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Practice Class 8 Social Science Chapter 2 From Trade to Territory MCQs with answers based on NCERT. Revise the Battle of Buxar, Diwani rights, Company revenue collection, and the expansion of British power in Bengal with detailed solutions and revision notes.
Do You Know
Chapter Information
Subject: Social Science (History)
Class: 8
Chapter: Chapter 2 – From Trade to Territory: The Company Establishes Power
Question Type: Multiple Choice Questions (MCQs)
Practice Set: 4
Difficulty Level: Moderate
Based On: NCERT Concepts
Introduction
The Company’s victory at the Battle of Plassey in 1757 gave it considerable political influence in Bengal. However, the Company still needed greater control over Bengal’s resources and revenue.
The Battle of Buxar in 1764 became another important event in the Company’s expansion. After its victory, the Company obtained the Diwani of Bengal, Bihar, and Orissa in 1765 from the Mughal emperor Shah Alam II.
The right to collect revenue gave the Company access to substantial financial resources. This strengthened its ability to maintain its army, conduct administration, and expand its territorial influence.
What You Will Learn
In this practice set, you will learn about:
- The Battle of Buxar
- The year 1764
- Shah Alam II
- The Diwani
- The year 1765
- Revenue collection
- Bengal, Bihar and Orissa
- Financial resources of the Company
- The connection between revenue and military expansion
Why This Topic Is Important
The acquisition of the Diwani was a major step in the Company’s rise to power. It gave the Company control over the collection of revenue in important territories.
Revenue provided the financial resources needed to maintain soldiers and support further expansion. This helps explain how the Company was able to strengthen both its political and military position.
MCQs with Detailed Solutions
Q1. In which year was the Battle of Buxar fought?
A) 1757
B) 1764
C) 1765
D) 1773
Answer: 1764
Concept Behind This Question
The Battle of Buxar was fought in 1764 and became an important event in the expansion of Company power in eastern India.
Detailed Solution
- The Battle of Plassey took place in 1757.
- The Battle of Buxar occurred later, in 1764.
- The Company’s victory at Buxar strengthened its position in Bengal and surrounding regions.
- The following year, the Company received the Diwani.
- Therefore, the correct answer is 1764.
Exam Tip
Plassey → 1757
Buxar → 1764
Q2. Who granted the East India Company the Diwani of Bengal, Bihar and Orissa?
A) Sirajuddaulah
B) Mir Jafar
C) Shah Alam II
D) Tipu Sultan
Answer: Shah Alam II
Concept Behind This Question
After the Company’s victory at Buxar, Mughal emperor Shah Alam II granted the Company the Diwani of Bengal, Bihar and Orissa in 1765.
Detailed Solution
- The Company defeated the combined forces of its opponents at Buxar in 1764.
- The Company’s position became stronger after the battle.
- In 1765, Mughal emperor Shah Alam II granted the Company the Diwani.
- This gave the Company the right to collect revenue from Bengal, Bihar and Orissa.
- Therefore, the correct answer is Shah Alam II.
Exam Tip
Shah Alam II → Diwani → 1765
Q3. What did the Diwani give the East India Company?
A) The right to collect revenue
B) The right to appoint every Indian ruler
C) The right to stop all agriculture
D) The right to control European trade only
Answer: The right to collect revenue
Concept Behind This Question
The Diwani gave the Company the right to collect revenue in Bengal, Bihar and Orissa. This provided it with an important source of income.
Detailed Solution
- Revenue was collected from the people and agricultural production.
- The Company gained the authority to collect revenue in the Diwani territories.
- This gave the Company access to substantial financial resources.
- These resources helped support its army and other activities.
- Therefore, the correct answer is The right to collect revenue.
Exam Tip
Diwani = Right to Collect Revenue
Q4. Why was the acquisition of Diwani financially important for the Company?
A) It provided a major source of revenue
B) It ended the Company’s military activities
C) It prevented the Company from collecting taxes
D) It removed the need for trade
Answer: It provided a major source of revenue
Concept Behind This Question
The Company needed money to maintain its army and conduct its operations. Revenue from Bengal and other Diwani territories became an important financial resource.
Detailed Solution
- Maintaining an army required large amounts of money.
- The Company also needed funds for administration and further expansion.
- Diwani rights allowed it to collect revenue from important territories.
- This reduced its dependence on importing large amounts of money from Britain.
- The revenue collected in India could help finance Company activities.
- Therefore, the correct answer is It provided a major source of revenue.
Exam Tip
Revenue → Financial Resources → Army + Administration + Expansion
Q5. Which statement correctly describes the Company’s position after acquiring the Diwani?
A) Its access to revenue and financial resources increased
B) It completely lost its political influence
C) It stopped maintaining an army
D) It gave up control over Bengal
Answer: Its access to revenue and financial resources increased
Concept Behind This Question
The Diwani strengthened the Company’s economic position. Revenue from the territories under its Diwani provided funds that could support its military and political activities.
Detailed Solution
- The Company obtained the right to collect revenue.
- Revenue provided a regular source of income.
