Unit-4 Entrepreneurial Skills-I
Types of Business Activitie
Types of Business Activities – 25 MCQs
1. Which of the following is NOT a type of business activity?
A. Industry
B. Commerce
C. Profession
D. Cooking at home
Answer: D. Cooking at home
2. Which type of business activity is related to the production of goods?
A. Commerce
B. Industry
C. Trade
D. Banking
Answer: B. Industry
3. Which business activity deals with the distribution of goods from producer to consumer?
A. Trade
B. Industry
C. Mining
D. Manufacturing
Answer: A. Trade
4. Banking is a part of which type of business activity?
A. Primary Industry
B. Secondary Industry
C. Tertiary Industry
D. Manufacturing Industry
Answer: C. Tertiary Industry
5. The activity of converting raw materials into finished goods is called:
A. Primary Industry
B. Secondary Industry
C. Tertiary Industry
D. Mining Industry
Answer: B. Secondary Industry
6. Which of the following is a part of primary industry?
A. Fishing
B. Banking
C. Transport
D. Advertising
Answer: A. Fishing
7. Which of the following is a commercial activity?
A. Manufacturing
B. Mining
C. Trade
D. Farming
Answer: C. Trade
8. Which industry uses natural resources directly?
A. Secondary Industry
B. Primary Industry
C. Tertiary Industry
D. Service Industry
Answer: B. Primary Industry
9. Which of the following is NOT part of commerce?
A. Transportation
B. Warehousing
C. Banking
D. Farming
Answer: D. Farming
10. Selling goods to the final consumer is called:
A. Wholesale Trade
B. Retail Trade
C. Import Trade
D. Export Trade
Answer: B. Retail Trade
11. Which type of trade involves selling goods to shopkeepers in bulk?
A. Retail Trade
B. Wholesale Trade
C. Import Trade
D. Export Trade
Answer: B. Wholesale Trade
12. Import trade means:
A. Buying goods from other countries
B. Selling goods to other countries
C. Selling goods in local markets
D. Transporting goods within the country
Answer: A. Buying goods from other countries
13. Which is an example of tertiary industry?
A. Banking
B. Farming
C. Manufacturing
D. Fishing
Answer: A. Banking
14. Which of these is a part of auxiliary to trade?
A. Warehousing
B. Farming
C. Mining
D. Manufacturing
Answer: A. Warehousing
15. Which of these is NOT an example of primary industry?
A. Agriculture
B. Fishing
C. Forestry
D. Banking
Answer: D. Banking
16. Insurance service is related to:
A. Primary Industry
B. Secondary Industry
C. Commerce
D. Manufacturing
Answer: C. Commerce
17. Which of the following is a manufacturing industry?
A. Dairy
B. Mining
C. Forestry
D. Transport
Answer: A. Dairy
18. Which industry provides personal and commercial services?
A. Primary Industry
B. Secondary Industry
C. Service Industry
D. Manufacturing Industry
Answer: C. Service Industry
19. Which of these is NOT an auxiliary to trade?
A. Transport
B. Warehousing
C. Communication
D. Agriculture
Answer: D. Agriculture
20. A country selling its goods to other countries is doing:
A. Import Trade
B. Export Trade
C. Retail Trade
D. Wholesale Trade
Answer: B. Export Trade
21. Which of the following is an extractive industry?
A. Coal Mining
B. Banking
C. Insurance
D. Education
Answer: A. Coal Mining
22. The two broad types of business activities are:
A. Industry and Commerce
B. Trade and Commerce
C. Industry and Trade
D. Commerce and Services
Answer: A. Industry and Commerce
23. Which activity is NOT directly concerned with the production of goods?
A. Manufacturing
B. Transportation
C. Mining
D. Agriculture
Answer: B. Transportation
24. Which of these is an example of construction industry?
A. Building Bridges
B. Farming
C. Banking
D. Forestry
Answer: A. Building Bridges
25. The main objective of business activities is to:
A. Provide jobs
B. Earn profit
C. Reduce costs
D. Increase imports
Answer: B. Earn profit
Characteristics of Entrepreneurship
Characteristics of Entrepreneurship – 25 MCQs
1. Which of the following is NOT a characteristic of entrepreneurship?
A. Innovation
B. Risk-taking
C. Creativity
D. Laziness
Answer: D. Laziness
2. Entrepreneurs often introduce new ideas, products, or services. This is called:
A. Leadership
