BUSINESS ACTIVITIES ~ ICSE Class 9 Commerical Studies - Notes, MCQs
BUSINESS ACTIVITIES ~ ICSE Class 9 Commerical Studies - Notes, MCQs
1. Business is an ______ activity.
A. Social
B. Economic
C. Political
D. Religious
Answer: B
2. Business involves the sale, transfer or exchange of:
A. Goods only
B. Services only
C. Goods and services
D. Money only
Answer: C
3. The primary objective of business is:
A. Social welfare
B. Entertainment
C. Earning profit
D. Charity
Answer: C
4. Goods and services in business are provided mainly to:
A. Earn profits
B. Gain popularity
C. Pass time
D. Help relatives
Answer: A
5. Business is a type of:
A. Non-economic activity
B. Economic activity
C. Recreational activity
D. Political activity
Answer: B
6. Which of the following is NOT an economic activity?
A. Business
B. Employment
C. Profession
D. Charity
Answer: D
7. Which of the following is an economic activity?
A. Donating clothes
B. Teaching poor children free of cost
C. Selling books in a shop
D. Helping a friend
Answer: C
8. A person engaged in business is known as:
A. Entrepreneur
B. Consumer
C. Businessman
D. Professional
Answer: C
9. The unit formed for carrying on business is called:
A. Enterprise
B. Society
C. Club
D. Association
Answer: A
10. Business includes:
A. Extraction only
B. Production only
C. Distribution only
D. All of these
Answer: D
11. Which activity comes under business?
A. Selling vegetables regularly
B. Teaching your brother free of cost
C. Donating books
D. Helping neighbours
Answer: A
12. Business activities are carried out mainly for:
A. Social service
B. Personal satisfaction
C. Earning income
D. Recreation
Answer: C
13. Which of the following is a profession?
A. Shopkeeper
B. Farmer
C. Doctor
D. Trader
Answer: C
14. Which occupation requires specialized education and training?
A. Business
B. Profession
C. Employment
D. Trade
Answer: B
15. Chartered Accountancy is an example of:
A. Business
B. Profession
C. Employment
D. Industry
Answer: B
16. A lawyer earns income through:
A. Profit
B. Salary
C. Fees
D. Commission
Answer: C
17. An employee earns:
A. Profit
B. Dividend
C. Salary or wages
D. Interest
Answer: C
18. Employment refers to:
A. Working independently
B. Working under an employer
C. Practising a profession
D. Trading goods
Answer: B
19. Which of the following is an example of employment?
A. Doctor running his own clinic
B. Shop owner
C. Factory worker
D. Lawyer
Answer: C
20. Which of the following is NOT a profession?
A. Architect
B. Doctor
C. Lawyer
D. Retailer
Answer: D
21. According to James Stephenson, business activities are performed for:
A. Recreation
B. Social service
C. Earning profits
D. National development
Answer: C
22. According to Wheeler, business is organised to provide:
A. Entertainment
B. Goods and services
C. Charity
D. Recreation
Answer: B
23. The transfer of goods from producer to consumer is part of:
A. Business
B. Politics
C. Religion
D. Sports
Answer: A
24. Goods extracted from nature are:
