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AP Intermediate 1st Year Nature and Forms of Business Organisations — practice questions

Explore 50 free Nature and Forms of Business Organisations questions in AP Intermediate 1st Year Business Studies. Open each question or exercise to read its content, reference answers and available explanation.

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Nature and Forms of Business Organisations questions and exercises with answers

Showing questions 1–30 of 50.

An activity undertaken with the objective of earning profit by producing or exchanging goods/services isRead the answer and worked solution →Which is a feature distinguishing a profession from a business?Read the answer and worked solution →Economic activities are those undertaken toRead the answer and worked solution →Mining and extraction of minerals fall under which type of industry?Read the answer and worked solution →Commerce includes trade andRead the answer and worked solution →Which is an auxiliary to trade?Read the answer and worked solution →Industries that reproduce and multiply living organisms (plants/animals) are calledRead the answer and worked solution →The basic objective of business, besides profit, includesRead the answer and worked solution →Business risk refers toRead the answer and worked solution →Converting raw materials into finished goods is the work of which industry?Read the answer and worked solution →Which is NOT a characteristic of business?Read the answer and worked solution →Employment refers toRead the answer and worked solution →Warehousing as an auxiliary to trade solves the problem ofRead the answer and worked solution →Transport as an auxiliary to trade removes the hindrance ofRead the answer and worked solution →Insurance as an aid to trade covers the hindrance ofRead the answer and worked solution →A retailer selling directly to consumers is part ofRead the answer and worked solution →The two broad categories of human activities areRead the answer and worked solution →Banking helps trade byRead the answer and worked solution →Trade meansRead the answer and worked solution →Which is a liability of business ownership that distinguishes a sole proprietor from a company shareholder?Read the answer and worked solution →Profit earned by a business serves asRead the answer and worked solution →Tertiary industries are also known asRead the answer and worked solution →'Entrepot trade' refers toRead the answer and worked solution →The reward for the risk and effort of running a business isRead the answer and worked solution →Public enterprises are accountable to the public through which body?Read the answer and worked solution →Why did the government build infrastructure after Independence?Read the answer and worked solution →How did the public sector promote regional balance?Read the answer and worked solution →Which of these are public sector units set up for economies of scale?Read the answer and worked solution →The public sector checks the private sector to prevent what?Read the answer and worked solution →Heavy engineering public sector companies in the second and third Five Year Plans aimed at which goal?Read the answer and worked solution →

Worked practice questions

An activity undertaken with the objective of earning profit by producing or exchanging goods/services is

  1. employment
  2. business
  3. hobby
  4. profession
Show answer and solution

Correct answer: B. business

Business is an economic activity for earning profit through production/exchange of goods or services.

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Which is a feature distinguishing a profession from a business?

  1. aims at maximum profit
  2. involves regular trading
  3. needs no qualification
  4. requires specialised knowledge and a professional code
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Correct answer: D. requires specialised knowledge and a professional code

A profession requires specialised education/training and adherence to a professional code of conduct (e.g. doctor, CA).

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Economic activities are those undertaken to

  1. for recreation only
  2. satisfy social needs
  3. for love and affection
  4. earn a living / for monetary gain
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Correct answer: D. earn a living / for monetary gain

Economic activities are performed for monetary/financial gain non-economic ones are for love, sympathy or recreation.

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