CHAPTER 1: BUSINESS, TRADE & COMMERCE
70+ Advanced MCQs with 3D Interactive Interface
Part 1: History & Evolution
1
Which indigenous instrument was used as a credit instrument and a source of finance in ancient India?
A. Cheque
B. Hundi
C. Bill of Exchange
D. Promissory Note
Correct Answer: B. Hundi
2
The 'Silk Route' connected India primarily with which region?
A. America
B. China & Rome
C. Australia
D. South Africa
Correct Answer: B. China & Rome
3
Which city was the major center for the export of stones in ancient India?
A. Peshawar
B. Surat
C. Pataliputra
D. Madura
Correct Answer: C. Pataliputra
4
Which Hundi was payable to a specific person who is worthy (Sah)?
A. Dhani-jog
B. Firman-jog
C. Sah-jog
D. Jokhmi
Correct Answer: C. Sah-jog
5
A 'Jokhmi Hundi' is primarily used for which purpose?
A. Buying land
B. Insuring goods in transit
C. Paying taxes
D. Salary payment
Correct Answer: B. Insuring goods in transit
Part 2: Nature of Human Activities
6
Which of the following is an example of a non-economic activity?
A. Working in a bank
B. Teaching in a school
C. Donating to a temple
D. Running a shop
Correct Answer: C. Donating to a temple
7
An economic activity is performed with the primary motive of:
A. Love
B. Affection
C. Livelihood/Wealth
D. Patriotism
Correct Answer: C. Livelihood/Wealth
8
A doctor treating his own son at home is which type of activity?
A. Economic
B. Non-economic
C. Business
D. Profession
Correct Answer: B. Non-economic
9
Which characteristic is essential for an activity to be called 'Business'?
A. Single transaction
B. Regularity in dealings
C. Social service only
D. No risk involved
Correct Answer: B. Regularity in dealings
10
Profit is considered the reward for:
A. Hard work
B. Risk-taking
C. Large capital
D. Cleverness
Correct Answer: B. Risk-taking
Part 3: Business, Profession & Employment
11
Membership of a professional body is required in:
A. Business
B. Employment
C. Profession
D. Industry
Correct Answer: C. Profession
12
Which of the following does not involve capital investment?
A. Large Business
B. Employment
C. Private Practice (Doctor)
D. Retail Shop
Correct Answer: B. Employment
13
Transfer of interest is possible in:
A. Profession
B. Employment
C. Business
D. None
Correct Answer: C. Business
14
A Code of Conduct is strictly followed in:
A. Business
B. Profession
C. Trade
D. All of these
Correct Answer: B. Profession
15
The return in employment is called:
A. Profit
B. Fees
C. Salary/Wages
D. Interest
Correct Answer: C. Salary/Wages
16
Risk is almost zero in:
A. Business
B. Employment
C. Profession
D. Industry
Correct Answer: B. Employment
Part 4: Classification of Industries
17
Mining is an example of which industry?
A. Genetic
B. Extractive
C. Constructive
D. Tertiary
Correct Answer: B. Extractive
18
Which industry involves breeding of plants in nurseries?
A. Extractive
B. Genetic
C. Analytical
D. Synthetic
Correct Answer: B. Genetic
19
An Oil Refinery is an example of which type of manufacturing industry?
A. Synthetic
B. Analytical
C. Assembling
D. Processing
Correct Answer: B. Analytical
20
Cement industry is an example of:
A. Analytical
B. Synthetic
C. Processing
D. Assembling
Correct Answer: B. Synthetic
21
Construction of dams and bridges comes under:
A. Primary Industry
B. Construction Industry
C. Manufacturing Industry
D. Genetic Industry
Correct Answer: B. Construction Industry
22
Which industry provides support services to other industries?
A. Primary
B. Secondary
C. Tertiary
D. Extractive
Correct Answer: C. Tertiary
Part 5: Commerce & Auxiliaries to Trade
23
Commerce includes Trade and:
A. Industry
B. Auxiliaries to Trade
C. Business
D. Profession
Correct Answer: B. Auxiliaries to Trade
24
Which auxiliary to trade removes the hindrance of place?