A. Manufactured goods
B. Natural resources
C. Capital goods
D. Finished goods
Answer: B
25. Which of the following is a capital good?
A. Bread
B. Shoes
C. Machine
D. Toothpaste
Answer: C
26. Raju purchases vegetables every morning and sells them in the market daily. This activity is:
A. Profession
B. Employment
C. Business
D. Hobby
Answer: C
27. A doctor opens a clinic after obtaining an MBBS degree. This activity is:
A. Business
B. Profession
C. Employment
D. Trade
Answer: B
28. A software engineer working in TCS receives a monthly salary. This is:
A. Business
B. Profession
C. Employment
D. Trade
Answer: C
29. A person buys goods and sells them with the objective of earning profit. This is:
A. Business
B. Charity
C. Hobby
D. Recreation
Answer: A
30. A woman bakes cakes for her family members without charging any money. This activity is:
A. Business
B. Profession
C. Non-economic activity
D. Trade
Answer: C
31. A person starts producing furniture for sale in the market. This activity belongs to:
A. Employment
B. Business
C. Profession
D. Recreation
Answer: B
32. A lawyer working in a company and receiving a salary is an example of:
A. Profession
B. Employment
C. Trade
D. Industry
Answer: B
33. Which activity is undertaken mainly to satisfy human wants through exchange?
A. Business
B. Charity
C. Recreation
D. Politics
Answer: A
34. A businessman buys raw materials, manufactures products and sells them. Which activity is involved?
A. Only production
B. Only distribution
C. Production and distribution
D. Only exchange
Answer: C
35. The essence of business lies in:
A. Donations
B. Service without reward
C. Earning income through exchange
D. Personal satisfaction
Answer: C
36. Assertion (A): Business is an economic activity.
Reason (R): It is carried on with the purpose of earning money.
A. Both A and R are true and R is the correct explanation.
B. Both A and R are true but R is not the correct explanation.
C. A is true but R is false.
D. A is false but R is true.
Answer: A
37. Assertion (A): A doctor is engaged in business.
Reason (R): A doctor renders expert services after obtaining professional qualifications.
A. Both true
B. Both false
C. A false but R true
D. A true but R false
Answer: C
38. Assertion (A): An employee works under an employer.
Reason (R): An employee earns wages or salary.
A. Both true and R explains A
B. Both true but R does not explain A
C. A true, R false
D. A false, R true
Answer: A
39. Assertion (A): Business includes production and distribution.
Reason (R): Business activities help satisfy human wants.
A. Both true and R explains A
B. Both true but R does not explain A
C. A true, R false
D. A false, R true
Answer: A
40. Assertion (A): Charity is an economic activity.
Reason (R): Charity is done without the intention of earning money.
A. Both true
B. A true, R false
C. A false, R true
D. Both false
Answer: C
SECTION 2: CHARACTERISTICS / NATURE OF BUSINESS ACTIVITIES
(ICSE Class 9 Commercial Studies)
