Chapter business-trade-and-commerce: Business, Trade and Commerce Assertion-Reason Questions | business studies Class 11 CBSE

Assertion-Reason

Easy difficulty • Check the statement and reason

Easy

Question 1

Logic Check

Assertion (A): Business is considered an economic activity. Reason (R): Business is undertaken with the objective of earning money or livelihood and not out of love or sympathy.

Reasoning Options

ByteNotes

Assertion-Reason

Medium difficulty • Check the statement and reason

Medium

Question 2

Logic Check

Assertion (A): Selling a domestic radio set at a profit on a single occasion is a business activity. Reason (R): Business requires regular dealings in goods and services and not just a single transaction.

Reasoning Options

ByteNotes

Assertion-Reason

Medium difficulty • Check the statement and reason

Medium

Question 3

Logic Check

Assertion (A): Profit is the sole objective of any business enterprise. Reason (R): Businesses also need to fulfil objectives like social responsibility, innovation, and market standing for sustainable long-term growth.

Reasoning Options

ByteNotes

Assertion-Reason

Medium difficulty • Check the statement and reason

Medium

Question 4

Logic Check

Assertion (A): Business risk can be completely eliminated through proper planning and management. Reason (R): Business risks arise due to uncertainties about future events which are unpredictable and beyond complete control.

Reasoning Options

ByteNotes

Assertion-Reason

Easy difficulty • Check the statement and reason

Easy

Question 5

Logic Check

Assertion (A): Transport is an auxiliary to trade that removes the hindrance of place. Reason (R): Transport facilitates movement of raw materials to the place of production and finished goods from factories to markets.

Reasoning Options

ByteNotes

Assertion-Reason

Medium difficulty • Check the statement and reason

Medium

Question 6

Logic Check

Assertion (A): Warehousing is an auxiliary to trade that removes the hindrance of time. Reason (R): Warehousing provides financial assistance to traders by offering loans and credit facilities.

Reasoning Options

ByteNotes

Assertion-Reason

Medium difficulty • Check the statement and reason

Medium

Question 7

Logic Check

Assertion (A): Primary industries include only extractive industries such as mining and farming. Reason (R): Primary industries also include genetic industries that are engaged in breeding plants and animals for further reproduction.

Reasoning Options

ByteNotes

Assertion-Reason

Hard difficulty • Check the statement and reason

Hard

Question 8

Logic Check

Assertion (A): Profession requires higher capital investment compared to business. Reason (R): Profession involves personalised expert services and requires membership of a professional body, not necessarily heavy capital outlay.

Reasoning Options

ByteNotes

Assertion-Reason

Easy difficulty • Check the statement and reason

Easy

Question 9

Logic Check

Assertion (A): Hundi was used in ancient India to reduce the risk of theft during long-distance trade journeys. Reason (R): Hundi facilitated the safe transfer of money between parties without physically carrying large amounts of cash.

Reasoning Options

ByteNotes

Assertion-Reason

Medium difficulty • Check the statement and reason

Medium

Question 10

Logic Check

Assertion (A): Pure risks involve both the possibility of gain and the possibility of loss. Reason (R): Pure risks, such as fire or theft, involve only the possibility of loss or no loss, and not any gain.

Reasoning Options

ByteNotes

Assertion-Reason

Easy difficulty • Check the statement and reason

Easy

Question 11

Logic Check

Assertion (A): Insurance removes the hindrance of risk in the process of exchange of goods and services. Reason (R): On payment of a premium, insurance provides protection against loss or damage and enables recovery of financial losses.

Reasoning Options

ByteNotes

Assertion-Reason

Medium difficulty • Check the statement and reason

Medium

Question 12

Logic Check

Assertion (A): Social responsibility is not a significant objective of a business enterprise. Reason (R): Business enterprises are part of society and must contribute to solving social problems for their long-term survival and prosperity.

Reasoning Options

ByteNotes

Assertion-Reason

Easy difficulty • Check the statement and reason

Easy

Question 13

Logic Check

Assertion (A): A dentist running her own clinic is engaged in a profession. Reason (R): The dentist is a member of the Dental Council of India and holds a certificate of practice, following a professional code of conduct.

Reasoning Options

ByteNotes

Assertion-Reason

Easy difficulty • Check the statement and reason

Easy

Question 14

Logic Check

Assertion (A): Greater the risk involved in a business, higher is the chance of profit. Reason (R): Profit is regarded as the reward for risk taking, following the age-old principle of 'No risk, no gain'.

Reasoning Options

ByteNotes

Assertion-Reason

Medium difficulty • Check the statement and reason

Medium

Question 15

Logic Check

Assertion (A): Commerce includes only buying and selling of goods, i.e., trade. Reason (R): Commerce also includes auxiliaries to trade such as transport, banking, insurance, warehousing, and advertising which facilitate exchange.

Reasoning Options

ByteNotes

Assertion-Reason

Hard difficulty • Check the statement and reason

Hard

Question 16

Logic Check

Assertion (A): Entrepreneurship is defined as a systematic, purposeful and creative activity of identifying a need and mobilising resources to deliver value. Reason (R): An entrepreneur provides self-employment and also contributes to the creation of employment and professional opportunities in the economy.

