Class 11 Business Studies | ICSE Board Board | Mixed Level Practice Test - 40 Questions (2026)

📘 Business Studies 🎓 Class 11 🏛️ ICSE ⚡ Mixed 📝 40 Questions

Practice Business Studies for Class 11 ICSE. 40 questions. AI-generated test series on Gyanzo.

40
Questions
ICSE
Board
Mixed
Difficulty
3
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📋 Questions in This Test

Q1 MCQ

Which of the following is NOT a characteristic of a sole proprietorship?

A Unlimited Liability
B Ease of Formation
C Separate Legal Entity
D Direct Control by the Owner
Q2 MCQ

A company has a share capital of ₹5,00,000 divided into shares of ₹10 each. The company wants to raise additional funds by issuing 20,000 shares at a premium of ₹2 per share. What is the total amount the company will receive?

A ₹2,00,000
B ₹2,40,000
C ₹2,20,000
D ₹2,60,000
Q3 MCQ

Which of the following is the primary objective of a cooperative society?

A Profit Maximization
B Service to Members
C Capital Formation
D Market Dominance
Q4 MCQ

Which type of industry is engaged in extracting, breeding, and processing natural resources?

A Manufacturing Industry
B Service Industry
C Extractive Industry
D Genetic Industry
Q5 MCQ

Which of the following is NOT a function of the warehouse?

A Consolidation
B Price Fluctuation
C Break the Bulk
D Stockpiling
Q6 MCQ

What is the main purpose of insurance?

A To earn profit
B To eliminate risk
C To transfer risk
D To create risk
Q7 MCQ

Which of the following is an example of an auxiliary to trade?

A Manufacturing
B Farming
C Banking
D Mining
Q8 MCQ

'E-business' primarily refers to:

A Electronic data processing
B Conducting business over the internet
C Using email for communication
D Using computers in business
Q9 MCQ

A partnership firm has $A$, $B$, and $C$ as partners sharing profits and losses in the ratio of 3:2:1. If the firm earns a profit of ₹60,000, what will be $B$'s share of the profit?

A ₹30,000
B ₹20,000
C ₹10,000
D ₹15,000
Q10 MCQ

Which document outlines the rules and regulations for the internal management of a company?

A Memorandum of Association
B Articles of Association
C Prospectus
D Certificate of Incorporation
Q11 MCQ

Which of the following is NOT a characteristic of a partnership firm?

A Ease of formation
B Unlimited liability
C Separate legal entity
D Mutual agency
Q12 MCQ

A company wants to raise capital by issuing shares to the public for the first time. This is known as:

A Private Placement
B Initial Public Offering (IPO)
C Rights Issue
D Bonus Issue
Q13 MCQ

Which of the following is the most suitable form of business organization for a small-scale business with limited capital and management skills?

A Joint Stock Company
B Cooperative Society
C Sole Proprietorship
D Partnership
Q14 MCQ

The process of dividing a large, complex job into smaller, manageable tasks is called:

A Centralization
B Decentralization
C Delegation
D Division of Labor
Q15 MCQ

Which of the following is an example of a 'quaternary' industry?

A Agriculture
B Manufacturing
C Consulting
D Construction
Q16 MCQ

A retailer buys a product for $50 and sells it for $75. What is the markup percentage on the cost price?

A 25%
B 33.33%
C 50%
D 75%
Q17 MCQ

Which principle of management, given by Fayol, emphasizes that there should be one boss for every employee?

A Unity of Direction
B Unity of Command
C Scalar Chain
D Equity
Q18 MCQ

The document containing the rules and regulations for the internal management of a company is called:

A Memorandum of Association
B Prospectus
C Articles of Association
D Certificate of Incorporation
Q19 MCQ

Which of the following is an advantage of departmentalization by product?

A Increased efficiency through specialization
B Better control and coordination within each department
C Duplication of activities across departments
D Difficulty in fixing responsibility
Q20 MCQ

A company has total assets of $500,000 and total liabilities of $200,000. What is the owner's equity?