1. Which of the following is the essence of business?
A. Production
B. Sale or exchange
C. Advertisement
D. Banking
Answer: B
2. Business activities involve sale or exchange for:
A. Charity
B. Consideration
C. Friendship
D. Recreation
Answer: B
3. Cooking food for personal consumption is:
A. Business
B. Profession
C. Not business
D. Trade
Answer: C
4. A restaurant preparing food for customers is:
A. Hobby
B. Business
C. Recreation
D. Charity
Answer: B
5. Every business enterprise deals in:
A. Goods only
B. Services only
C. Goods and/or services
D. Money only
Answer: C
6. Bread, clothes and shoes are examples of:
A. Capital goods
B. Producer goods
C. Consumer goods
D. Services
Answer: C
7. Machinery used in factories is:
A. Consumer good
B. Producer good
C. Service
D. Commodity
Answer: B
8. Which of the following is a service?
A. Bread
B. Machine
C. Electricity
D. Cloth
Answer: C
9. Banking is classified as:
A. Consumer good
B. Producer good
C. Service
D. Commodity
Answer: C
10. Which characteristic indicates continuity in business?
A. Risk
B. Sale
C. Regular dealings
D. Profit
Answer: C
11. A single transaction cannot be called:
A. Employment
B. Profession
C. Business
D. Service
Answer: C
12. Business must be carried on:
A. Occasionally
B. Regularly
C. Once
D. Rarely
Answer: B
13. The primary objective of business is:
A. Donation
B. Profit
C. Recreation
D. Entertainment
Answer: B
14. Profit is essential for:
A. Survival of business
B. Charity
C. Politics
D. Recreation
Answer: A
15. A business without profit can:
A. Expand rapidly
B. Survive indefinitely
C. Face closure
D. Never face losses
Answer: C
16. Utility means:
A. Profit earned
B. Satisfaction of human wants
C. Tax paid
D. Production cost
Answer: B
17. Business creates utility by making goods:
A. Costly
B. Scarce
C. Useful
D. Imported
Answer: C
18. Business is mainly an:
A. Social activity
B. Political activity
C. Economic activity
D. Cultural activity
Answer: C
19. Risk refers to:
A. Certain profit
B. Certain loss
C. Uncertainty of profit or loss
D. Guaranteed success
Answer: C
20. Which of the following is an insurable risk?
A. Change in fashion
B. Fall in demand
C. Fire
D. Change in customer preference
Answer: C
21. Mohan sold his old bicycle once. This activity is:
A. Business
B. Profession
C. Not business
D. Trade
Answer: C
22. Mohan starts buying and selling bicycles every week. This becomes:
A. Charity
B. Business
C. Profession
D. Employment
Answer: B
23. A tailor stitches clothes and charges customers. Which characteristic is present?
A. Sale of service
B. Charity
C. Recreation
D. Hobby
Answer: A
24. A businessman purchases goods and stores them for future sale. Which objective is most likely?
A. Donation
B. Profit
C. Entertainment
D. Recreation
Answer: B
25. A coaching centre charges fees from students. This represents:
A. Sale of service
B. Sale of goods
C. Charity
D. Hobby
Answer: A
26. A trader regularly purchases rice from wholesalers and sells it in the market. Which characteristic is shown?
A. Risk
B. Utility creation
C. Regular dealings
D. Employment
Answer: C
27. A businessman manufactures furniture to earn income. Which feature is highlighted?
A. Profit motive
B. Recreation
C. Charity
D. Donation
Answer: A
28. A businessman faces loss due to flood. This illustrates:
A. Utility
B. Risk
C. Profit
D. Exchange
Answer: B
29. A company provides internet services for a fee. It deals in:
A. Goods
B. Services
C. Capital goods
D. Consumer goods
Answer: B
30. A bakery producing bread for sale is engaged in:
A. Business
B. Hobby
C. Charity
D. Recreation
Answer: A
31. Read the statements:
1. Business involves sale or exchange.
2. Business may involve goods and services.
3. Business transactions are regular.
4. Profit is not necessary.
Which statements are correct?
A. 1, 2 and 3 only
B. 2 and 4 only
C. 1 and 4 only
D. All four
Answer: A
32. Which situation best represents business activity?
A. A mother cooks food for her family.
B. A student helps a friend.
C. A restaurant sells food daily.
D. A person donates books.
Answer: C
33. Which of the following creates utility?
A. Selling useful products
B. Destroying products
C. Hoarding products permanently
D. Wasting resources
Answer: A
34. A businessman opens a shop despite uncertainty in demand. This reflects:
A. Employment
B. Profit sharing
C. Risk-bearing
D. Charity
Answer: C
35. A company sells software subscriptions online. Which characteristic applies?
A. Sale of service
B. Sale of consumer goods only
C. Employment
D. Charity
Answer: A
36. Which business characteristic is present when a company continues selling products year after year?
A. Profit
B. Regular dealings
C. Utility
D. Risk
Answer: B
37. Which characteristic differentiates business from gambling?
A. Profit motive
B. Sale
C. Economic activity
D. Creation of utility
Answer: D
38. Which feature of business is represented when a company invests money despite uncertainty?
A. Profit motive
B. Utility creation
C. Risk
D. Service
Answer: C
39. A business earning profits while satisfying customers reflects:
A. Economic activity only
B. Profit motive and utility creation
C. Risk only
D. Sale only
Answer: B
40. Which of the following is NOT a characteristic of business?
A. Risk
B. Regular dealings
C. Charity motive
D. Profit motive
Answer: C
PART D: CASE STUDY MCQs
Case Study 1
Rahul owns a grocery shop. He purchases goods from wholesalers every week and sells them to customers. Sometimes prices fluctuate, causing losses.
