12th Class Business Studies Business Environment Question Bank

done MCQs - Business Environment Total Questions - 65

• question_answer1)
  The term ......... means the totality of all individuals, institutions and other forces that are outside a business.
  A)
  Internal environment done clear
  B)
  Social environment done clear
  C)
  Business environment done clear
  D)
  None of the above done clear
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• question_answer2)
  Business environment is the sum total of all the factors and forces ......... to a business,
  A)
  Internal done clear
  B)
  Specific done clear
  C)
  External done clear
  D)
  All of these done clear
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• question_answer3)
  Which of the following is the feature of business environment?
  A)
  It is a relative concept since it differs from country to country and even region to region. done clear
  B)
  It enables the firm to identify opportunities and getting the first mover advantage. done clear
  C)
  It helps in tapping useful resources. done clear
  D)
  All of the above done clear
  View Solution play_arrow

• question_answer4)
  The term 'business environment' means the sum total of
  A)
  All individuals done clear
  B)
  Institutions done clear
  C)
  Other forces that are outside the control of a business enterprise. done clear
  D)
  All of the above done clear
  View Solution play_arrow

• question_answer5)
  The trend of Yoga as a result of COVID-19 relates to ......... environment of business.
  A)
  Social done clear
  B)
  Political done clear
  C)
  Technological done clear
  D)
  Legal done clear
  View Solution play_arrow

• question_answer6)
  Investors, customers, competitors and suppliers come under ......... forces.
  A)
  General done clear
  B)
  Specific done clear
  C)
  General and Specific done clear
  D)
  None of the above done clear
  View Solution play_arrow

• question_answer7)
  Which of the following does not characterise the business environment?
  A)
  Uncertainty done clear
  B)
  Employees done clear
  C)
  Relativity done clear
  D)
  Complexity done clear
  View Solution play_arrow

• question_answer8)
  Specific attitudes that elected government representatives hold towards business is called ......... environment.
  A)
  Legal done clear
  B)
  Social done clear
  C)
  Technological done clear
  D)
  Political done clear
  View Solution play_arrow

• question_answer9)
  Which of the following best indicates the importance of business environment?
  A)
  Identification done clear
  B)
  Improvement in performance done clear
  C)
  Coping with rapid changes done clear
  D)
  All of the above done clear
  View Solution play_arrow

• question_answer10)
  Even though the political conditions vary from country to country, they impact the sentiment of an investor in the business, if the instability of the political conditions cause uncertainty and make it difficult for him to predict the future. Which feature of the Business Environment is being highlighted in the above statement?     (CBSE SQP 2020-21)
  A)
  Specific and general forces done clear
  B)
  Dynamic nature done clear
  C)
  Relativity done clear
  D)
  All of the above done clear
  View Solution play_arrow

• question_answer11)
  "The increase in the demand for many Ayurvedic medicines, Health products and services in the past few months, is related to the need for building immunity and an increased awareness for healthcare due to the spread of Corona virus." Identify the feature of business environment being described above. (CBSE SQP 2020-21)
  A)
  Specific and general forces done clear
  B)
  Inter-relatedness done clear
  C)
  Relativity done clear
  D)
  None of the above done clear
  View Solution play_arrow

• question_answer12)
  ......... is considered as the major element of political environment.
  A)
  The extent of government intervention in business done clear
  B)
  Planned outlay in public and private sectors done clear
  C)
  Expectation from the workforce done clear
  D)
  Administrative order issued by government authorities done clear
  View Solution play_arrow

• question_answer13)
  As a foreign tourist visited India, he noticed that Indian markets, tastes, trends and regulations were different from that of his country. Which feature of business environment is reflected here?
  A)
  Uncertainty done clear
  B)
  Dynamic done clear
  C)
  Relative concept done clear
  D)
  All of the above done clear
  View Solution play_arrow

• question_answer14)
  Non-discriminatory employment practices is the part of which dimension of business environment?
  A)
  Economic done clear
  B)
  Social done clear
  C)
  Legal done clear
  D)
  Political done clear
  View Solution play_arrow

