Business Services MCQs for Class 11: Questions, Answers & Explanations
MCQs for Business Studies Class 11 Chapter 4 focus on business services like banking, insurance, transportation, warehousing, and postal services. This topic is crucial for school board exams and competitive test preparation, and it improves fundamental understanding for practical business activities and commerce decision-making. Practicing MCQs sharpens conceptual clarity and answer accuracy, which is why they are frequently asked in CBSE exams.
| Type of Business Service | Main Purpose | Examples |
|---|---|---|
| Banking Services | Managing and facilitating financial transactions | Savings Account, Loans, Overdrafts |
| Insurance Services | Risk coverage and financial protection | Life Insurance, Fire Insurance, Marine Insurance |
| Transport Services | Movement of goods and people | Road, Rail, Air, Water Transport |
| Warehousing Services | Storage and preservation of goods | Public Warehouses, Private Warehouses |
| Postal and Allied Services | Mail and communication support | Speed Post, Registered Post, Courier |
MCQs for Business Studies Class 11 Chapter 4
MCQs for Business Studies Class 11 Chapter 4 are designed to test your understanding of key concepts like types of business services, their features, and the principles that govern them. Practicing these questions strengthens exam readiness and builds confidence for board and entrance tests. Below are MCQs with answers and brief explanations for each.
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Which principle ensures that the insured should not profit from insurance?
- (a) Principle of Contribution
- (b) Principle of Subrogation
- (c) Principle of Indemnity
- (d) Principle of Insurable Interest
This principle ensures compensation is limited to actual loss, preventing profit from insurance.
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In banking, what is an overdraft facility?
- (a) Withdrawal beyond account balance
- (b) Fixed deposit facility
- (c) Locker facility
- (d) Recurring deposit
Overdraft allows account holders to withdraw more money than their account balance, generally up to a limit agreed with the bank.
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Which service provides protection against loss by fire, theft, or marine risks?
- (a) Life Insurance
- (b) General Insurance
- (c) Personal Accident Insurance
- (d) Health Insurance
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Which account is best suited for people who save a fixed amount every month?
- (a) Current Account
- (b) Saving Account
- (c) Recurring Deposit Account
- (d) Fixed Deposit Account
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What does UPI stand for in digital payments?
- (a) Union Payment Interface
- (b) Unified Payment Interface
- (c) Unique Payment Integration
- (d) United Payments India
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What is the primary function of warehousing?
- (a) Transport goods
- (b) Store and preserve goods
- (c) Insure goods
- (d) Sell goods
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The principle of ‘utmost good faith’ in insurance means:
- (a) Both parties must share all material facts truthfully
- (b) Only insurer must disclose facts
- (c) Only insured must disclose facts
- (d) No facts need to be disclosed
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Which of the following is not a function of insurance?
- (a) Risk sharing
- (b) Lending funds
- (c) Capital formation
- (d) Loss minimization
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What is the maximum period for a general insurance contract?
- (a) 1 year
- (b) 3 years
- (c) 4 years
- (d) 10 years
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The Reserve Bank of India is classified as a:
- (a) Commercial Bank
- (b) Cooperative Bank
- (c) Central Bank
- (d) Development Bank
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Which type of insurance is not a contract of indemnity?
- (a) Marine Insurance
- (b) Fire Insurance
- (c) Life Insurance
- (d) Property Insurance
Life insurance pays a fixed sum; it doesn’t indemnify for 'actual' loss.
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Which postal service allows for urgent delivery of letters and documents?
- (a) Ordinary post
- (b) Registered post
- (c) Speed post
- (d) Parcel post
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Warehousing creates which type of utility?
- (a) Form utility
- (b) Time utility
- (c) Place utility
- (d) Possession utility
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Assertion (A): Banks facilitate credit creation.
Reason (R): Banks grant loans using public deposits.- (a) Both A and R are correct, and R is the explanation for A
- (b) Both are correct but R is not the explanation
- (c) Only A is correct
- (d) Both A and R are incorrect
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Which of the following is NOT a general insurance?
- (a) Fire Insurance
- (b) Marine Insurance
- (c) Motor Insurance
- (d) Life Insurance
-
What is not a benefit of public warehouses?
- (a) Flexibility
- (b) Control
- (c) High fixed investments
- (d) Dealer relationship
Public warehouses reduce the need for heavy fixed investment by users.
| Question | Correct Answer |
|---|---|
| 1 | c |
| 2 | a |
| 3 | b |
| 4 | c |
| 5 | b |
| 6 | b |
| 7 | a |
| 8 | b |
| 9 | a |
| 10 | c |
| 11 | c |
| 12 | c |
| 13 | b |
| 14 | a |
| 15 | d |
| 16 | c |
Key Concepts in Chapter 4 Business Services
Chapter 4 covers various business services essential for commerce. Focus is given to banking services, types of insurance, warehousing and storage, different transport modes, and postal services. Understanding their principles and real-world application is crucial for exams and practical business management.
