Business, Trade and Commerce Class 11 important questions with answers PDF download
FAQs on CBSE Important Questions for Class 11 Business Studies Business, Trade and Commerce - 2025-26
1. What types of questions (1, 3, or 5 marks) are most expected from CBSE Class 11 Business Studies Chapter 1, 'Business, Trade and Commerce' for the 2025-26 exam?
For the 2025-26 CBSE exam, you can expect a mix of questions from this chapter. Here’s a typical breakdown:
- 1-Mark Questions: These usually test definitions, such as 'What is a business?' or identifying a specific type of industry (e.g., genetic industry). They might also be in the form of MCQs about the history of commerce.
- 3-Mark Questions: These often require differentiation, like distinguishing between Business, Profession, and Employment, or explaining any three characteristics of business.
- 5-Mark Questions: These are comprehensive questions asking you to explain concepts in detail, such as 'Explain the various auxiliaries to trade' or 'Describe the different types of industries with examples'. Case studies can also be asked for 5 marks.
2. How do auxiliaries to trade resolve the common problems or hindrances in commerce?
Auxiliaries to trade are crucial because they remove specific hindrances, making the exchange of goods and services smoother. For exams, it's important to connect each auxiliary to the problem it solves:
- Transport and Communication: Removes the hindrance of place by moving goods from production sites to markets.
- Banking and Finance: Removes the hindrance of finance by providing credit, loans, and payment facilities.
- Insurance: Removes the hindrance of risk by compensating for losses due to accidents, fire, or theft.
- Warehousing: Removes the hindrance of time by enabling storage of goods until they are in demand, preventing spoilage and ensuring availability.
- Advertising: Removes the hindrance of information by informing consumers about products and persuading them to buy.
3. What is the best way to answer a question differentiating between Business, Profession, and Employment to score full marks?
To score full marks on this very important question, always use a tabular format or distinct points for comparison. Focus on the key bases of distinction as per the NCERT syllabus:
- Motive: The primary motive in business is to earn profit, in a profession it is to provide service, and in employment it is to earn a salary/wage.
- Qualification: No minimum qualification is mandatory for business, whereas a profession requires specialised knowledge and training. In employment, qualifications depend on the nature of the job.
- Risk: Risk is a primary element in business (high risk). In a profession, the risk is low, and in employment, there is no risk for the employee.
- Reward: The reward for business is profit, for a profession it is a professional fee, and for employment, it is a salary or wage.
4. Why is 'Business Risk' considered a fundamental and unavoidable characteristic of any business activity?
Business risk is considered fundamental because every business operates in an uncertain environment. This uncertainty arises from factors beyond the business's control, such as changes in consumer tastes, government policies, new competition, or natural calamities. The core principle is that business activities are undertaken for future profit, and the future is always unpredictable. Therefore, the possibility of earning inadequate profits or even incurring losses is always present. The principle 'No risk, no gain' highlights that the potential for profit is the reward for taking on these inherent risks.
5. What kind of case studies are important from Chapter 1 for the Class 11 final exam?
For Chapter 1, case studies usually present a short scenario and ask you to identify and explain the business concepts involved. Important types include:
- A scenario describing a person's work (e.g., a doctor in a hospital vs. a doctor running a private clinic) and asking you to identify if it is a business, profession, or employment.
- A description of a company's operations (e.g., a sugar mill sourcing sugarcane and selling sugar) and asking you to classify the type of industry (primary, secondary, or tertiary).
- A situation where a business faces a setback (e.g., a fire in the godown) and asking you to identify the type of business risk and the relevant auxiliary to trade (insurance) that helps mitigate it.
6. From an exam viewpoint, what makes Chapter 1 'Business, Trade and Commerce' seem difficult, and what is the best strategy to master it?
Chapter 1 can seem difficult due to its vast and theoretical nature, covering everything from the history of trade to modern business concepts. The key challenge for students is retaining all the definitions, types, and distinctions. The best strategy is:
- Break it down: Study the chapter in parts—History, Business Concepts, and then Industry & Commerce.
- Use real-world examples: Connect concepts like tertiary industries (e.g., Swiggy, Ola) or business risk (e.g., COVID-19 impact) to real companies.
- Focus on Keywords: For definitions, memorise the exact keywords as per the NCERT textbook, as these are crucial for scoring well.
- Create comparison charts: Make your own charts for 'Industry vs. Commerce' and 'Economic vs. Non-economic activities' for quick revision.
7. Are questions from the 'History of Trade and Commerce' section important for the 2025-26 exam?
Yes, questions from the 'History of Trade and Commerce' section are important, especially for short-answer or objective-type questions. As per the CBSE syllabus, you should focus on:
- The role of the Indigenous Banking System and instruments like Hundi.
- Major historical trade centres like Pataliputra and Surat.
- The role of trading communities and merchant corporations.
While a long-form question is less likely, you can expect 1-mark or 3-mark questions testing your knowledge of India's historical trade practices.
8. How can a student effectively use NCERT solutions and important questions together to prepare for Chapter 1?
A balanced approach is best for exam preparation. First, use the NCERT textbook and its solutions to build a strong foundation and understand the core concepts of business, trade, and commerce. Once your concepts are clear, you should practise from a curated list of important questions. This helps in two ways:
- It exposes you to a wider variety of questions, including High-Order Thinking Skills (HOTS) and application-based case studies, which might not be covered extensively in the textbook exercises.
- It helps you understand the exam pattern and which topics are most frequently tested, allowing you to focus your revision efforts more effectively.