• question_answer15)
  ......... consists of various macro-level factors related to the means of production and distribution of wealth which have an impact on business and industry.
  A)
  Economic environment done clear
  B)
  Political environment done clear
  C)
  Social environment done clear
  D)
  Legal environment done clear
  View Solution play_arrow

• question_answer16)
  Foreign Investment Promotion Board (FIPB) was setup to promote and channelise ......... investment in India-
  A)
  Domestic done clear
  B)
  Foreign done clear
  C)
  Both [a] and [b] done clear
  D)
  None of these done clear
  View Solution play_arrow

• question_answer17)
  'Threats to law and order' is an example of ......... environment of business.
  A)
  economic done clear
  B)
  political done clear
  C)
  social done clear
  D)
  legal done clear
  View Solution play_arrow

• question_answer18)
  Which of the following is not included in the Micro Environment (Operating Environment)?
  A)
  Suppliers done clear
  B)
  Competitor done clear
  C)
  Customer done clear
  D)
  Government done clear
  View Solution play_arrow

• question_answer19)
  Since more number of people have become more beauty and health conscious, our economy has witnessed an unprecedented surge in the number of health and beauty spas and wellness clinics. Related feature of business environment being described in the above lines is
  A)
  Totality of external forces done clear
  B)
  Dynamic nature done clear
  C)
  Inter-relatedness done clear
  D)
  Relativity done clear
  View Solution play_arrow

• question_answer20)
  ......... is considered a major element of the economic environment.
  A)
  Public debt done clear
  B)
  The nature of relationship of our country with foreign countries done clear
  C)
  Birth and death rate done clear
  D)
  Literacy rates done clear
  View Solution play_arrow

• question_answer21)
  'Yo Tummy' began its business by offering the classic combo of hamburgers and fries. But over time, their customers wanted healthier foods, so 'Yo Tummy' responded and began offering healthy alternatives such as salads, fruits, wraps and oat meal. If 'Yo Tummy' hadn't responded, they may have lost customers that wanted to eat healthier foods. The above case highlights one of the points related to the importance of business environment and its understanding by managers. Identify it.
  A)
  It helps in coping with rapid changes. done clear
  B)
  It helps in improving performance. done clear
  C)
  It helps the firm to identify threats and early warning signals. done clear
  D)
  It enables the firm to identify opportunities and getting the first mover advantage. done clear
  View Solution play_arrow

• question_answer22)
  Earlier firms used to follow production orientation concept and now they study and analyse the market first and then produce the goods.
  A)
  True done clear
  B)
  False done clear
  C)
  Can't say done clear
  D)
  Partially true done clear
  View Solution play_arrow

• question_answer23)
  With the introduction of mineral water bottle in India, Aqua was able to capture the big market share in India. Which importance of business environment is highlight in the above case.
  A)
  Helps in tapping resources done clear
  B)
  Help in policy-making done clear
  C)
  Improve performance done clear
  D)
  Help to identify opportunity and getting first mover advantage done clear
  View Solution play_arrow

• question_answer24)
  Which one is a specific force for a garment manufacturing industry?
  A)
  Change in law done clear
  B)
  Change in government done clear
  C)
  Change in fashion done clear
  D)
  Change in technology done clear
  View Solution play_arrow

• question_answer25)
  By developing new ways of doing things, the firm can cope up with changing technological environment.
  A)
  True done clear
  B)
  False done clear
  C)
  Can't say done clear
  D)
  Partially true done clear
  View Solution play_arrow

• question_answer26)
  The cost of production increased due to increase in minimum wage rate by government is an economic dimension
  A)
  True done clear
  B)
  False done clear
  C)
  Can't say done clear
  D)
  Partially true done clear
  View Solution play_arrow

• question_answer27)
  Threats refer to the internal environment trends and changes that will hinder a firm's performance.
  A)
  True done clear
  B)
  False done clear
  C)
  Can't say done clear
  D)
  Partially false done clear
  View Solution play_arrow

• question_answer28)
  Telecom sector was opened up to private sector as a reform under Economic Policy, 1991. Nokia became the first cellular company to operate in 1994 and dominated the market. Later, it lost its market share and was absorbed by Microsoft. The management of Microsoft examined the environment and made suitable changes. Identify the point of importance of business environment with appropriate actions reflected in the above case.
  A)
  It helps in identifying opportunities and getting first mover advantage done clear
  B)
  It helps in identifying threats and early warning signals done clear
  C)
  It helps in improving performance done clear
  D)
  It helps in tapping useful resources done clear
  View Solution play_arrow

