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Business and Commerce MCQ Questions and Solutions with Explanations | Commerce

Business and Commerce MCQ Questions and answers with easy and logical explanations. Commerce provides you all type of quantitative and competitive aptitude mcq questions with easy and logical explanations. Business and Commerce MCQ is important for exams like B.COM, M.COM, BBA, BBM, CA, CS, CMA, CPA, CFA, UPSC, NET, Banking and other commerce department exam.

Each section contains 100 MCQs on Business and Commerce .
1
Business means ________.
Discuss
Answer & Solution
Answer: Option B
Solution:
Business means Industry and commerce. Industry is an economic activity, concerned with the procurement and processing of raw materials into finished products, that reaches the customer. Commerce is a business activity, wherein exchange for goods and services for value, is done on a large scale. Capital Required.
2
Which of the following is not an economic activity?
Discuss
Answer & Solution
Answer: Option D
Solution:
A student playing cricket is not an economic activity. Economic activity is the activity of making, providing, purchasing, or selling goods or services. Any action that involves producing, distributing, or consuming products or services is an economic activity.
3
Which of the following is an extractive industry?
Discuss
Answer & Solution
Answer: Option C
Solution:
Hunting is an extractive industry. These industries extract or draw out products from natural sources. Raw materials that are mostly products of the soil are some basic supply of extractive industries.
4
Which of the following is not a manufacturing industry?
Discuss
Answer & Solution
Answer: Option D
Solution:
Mining is not a manufacturing industry. It is an extractive industry. The extractive industry consists of any operations that remove metals, mineral and aggregates from the earth.
5
A valid definition of a business purpose is to ______.
Discuss
Answer & Solution
Answer: Option A
Solution:
A valid definition of a business purpose is to Create a customer. The customer is a foundation of a business and keeps it in existence. The customer alone gives employment. And it is to supply the customer that society entrusts wealth-producing resources to the business enterprise.
6
Sole-trade organization is also called as ______.
Discuss
Answer & Solution
Answer: Option A
Solution:
Sole-trade organization is also called as Individual proprietorship. It is the type of entity that is fully owned and managed by one natural person (not a legal person/entity) known as the sole proprietor. The business and the man are the same, it does not have a separate legal entity.
7
Who is dormant partner?
Discuss
Answer & Solution
Answer: Option A
Solution:
One who takes no active part in business is dormant partner. But is entitled to a share of the profits, and subject to a share in losses; - called also sleeping partner or silent partner.
8
In case of minor acting as a partner, his personal properties are ________.
Discuss
Answer & Solution
Answer: Option B
Solution:
In case of minor acting as a partner, his personal properties are not liable for the debts of the firm.
9
When a partnership is dissolved?
Discuss
Answer & Solution
Answer: Option D
Solution:
A partnership is dissolved in any case of death of any of the partner, by mutual consent and by insolvency of any of the partner.
10
The liability of a sole proprietor is _______.
Discuss
Answer & Solution
Answer: Option C
Solution:
The liability of a sole proprietor is limited to the extent of the value of business assets and his all private assets.