From Trade to Territory: The Company Establishes Power – MCQs with Answers and Explanations
CBSE Class 8 • Social Science
Topic-wise MCQs
NCERT syllabus
Exam practice
CBSE Assessment Guidance
Use these MCQs for quick tests, classroom quizzes and revision. Each question includes a clear explanation to build conceptual understanding.
Content Bank: Plassey (1757), Diwani (1765), Robert Clive, revenue policies, Company administration, economic impact, resistance, sources.
Topic A: Background & Trade
1. In which year was the British East India Company granted its royal charter?
Answer: A. The Company received a royal charter in 1600 allowing English merchants to trade in the East Indies. This established its legal foundation for overseas trade.
2. What was a 'factory' under the Company?
Answer: B. A factory was a trading post where Company agents (factors) stored goods, kept records and conducted trade — not a manufacturing unit.
3. Which commodities were major attractions for Company trade in India?
Answer: B. Textiles, spices, indigo and other commodities were highly sought after in European markets and drove Company trade.
4. Why did European powers establish coastal trading posts in India?
Answer: B. Coastal posts provided harbours for ships, storage facilities and easy access to maritime routes, making trade efficient.
5. Which town became an important Company centre and later capital in eastern India?
Answer: B. Calcutta (Kolkata) emerged as a major Company centre in eastern India and later served administrative functions.
6. Competition with which European power was significant for the Company in India?
Answer: A. The French were major rivals, and conflicts with them influenced Company militarisation and politics.
Topic B: The Battle of Plassey and Politics
7. In which year did the Battle of Plassey take place?
Answer: B. The Battle of Plassey was fought in 1757 and marked a turning point in Company influence in Bengal.
8. Who led the Company forces at Plassey?
Answer: A. Robert Clive led the Company's forces and played a pivotal role in securing victory at Plassey.
9. Which Nawab was defeated at Plassey?
Answer: B. Siraj-ud-Daulah was the Nawab of Bengal defeated at Plassey in 1757.
10. What role did defections play in the outcome of Plassey?
Answer: A. Defections by some commanders deprived the Nawab of support, critically weakening his position and facilitating Company victory.
11. Which of the following was an immediate outcome of Plassey?
Answer: B. Plassey allowed the Company to interfere in Bengal’s politics and place a pliant ruler, increasing its influence.
12. Why is Plassey considered more than just a military victory?
Answer: B. Political manoeuvres, secret deals and defections were central; thus Plassey was as much a political victory as a military one.
Topic C: Diwani and Revenue
13. What does 'Diwani' refer to?
Answer: A. Diwani means the right to collect land revenue and administer fiscal matters in a region.
14. In which year did the Company obtain Diwani rights for Bengal?
Answer: B. The Company obtained Diwani in 1765, enabling it to collect revenue in Bengal, Bihar and Orissa.
15. What was a revenue farmer?
Answer: B. Revenue farmers paid a fixed amount to the Company and collected taxes, often leading to over‑extraction to earn profits.
16. How did Diwani rights strengthen the Company?
Answer: B. Diwani provided a reliable income that funded military and governing expenses, turning the Company into a territorial power.
17. What negative effect did Company revenue policies have on peasants?
Answer: B. High revenue demands and exploitative collection often led peasants into debt and sometimes loss of land.
18. Which administrative practice did the Company introduce after gaining revenue rights?
Answer: A. The Company introduced systematic accounts and record‑keeping to manage revenue collection and administration efficiently.
Topic D: Economic and Social Impact
19. How did Company policies affect artisans?
Answer: B. Competition from imported manufactured goods and loss of local patronage harmed many artisans' livelihoods.
20. Which change characterised towns under Company control?
Answer: B. Many towns expanded as administrative centres with offices, courts and warehouses supporting trade and governance.
21. What was one economic reason merchants collaborated with the Company?
Answer: B. Merchants collaborated to gain protection, credit and access to Company-controlled trade networks which could be profitable.
22. What trend do port records showing increased exports of raw materials indicate?
Answer: A. It shows reorientation towards exports to meet European demand, affecting local production patterns.
23. Which group often suffered most from heavy revenue demands?
Answer: B. Peasant cultivators bore the brunt of heavy land revenue demands, leading to hardship and indebtedness.
24. How did Company policies affect local crafts in some regions?
Answer: B. Changing markets and competition from imports led to decline in many traditional crafts and industries.
Topic E: Resistance and Responses
25. Which form of protest was commonly used by peasants against unfair collectors?
Answer: A. Peasants often used petitions and local protests to voice grievances about heavy taxation and corruption.
26. How did the Company generally respond to major revolts?
Answer: B. The Company typically used force to suppress revolts or negotiated settlements and co‑option to restore order.
27. Why did some zamindars ally with the Company?
Answer: B. Zamindars allied with the Company for security, official positions and economic benefits, though this could alienate them from locals.
Topic F: Sources and Interpretation
28. Which of these is a primary source for studying Company rule?
Answer: B. Company letters, accounts and administrative records are primary sources offering direct evidence about policies and finances.
29. Why do historians compare Company records with local accounts?
Answer: B. Comparing different types of sources helps verify information and highlights differing perspectives and biases.
30. How has historiography of Company expansion changed in recent years?
Answer: A. Historiography has moved from one-sided accounts to more balanced interpretations emphasising complexity, local negotiations and varied impacts.