MCQs for Small Business and Entrepreneurship in Class 11 Business Studies with Answers
MCQs for Business Studies Class 11 Chapter 9 focus on Small Business and Entrepreneurship. This topic is highly relevant for CBSE exams and competitive entrance tests. Understanding its concepts strengthens students’ business acumen and prepares them for real-world economic situations and entrepreneurship trends.
| Enterprise Category | Manufacturing/Production | Services | Investment Limit (as per MSME Act) |
|---|---|---|---|
| Micro Enterprise | Up to ₹1 crore | Up to ₹1 crore | Turnover up to ₹5 crore |
| Small Enterprise | Up to ₹10 crore | Up to ₹10 crore | Turnover up to ₹50 crore |
| Medium Enterprise | Up to ₹50 crore | Up to ₹50 crore | Turnover up to ₹250 crore |
MCQs for Business Studies Class 11 Chapter 9: Small Business and Entrepreneurship
This chapter covers definitions, features, and challenges of Small Business and the role of entrepreneurship in the Indian economy. Practicing MCQs for Business Studies Class 11 Chapter 9 improves exam performance and concept recall, as this topic is now emphasized in CBSE’s competency-based MCQ pattern.
Key Terms in Small Business and Entrepreneurship
- MSME: Micro, Small, and Medium Enterprises, defined by investment and turnover limits.
- Ancillary Unit: Supplies at least 50% of its output to a parent industry.
- KVIC: Khadi and Village Industries Commission; supports rural entrepreneurship.
- Women Entrepreneurship: Enterprises with 51% or more share held by women.
- Investment Limit: Criteria for MSME classification. Changes often as per government policies.
- Start-up: Enterprise not older than 10 years (per Startup India), focused on innovation and scalable business.
Types of Small Business Units
- Traditional Small Scale Industries: Handlooms, handicrafts, khadi, coir.
- Modern Small Scale Industries: Readymade garments, power looms, electronics.
- Cottage Industries: Home-based, family-run, using local labor and materials.
- Ancillary Units: Feed larger “parent” industries with components or materials.
- Export Oriented Units (EOUs): Export at least 50% of output.
Importance of Small Business and Entrepreneurship
Small businesses contribute to employment, promote balanced regional development, and foster innovation in India. Entrepreneurship encourages self-employment, creates jobs, and solves community problems, making it a key focus in modern business education and policy, as seen in the Benefits of Entrepreneurship.
Practice: Sample MCQs for Business Studies Class 11 Chapter 9
| MCQ | Options | Correct Answer |
|---|---|---|
| 1. Which act defines MSMEs in India? | a) MSME Act 2006 b) Companies Act 2013 c) Industrial Policy Act d) Startup India Policy |
a) MSME Act 2006 |
| 2. A business with investment up to ₹10 crore and turnover up to ₹50 crore is classified as: | a) Micro Enterprise b) Small Enterprise c) Medium Enterprise d) Large Enterprise |
b) Small Enterprise |
| 3. Women entrepreneurship in India requires at least _____% share capital held by women. | a) 20% b) 25% c) 51% d) 75% |
c) 51% |
| 4. Which body is responsible for promoting khadi industries? | a) NSIC b) SIDBI c) KVIC d) DIC |
c) KVIC |
| 5. Which is NOT a challenge for small businesses? | a) Access to finance b) Limited technology c) Free government loans d) Marketing difficulties |
c) Free government loans |
You can download a complete MCQ practice PDF or take a free online test on Vedantu for thorough Small Business and Entrepreneurship drill. Doing so helps students prepare for both school and competitive exams.
Applications of Small Business Knowledge in Exams and Society
- CBSE Annual and Term exams—core concepts tested via MCQs and case studies
- Competitive entrance tests like SSC, UPSC—real-world policy and economic development questions
- Practical understanding useful for budding entrepreneurs and family businesses
Vedantu's Approach to Business Studies MCQ Practice
At Vedantu, we simplify Commerce syllabus like Business Studies Class 11 Chapter 9 through concept explainers, exam-oriented MCQs, and interactive tools. Our educators curate content as per the latest CBSE and NEP guidelines and frequently update for real-life application. For additional topics, visit our roles of small businesses and entrepreneurship development process pages.
