CBSE Class 12 Business Studies Business Environment VBQs Set 02

Chapter 3 Business Environment

Question. Which of the following is not a part of the business environment of business?
(a) Customers
(b) Suppliers
(c) Competitors
(d) None of the options
Answer: (d) None of the options

Question. Which of the following is not a component of specific forces of business environment?
(a) Technological conditions
(b) Customers
(c) Employees
(d) Investors
Answer: (a) Technological conditions

Question. The growing awareness about healthcare has led to an increase in the demand for healthcare products and services in the country. Identify the feature of business environment being described in the above case.
(a) Dynamic nature
(b) Uncertainty
(c) Relativity
(d) Interrelatedness
Answer: (d) Interrelatedness

Question. 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
(b) Dynamic nature
(c) Interrelatedness
(d) Relativity
Answer: (c) Interrelatedness

Question. In order to boost and double India’s export of goods and services to over USD 1,000 billion by 2025, it is important to lower effective corporate tax rate, bring down cost of capital and simplify regulatory and tax framework. Identify the related dimension of business environment.
(a) Social dimension and legal dimension
(b) Technological dimension and political dimension
(c) Political dimension and social dimension
(d) Economic dimension and legal dimension
Answer: (a) Social dimension and legal dimension

Question. The Economic Survey, 2019 suggests that the psychological biases can be used for the tax compliance. It is in favour of using religious slogan such as “dying in debt is a sin” to improve tax compliance. Identify the related dimensions of business environment.
(a) Legal dimension and social dimension
(b) Social dimension and economic dimension
(c) Technological dimension and political dimension
(d) Political dimension and economic dimension
Answer: (b) Social dimension and economic dimension

Question. Electric vehicles with zero emission are emerging as a good alternative to ‘problems like climate change, surging pollution, crude import bill and energy security. Identify the related dimensions of business environment.
(a) Economic dimension, legal dimension and social dimension
(b) Social dimension, political dimension and economic dimension
(c) Economic dimension, technological dimension and social dimension
(d) Social dimension, political dimension and legal dimension
Answer: (c) Economic dimension, technological dimension and social dimension

Question. India’s population is expected to grow under 0.5 per cent during 2031-41 due to decline in fertility rate and increase in life expectancy. These changes in India’s demography will also have implications such as the proportion of elementary school-going children will witness significant declines, lack of hospital beds and increase in retirement age. The related feature of business environment being described in the above lines is:
(a) Totality of external forces
(b) Dynamic nature
(c) Interrelatedness
(d) Relativity
Answer: (c) Interrelatedness

Question. India continues to be a lower-middle-income country along with 46 others, while Sri Lanka has climbed to the upper-middle-income group for the fiscal year (FY) 2020, according to the World Bank’s classification of countries by income levels, released on July 1, 2019. Identify the related dimensions of business environment.
(a) Social dimension
(b) Technological dimension
(c) Economic dimension
(d) Political dimension
Answer: (c) Economic dimension

Question. 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?
(a) Specific and general forces
(b) Dynamic nature
(c) Relativity
(d) All of the options
Answer: (d) All of the options

Question. Which of the following is not an element of social environment?
(a) Birth and death rate
(b) Constitution of the country
(c) Population Shifts
(d) Life expectancy
Answer: (b) Constitution of the country

Question. “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 health care due to the spread of Corona Virus.” Identify the feature of business environment being described above.
(a) Specific and general forces
(b) Inter-relatedness
(c) Relativity
(d) None of the options
Answer: (b) Inter-relatedness

Question. Which of the following does not characterize the business environment?
(a) Uncertainty
(b) Employees
(c) Complexity
(d) Relativity
Answer: (b) Employees

Question. Which of the following is not the component of Specific Forces of business environment?
(a) Technology
(b) Customers
(c) Investors
(d) Employees
Answer: (a) Technology

Question. The Prime Minister has given a relief package of Rs. 5 crore. This is related to which dimension of business environment
(a) Political environment
(b) Economic environment
(c) Legal environment
(d) None of the options
Answer: (b) Economic environment