Different Types of Insurance
Insurance can be classified mainly as life, marine, fire, and health insurance. Life insurance offers protection against the risk of death. General insurance covers specific risks like property or goods during transit. Principles like indemnity, insurable interest, subrogation, contribution, and utmost good faith are critical to every insurance contract.
Applications of Banking Services
Banking services include savings, current, and recurring deposit accounts, as well as loans, overdraft facilities, and digital payment systems like UPI. These services assist personal and business finance management, supporting the economy’s growth by ensuring safe transactions and facilitating credit.
Warehousing and Transportation Role
Warehousing helps in storing goods and providing time utility. Transportation services provide efficient movement of goods and are crucial for trade and commerce logistics, linking producers to markets nationally and internationally.
Further Learning and Interlinks
To deepen your understanding, explore these related Vedantu resources:
- Business Services
- Functions of Commercial Banks
- Insurance
- Warehousing
- Financial Market
- Consumer Protection Act
At Vedantu, we simplify commerce topics and enhance your exam performance through structured MCQ practice and easy-to-understand concept explanations. This approach is effective for CBSE, board, and competitive exam success.
To summarize, MCQs for Business Studies Class 11 Chapter 4 help test and clarify your understanding of business services. Mastering these concepts assists in scoring well in school and competitive exams and strengthens practical business literacy for real-life applications.
FAQs on Business Studies Class 11 Chapter 4: MCQs, Answers & Key Concepts
1. What are the main topics in Business Studies Class 11 Chapter 4?
Chapter 4 of Class 11 Business Studies focuses on Business Services. Key topics include banking, insurance, transportation, warehousing, and postal services. Understanding these services is crucial for CBSE exams.
2. Where can I find MCQs with answers for Business Services?
This page provides MCQs on Business Services for Class 11 Business Studies Chapter 4, along with detailed answers and explanations to help you prepare for your CBSE exams. Practice these objective questions to boost your understanding of key concepts.
3. Can I download a PDF of these MCQs?
A downloadable PDF containing the MCQs and answers is available for offline study and revision. This allows for convenient access to the practice questions anytime, anywhere.
4. Do these MCQs follow the latest CBSE exam pattern?
Yes, these MCQs are designed to align perfectly with the latest CBSE syllabus and exam patterns. They cover all the essential topics in Business Services (Chapter 4).
5. Is there an online test for Class 11 Business Studies Chapter 4?
While a dedicated online test isn't explicitly mentioned, the provided MCQs serve as an effective online quiz. Reviewing and answering these multiple-choice questions will help you assess your understanding and prepare for the exam.
6. What are the MCQs for Business Studies Class 11 Chapter 4?
This page contains a set of multiple-choice questions (MCQs) covering the key concepts of Business Services in Class 11 Business Studies, Chapter 4. These MCQs test your understanding of topics like banking, insurance, and warehousing.
7. Where can I practice Class 11 Business Studies Chapter 4 MCQs?
You can practice MCQs for Class 11 Business Studies Chapter 4 right here on this page. The multiple-choice questions and their answers are provided to help you assess your knowledge and improve your exam preparation.
8. What are the main topics in Business Services Chapter 4?
Business Services in Class 11 Business Studies Chapter 4 primarily covers various service sectors, including banking, insurance, transport, and warehousing. Each of these areas has unique characteristics and features that are essential to grasp for exam success. Mastering this chapter is key to understanding the service sector's role in the economy.
9. Are there explanation and answer keys for MCQs?
Yes, this resource includes comprehensive answer keys and detailed explanations for each MCQ. These explanations clarify the rationale behind the correct answers, enhancing your conceptual understanding and exam preparation.
10. How to download MCQ PDF for Class 11 Business Studies?
A downloadable PDF containing all the MCQs and answers is available. This PDF allows for convenient offline access to the practice questions, suitable for revision and exam preparation anytime, anywhere. Look for a download link on the page.
11. How do business services support the economic growth of a country?
Business services significantly contribute to economic growth by facilitating efficient transactions, managing risks, and providing crucial infrastructure. They enhance productivity across various sectors, leading to overall economic expansion. Examples include banking services providing capital, insurance mitigating risks, and transportation connecting markets. Understanding the functions of the service sector is crucial for comprehending macroeconomic growth.
12. Why is the principle of ‘utmost good faith’ fundamental in insurance contracts?
The principle of ‘utmost good faith’ is paramount in insurance contracts because it establishes a foundation of trust and transparency between the insurer and the insured. This principle necessitates full disclosure of all material facts relevant to the risk being insured, ensuring fair and accurate assessment of risk by the insurer. Any misrepresentation or non-disclosure can invalidate the contract and affect insurance claims.