41. Rahul's activity is:
A. Profession
B. Employment
C. Business
D. Hobby
Answer: C
42. Which characteristic is shown by purchasing and selling every week?
A. Utility creation
B. Regular dealings
C. Charity
D. Donation
Answer: B
43. Price fluctuations indicate:
A. Utility
B. Risk
C. Employment
D. Profession
Answer: B
44. Rahul's objective is mainly:
A. Social service
B. Recreation
C. Profit
D. Donation
Answer: C
Case Study 2
A company manufactures refrigerators and sells them across India. It faces competition and changing customer preferences.
45. The company deals in:
A. Services only
B. Goods
C. Employment
D. Profession
Answer: B
46. Changing customer preferences create:
A. Utility
B. Profit
C. Risk
D. Sale
Answer: C
47. Selling refrigerators creates:
A. Utility
B. Recreation
C. Donation
D. Employment
Answer: A
48. The company's main objective is:
A. Profit
B. Charity
C. Politics
D. Recreation
Answer: A
PART E: ASSERTION–REASONING MCQs
49. Assertion (A): Business involves regular dealings.
Reason (R): A single transaction cannot be called business.
A. Both A and R are true and R correctly explains A.
B. Both A and R are true but R does not explain A.
C. A is true, R is false.
D. A is false, R is true.
Answer: A
50. Assertion (A): Profit is necessary for business survival.
Reason (R): Business is a charitable institution.
A. Both true
B. Both false
C. A true, R false
D. A false, R true
Answer: C
51. Assertion (A): Risk is an essential feature of business.
Reason (R): Business profits are always certain.
A. Both true
B. Both false
C. A true, R false
D. A false, R true
Answer: C
52. Assertion (A): Business creates utility.
Reason (R): Business makes goods and services useful for satisfying human wants.
A. Both true and R explains A
B. Both true but R does not explain A
C. A true, R false
D. A false, R true
Answer: A
53. Assertion (A): Electricity is a service.
Reason (R): Services are intangible.
A. Both true and R explains A
B. Both true but R does not explain A
C. A true, R false
D. A false, R true
Answer: A
54. Assertion (A): Business is an economic activity.
Reason (R): It is carried on with the objective of earning profit.
A. Both true and R explains A
B. Both true but R does not explain A
C. A true, R false
D. A false, R true
Answer: A
55. Assertion (A): Cooking food at home for family is business.
Reason (R): Business requires sale or exchange for consideration.