• question_answer29)
  Which of the following is not an element of social environment? (CBSE SQP 2020-21)
  A)
  Birth and death rate done clear
  B)
  Constitution of the country done clear
  C)
  Population shifts done clear
  D)
  Life expectancy done clear
  View Solution play_arrow

• question_answer30)
  Understanding of business environment may assist an enterprise in planning and policy formulation.
  A)
  True done clear
  B)
  False done clear
  C)
  Can't say done clear
  D)
  Partially false done clear
  View Solution play_arrow

• question_answer31)
  A firm can cope up with the changes by developing new ways of doing things.
  A)
  True done clear
  B)
  False done clear
  C)
  Cant say done clear
  D)
  Partially true done clear
  View Solution play_arrow

• question_answer32)
  Our economy consists of private sector and public sector.
  A)
  True done clear
  B)
  False done clear
  C)
  Can't say done clear
  D)
  Partially true done clear
  View Solution play_arrow

• question_answer33)
  Which of the following is a component of economic environment?  (CBSE 2020)
  A)
  Concern with quality of life done clear
  B)
  Rates of saving and investment done clear
  C)
  Extent of government intervention in business done clear
  D)
  Birth and death rate done clear
  View Solution play_arrow

• question_answer34)
  "Even after opening up of the Indian economy in 1991, foreign companies found it extremely difficult to cut through the bureaucratic red tape to get permits for doing business in India, which created a negative impact on business." Identify the dimension of the business environment which led to creation of the negative impact on business. (CBSE SQP 2020-21)
  A)
  Social Environment done clear
  B)
  Technological Environment done clear
  C)
  Political Environment done clear
  D)
  Legal Environment done clear
  View Solution play_arrow

• question_answer35)
  Black economy works as parallel economy to the main economy of a country.
  A)
  True done clear
  B)
  False done clear
  C)
  Can't say done clear
  D)
  Partially true done clear
  View Solution play_arrow

• question_answer36)
  Match the following.

  	Column I		Column II
  A	Suppliers and creditors	(i)	Opportunities
  B	Social and political environment	(ii)	Specific forces
  C	Gaining the profits for being a pioneer	(iii)	General forces
  D	Positive external trends	(iv)	First mover advantage

  Find the correct option.
  A)
  A-(i), B-(ii),  C-(iii), D-(iv) done clear
  B)
  A-(ii), B-(iii), C-(iv), D-(i) done clear
  C)
  A-(iii), B-(iv), C-(i), D-(ii) done clear
  D)
  A-(iv), B-(i), C-(ii), D-(iii) done clear
  View Solution play_arrow

• question_answer37)
  The Rajasthan government has developed surveillance network using latest satellite technology. Under this system, the state's mining department would be in a position to check illegal mining activities across the state. The state government is also considering the use of drones in its proposed campaign against illegal mining. Identify the related dimensions of business environment.
  A)
  Economic dimension and Legal dimension done clear
  B)
  Social dimension and Economic dimension done clear
  C)
  Political dimension and Economic dimension done clear
  D)
  Technological dimension and Political dimension done clear
  View Solution play_arrow

• question_answer38)
  Which of the following dimensions of business environment includes legislations passed by the Government administrative orders issued by government authorities.
  A)
  Technological environment done clear
  B)
  Social environment, done clear
  C)
  Legal environment done clear
  D)
  Economic environment done clear
  View Solution play_arrow

• question_answer39)
  Match the following.

  	Column I		Column II
  A	Lifestyle and values	(i)	Economic environment
  B	Payment through e-wallets	(ii)	Political environment
  C	Rise in inflation	(iii)	Legal environment
  D	Attitude of government towards business	(iv)	Technological environment
  E	Statutory warning on advertisement	(v)	Social environment

  Find the correct option.
  A)
  A-(ii), B-(ii), C-(iii), D-(iv), E-(v) done clear
  B)
  A-(ii), B-(v), C-(iv), D-(iii), E-(i) done clear
  C)
  A-(v), B-(iv), C-(i), D-(ii), E-(iii) done clear
  D)
  A-(iv), B-(i), C-(ii), D-(iii), E-(v) done clear
  View Solution play_arrow

• question_answer40)
  Match the statements with their respective features.