Question. Arora limited is a large firm which sells mobile phones. The company has decided to make itself adaptable to all different changes like social, economic, political etc. with continuously changing circumstances. Identify the features of business environment highlighted here:
(a) Relative concept
(b) Uncertainty
(c) Dynamic nature
(d) Complexity
Answer: (c) Dynamic nature

Question. Which of the following is an example of social environment?
(a) Money supply in the economy
(b) Consumer Protection Act
(c) The constitution of the country
(d) Composition of family
Answer: (d) Composition of family

Question. “Business environment includes which of the following forces?
(a) Socio-cultural
(b) Political
(c) Legal
(d) All of the options
Answer: (d) All of the options

Question. Identify the dimension of business environment, which focuses on laws and regulations on industrial development.
(a) Economic environment
(b) Legal environment
(c) Political environment
(d) All of the options
Answer: (b) Legal environment

Question. Anju works in a law firm. She observed that numerous interrelated and dynamic conditions or forces arise from different sources. Identify the features of business environment highlighted here.
(a) Relativity
(b) Uncertainty
(c) Dynamic nature
(d) Interrelatedness
Answer: (d) Interrelatedness

Question. In urban areas people are becoming diet conscious. They go to gym and avoid eating junk food. Due to which there is less sale of fast food chain stores. Identify the dimension of business environment.
(a) Political
(b) Economic
(c) Social
(d) None of the options
Answer: (c) Social

Question. Which of the following does not characterize the business environment?
(a) Uncertainty
(b) Employees
(c) Complexity
(d) Relativity
Answer: (b) Employees

Question. Identify the dimension of business environment, which focuses on laws and regulations on industrial development.
(a) Political environment
(b) Economic environment
(c) Legal environment
(d) All of the options
Answer: (c) Legal environment

Question. As per the directions issued by the Supreme Court, the government passed an order to ban the sale of tobacco products within the area of 200 meters of all educational institutions. Identify the dimension of business environment highlighted in this statement.
(a) Legal environment
(b) Social environment
(c) Political environment
(d) None of the options
Answer: (a) Legal environment

Question. “Business environment includes which of the following forces?
(a) Socio-cultural
(b) Political
(c) Legal
(d) All of the options
Answer: (d) All of the options

Question. ‘Sohan village’ is a well-known resort for organising parties, especially for children. However, in past 6 months its popularity has reduced considerably as a new resort with better ambience and facilities has opened within its vicinity. Name the related feature of business environment which has influenced the business of ‘Sohan village’ adversely.
(a) Totality of external forces
(b) Dynamic nature
(c) Interrelatedness
(d) Uncertainty
Answer: (b) Dynamic nature

Question. Any kind of external devices, like compact discs (CD’s) for computer, have become obsolete. Google, with its Google Drive service, Apple with its iCloud offering, enables the users store documents, photos, music and movies on web-based servers. Identify the feature of business environment being described in the above lines.
(a) Relativity
(b) Dynamic nature
(c) Uncertainty
(d) Interrelatedness
Answer: (c) Uncertainty

Question. According to the United Nations Environmental Agency, the world produces around 300 million tons of plastic each year, half of which constitutes single use items. Ford is recycling over one billion plastic bottles every year to develop elements of the car’s interior, reducing the amount of plastic ending up in a landfill. The American car maker has revealed that their Romanian-built EcoSport SUVs’ carpets are made using 470 recycled single-use plastic bottles. The process for making Ford EcoSport carpets involves shredding bottles and their caps into tiny flakes and then heating them to 260°C. Identify the related dimension of business environment.
(a) Economic dimension
(b) Social dimension
(c) Technological dimension
(d) Political dimension
Answer: (c) Technological dimension

Question. DigiLocker is the country’s first secured cloud-based platform for the storage, issuance and verification of documents with the Driving Licence & Vehicle Registration System of the Road Transport Ministry. The integration of a government department with DigiLocker since its launch last year is one of the biggest of its kind. It will spare 1 people the trouble of carrying licences & vehicle papers, which can be accessed on phones using the DigiLocker app. Identify the related dimension of business environment.
(a) Economic dimension
(b) Technological dimension
(c) Social dimension
(d) Political dimension
Answer: (b) Technological dimension

Question. The Jharkhand 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
(b) Social dimension and economic dimension
(c) Technological dimension and political dimension
(d) Political dimension and economic dimension
Answer: (c) Technological dimension and political dimension

Question. ‘Yochina’ began its business by offering the classic combo of noodles and fries. But over time, their customers wanted healthier foods, so ‘Yochina’ responded and began offering healthy alternatives such as salads, fruits, wraps and oatmeal. If ‘Yo china’ 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.
(b) It helps in improving performance.
(c) It helps the firm to identify threats and early warning signals.
(d) It enables the firm to identify opportunities and getting the first mover advantage.
Answer: (a) It helps in coping with rapid changes.