- Financial resources helped the Company maintain its army.
- A stronger financial position supported further political and territorial expansion.
- Therefore, the correct answer is Its access to revenue and financial resources increased.
Exam Tip
Diwani strengthened the Company’s economic base.
8. Important Formulas & Concepts
History does not generally use mathematical formulas. The following concepts are important for revision.
1. Battle of Buxar
The Battle of Buxar was fought in 1764. The Company’s victory further strengthened its position in eastern India.
2. Diwani
Diwani refers to the right to collect revenue.
3. Shah Alam II
Mughal emperor Shah Alam II granted the Company the Diwani of Bengal, Bihar and Orissa in 1765.
4. Revenue
Revenue was an important source of income collected from territories under Company control.
5. Financial Power
Control over revenue gave the Company financial resources that could be used to maintain its army and support further expansion.
Important Event Flow
Battle of Buxar (1764) → Company Victory → Diwani Granted (1765) → Revenue Collection → Greater Financial Power → Further Expansion
Related Practice Questions
- When was the Battle of Buxar fought?
- Why was the Battle of Buxar important?
- Who was Shah Alam II?
- What is meant by Diwani?
- When did the Company receive the Diwani?
- Which territories were included in the Diwani?
- Why was revenue important to the Company?
- How did revenue collection support Company expansion?
- How did financial resources strengthen the Company’s military power?
Mini Quiz Challenge
Complete the Timeline
Fill in the missing information:
1757 → __________ → 1765
Hint: Think about the major events in the Company’s rise in Bengal.
Answer
1757 – Battle of Plassey
1764 – Battle of Buxar
1765 – Grant of Diwani
Complete Timeline
Battle of Plassey (1757) → Battle of Buxar (1764) → Diwani (1765)
Exam Tips
✔ Remember Buxar = 1764.
✔ Remember Diwani = Right to Collect Revenue.
✔ Remember Shah Alam II = granted Diwani.
✔ Remember that the Diwani was granted in 1765.
✔ Learn the three important territories: Bengal, Bihar and Orissa.
✔ Understand why revenue was important for maintaining the Company’s army.
✔ Remember the sequence:
Plassey → Buxar → Diwani
Quick Revision Notes
✔ The Battle of Buxar was fought in 1764.
✔ The Company won the Battle of Buxar.
✔ The Company’s position in eastern India became stronger after the battle.
✔ In 1765, Shah Alam II granted the Company the Diwani.
✔ The Diwani gave the Company the right to collect revenue.
✔ The Diwani covered Bengal, Bihar and Orissa.
✔ Revenue provided the Company with important financial resources.
✔ These resources helped the Company maintain its army and expand its influence.
Common Mistakes Students Make
❌ Confusing the Battle of Plassey with the Battle of Buxar.
❌ Remembering 1757 as the year of Buxar.
❌ Thinking that Diwani means military control.
❌ Forgetting the role of Shah Alam II.
❌ Confusing 1764, the year of Buxar, with 1765, the year the Company received the Diwani.
❌ Forgetting that Diwani was connected with revenue collection.
❌ Not understanding how revenue helped the Company strengthen its military and political position.
Key Takeaways
✔ The Battle of Buxar was fought in 1764.
✔ The Company’s victory at Buxar strengthened its position.
✔ Shah Alam II granted the Company the Diwani in 1765.
✔ Diwani gave the Company the right to collect revenue.
✔ Bengal, Bihar and Orissa were included in the Diwani.
✔ Revenue provided the Company with important financial resources.
✔ Financial resources helped the Company maintain its army and support further expansion.
FAQs
1. When was the Battle of Buxar fought?
The Battle of Buxar was fought in 1764.
2. Why was the Battle of Buxar important?
The Company’s victory strengthened its position in eastern India and contributed to its acquisition of the Diwani.
3. What is Diwani?
Diwani was the right to collect revenue.
4. Who granted the Diwani to the Company?
Mughal emperor Shah Alam II granted the Diwani to the Company in 1765.
5. Which regions were covered by the Diwani?
The Diwani covered Bengal, Bihar and Orissa.
6. Why was revenue important to the Company?
Revenue provided financial resources that helped the Company maintain its army and support its administration and expansion.
7. What is the difference between Plassey and Buxar?
The Battle of Plassey was fought in 1757, while the Battle of Buxar was fought in 1764. Both contributed to the growth of Company power, but they were separate events.
8. How did the Diwani strengthen the Company?
The Diwani gave the Company access to revenue, strengthening its financial position and helping it support military and political activities.
Conclusion
The Battle of Buxar in 1764 was an important stage in the East India Company’s expansion. Following its victory, the Company’s position in eastern India became considerably stronger.
In 1765, Mughal emperor Shah Alam II granted the Company the Diwani of Bengal, Bihar and Orissa. This gave the Company the right to collect revenue from these territories.
The acquisition of revenue was extremely important because financial resources enabled the Company to maintain its army, support administration, and pursue further expansion. The events surrounding Buxar and the Diwani therefore demonstrate how economic power became closely connected with the Company’s growing political and territorial authority.
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