  	Statements		Features
  A	Dynamic	(i)	Easier to understand in parts but difficult to grasp in totality
  B	Uncertainty	(ii)	Different political conditions in different nations
  C	Complexity	(iii)	Difficult to predict the future events
  D	Relativity	(iv)	Technological improvements

  Find the correct option.
  A)
  A-(iv), B-(iii), C-(i), D-(ii) done clear
  B)
  A-(iv), B-(iii), C-(ii), D-(i) done clear
  C)
  A-(iii), B-(iv), C-(i), D-(ii) done clear
  D)
  A-(i), B-(ii), C-(iii), D-(i) done clear
  View Solution play_arrow

• question_answer41)
  Which of the following statements is true with respect to political environment?
  A)
  It include the social forces like customs and traditions, values, social trends, society's expectations from business, etc. done clear
  B)
  It includes forces relating to scientific improvements and innovations. done clear
  C)
  It includes political conditions such as general stability and peace in the country. done clear
  D)
  None of the above done clear
  View Solution play_arrow

• question_answer42)
  Match the features of business environment with their respective features.

  	Statements		Features
  A	Economic	(i)	Use of machine learning in banks
  B	Political	(ii)	Provision of long term loan to the builders at low rate of interest
  C	Legal	(iii)	Individual freedom, social justice, equality of opportunity
  D	Technological	(iv)	Introduction of new Consumer Protection Law
  E	Social	(v)	Donald Trump withdraws membership from WHO

  Find the correct option.
  A)
  A-(iv), B-(iii), C-(i), D-(ii), E-(v) done clear
  B)
  A-(ii), B-(v), C-(iv), D-(i), E-(iii) done clear
  C)
  A-(iii), B-(iv), C-(v), D-(i), E-(ii) done clear
  D)
  A-(ii), B-(v), C-(i), D-(iii), E-(iv) done clear
  View Solution play_arrow

• question_answer43)
  Match the following.

  	Column I		Column II
  A	More demanding customers	(i)	Free flow of goods and services between different countries
  B	Entry of foreign bank in India	(ii)	Impact of NEP
  C	Globalisation	(iii)	Impact of liberalisation

  Find the correct option.
  A)
  A-(i), B-(ii), C-(iii) done clear
  B)
  A-(ii), B-(iii), C-(ii) done clear
  C)
  A-(i), B-(ii), C-(ii) done clear
  D)
  A-(iii), B-(i), C-(ii) done clear
  View Solution play_arrow

• question_answer44)
  Match the following.

  	Column I		Column II
  A	Stock market indices	(i)	Political environment
  B	Customs and traditions	(ii)	Social environment
  C	New techniques of operating business	(iii)	Technological environment
  D	General stability and peace in the country	(iv)	Economic environment

  Find the correct option.
  A)
  A-(iv), B-(iii), C-(i), D-(ii) done clear
  B)
  A-(ii), B-(iii), C-(iii), D-(i) done clear
  C)
  A-(iii), B-(iv), C-(ii), D-(i) done clear
  D)
  A-(iv), B-(ii), C-(iii), D-(i) done clear
  View Solution play_arrow

• question_answer45)
  Match the following.

  	Column I		Column II
  A	Life expectancy	(i)	Economic environment
  B	Relationship of two countries	(ii)	Social environment
  C	Planned outlay in public and private sectors	(iii)	Political environment
  D	The Companies Act, 2013	(iv)	Legal environment

  Find the correct option.
  A)
  A-(iv), B-(iii), C-(i), D-(ii) done clear
  B)
  A-(ii), B-(iii), C-(i), D-(iv) done clear
  C)
  A-(iii), B-(iv), C-(ii), D-(i) done clear
  D)
  A-(iv), B-(ii), C-(iii), D-(ii) done clear
  View Solution play_arrow