A. Banking
B. Insurance
C. Transport
D. Advertising
Correct Answer: C. Transport
25
Warehousing helps in removing the hindrance of:
A. Person
B. Place
C. Time
D. Risk
Correct Answer: C. Time
26
Banking and Finance remove the hindrance of:
A. Finance
B. Information
C. Risk
D. Place
Correct Answer: A. Finance
27
Advertising removes the hindrance of:
A. Knowledge/Information
B. Time
C. Finance
D. Risk
Correct Answer: A. Knowledge/Information
28
Export, Import, and Entrepot are types of:
A. Internal Trade
B. External Trade
C. Wholesale Trade
D. Retail Trade
Correct Answer: B. External Trade
29
Buying and selling in bulk quantities is called:
A. Retail Trade
B. Wholesale Trade
C. Entrepot Trade
D. Export Trade
Correct Answer: B. Wholesale Trade
Part 6: Business Objectives & Risks
30
Speculative risks involve:
A. Only loss
B. Both profit and loss
C. No profit or loss
D. Only profit
Correct Answer: B. Both profit and loss
31
Pure risks involve:
A. Either profit or loss
B. Either loss or no loss
C. Only profit
D. High returns
Correct Answer: B. Either loss or no loss
32
Risk is higher in:
A. Small scale business
B. Large scale business
C. No business
D. Public service
Correct Answer: B. Large scale business
33
Profit is essential for a business for:
A. Survival
B. Expansion
C. Measuring efficiency
D. All of the above
Correct Answer: D. All of the above
34
Floods and Earthquakes are examples of:
A. Human causes
B. Economic causes
C. Natural causes
D. Physical causes
Correct Answer: C. Natural causes
35
Dishonesty of an employee is a:
A. Natural cause
B. Human cause
C. Economic cause
D. Physical cause
Correct Answer: B. Human cause
Part 7: Multi-Dimensional Objectives
36
The position of a business in relation to its competitors is called:
A. Market Standing
B. Innovation
C. Productivity
D. Wealth maximization
Correct Answer: A. Market Standing
37
Developing new ideas or methods in business is called:
A. Marketing
B. Innovation
C. Planning
D. Organizing
Correct Answer: B. Innovation
38
Productivity is determined by comparing:
A. Profit and Loss
B. Assets and Liabilities
C. Outputs and Inputs
D. Sales and Purchases
Correct Answer: C. Outputs and Inputs
39
Which objective refers to the commitment of a business towards society?
A. Economic Objective
B. Social Responsibility
C. Personal Objective
D. Technical Objective
Correct Answer: B. Social Responsibility
40
Profit earning is the ____________ objective of business.
A. Secondary
B. Primary
C. Tertiary
D. Sole
Correct Answer: B. Primary
Part 8: Advanced Risk & History
41
A sudden change in government policy (e.g., GST) is which type of risk cause?
A. Human
B. Economic
C. Natural
D. Technical
Correct Answer: B. Economic
42
Mechanical failure in a factory is a:
A. Human cause
B. Physical cause
C. Natural cause
D. Economic cause
Correct Answer: B. Physical cause
43
The ancient university known as a major center of learning and trade was:
A. Nalanda
B. Taxila
C. Vikramshila
D. All of these
Correct Answer: B. Taxila
44
Maritime trade in ancient India was dominant in which region?
A. South India (Malabar coast)
B. North India
C. Central India
D. West India (Thar)
Correct Answer: A. South India (Malabar coast)
45
A Hundi that is 'payable to the bearer' is:
A. Dhani-jog
B. Nam-jog
C. Sah-jog
D. Jokhmi
Correct Answer: A. Dhani-jog
Part 9: Industry Deep Dive
46
Which manufacturing industry combines different ingredients into a new product?
