Evolution And Fundamentals Of Business

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| By Prekshamehta89

Prekshamehta89

Community Contributor

Quizzes Created: 1 | Total Attempts: 483

Questions: 10 | Attempts: 486 | Updated: Jan 27, 2023

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Try this quiz to test your understanding of the unit evolution and Fundamentals of business.

Questions and Answers

1.

________ risks involve the possibility of gain as well as loss.

Explanation
Speculative risks involve the possibility of both gain and loss. These types of risks are typically associated with investments or ventures where the outcome is uncertain and the potential for profit or loss exists. Unlike pure risks, which only involve the possibility of loss, speculative risks offer the potential for financial gain as well. Individuals or organizations engaging in speculative risks are willing to take on uncertainty and potential losses in the hopes of achieving higher returns or profits.

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2.

Risk arising due to theft is an example of speculative risk.
- A.
  
  True
- B.
  
  False
Correct Answer
B. False

Explanation
The statement is false because risk arising due to theft is not an example of speculative risk. Speculative risk refers to situations where there is a chance of both gain and loss, such as investing in the stock market. On the other hand, risk arising due to theft is an example of pure risk, where there is only a possibility of loss and no chance of gain.

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3.

Tick the features present in profession.
- A.
  
  Fee is the reward for rendering professional services.
- B.
  
  Zero risk is there.
- C.
  
  Little capital is required.
- D.
  
  No qualification is required.
- E.
  
  It is an economic activity.
- F.
  
  Salary is the reward for rendering professional services.
Correct Answer(s)
A. Fee is the reward for rendering professional services.
C. Little capital is required.
E. It is an economic activity.

Explanation
The features present in a profession are: fee is the reward for rendering professional services, little capital is required, and it is an economic activity. These features suggest that a profession involves providing services in exchange for a fee, requires minimal investment, and is a part of the economy.

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4.

Teaching one's own daughter is an example of non economic activity.
- A.
  
  True
- B.
  
  False
Correct Answer
A. True

Explanation
Teaching one's own daughter is an example of a non-economic activity because it does not involve any exchange of money or goods. It is a personal and familial responsibility that is not driven by financial gain. The act of teaching in this context is motivated by love, care, and the desire to educate and nurture the daughter, rather than any economic benefit.

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5.

________ is an economic activity in which people work for others and get remuneration in return.

Correct Answer
Employment

Explanation
Employment refers to an economic activity where individuals work for others and receive payment in return. It involves a contractual agreement between an employer and an employee, where the employee provides their services or skills in exchange for a salary or wages. Employment is a fundamental aspect of the economy as it generates income for individuals and contributes to overall economic growth. It also provides individuals with opportunities for personal and professional development.

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6.

One single transaction of sale or purchase of goods can be termed as business.
- A.
  
  True
- B.
  
  False
Correct Answer
B. False

Explanation
This statement is false because a single transaction of sale or purchase of goods cannot be considered as a business. Business involves a continuous and regular activity of buying and selling goods or providing services in order to make a profit. A single transaction does not meet the criteria of being a business as it lacks the element of continuity and regularity.

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7.

________ trade means importing of goods for the purpose of exporting them to other countries.

Correct Answer
Entrepot

Explanation
The term "entrepot" refers to a specific type of trade where goods are imported with the intention of exporting them to other countries. This trade involves the temporary storage and distribution of goods in a particular location, often a port or free trade zone, before they are shipped to their final destination. The entrepot trade allows for efficient international trade by facilitating the exchange of goods between different regions, reducing transportation costs, and promoting economic growth.

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Current Version
Jan 27, 2023

Quiz Edited by
ProProfs Editorial Team
Jul 30, 2020

Quiz Created by
Prekshamehta89

Evolution And Fundamentals Of Business

________ risks involve the possibility of gain as well as loss.

Risk arising due to theft is an example of speculative risk.

Tick the features present in profession.

Teaching one's own daughter is an example of non economic activity.

________ is an economic activity in which people work for others and get remuneration in return.

One single transaction of sale or purchase of goods can be termed as business.

________ trade means importing of goods for the purpose of exporting them to other countries.