• question_answer46)
  Which of the following is an example of social environment?
  A)
  Money supply in the economy done clear
  B)
  Consumer Protection Act done clear
  C)
  The Constitution of the Country done clear
  D)
  Composition of family done clear
  View Solution play_arrow

• question_answer47)
  In accordance with the economic planning, the government of India gave a lead role to the public sectors for infrastructure industries whereas the private sectors was broadly given the responsibility of developing consumer goods industry. At the same time, the government imposed several restrictions, requisitions and controls on the working of private sector enterprises. Identify the dimension(s) of business environment highlighted above.
  A)
  Economic environment done clear
  B)
  Legal environment done clear
  C)
  Political environment done clear
  D)
  All of the above done clear
  View Solution play_arrow

• question_answer48)
  'Express Tours Ltd.' is a travel agency which books air tickets on commission basis. It takes two days for Express Tours to get the tickets from airport reservation counter and deliver the same to customers. During the last one year, there has been drastic decrease in its business as most of the customers have shifted to another travel agency, "Shiva Tours and Travels, which provides tickets within half-an-hour through Internet. Identify the dimension of business environment that is being overlooked by Express Tours Ltd.
  A)
  Technological environment done clear
  B)
  Legal environment done clear
  C)
  Political environment done clear
  D)
  Economic environment done clear
  View Solution play_arrow

• question_answer49)
  It is heartening that the implementation of compliance requirements of the Companies Act, 2013 has progressed substantially with NIFTY 500 companies. Data shows a significant increase in women's participation in the top management of Indian Companies from 5% few years ago to 13% now. Even companies which are not in NIFTY 500 have undertaken drives to increase women's participation across different areas of work. The government had also announced that it would support such companies. Identify the dimension of business environment discussed above which brought about the change.
  A)
  Technological environment done clear
  B)
  Legal environment done clear
  C)
  Social environment done clear
  D)
  Economic environment done clear
  View Solution play_arrow

• question_answer50)
  Which component of general environment of business prohibits the advertisement of alcoholic beverages?
  A)
  Economic environment done clear
  B)
  Political environment done clear
  C)
  Social environment done clear
  D)
  Legal environment done clear
  View Solution play_arrow

• question_answer51)
  "Trends refer to changes and inclination towards new products and services". This statement describes significant effect of which environment on business?
  A)
  Economic environment done clear
  B)
  Social environment done clear
  C)
  Political environment done clear
  D)
  None of the above done clear
  View Solution play_arrow

• question_answer52)
  What is included in legal environment of business?
  A)
  Several acts passed by the government done clear
  B)
  Court judgements done clear
  C)
  Statutory warning prescribed under law done clear
  D)
  All of the above done clear
  View Solution play_arrow

• question_answer53)
  "The celebration of Diwali, Eid, Christmas and Guru Parv in India provides significant financial opportunities for greeting cards companies, sweets or confectionery manufacturers, tailoring outlets and many other related business. Name the dimension of the business environment highlighted by this statement.
  A)
  Technological environment done clear
  B)
  Legal environment done clear
  C)
  Political environment done clear
  D)
  Social environment done clear
  View Solution play_arrow

• question_answer54)
  'Soft and Silk Crafts (India) Limited' has been manufacturing ready-made textiles, maintains high reputation in the international market and has been dumping its untreated poisonous chemicals and wastes in the river 'Yamuna' which has polluted the river and created many health problems for Delhiites. Identify the related environmental dimension.
  A)
  Political environment done clear
  B)
  Social environment done clear
  C)
  Legal environment done clear
  D)
  Economic environment done clear
  View Solution play_arrow

• question_answer55)
  The government of India proposed to encourage e-transactions by encouraging the use of plastic money (through debit, credit and gift cards) or net-banking by allowing deductions in usage charges, fees and income tax exemptions. Which component of business environment does it represent?
  A)
  Political environment done clear
  B)
  Social environment done clear
  C)
  Legal environment done clear
  D)
  Economic environment done clear
  View Solution play_arrow

• question_answer56)
  Which component of business environment is related to the innovation of the world's cheapest Lakhtakia car' known as 'Nano'?
  A)
  Technological environment done clear
  B)
  Social environment done clear
  C)
  Legal environment done clear
  D)
  Economic environment done clear
  View Solution play_arrow

