12th Class Business Studies Business Environment Question Bank Case Based MCQs - Business Environment

  • question_answer
    Direction (16-20): Read the following text and answer question numbers on the basis of the same. Shreeja and Anusha, just finished their fashion designing course from National Institute of Fashion and Designing (NIFD). Looking at the post COVID scenario, they decided to open an online store of fashionable and designer clothes. They discussed their idea with Mrs. Monika Gosain, who herself is an entrepreneur. Mrs Gosain knew that new and innovative methods to produce and distribute goods and services are coming up and in such a scenario, opening an online store will prove as a successful venture. She suggested them to first analyse the business environment which consists of investors, competitors and other forces like social, political, etc. That may affect their business directly or indirectly. Through an analysis report of the business environment, Anusha and Shreeja realised that people are doing a lot of online shopping due to lockdown and in the coming years, shopping at a mall will no longer remain a culture for the buyers as purchases can be made online from anywhere and at anytime at the customer's convenience. Customers are becoming more demanding. Market conditions are turbulent, brand loyalty is decreasing, and there is a fragmentation of market. Government's effort for the export promotion, rationalisation of the tariff structure and reforms with respect to foreign exchange gave them the idea to think of export as well. Before they finalised their complete plan, they decided to study the latest trends in the market and produce goods accordingly.
    Which dimension of businesses environment is focused in the above paragraph?

    A) Political

    B) Social

    C) Technological

    D) Legal

    Correct Answer: C

    Solution :

    [c]


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