Business and Government Quiz - CBSE Class 11 Business Studies

Free practice quiz: Business and Government (CBSE Class 11 Business Studies). 20 multiple-choice questions with answers and explanations. Play online, no sign-up needed.

Sample questions

1. What is the primary role of government in business?

   1. To regulate market prices
   2. To eliminate competition
   3. To create laws and regulations
   4. To ensure profits for businesses
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   Answer: C. To create laws and regulations

2. What is the significance of Foreign Direct Investment (FDI) regulations?

   1. They restrict the market
   2. They encourage economic growth
   3. They minimize foreign competition
   4. They regulate local businesses
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   Answer: B. They encourage economic growth

3. What is the effect of government intervention in the economy?

   1. It decreases market competition
   2. It can lead to market stabilization
   3. It always leads to inflation
   4. It eliminates all business risks
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   Answer: B. It can lead to market stabilization

4. What is the primary role of government in a business environment?

   1. To regulate the market
   2. To own all businesses
   3. To eliminate competition
   4. To provide loans to all businesses
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   Answer: A. To regulate the market

5. What is the most significant political factor affecting the business environment?

   1. Cultural practices
   2. Government stability
   3. Technological advancements
   4. Market competition
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   Answer: B. Government stability

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