Related Internal Links for Better Practice
- Meaning and Nature of Small Business
- MSME and Business Entrepreneurship
- Government Assistance to Small Industries
- Characteristics of Entrepreneurship
- Functions of Entrepreneurs in the Economy
- Benefits of Entrepreneurship
- Sources of Business Finance
In summary, mastering MCQs for Business Studies Class 11 Chapter 9 helps students understand small businesses, MSME classifications, and entrepreneurship. This knowledge supports exam success and encourages future participation in India’s growth story through innovative business ventures. Use Vedantu’s resources for the best support in your learning journey.
FAQs on Business Studies Class 11 Chapter 9: Small Business & Entrepreneurship MCQs
1. What is an MSME in Class 11 Business Studies?
In Class 11 Business Studies, an MSME (Micro, Small, and Medium Enterprise) is a business classified based on its investment and turnover, as defined by the Indian government. These classifications help determine eligibility for various government schemes and support programs.
2. What does Chapter 9 cover in Class 11 Business Studies?
Class 11 Business Studies Chapter 9 focuses on Small Business and Entrepreneurship. It covers key aspects like the characteristics of small businesses, different types of small-scale industries, challenges faced by small businesses, and the role of government assistance schemes such as those provided by KVIC and SIDBI in promoting their growth. The chapter also delves into the concept of entrepreneurship and its significance in economic development.
3. What type of questions are asked in Business Studies MCQs?
Business Studies MCQs test your understanding of key concepts and definitions. Expect questions on definitions of small businesses, MSMEs, and entrepreneurship; characteristics of different types of small industries (village industries, cottage industries); the roles of government schemes and financial institutions; and application-based scenarios testing your comprehension of the subject matter.
4. Where can I find MCQ answers and explanations?
Detailed answers and explanations are provided with each MCQ. Many resources also offer downloadable PDFs with complete solutions for convenient revision.
5. How to prepare for CBSE's MCQ-based exam pattern?
Effective preparation for CBSE's MCQ-based exams involves consistent practice. Solve a variety of MCQs, carefully review answer explanations to understand concepts, and consult official NCERT and CBSE resources for accurate information. Focus on understanding key definitions, like MSME and entrepreneurship, and their practical applications.
6. What is meant by Small Business?
A small business is generally defined by its size, which is usually measured by the number of employees or the amount of revenue generated. It is typically independently owned and operated and has a limited scope of operations compared to large corporations. The specific criteria for defining a small business can vary depending on the country and industry, often relating to the investment limit and the number of employees.
7. What is entrepreneurship in business studies?
Entrepreneurship, in Business Studies, refers to the process of designing, launching and running a new business, which is often initially a small business. It involves identifying opportunities, acquiring resources, managing risks and creating value. Successful entrepreneurs possess qualities like innovation, risk-taking, and leadership. Understanding the various types of entrepreneurs is also essential.
8. List some examples of small scale businesses.
Examples of small-scale businesses are diverse. They can include local shops, restaurants, cottage industries (like handloom weaving), small-scale manufacturing units, online businesses (e-commerce), and service-based businesses (like hair salons or repair shops). The common thread is limited investment and a smaller workforce compared to larger enterprises.
9. What are the subgroups of village and small industries sector?
The village and small industries sector encompasses various subgroups. These can include cottage industries (home-based production), rural industries (using local resources), handicraft industries, and small-scale manufacturing units. These businesses often play a significant role in rural economies and may receive support from government initiatives like the Khadi and Village Industries Commission (KVIC).
10. What is the difference between MSME and small business?
While often used interchangeably, 'MSME' (Micro, Small, and Medium Enterprise) is a formal government classification based on investment and turnover limits, while 'small business' is a broader term encompassing any independently owned and operated enterprise with limited scale. All MSMEs are small businesses, but not all small businesses are formally classified as MSMEs.
