CBSE Class 11 Business Studies Important Questions with Solutions for 2025-26 exams

Business studies is one of the important skills students are required to study in today’s time. This subject makes you go deeper into the world of business and how business in real life works. It not only enables them to manage their work-life successfully but also helps them to understand corporate life and culture.

At Educart, we provide our students with reliable resources compiled in one place so that it becomes easy for them to find the best resources required for their exams. In the table given below, we have provided the links to downloadable PDFs of chapter-wise most important questions for class 11 Business Studies and that too for different categories of marks.

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Important Question Class 11 BST

Here are some of the important question answers that can help you for your exams:

Chapter 1: Business, Trade and Commerce

Q1. Define business.
Ans. Business refers to any economic activity involving production or purchase and sale of goods and services with the main motive of earning profit.

Q2. Differentiate between business, profession and employment.
Ans. Business is profit-oriented, profession requires specialised knowledge and code of conduct, while employment is a contractual relationship where people work for wages/salaries.

Q3. Explain the objectives of business.
Ans. Objectives include:

• Economic objectives: profit earning, innovation, market standing, productivity.
• Social objectives: providing quality goods, fair prices, generating employment, community service, and environmental protection.

Chapter 2: Forms of Business Organisation

Q1. Define sole proprietorship.
Ans. A business owned, managed, and controlled by one individual.

Q2. State two features of partnership.
Ans. Mutual agency and sharing of profits and losses.

Q3. Long Question: Explain the merits and limitations of a joint stock company.
Ans.

• Merits: large financial resources, limited liability, transferability of shares, perpetual succession, professional management.
• Limitations: excessive legal formalities, lack of secrecy, conflicts between shareholders and management, delay in decision-making.

Chapter 3: Private, Public and Global Enterprises

Q1. What is a Public Sector Enterprise (PSE)?
Ans. An enterprise owned and controlled by the government.

Q2. Differentiate between departmental undertaking and statutory corporation.
Ans. Departmental undertakings function directly under a ministry, while statutory corporations are autonomous bodies created by an Act of Parliament.

Q3. Explain the features, merits and demerits of multinational companies (MNCs).
Ans.

• Features: large size, global operations, advanced technology, huge resources.
• Merits: increased investment, better technology, employment generation, availability of quality goods.
• Demerits: profit repatriation, exploitation of resources, threat to local industries, cultural influence.

Chapter 4: Business Services

Q1. Define business services.
Ans. Services that facilitate business operations such as banking, insurance, transport, warehousing, and communication.

Q2. What is e-banking?
Ans. Electronic banking through internet, mobile, and ATMs, which enables customers to transfer funds, pay bills, and access accounts anytime.

Q3. Explain the principles of insurance.
Ans. Principles include:

1. Utmost good faith
2. Insurable interest
3. Indemnity
4. Contribution
5. Subrogation
6. Proximate cause

Chapter 5: Emerging Modes of Business

Q1. What is e-business?
Ans. Conducting business electronically using internet platforms.

Q2. Mention two benefits of outsourcing.
Ans. Cost efficiency and access to skilled expertise.

Q3. Explain the scope and benefits of e-business.
Ans. Scope includes B2B, B2C, intra-B, and C2C transactions.
Benefits: global reach, low cost, convenience, better customer interaction, speed, and flexibility.

Chapter 6: Social Responsibilities of Business and Business Ethics

Q1. Define social responsibility of business.
Ans. The duty of business to consider social and environmental issues along with profit-making.

Q2. Mention two arguments against social responsibility.
Ans. Increased cost of operations and diversion from core objectives of profit-making.

Q3. Explain the importance of business ethics.
Ans. Business ethics ensures fairness, transparency, accountability, consumer trust, employee satisfaction, and long-term sustainability.

Chapter 7: Formation of a Company

Q1. What is the promotion of a company?
Ans. Promotion is the process of discovering a business idea and taking steps to establish a company.

Q2. Define Memorandum of Association (MOA).
Ans. MOA is the company’s charter document defining objectives and scope of operations.

Q3.: Explain the stages in the formation of a public company.
Ans.

1. Promotion – conceiving the idea and planning.
2. Incorporation – registration with the Registrar of Companies.
3. Capital subscription – raising funds from the public.
4. Commencement of business – obtaining certificate to start operations.

Chapter 8: Sources of Business Finance

Q1. Define business finance.
Ans. The money required to carry out business activities.

Q2. Mention two short-term sources of finance.
Ans. Trade credit and commercial paper.

Q3.: Explain the merits and demerits of equity shares.
Ans.

• Merits: permanent capital, no obligation of dividend, democratic control.
• Demerits: risk of dilution of control, fluctuating market value, uncertainty of returns.

Chapter 9: Small Business

Q1. Define small business.
Ans. Business units operated on a small scale with limited investment, workforce, and market.

Q2. Mention two problems faced by small industries.
Ans. Lack of finance and outdated technology.

Q3. Explain the role of small businesses in India’s economic development.
Ans. Provide employment, promote regional balance, utilise local resources, encourage entrepreneurship, and contribute to exports.

Chapter 10: Internal Trade

Q1. What is internal trade?
Ans. Buying and selling of goods and services within a country’s boundaries.

Q2. Differentiate between wholesale trade and retail trade.
Ans. Wholesalers buy in bulk from manufacturers and sell to retailers; retailers sell directly to consumers in small quantities.

Q3.Explain the services of wholesalers to manufacturers and retailers.
Ans.

• To manufacturers: bulk buying, storage, marketing, finance.
• To retailers: regular supply, credit facility, market information, risk bearing.

Chapter 11: International Business

Q1. Define international business.
Ans. Exchange of goods, services, and capital across national borders.

Q2. Mention two advantages of international business.
Ans. Access to larger markets and better utilisation of resources.

Q3. Explain the merits and demerits of international trade for developing countries like India.
Ans.

• Merits: foreign exchange earnings, improved technology, better quality products, global recognition.‍
• Demerits: dependence on foreign nations, trade imbalances, exploitation of resources, adverse effect on local industries.

How to Ace These Class 11 Business Studies Important Questions

Scoring high in Class 11 Business Studies isn’t just about memorising definitions, it's about understanding why and how businesses work. These important questions are designed to help you do just that. Follow this simple approach:

Step 1: Begin with the Basics

Go through your NCERT textbook first. Understand every concept in chapters like Nature and Purpose of Business and Business Finance before you start practising questions.

Step 2: Practise Chapter-wise

Attempt one chapter at a time. This keeps your preparation organised and ensures that you don’t skip over important topics such as Internal Trade or Private, Public and Global Enterprises.

Step 3: Use the Questions Smartly

For every question, write short, crisp answers using proper business terminology. Focus on keywords  CBSE examiners often award marks for precise terms.

Step 4: Analyse Past Trends

Check previous year papers and sample questions to identify recurring concepts like business risks or forms of business organisation.

Step 5: Revise Regularly

Once you’ve solved all the questions, revise them weekly. Keep a notebook for key definitions and distinctions (like partnership vs joint stock company) for quick revision before exams.

Benefits of Practising These Business Studies Important Questions

• Focused Preparation: Helps you identify and prioritise chapters that carry higher weightage in exams.
  
  
• Clarity in Concepts: Repeated practice strengthens your understanding of real-world business situations.
  
  
• Better Answer Presentation: Builds the habit of writing structured answers with proper headings and sub-points.
  
  
• Boosts Confidence: Familiarity with frequently asked questions reduces exam anxiety.
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• Saves Time in Revision: A ready question bank means you can revise efficiently without flipping through the entire textbook.