions to assess your understanding of key topics.
Business Studies MCQs
Which of the following is not an economic activity?
- A) Production
- B) Social service
- C) Professional
- D) Trading in goods
- Answer: B
Which option is not a business activity?
- A) Production of goods
- B) Transportation
- C) Exchange of goods
- D) Work in a factory for wages
- Answer: D
Which of the following is a characteristic of a business?
- A) Production
- B) Exchange or sale
- C) Risk element
- D) All the above
- Answer: D
Oil refinery and sugar mill are classified under which industries?
- A) Primary
- B) Secondary
- C) Tertiary
- D) None of the above
- Answer: B
Identify the activity which does not support trade.
- A) Banking
- B) Warehousing
- C) Insurance
- D) Mining
- Answer: D
In which occupation do people get a salary or wages in return for their work?
- A) Employment
- B) Business
- C) Profession
- D) None of the above
- Answer: A
Which item does not cause any business risk?
- A) Breakdown of machinery
- B) Efficient management
- C) Riot
- D) Changing government policy
- Answer: B
In business, which activities are categorized as support services?
- A) Commercial industries
- B) Primary industries
- C) Secondary industries
- D) Tertiary industries
- Answer: D
Why is it essential for businesses to make a profit?
- A) It provides a return to investors.
- B) It funds future expansion.
- C) It enhances the company’s reputation.
- D) All the above
- Answer: D
Which of the following is a false statement?
- A) The scope of commerce is narrower than business.
- B) Commerce includes trade and auxiliaries to trade.
- C) Foreign trade is purchase and sale by traders of the same country.
- D) Traders serve as a link between producers and consumers.
- Answer: C
Which of the following is not a management function?
- A) Planning
- B) Staffing
- C) Cooperating
- D) Controlling
- Answer: C
Policy formulation comes under which management role?
- A) Top-level managers
- B) Middle-level managers
- C) Operational management
- D) All of the above
- Answer: A
Management is defined as:
- A) An art
- B) A science
- C) Both art and science
- D) None of the above
- Answer: C
Which of the following does not follow the scalar chain?
- A) Functional structure
- B) Divisional structure
- C) Formal organization
- D) Informal organization
- Answer: D
What is Centralisation?
- A) Retention of decision-making authority
- B) Dispersal of decision-making authority
- C) Creating division as a profit center
- D) Opening new branches
- Answer: A
Effective delegation requires responsibility along with:
- A) Authority
- B) Manpower
- C) Incentives
- D) Promotion
- Answer: A
Grouping activities based on product lines is part of:
- A) Delegated organization
- B) Divisional organization
- C) Functional organization
- D) Autonomous organization
- Answer: B
Policy formulation is the task of:
- A) Top-level managers
- B) Middle-level managers
- C) Operational management
- D) All of the above
- Answer: A
Which of the following is not part of the communication process?
- A) Decoding
- B) Communication
- C) Channel
- D) Receiver
- Answer: B
Name the process that converts a message into communication symbols.
- A) Media
- B) Encoding
- C) Feedback
- D) Decoding
- Answer: B
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