• question_answer57)
  The government has directed all the leading companies to voluntarily participate in the Clean India Mission and asked them to make toilets in cities and villages. Which dimension of environment is affected due to such direction?
  A)
  Technological environment done clear
  B)
  Social environment done clear
  C)
  Legal environment done clear
  D)
  Economic environment done clear
  View Solution play_arrow

• question_answer58)
  India opened up its economy to the outside world in 1991 to encourage foreign capital in the Indian Industry through LPG. To promote the initiative, the Prime Minister Narendra Modi attracted various foreign investing partners to produce and sell the goods in India under its 'Make in India' initiative. The foreign companies like 'I-phone' installed manufacturing unit in India. Identify the dimension of business environment associated in the above case.
  A)
  Technological environment done clear
  B)
  Social environment done clear
  C)
  Legal environment done clear
  D)
  Economic environment done clear
  View Solution play_arrow

• question_answer59)
  The government of India started many initiatives under the guidance of the Prime Minister. Among Such initiative is 'Make in India', the objective of which is to attract foreign investors to manufacture and sell in India. Identify the dimension of business environment affected due to this initiative.
  A)
  Technological environment done clear
  B)
  Political environment done clear
  C)
  Legal environment done clear
  D)
  Economic environment done clear
  View Solution play_arrow

• question_answer60)
  Many state governments of India banned the sale of 'Maggie Noodles' on the allegations of high levels of lead found in this popular snack. As the controversy escalated, shares of the company saw the steepest decline. Identify the dimensions of business environment highlighted above with reasons.
  A)
  Technological and political done clear
  B)
  Political and legal done clear
  C)
  Legal and economic done clear
  D)
  Economic and political done clear
  View Solution play_arrow

• question_answer61)
  "There is a great demand for reservation in jobs for economically weaker sections of the society". Identify the type of dimension of business environment mentioned.
  A)
  Technological environment done clear
  B)
  Political environment done clear
  C)
  Legal environment done clear
  D)
  Social environment done clear
  View Solution play_arrow

• question_answer62)
  Beni, after completing her MBA, took up a job a multi-national company named 'Fortio'. The company was paying good salary and perks to its employees. The wages were within the paying capacity of the company that provided the employees a reasonable standard of living. The company also had a good work-culture and the behaviours of superiors were very good towards their subordinates. Beni was very happy in this organisation, but due to long working hours she did not have time to cook her meals. She had to depend on outside found, which was deteriorating her health. She observed that this problem was faced by many of her colleagues, not only in her company but also in many other companies. This was because of increase in the number of working women and non-availability of hygienic home-cooked food. She identified this as a great opportunity and decided to give up her job to supply packaged home-cooked food to office goers at a reasonable price. At the end of the day she also distributes the left-over food in the nearby night-shelters. Identify the dimension of business environment being discussed above.
  A)
  Political done clear
  B)
  Social done clear
  C)
  Legal done clear
  D)
  Economic done clear
  View Solution play_arrow

• question_answer63)
  In order to solve economic problems of our country, the government took several steps including control by the state of certain industries, central planning and reduced importance of the private sector. Which dimension of business environment discussed above?
  A)
  Economic done clear
  B)
  Political done clear
  C)
  Both [a] and [b] done clear
  D)
  None of the above done clear
  View Solution play_arrow

• question_answer64)
  The business environment consist of numerous inter-related and dynamic forces. Because of this it may be difficult to know the extent of the relative impact of social, economic, political, technological or legal factors on change in the demand of a product in the market. The feature of business environment being discussed in the above para is
  A)
  Totality of external forces done clear
  B)
  Relativity done clear
  C)
  Inter-relatedness done clear
  D)
  Complexity done clear
  View Solution play_arrow

• question_answer65)
  Philips, a company manufacturing light bulbs incurred heavy expenditure on scientific Research and Development and discovered a technology that made it possible to produce an energy efficient light bulb that lasts atleast twenty times as long as a standard bulb. It resulted in growth and profitability of the company. Identify the dimension of business environment mentioned above.
  A)
  Political done clear
  B)
  Social done clear
  C)
  Legal done clear
  D)
  Technological done clear
  View Solution play_arrow