A. Both true
B. Both false
C. A false, R true
D. A true, R false
Answer: C
SECTION 3: TYPES OF BUSINESS ACTIVITIES
1. Business activities are broadly classified into:
A. Profession and Employment
B. Industry and Commerce
C. Production and Consumption
D. Trade and Banking
Answer: B
2. Industry is mainly concerned with:
A. Distribution of goods
B. Production of goods
C. Advertising
D. Banking
Answer: B
3. Commerce is mainly concerned with:
A. Production
B. Manufacturing
C. Distribution and exchange
D. Construction
Answer: C
4. Which of the following is a branch of Commerce?
A. Trade
B. Manufacturing
C. Mining
D. Agriculture
Answer: A
5. Commerce consists of:
A. Trade only
B. Industry only
C. Trade and Aids to Trade
D. Manufacturing and Trade
Answer: C
6. Which is NOT a component of Commerce?
A. Trade
B. Aids to Trade
C. Industry
D. Both A and B
Answer: C
7. Which of the following belongs to Industry?
A. Warehousing
B. Transportation
C. Manufacturing
D. Advertising
Answer: C
8. Which of the following belongs to Commerce?
A. Mining
B. Banking
C. Fishing
D. Poultry Farming
Answer: B
9. Trade refers to:
A. Production of goods
B. Buying and selling of goods
C. Construction of roads
D. Extraction of minerals
Answer: B
10. Aids to Trade help in:
A. Production only
B. Distribution only
C. Facilitating trade
D. Consumption only
Answer: C
11. Industry and Commerce are related because:
A. Both produce goods
B. Industry produces goods while Commerce distributes them
C. Both are professions
D. Both are services
Answer: B
12. Goods produced by Industry reach consumers through:
A. Employment
B. Commerce
C. Politics
D. Recreation
Answer: B
13. Commerce acts as a:
A. Producer
B. Consumer
C. Link between producer and consumer
D. Manufacturer
Answer: C
14. Which activity comes first?
A. Commerce
B. Industry
C. Banking
D. Advertising
Answer: B
15. Without Commerce, goods would:
A. Reach consumers easily
B. Remain undistributed
C. Be produced faster
D. Become cheaper
Answer: B
16. Which statement is correct?
A. Industry is concerned with exchange.
B. Commerce is concerned with production.
C. Industry produces and Commerce distributes.
D. Both produce goods.
Answer: C
17. Commerce creates:
A. Production utility
B. Time, Place and Possession Utility
C. Agricultural utility
D. Industrial utility
Answer: B
18. Which is NOT a business activity?
A. Industry
B. Commerce
C. Charity
D. Trade
Answer: C
19. Industry is related to:
A. Creation of goods
B. Exchange of goods
C. Transportation
D. Insurance
Answer: A
20. Commerce helps maintain:
A. Production process
B. Smooth flow of goods
C. Political stability
D. Recreation
Answer: B
21. A company extracts iron ore and converts it into steel. This activity belongs to:
A. Commerce
B. Industry
C. Trade
D. Banking
Answer: B
22. A wholesaler purchases goods from manufacturers and sells them to retailers. This is:
A. Industry
B. Commerce
C. Employment
D. Profession
Answer: B
23. A factory manufactures biscuits. Which category does it belong to?
A. Industry
B. Trade
C. Insurance
D. Banking
Answer: A
24. A transporter moves goods from factory to market. This belongs to:
A. Industry
B. Commerce
C. Manufacturing
D. Mining
Answer: B
25. A company advertises its products through newspapers. This activity belongs to:
A. Industry
B. Commerce
C. Manufacturing
D. Extraction
Answer: B
26. A retailer selling notebooks to students is engaged in:
A. Industry
B. Commerce
C. Agriculture
D. Construction
Answer: B
27. Which activity helps bridge the gap between producer and consumer?
A. Mining
B. Manufacturing
C. Commerce
D. Agriculture
Answer: C
28. A bank providing loans to traders is:
A. Industry
B. Commerce
C. Agriculture
D. Manufacturing
Answer: B
29. Which activity adds value by producing goods?
A. Industry
B. Commerce
C. Banking
D. Advertising
Answer: A
30. Which activity adds value by distributing goods?
A. Industry
B. Commerce
C. Manufacturing
D. Mining
Answer: B
31. Consider the following statements:
1. Industry produces goods.
2. Commerce distributes goods.
3. Trade is a part of Commerce.
4. Banking is a part of Industry.
Choose the correct answer:
A. 1 and 2 only
B. 1, 2 and 3 only
C. 2, 3 and 4 only
D. All four
Answer: B
32. Which statements are correct?
1. Commerce includes Trade.
2. Commerce includes Aids to Trade.
3. Industry includes Commerce.
4. Business activities include Industry and Commerce.
A. 1, 2 and 4 only
B. 1 and 3 only
C. 2 and 4 only
D. All four
Answer: A
33. Which of the following are components of Commerce?
1. Trade
2. Banking
3. Insurance
4. Transportation
A. 1 only
B. 1 and 2 only
C. All four
D. 2 and 3 only
Answer: C
34. Read the following:
"A company manufactures mobile phones. The phones are transported to different cities, advertised, stored in warehouses and sold through retailers."
Which activity belongs to Industry?