Reasoning Options

ByteNotes

Assertion-Reason

Hard difficulty • Check the statement and reason

Hard

Question 17

Logic Check

Assertion (A): Secondary industries use materials already extracted at the primary sector for further processing. Reason (R): Mining of iron ore is a secondary industry, while manufacturing of steel is a primary industry.

Reasoning Options

ByteNotes

Assertion-Reason

Hard difficulty • Check the statement and reason

Hard

Question 18

Logic Check

Assertion (A): Advertising is a paid activity used to promote goods and services to potential customers. Reason (R): Public Relations (PR) activities are normally unpaid and involve strategic communication to build mutually beneficial relationships.

Reasoning Options

ByteNotes

Assertion-Reason

Medium difficulty • Check the statement and reason

Medium

Question 19

Logic Check

Assertion (A): The degree of risk in a business depends mainly on its nature and size. Reason (R): A business dealing in fashionable items has a higher degree of risk, and large-scale businesses generally carry higher risk than small-scale ones.

Reasoning Options

ByteNotes

Assertion-Reason

Hard difficulty • Check the statement and reason

Hard

Question 20

Logic Check

Assertion (A): India's share in world income declined from about 25% in 1700 AD to approximately 2% by 1900 AD. Reason (R): The East India Company transformed India from an exporter of manufactured goods into an exporter of raw materials and importer of British goods.

Reasoning Options

ByteNotes

Chapter sections

Chapter business-trade-and-commerce: Business, Trade and Commerce | Assertion-Reason

Assertion (A): Business is considered an economic activity. Reason (R): Business is undertaken with the objective of earning money or livelihood and not out of love or sympathy.

Assertion (A): Selling a domestic radio set at a profit on a single occasion is a business activity. Reason (R): Business requires regular dealings in goods and services and not just a single transaction.

Assertion (A): Profit is the sole objective of any business enterprise. Reason (R): Businesses also need to fulfil objectives like social responsibility, innovation, and market standing for sustainable long-term growth.

Assertion (A): Business risk can be completely eliminated through proper planning and management. Reason (R): Business risks arise due to uncertainties about future events which are unpredictable and beyond complete control.

Assertion (A): Transport is an auxiliary to trade that removes the hindrance of place. Reason (R): Transport facilitates movement of raw materials to the place of production and finished goods from factories to markets.

Assertion (A): Warehousing is an auxiliary to trade that removes the hindrance of time. Reason (R): Warehousing provides financial assistance to traders by offering loans and credit facilities.

Assertion (A): Primary industries include only extractive industries such as mining and farming. Reason (R): Primary industries also include genetic industries that are engaged in breeding plants and animals for further reproduction.

Assertion (A): Profession requires higher capital investment compared to business. Reason (R): Profession involves personalised expert services and requires membership of a professional body, not necessarily heavy capital outlay.

Assertion (A): Hundi was used in ancient India to reduce the risk of theft during long-distance trade journeys. Reason (R): Hundi facilitated the safe transfer of money between parties without physically carrying large amounts of cash.

Assertion (A): Pure risks involve both the possibility of gain and the possibility of loss. Reason (R): Pure risks, such as fire or theft, involve only the possibility of loss or no loss, and not any gain.

Assertion (A): Insurance removes the hindrance of risk in the process of exchange of goods and services. Reason (R): On payment of a premium, insurance provides protection against loss or damage and enables recovery of financial losses.

Assertion (A): Social responsibility is not a significant objective of a business enterprise. Reason (R): Business enterprises are part of society and must contribute to solving social problems for their long-term survival and prosperity.

Assertion (A): A dentist running her own clinic is engaged in a profession. Reason (R): The dentist is a member of the Dental Council of India and holds a certificate of practice, following a professional code of conduct.

Assertion (A): Greater the risk involved in a business, higher is the chance of profit. Reason (R): Profit is regarded as the reward for risk taking, following the age-old principle of 'No risk, no gain'.

Assertion (A): Commerce includes only buying and selling of goods, i.e., trade. Reason (R): Commerce also includes auxiliaries to trade such as transport, banking, insurance, warehousing, and advertising which facilitate exchange.

Assertion (A): Secondary industries use materials already extracted at the primary sector for further processing. Reason (R): Mining of iron ore is a secondary industry, while manufacturing of steel is a primary industry.

Assertion (A): Advertising is a paid activity used to promote goods and services to potential customers. Reason (R): Public Relations (PR) activities are normally unpaid and involve strategic communication to build mutually beneficial relationships.

Assertion (A): The degree of risk in a business depends mainly on its nature and size. Reason (R): A business dealing in fashionable items has a higher degree of risk, and large-scale businesses generally carry higher risk than small-scale ones.

Assertion (A): India's share in world income declined from about 25% in 1700 AD to approximately 2% by 1900 AD. Reason (R): The East India Company transformed India from an exporter of manufactured goods into an exporter of raw materials and importer of British goods.

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