1st Year Principles of Commerce Chapter 1 TestConcept of Business

Q1. Multiple choice questions (Attempt all · 10 × 1 = 10)

1. The basic objective of business is:

   1. Exchange

   2. Earning Profit

   3. Service to the society

   4. Earning foreign exchange for govt

2. A business takes into account the following activities:

   1. Economic

   2. Non economic

   3. Social

   4. None

3. What does a business organization mean:

   1. Sole trader ship

   2. Partnership

   3. Joint stock company

   4. All the above

4. Which factor plays an important role in improving the standard of living of the people and economic development:

   1. Trade

   2. Industry

   3. Commerce

   4. All the above

5. Income from business is called:

   1. Profit

   2. Interest

   3. Satisfaction

   4. Utility

6. The activities which are included in business are:

   1. Economic

   2. Non-economic

   3. Ethical

   4. Religious

7. Human activities consist of following activities:

   1. Un commended

   2. Commended

   3. Commanded and un commanded

   4. None

8. The objective of non economic activities is to:

   1. Serve the society

   2. Earn Profit

   3. Serve the society beside spiritual satisfaction

   4. Earning the fame

9. For the sale of goods, a businessman depends upon:

   1. The employees

   2. The relatives

   3. The demand of customers

   4. None

10. In order to determine the size of a business we consider:

    1. The availability of the capital

    2. The demand of the goods

    3. The capacity of production

    4. All the above