A $200,000
B $300,000
C $500,000
D $700,000
Q21 MCQ

Which of the following principles of management, given by Fayol, emphasizes 'One head and one plan' for a group of activities having the same objective?

A Unity of Command
B Unity of Direction
C Scalar Chain
D Equity
Q22 MCQ

Which of the following is a function of warehousing?

A Grading and Branding
B Financing
C Risk Bearing
D All of the above
Q23 MCQ

If a company's current assets are ₹2,00,000 and current liabilities are ₹1,00,000, what is the current ratio?

A 0.5:1
B 1:1
C 2:1
D 3:1
Q24 MCQ

Which source of finance does NOT involve dilution of ownership?

A Equity Shares
B Preference Shares
C Debentures
D Sweat Equity
Q25 MCQ

Which of the following is the MOST suitable form of organization for a business that requires a high degree of specialization and division of labor?

A Sole Proprietorship
B Partnership
C Joint Stock Company
D Cooperative Society
Q26 MCQ

Which of the following refers to the obligation of businessmen to contribute resources for solving social problems?

A Business Ethics
B Social Responsibility
C Business Environment
D Corporate Governance
Q27 MCQ

A consumer purchased a defective product and wants to file a complaint. Under the Consumer Protection Act, 2019, where should they file their complaint if the compensation claimed is ₹40 lakh?

A District Commission
B State Commission
C National Commission
D Any of the above
Q28 MCQ

The process of classifying and grouping activities to be performed in an organization is known as:

A Planning
B Organizing
C Staffing
D Directing
Q29 MCQ

A company has issued 10,000 shares at a premium of $₹20$ per share. The face value of each share is $₹100$. What is the total amount of securities premium?

A $₹10,00,000$
B $₹2,00,000$
C $₹12,00,000$
D $₹8,00,000$
Q30 MCQ

Which of the following is an example of a functional department in a large manufacturing company?

A Northern Region Sales
B Marketing Department
C Luxury Goods Division
D Retail Outlet
Q31 MCQ

Which principle of management, given by Fayol, advocates for 'one boss for one worker'?

A Unity of Direction
B Unity of Command
C Scalar Chain
D Equity
Q32 MCQ

Which of the following is a key feature of a 'Public Sector' enterprise?

A Profit maximization as primary objective
B Owned and managed by private individuals
C Service motive as primary objective
D Operates solely on market forces
Q33 MCQ

What is the primary function of the 'Planning' function of management?

A Assigning duties to employees
B Setting objectives and determining the course of action
C Monitoring employee performance
D Motivating employees
Q34 MCQ

Which form of business organization is best suited for raising large amounts of capital from the public?

A Sole Proprietorship
B Partnership
C Joint Stock Company
D Cooperative Society
Q35 MCQ

A business purchases goods for $₹50,000$ and sells them for $₹75,000$. Expenses incurred are $₹10,000$. What is the profit margin (as a percentage of sales)?

A 20%
B 33.33%
C 30%
D 50%
Q36 MCQ

What is meant by 'Delegation' in the context of management?

A Avoiding responsibility
B Granting authority to subordinates to operate within prescribed limits
C Centralizing decision-making
D Duplication of work
Q37 MCQ

Which of the following is the BEST example of 'Social Responsibility' of a business?

A Paying taxes on time
B Maximizing profits for shareholders
C Implementing environmentally friendly production processes
D Providing high-quality products
Q38 MCQ

A company has issued 10,000 equity shares of ₹10 each at a premium of 5%. The amount of premium collected will be credited to which account?

A Share Capital Account
B Securities Premium Account
C General Reserve Account
D Profit and Loss Account
Q39 MCQ

Which of the following is an example of a secondary industry?

A Farming
B Fishing
C Mining
D Manufacturing
Q40 MCQ

Which of the following functions of management involves defining the objectives and selecting a course of action to achieve those objectives?

A Organizing
B Staffing
C Planning
D Controlling

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This Business Studies test for Class 11 ICSE contains 40 questions.

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This test is designed for ICSE Class 11 students studying Business Studies.

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