CBSE Class 12 Business Studies Business Environment MCQs Set B

Question: Which among the following is not opened for private sector participation
(a) Telecommunication sector
(b) Power sector
(c) Railways 
(d) Education sector

Answer : C

Question: Company images and brand equity is factor affecting business
(a) Externally 
(b) Internally
(c) Government Policy
(d) None of the options

Answer : A

Question: Relaxing the restrictions and controls imposed on Business and industry means
(a) Privatisation
(b) Liberalisation 
(c) Globalisation
(d) None of the options

Answer : B

Question: By which act government checks restrictive trade?
(a) MRTP Act 
(b) Industrial Policy Act 1991
(c) FEMA act
(d) None of the options

Answer : A

Question: Liberalization means
(a) Liberating the industry, trade and economy from unwanted restrictions 
(b) Reducing number of reserved industries from 17 to 8
(c) Opening up of economy to the world by attaining international competitiveness
(d) Free determination of interest rates

Answer : A

Question: ___ is the integration of world economy into a single market through removal of trade barriers between countries
(a) Privatisation
(b) Liberalisation
(c) Both a and b
(d) Globalisation 

Answer : D

Question: Which of the following is the impact of govt. policy changes on business & industry?
(a) Demanding Customers
(b) Increased competition
(c) Need for change
(d) All of the options 

Answer : D

Question: Globalisation means
(a) reduced role of public sector
(b) control of inflation
(c) lowering interest rates
(d) integration of economies 

Answer : D

Question: Legal rules and regulations relevant to business are included in ___ environment of business.
(a) Technological
(b) Legal 
(c) Political
(d) Economic

Answer : B

Question: What creates fear in the minds of investors to invest in long term projects?
(a) Political Uncertainty 
(b) Liberalisation
(c) Privatisation
(d) None of the options

Answer : A

Question: How many important features of New Economic Policy, 1991
(a) 2
(b) 5
(c) 3 
(d) 4

Answer : C

Question: Why it is important for business enterprises to understand their environment
(a) It Enables the Firm to Identify Opportunities
(b) It Helps the Firm to Identify Threats
(c) It Helps in Coping with Rapid Changes
(d) All the options 

Answer : D

Question: Advance understanding of business environment will help in
(a) Planning and Policy Formulation 
(b) Liberalisation
(c) Privatisation
(d) Developing new principles of management

Answer : A

Question: Globalisation aims at ____
(a) Import liberalisation
(b) Foreign exchange reforms
(c) All the options 
(d) Export Promotion

Answer : C

Question: Through Environmental scanning a business firm can enjoy the ___________
(a) First Mover Advantage 
(b) Last Mover Advantage
(c) None of the options
(d) Benefit of taxes

Answer : A

Question: Booking of Railway tickets through internet from home or office is an example of _________
(a) Political Environment
(b) Economic Environment
(c) Technological Environment 
(d) All the options

Answer : C

Question: Advertisement of alcoholic beverages is prohibited. This is an example of __________
(a) Legal Environment 
(b) Economic Environment
(c) Political Environment
(d) All the options

Answer : A

Question: Subsidy to cotton textile businesses is the __________
(a) Social Environment
(b) Legal Environment
(c) Political Environment 
(d) Economic Environment

Answer : C

Question: The trend of health and fitness has created a demand for products like gyms, bottled mineral water and food supplements etc., these are the example of
(a) Social Environment 
(b) Economic Environment
(c) Political Environment
(d) Legal Environment

Answer : A

Question: Gross Domestic Product (GDP) is concerned with ____________
(a) Economic Environment 
(b) Political Environment
(c) Social Environment
(d) Legal Environment

Answer : A

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) Dynamic nature
(b) Relativity
(c) Uncertainty 
(d) Interrelatedness

Answer : C

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) Social dimension
(b) Technological dimension 
(c) Political dimension
(d) Economic dimension

Answer : B

Question: '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 oatmeal. 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 improving performance.
(b) It enables the firm to identify opportunities and getting the first mover advantage.
(c) It helps in coping with rapid changes. 
(d) It helps the firm to identify threats and early warning signals.

Answer : C

Question: As a result of major government initiatives, more and more people are going 'green'. In order to keep in line with the trend, 'Clapaway' 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 enables the firm to identify opportunities and getting the first mover advantage.
(b) It helps in improving performance. 
(c) It helps in coping with rapid changes.
(d) It helps in assisting in planning and policy formulation.

Answer : B

Question: The Union Cabinet has given 'in-principle' nod to divest stakes in Air India ' a wholly government owned airline. This means the government is willing to shed a substantial portion of its stake and hand over the management of the ailing airline to the private sector. Identify the concept being described in the above lines.
(a) Demonetisation
(b) Privatisation 
(c) Liberalisation
(d) Globalisation

Answer : B

Question: _______ refers to negative and unfavourable external factors that are likely to create hurdles for a firm:-
(a) Warning
(b) Threats 
(c) Opportunities
(d) None of the options

Answer : B

Question: Which of the following are the dimensions of the business environment:-
(a) Legal & Social
(b) Economic & Social
(c) Technological & Economic
(d) All of the options 

Answer : D

Question: Facebook, Twitter and Whatsapp is the result of ________________
(a) Political Environment
(b) Social Environment
(c) Technologcal Environment 
(d) None of the options

Answer : C

Question: Which of the following creates fear in the minds of investors?
(a) Political uncertainty 
(b) New innovations
(c) Technological improvements
(d) None of the options

Answer : A

Question: Reduction in the role of public sector is due to __________
(a) Political Environment
(b) Liberalisation
(c) Globalisation
(d) Privatisation 

Answer : D

Question: Increase or decrease in the value of Rupee is an example of _________
(a) Political Environment
(b) Social Environment
(c) Economic Environment 
(d) None of the options

Answer : C

Question: Which is not essential feature of Globalisation
(a) The government redefined the role of public sector. 
(b) Export promotion
(c) Import liberalisation
(d) Foreign exchange reforms

Answer : A

Question: Which is not essential feature of Privatisation
(a) The government redefined the role of public sector.
(b) Policy of planned disinvestments of the public sector.
(c) Refining of sick enterprises to the Board of Industrial and Financial Reconstruction.
(d) No restriction on expansion or contraction of business 

Answer : D

Question: Which is not essential feature of Liberalisation
(a) No restriction on expansion or contraction of business
(b) The government redefined the role of public sector. 
(c) Free movement of goods and services.
(d) Freedom in fixing the prices of goods and services.

Answer : B

Question: What is the Impact of Government policy changes on business and industry
(a) Rapidly Changing Technological Environment
(b) More Demanding Customer
(c) Increasing Competition
(d) All the options 

Answer : D