Question. As a result of major government initiatives, more and more people are going ‘green’. In order to keep in line with the trend, ‘Rose carpet’ a carpet cleaning company has advertised that they only use natural cleaners that come from renewable resources and that all their service vehicles are hybrid vehicles that use both gas and electricity. Identify one of the points related to the importance of business environment and its understanding by managers which is being highlighted in the above case.
(a) It helps in assisting in planning and policy formulation.
(b) It helps in coping with rapid changes.
(c) It helps in improving performance.
(d) It enables the firm to identify opportunities and getting the first mover advantage.
Answer: (c) It helps in improving performance.

Question. According to the a health survey, 39% of adults are overweight. Over the last 40 years, the prevalence of obesity has tripled around the world. With over half of consumers drinking at least one sugary drink on a given day, regulations towards the beverage sector are likely to become increasingly strict. In Germany, for example, a sugar tax was introduced in 2018 on beverages containing more than 5% sugar. Identify the related dimensions of business environment.
(a) Legal dimension and social dimension
(b) Social dimension and technological dimension
(c) Technological dimension and legal dimension
(d) Political dimension and technological dimension
Answer: (a) Legal dimension and social dimension

Question. According to a report by the India Staffing Federation (ISF), India has emerged as the fifth largest market worldwide in flexi-staffing in 2018 and the country would have 6.1 million flexi-workforce by 2021. It showed that Haryana, Gujarat, Karnataka, Madhya Pradesh and Telangana are the states with high growth potential for flexi- staffing but Andhra Pradesh tops the list of states with favourable business environment. Identify the feature of business environment being discussed above,
(a) Relativity
(b) Dynamic nature
(c) Uncertainty
(d) Interrelatedness
Answer: (a) Relativity

Question. “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.”
(a) Social environment
(b) Technological environment
(c) Political environment
(d) Legal environment
Answer: (c) Political environment

Question. Delhi sports is a sports equipment company. It has different branches in different parts of the world. However, the requirements of the sports equipment’s are different in different branches. This is due to the change in cultures and lifestyles of people in the different countries. Company knows that the demand for these products is unpredictable as new designs keep on coming and the industry keeps on changing frequently. Identify the features of business environment highlighted here:
(a) Relativity
(b) Uncertainty
(c) Dynamic nature
(d) Complexity
Answer: (b) Uncertainty

Question. Arora limited is a large firm which sells mobile phones. The company has decided to make itself adaptable to all different changes like social, economic, political, etc. with continuously changing circumstances. Identify the features of business environment highlighted here.
(a) Relativity
(b) Uncertainty
(c) Dynamic nature
(d) Complexity
Answer: (c) Dynamic nature

Question. Naveen started a saree showroom in Mumbai, India. He wants to sell sarees in France but he understands that conditions are different in different countries. Identify the features of business environment highlighted here.
(a) Relativity
(b) Uncertainty
(c) Dynamic nature
(d) Complexity
Answer: (a) Relativity

Question. Which among the following is a part of micro environment?
(a) Customers
(b) Competitors
(c) Suppliers
(d) All of the options
Answer: (d) All of the options

Question. With changes in the consumption habits of people, Neelesh, who was running a sweet shop, shifted to the chocolate business. On the eve of Diwali, he offered chocolates in attractive packages at reasonable prices. He anticipated huge demand and created a website chocolove. com for taking orders online. He got a lot of orders online and earned huge profits by selling the chocolate. Identify the two dimensions of business environment discussed in the above case.
(a) Economic and political environment
(b) Social and political environment
(c) Social and technological environment
(d) Legal and political environment
Answer: (c) Social and technological environment