MCQs for CBSE Class 11 Business Studies Chapter 4: This article brings to you a complete list of important MCQs for CBSE Class 11 Business Studies Chapter 4, Business Services. Here, we have also attached important resources for the preparation of end-term examinations for the current academic session 2023-2024. Students are requested to go through these links before preparing for their examinations.
Multiple-Choice Questions(MCQs) are objective-type questions designed to help students in understanding the theoretical concepts of the chapters. They help in developing thinking capacities and brainstorming power of students. It has been included as part of question papers according to the latest CBSE Sample Paper 2024. It has been so done because of the following benefits of solving MCQs for students:
- Increases scope of gaining marks
- Includes practical application of theoretical concepts, thus helping students understand the concepts better
- Develops brainstorming power
- Teaches time management
- Assists in decision-making skills
- Increases learning and gasping capacities
- Encourages students to understand the concept rather than mugging it up
CBSE Class 11 Business Studies Revised Syllabus 2023-2024 (PDF)
MCQs for CBSE Class 11 Business Studies Chapter 1
MCQs for CBSE Class 11 Business Studies Chapter 2
MCQs for CBSE Class 11 Business Studies Chapter 3
MCQs for CBSE Class 11 Business Studies Chapter 4 are:
1.Assertion (A): According to principle of subrogation the insured should not be allowed to make any profit by selling damaged property or in the case of lost property being recovered.
Reason(R): The principle of subrogation is a corollary to the Principle of Indemnity and the damaged goods will belong to the insurance company, once the compensation is paid. It also states that insurance is not a contract of making a profit.
(a) Both Assertion and Reason are correct and the Reason is a correct explanation of the Assertion.
(b) Both Assertion and Reason are correct but Reason is not a correct explanation of the Assertion.
(c) The Assertion is correct but Reason is incorrect.
(d) Both the Assertion and Reason are incorrect.
Answer. a) Both Assertion and Reason are correct and the Reason is a correct explanation of the Assertion
2.Mr. David a businessman is involved in daily dealings of cash through the account of his business in Axis Bank due to the unavailability of funds and the urgent need to pay his creditors he approaches the bank to withdraw more than the balance available in his account using the facility provided to him by the bank. His wife also held an account in the same bank and wanted to transfer the Rs.500000 to her parents but she did not have an e-banking facility in her saving account. But Bank helped her to transfer the money.Name the facility provided by the bank to David when there were no funds in his account to pay his creditors.
(a) Overdraft facility
(b) Transfer facility
(c) Fixed deposits facility
(d) All of the above
Answer. a) Overdraft Facility
3.Ankur saves Rs.3,000 every month. Which type of Bank Account he should open with the bank?
(a) Current Account
(b) PPF Account
(c) Recurring Deposit Account
(d) Saving Account
Answer. c) Recurring Deposit Account
4.In the new digital market place banks and financial institutions have started providing services over the Internet. This type of service is provided by the banks on the Internet, lowers the transaction cost, adds value to the banking relationship and empowers customers. Name the service provided by the banks.
(a) Electronic fund transfer
(b) Automatic teller machine
(c) Credit card
(d) All of the above
Answer. d) All of the above
5.UPI stands for-
(a) Unique Payment Introduction
(b) Union Payment Interface
(c) Upper Payment Interface
(d) Unified Payment Interface
Answer. d) Unified Payment Interface
6.A person gets his stock of Rs.25,000 insured for Rs.35,000. A fire occurs and the whole stock gets damaged. The insurance company will pay him only Rs.25,000, the actual value of his stock and not Rs.35,000. Which principle of insurance is applied in this case?
(a) Principle of Contribution
(b) Principle of Subrogation
(c) Principle of Indemnity
(d) Principle of Insurable Interest
Answer. c) Principle of Indemnity
7.A plant manager gets his stock of goods insured but he hides the fact that the electricity board has issued him a statutory warning letter to get his factory wiring changed. Later on, the factory catches fire due to a short circuit. Which principle is violated in the case?
(a) Principle of Subrogation
(b) Principle of Utmost Good Faith
(c) Principle of Indemnity
(d) Principle of Insurable Interest
Answer. b) Principle of Utmost Good Faith
8.Online-Banking provides service to the customers-
(a) 24 Hours in a day
(b) 8 Hours in a day
(c) 10 Hours in a day
(d) None of these
Answer. a) 24 hours in a day
9.Maximum period limit of General Insurance is-
(a) 1 year
(b) 2 years
(c) 3 Years
(d) No limit
Answer. a) 1 year
10……………is a technique that distributes the risk of one person among many.
(a) Transport
(b) Insurance
(c) Warehousing
(d)Banking
Answer. b) Insurance
11.Which type of bank account offers multiple options to the account holder?
(a) Saving Account
(b) Multipurpose Account
(c) Fixed Deposit Account
(d) Current Account
Answer. b) Multipurpose Account
12.Without disclosing that he is suffering from TB, Mr. A gets himself insured against death for rupees 10 lakhs. He lives for another three-four years and dies due to TB. The insurance company comes to know about Mr. A’s illness only after his death. Now, under these circumstances, the insurance company is not liable to pay anything to the dependents of Mr. A as the contract between the insurance company and Mr. A is void. Identify the principle of insurance to which the above example is related:
(a) Utmost good faith
(b) Insurable interest
(c) Indemnity
(d) Subrogation
Answer. a) Utmost good faith
13.Which of the following is not related to Life Insurance Contract?
(a) Conditional Contract
(b) Unilateral Contract
(c) Indemnity Contract
(d) None of these
Answer. c) Indemnity Contract
14.Assertion (A): The subject matter of life insurance is human life.
Reason(R): Marine insurance has the element of protection only.
(a) Both Assertion and Reason are correct and the Reason is a correct explanation of the Assertion.
(b) Both Assertion and Reason are correct but Reason is not a correct explanation of the Assertion.
(c) The Assertion is correct but Reason is incorrect.
(d) Both the Assertion and Reason are incorrect.
Answer. b) Both Assertion and Reason are correct but Reason is not the correct explanation of Assertion.
15.Which of the following is not covered under general insurance?
(a) Fire insurance
(b) Theft insurance.
(c) Life insurance
(d) marine insurance
Answer. c) Life Insurance
Download MCQs for CBSE Class 11 Business Studies Chapter 4, by clicking on the link below
Also Find:
CBSE Class 11 Syllabus 2023-24 (All Subjects)
CBSE Class 11 Deleted Syllabus 2023-24 (All Subjects)
NCERT Class 11 Rationalised Content 2023-2024 (All Subjects)