A. Analytical
B. Synthetic
C. Assembling
D. Genetic
Correct Answer: B. Synthetic
47
Sugar and Paper industries are examples of:
A. Analytical
B. Synthetic
C. Processing
D. Assembling
Correct Answer: C. Processing
48
Making television and computers from parts is:
A. Processing
B. Assembling
C. Synthetic
D. Analytical
Correct Answer: B. Assembling
49
Fisheries and Poultry farms are:
A. Extractive
B. Genetic
C. Secondary
D. Tertiary
Correct Answer: B. Genetic
50
Which industry is concerned with the creation of infrastructure?
A. Manufacturing
B. Constructive
C. Extractive
D. Genetic
Correct Answer: B. Constructive
Part 10: Commerce Mixed Questions
51
Commerce acts as a link between:
A. Producers and Consumers
B. Wholesalers and Retailers
C. Banks and Insurance
D. Import and Export
Correct Answer: A. Producers and Consumers
52
The hindrance of person is removed by:
A. Transport
B. Trade
C. Banking
D. Insurance
Correct Answer: B. Trade
53
Which auxiliary helps to communicate with people in other countries?
A. Transport
B. Communication/Post
C. Banking
D. Warehousing
Correct Answer: B. Communication/Post
54
Entrepot trade is also known as:
A. Direct trade
B. Indirect trade
C. Re-export trade
D. Local trade
Correct Answer: C. Re-export trade
55
Insurance removes the hindrance of:
A. Knowledge
B. Risk
C. Time
D. Place
Correct Answer: B. Risk
Part 11: Business Ethics & Profit
56
Business ethics refers to the ____________ in business.
A. Rules
B. Profits
C. Moral values/Principles
D. Laws
Correct Answer: C. Moral values/Principles
57
Profit cannot be the ______ goal of business.
A. Only
B. Main
C. Important
D. Necessary
Correct Answer: A. Only
58
Profit is a measure of:
A. Size of business
B. Efficiency
C. Wealth of employees
D. None
Correct Answer: B. Efficiency
59
Business is considered a ____________ activity.
A. Social
B. Personal
C. Economic
D. All of these
Correct Answer: C. Economic
Part 12: Advanced Concepts
60
Speculative risk arises due to:
A. Fire
B. Change in price/fashion
C. Theft
D. Strike
Correct Answer: B. Change in price/fashion
61
A teacher teaching his own son is a ____________ activity.
A. Non-economic
B. Economic
C. Business
D. Profession
Correct Answer: A. Non-economic
62
Internal trade can be further divided into:
A. Import and Export
B. Wholesale and Retail
C. Direct and Indirect
D. None
Correct Answer: B. Wholesale and Retail
63
The term 'Business' is derived from the word:
A. Busy
B. Buying
C. Build
D. Budget
Correct Answer: A. Busy
64
Economic activities can be classified into:
A. Business, Profession, Employment
B. Trade, Industry, Commerce
C. Export, Import, Entrepot
D. None
Correct Answer: A. Business, Profession, Employment
65
An activity that involves risk is:
A. Employment
B. Business
C. Personal gardening
D. All
Correct Answer: B. Business
66
Innovation is a _________ objective of business.
A. Primary
B. Economic
C. Social
D. Technical
Correct Answer: B. Economic
67
Indigenous banking system used to deal with:
A. Credit and Hundi
B. Online transfers
C. Crypto-currency
D. None
Correct Answer: A. Credit and Hundi
68
The reward for employment is:
A. Profit
B. Fees
C. Salary/Wages
D. Commission
Correct Answer: C. Salary/Wages
69
Which industry extracts products from natural resources?
A. Extractive
B. Genetic
C. Synthetic
D. Assembling
Correct Answer: A. Extractive
70
Business is an economic activity because it is performed to:
A. Satisfy psychological needs
B. Earn profit/livelihood
C. Perform social service
D. None
Correct Answer: B. Earn profit/livelihood
© 2026 Business Studies Master | Rathin Kumar Bardhan
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