Tag: classification of business

Questions Related to classification of business

The industries which provide support services to other industries are known as ____________.

elements of business fundamentals of business activities characteristics of vocational activities basis of classification of business activities classification of business

  1. Primary industries

  2. Secondary industries

  3. Commercial industries

  4. Tertiary industries

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Correct Option: D
Explanation:

Tertiary industries: These industries provides support to primary and secondary industries . Tertiary industry consits of : banking, transportation warehousing etc services.

Which of the following is not a feature of an optimal capital structure?

elements of business fundamentals of business activities characteristics of vocational activities basis of classification of business activities classification of business

  1. Safety

  2. Flexibility

  3. Control

  4. Solvency

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Correct Option: B

Business risk is not likely to arise due to _____________.

elements of business fundamentals of business activities characteristics of vocational activities basis of classification of business activities classification of business

  1. Change in government policy

  2. Good management

  3. Employee dishonesty

  4. Power failure

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Correct Option: B
Explanation:

Business risks is the possibility that a company will have lower than anticipated profits in future or even experience a loss . If there is a good management in business there will be no chances of business risks.

Business activities are of ____________ types.

elements of business fundamentals of business activities characteristics of vocational activities basis of classification of business activities classification of business

  1. One

  2. Two

  3. Three

  4. Four

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Correct Option: B
Explanation:

The business activity are of two types :

1. Industry :
a) Primary industry

b) Secondary industry
c) Tertiary industry
2. Commerce :
a) Trade 
b) Auxillaries of trade.

The enumerators work under a _________.

elements of business fundamentals of business activities characteristics of vocational activities basis of classification of business activities classification of business

  1. supervisor

  2. superior

  3. director

  4. manager

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Correct Option: A
Explanation:

Enumerators are those persons who gather information by conducting a survey and they report to their higher authorities, who are known as Supervisors.

Economic activities may be classified into business, ___________ and employment.

elements of business fundamentals of business activities characteristics of vocational activities basis of classification of business activities classification of business

  1. profession

  2. occupation

  3. vocation

  4. work

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Correct Option: A
Explanation:

Profession is a type of paid occupation which involves training, utilization of skills for a prolonged period. Business, profession and employment all are considered economic activities because they consist of exchange of goods and/or services for money.

Which theory is considered as a comprehensive attempt at explaining consumer's behaviour?

elements of business fundamentals of business activities characteristics of vocational activities basis of classification of business activities classification of business

  1. Group theory

  2. Howard-sheth theory

  3. Cognitive theory

  4. Field theory

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Correct Option: B
Explanation:

Howard-Sheth theory explains how consumers behave while buying a product or rendering a service in the market. It assumes that consumer is rational while buying the product and how the consumer is getting affected through physical, symbolic and social characteristics of the product, through marketing and their need for the product or service. 

Which of the following is not an example of non-economic activity?

elements of business fundamentals of business activities characteristics of vocational activities basis of classification of business activities classification of business

  1. Patriotism

  2. Teaching

  3. Sentiment

  4. Sympathy

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Correct Option: B
Explanation:

Non-economic activities are those activities which do not generate any income or money while they are carried out. Patriotism, sentiment, sympathy are all emotions, feelings of an individual whereas teaching is an activity which involves money transfer after it is carried out (unless it is intentionally carried out without any pay). Because a teacher gets salary for teaching, it is not an example of non-economic activity.

The term 'relevant' in a business activity means ____________________.

elements of business fundamentals of business activities characteristics of vocational activities basis of classification of business activities classification of business

  1. Pertinent to decision at hand

  2. Difference in cost between alternatives

  3. Both (A) and (B)

  4. None of the above

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Correct Option: A
Explanation:

In day to day business activities, the term 'relevant' indicates at the applicability of a certain decision that are taken in an organisation. 


These relates to how efficient and effective the decisions are in an organisation and how well does it relates to the matter of the problems for which it is taken. 

A secretary is a custodian of __________.

elements of business fundamentals of business activities characteristics of vocational activities basis of classification of business activities classification of business

  1. business information

  2. personal information

  3. secret information

  4. none of these

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Correct Option: C
Explanation:

The duties of a secretary include keeping the secret information to itself. Hence a personal secretary is a custodian of secret information.