B. Innovation
C. Risk-taking
D. Planning
Answer: B. Innovation
3. The ability to take calculated risks is called:
A. Creativity
B. Risk-taking ability
C. Innovation
D. Decision-making
Answer: B. Risk-taking ability
4. Which of these is a key trait of a successful entrepreneur?
A. Avoiding change
B. Initiative
C. Fear of risk
D. Dependence on others
Answer: B. Initiative
5. Entrepreneurs usually think of new and better ways of doing things. This reflects:
A. Patience
B. Creativity
C. Teamwork
D. Leadership
Answer: B. Creativity
6. Which of the following shows an entrepreneur’s ability to bounce back from failures?
A. Patience
B. Perseverance
C. Creativity
D. Innovation
Answer: B. Perseverance
7. Decision-making skill in entrepreneurship means:
A. Choosing between different options effectively
B. Avoiding decisions
C. Waiting for others to decide
D. Asking for permission
Answer: A. Choosing between different options effectively
8. Good communication skills help entrepreneurs in:
A. Avoiding customers
B. Selling ideas and products effectively
C. Keeping quiet
D. Copying others
Answer: B. Selling ideas and products effectively
9. Entrepreneurs should be ready to face:
A. No problems
B. Certain risks
C. Only profits
D. Only easy tasks
Answer: B. Certain risks
10. Which of these is an example of innovation?
A. Using the same method for years
B. Developing a new mobile app
C. Closing a business
D. Copying a competitor’s idea
Answer: B. Developing a new mobile app
11. Which trait helps entrepreneurs plan for the future?
A. Short-sightedness
B. Vision
C. Laziness
D. Fear of change
Answer: B. Vision
12. Being able to adapt to changes in the market is called:
A. Rigidity
B. Flexibility
C. Innovation
D. Creativity
Answer: B. Flexibility
13. Self-confidence in entrepreneurship means:
A. Overestimating one’s abilities
B. Believing in one’s abilities and decisions
C. Not trusting anyone
D. Avoiding competition
Answer: B. Believing in one’s abilities and decisions
14. Which of these is essential for solving problems in business?
A. Problem avoidance
B. Problem-solving skills
C. Fear of problems
D. Complaining about problems
Answer: B. Problem-solving skills
15. The willingness to work hard to achieve goals is called:
A. Perseverance
B. Laziness
C. Rigidity
D. Fear of failure
Answer: A. Perseverance
16. Which quality ensures that entrepreneurs don’t give up easily?
A. Flexibility
B. Risk-taking
C. Perseverance
D. Short-sightedness
Answer: C. Perseverance
17. Entrepreneurs with leadership skills can:
A. Command people without listening
B. Guide and motivate their team effectively
C. Work alone always
D. Avoid responsibility
Answer: B. Guide and motivate their team effectively
18. Creativity in entrepreneurship is important because:
A. It avoids problems
B. It helps find new solutions and ideas
C. It removes the need for planning
D. It stops innovation
Answer: B. It helps find new solutions and ideas
19. Which of these is NOT a part of entrepreneurial characteristics?
A. Vision
B. Decision-making
C. Risk-taking
D. Irresponsibility
Answer: D. Irresponsibility
20. An entrepreneur’s readiness to face uncertainty is known as:
A. Risk-taking ability
B. Decision-making
C. Innovation
D. Perseverance
Answer: A. Risk-taking ability
21. Market awareness helps entrepreneurs to:
A. Ignore trends
B. Identify opportunities and threats
C. Stop innovation
D. Focus only on production
Answer: B. Identify opportunities and threats
22. Entrepreneurs who can adjust quickly to unexpected challenges have:
A. Rigidity
B. Flexibility
C. Laziness
D. Fear of failure
Answer: B. Flexibility
23. Which of the following is an interpersonal skill needed by entrepreneurs?
A. Teamwork
B. Laziness
C. Rigidity
D. Selfishness
Answer: A. Teamwork
24. Which skill allows entrepreneurs to manage resources efficiently?
A. Leadership and organizational skills
B. Laziness
C. Overconfidence
D. Avoidance of responsibility
Answer: A. Leadership and organizational skills
25. Which of these shows an entrepreneur’s long-term planning ability?
A. Vision
B. Laziness
C. Rigidity
D. Short-sightedness
Answer: A. Vision