A. Advertising
B. Warehousing
C. Manufacturing mobile phones
D. Retailing
Answer: C
35. Which activities belong to Commerce?
1. Transportation
2. Warehousing
3. Advertising
4. Manufacturing
A. 1, 2 and 3 only
B. 1 and 4 only
C. 2 and 4 only
D. All four
Answer: A
36. Why is Commerce necessary?
A. To produce goods
B. To extract minerals
C. To connect producers and consumers
D. To increase population
Answer: C
37. If goods are produced but not distributed, which activity is missing?
A. Industry
B. Commerce
C. Production
D. Manufacturing
Answer: B
38. Which sequence is correct?
A. Commerce → Industry → Consumer
B. Industry → Commerce → Consumer
C. Consumer → Commerce → Industry
D. Industry → Consumer → Commerce
Answer: B
39. Which activity ensures goods reach consumers at the right place and time?
A. Industry
B. Commerce
C. Manufacturing
D. Extraction
Answer: B
40. Industry and Commerce together help:
A. Produce only
B. Distribute only
C. Satisfy human wants
D. Eliminate risk
Answer: C
Case Study 1
A sugar mill purchases sugarcane from farmers, converts it into sugar, stores the sugar in warehouses and sells it through wholesalers.
41. Conversion of sugarcane into sugar belongs to:
A. Commerce
B. Industry
C. Trade
D. Banking
Answer: B
42. Storage of sugar belongs to:
A. Industry
B. Commerce
C. Agriculture
D. Construction
Answer: B
43. Selling through wholesalers belongs to:
A. Industry
B. Trade
C. Manufacturing
D. Extraction
Answer: B
44. Which activity creates the product?
A. Warehousing
B. Wholesale Trade
C. Manufacturing
D. Advertising
Answer: C
Case Study 2
A furniture company manufactures tables and chairs. It advertises them online, transports them across India and provides insurance during transit.
45. Manufacturing furniture belongs to:
A. Industry
B. Commerce
C. Trade
D. Banking
Answer: A
46. Advertising belongs to:
A. Industry
B. Commerce
C. Extraction
D. Manufacturing
Answer: B
47. Transportation belongs to:
A. Industry
B. Commerce
C. Agriculture
D. Mining
Answer: B
48. Insurance is:
A. Industry
B. Trade
C. Aid to Trade
D. Manufacturing
Answer: C
49. Assertion (A): Industry is concerned with production of goods.
Reason (R): Industry involves extraction, processing and construction activities.
A. Both A and R are true and R explains A.
B. Both true but R does not explain A.
C. A true, R false.
D. A false, R true.
Answer: A
50. Assertion (A): Commerce is concerned with distribution of goods.
Reason (R): Commerce includes Trade and Aids to Trade.
A. Both A and R are true and R explains A.
B. Both true but R does not explain A.
C. A true, R false.
D. A false, R true.
Answer: A
51. Assertion (A): Trade is a part of Commerce.
Reason (R): Trade involves buying and selling goods.
A. Both A and R are true and R explains A.
B. Both true but R does not explain A.
C. A true, R false.
D. A false, R true.
Answer: A
52. Assertion (A): Industry and Commerce are independent of each other.
Reason (R): Industry produces goods while Commerce distributes them.
A. Both true
B. Both false
C. A false, R true
D. A true, R false
Answer: C
53. Assertion (A): Commerce creates time, place and possession utilities.
Reason (R): Commerce helps goods reach consumers efficiently.
A. Both A and R are true and R explains A.
B. Both true but R does not explain A.
C. A true, R false.
D. A false, R true.
Answer: A
54. Assertion (A): Manufacturing is a part of Commerce.
Reason (R): Manufacturing is concerned with production.
A. Both true
B. Both false
C. A false, R true
D. A true, R false
Answer: C
55. Assertion (A): Business activities are classified into Industry and Commerce.
Reason (R): Industry and Commerce together help satisfy human wants.
A. Both A and R are true and R explains A.
B. Both true but R does not explain A.
C. A true, R false.
D. A false, R true.
Answer: A
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