CBSE Class 12 Business Studies Business Environment MCQs Set 04

Question: In which environment of business legal are rules and regulations related to business included?
(a) Social
(b) Economic
(c) Political
(d) Legal 

Answer : D

Question: In the business environment, which feature states that various factors of business environment affect each other
(a) Dynamic
(b) Continuous
(c) Pervasive
(d) Interrelatedness 

Answer : D

Question: Which of the following does not explain the impact of government policy changes on business & industry
(a) More demanding market customers
(b) Increasing competition
(c) Market orientations
(d) Change in agricultural prices 

Answer : D

Question: Which of the following are 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: Export promotion is concerned with ______________
(a) Globalisation 
(b) Privatisation
(c) Liberalisation
(d) None of the options

Answer : A

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) Interrelatedness 
(c) Relativity
(d) Uncertainty

Answer : B

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

Answer : C

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

Answer : D

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) Relativity
(c) Dynamic nature
(d) Interrelatedness 

Answer : D

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, Identify the related dimensions of business environment. according to the World Bank's classification of countries by income levels, released on July 1, 2019.
(a) Social dimension
(b) Political dimension
(c) Economic dimension 
(d) Technological dimension

Answer : C

Question: 'Twinkle Stars' 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 'Twinkle Stars' adversely.
(a) Totality of external forces
(b) Dynamic nature 
(c) Uncertainty
(d) Interrelatedness

Answer : B

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

Answer : D

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

Answer : C

Question: FIPB stands for ___ ?
(a) Financial investment publicity board
(b) Foreign Investment Publicity Board
(c) Foreign Investment Promotion Board 
(d) Foreign Investment Promotion board

Answer : C

Question: Which one of the following is the impact of Government policy changes on business and industry?
(a) Increase in urbanisation
(b) Increase in product prices
(c) Increase in agricultural productivity
(d) Increase in competition 

Answer : D

Question: ___ nature of business environment suggests that environment keeps on changing.
(a) Continuous
(b) Pervasive
(c) Multidimensional
(d) Dynamic 

Answer : D

Question: Which one of the following is not a feature of business environment?
(a) Complexity
(b) Stability 
(c) Uncertainty
(d) Interdependence

Answer : B

Question: Changes in fashions and tastes of consumers will ______________
(a) Increase the profit
(b) Shift the market demand from existing product to new ones 
(c) Increase the Sale
(d) Increase the cost of production

Answer : B

Question: Giving freedom to Indian business and industries from all unnecessary government controls and restrictions is an example of ____________
(a) Liberalisation 
(b) Privatisation
(c) Globalisation
(d) None of the options

Answer : A

Question: Technological improvements and innovations result in________
(a) Increase in tax
(b) Render existing products obsolete 
(c) Reduction in profit margins
(d) None of the options

Answer : B

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

Answer : D

Question: Electric vehicles with zero tail pipe emission are emerging as a good alternative to problems like climate change, surging pollution leading to ill health, crude import bill and energy security. Identify the related dimensions of business environment.
(a) Social dimension, Political dimension and Economic dimension
(b) Economic dimension, Legal dimension and Social dimension
(c) Social dimension, Political dimension and Legal dimension
(d) Economic dimension, Technological dimension and Social dimension 

Answer : D

Question: According to the World Health Organization, 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 onerous. In the U.K., 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) Political dimension and Technological dimension
(c) Technological dimension and Legal dimension
(d) Social dimension and Technological dimension

Answer : A

Question: Identification of opportunities to get first more advantage is one of the importance of the business environment. (True/False)
(a) Cannot be Determined
(b) FALSE
(c) Maybe
(d) TRUE 

Answer : D

Question: State True or False, Privatisation involves freedom of doing business.
(a) TRUE
(b) FALSE 
(c) Maybe
(d) Cannot be Determined

Answer : B

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

Answer : A

Question: Increased competition in the market will _____________
(a) Increase the tax
(b) Increase the cost of production
(c) Increase the profit
(d) Reduce the profit margin 

Answer : D

Question: Rise in GDP lead to rise in ___________________
(a) Increase in new taxes
(b) Cost of Production
(c) Disposable income of people 
(d) None of the options

Answer : C

Question: Booking of Railway tickets through internet from home or office is an example of _________
(a) Political Environment
(b) Technological Environment 
(c) Economic Environment
(d) None of the options

Answer : B

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

Answer : C

Question: Through Environmental scanning a business firm can enjoy the ___________
(a) Competition
(b) Benefit of taxes
(c) Last Mover Advantage
(d) First Mover Advantage 

Answer : D

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

Answer : A

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

Answer : D

Question: What will be the affect of increase in tax by the government?
(a) Increase in profit margin
(b) Creates fear in the minds of investors
(c) Increase in cost of production 
(d) None of the options

Answer : C

Question: External environment trends and changes will provide ____________.
(a) Goodwill
(b) Threats 
(c) Less Competition
(d) Profits

Answer : B

Question: Which of the following is a feature of demonetisation?
(a) Development of less-cash economy
(b) Tax administration measure
(c) Channelising savings into the formal financial system
(d) All of the options 

Answer : D

Question: A business has to offer wider choice in purchasing enhanced quality of goods and services in order to maintain an edge over its competitors. The implementation of the new economic policy with liberalisation, privatisation and globalisation has posed various challenges for the corporate sector. One of the important challenges is explained in the above lines. Identify it.
(a) Necessity for change
(b) More demanding customers
(c) Market orientation
(d) Increasing competition 

Answer : D

Question: Proper understanding of business environment is not a prerequisite for
(a) Tapping of useful resources
(b) Formulation of strategies 
(c) Identificaion of opportunities and threats
(d) Bettter coordination of employee efforts

Answer : B

Question: Liberalisation means
(a) Policy of planned disinvestment
(b) Integrating among economies
(c) End of license and reduction of government condtrol 
(d) None of the options

Answer : C

Question: What is the full form of LERMS ?
(a) Liberalised Economy Rate Management Society
(b) Local Exchange Rate Management System
(c) Liberalised Exchange Return Management System
(d) Liberalised Exchange Rate Management Syste, 

Answer : D