CBSE Class 12 Business Studies Business Environment MCQs Set E

Question. Which of the following is not a part of the internal environment?
(a) Customers
(b) Objectives
(c) Policies
(d) Organisation Structure

Answer : A

Question. The entry of the multinational companies in large numbers in the Indian market has created ________ .
(a) Huge Demand
(b) Huge Supply
(c) Tough Competition
(d) Huge Demand and Supply

Answer : C

Question. Reducing the role of Public Sector and increasing the role of Private Sector falls under ________ .
(a) Liberalisation
(b) Privatisation
(c) Liberalisation and Privatisation
(d) Globalisation

Answer : B

Question. ITC Hotels made a study of the business environment and planned to open ________ in India and abroad.
(a) Factories
(b) Hotels
(c) Shops
(d) Offices

Answer : B

Question. A firm should make efforts that it has ________ type of customers?
(a) One
(b) Two
(c) Three
(d) Many

Answer : D

Question. Trade Policy brings under control the ________ .
(a) Import Trade
(b) Export Trade
(c) Foreign Trade
(d) Local Trade

Answer : C

Question. Which of the following deals with the process of simplification of Import-Export?
(a) Liberalisation
(b) Privatisation
(c) Liberalisation and Privatisation
(d) Globalisation

Answer : A

Question. Which of the following is undergoing quick changes?
(a) Competition
(b) Fashion
(c) Technique
(d) All the above

Answer : D

Question. With the help of the study of business environment an organization can improve its ________ .
(a) Present
(b) Future
(c) Present and Future
(d) Past

Answer : C

Question. With which of the following the Indian Companies have to compete?
(a) New and Old Indian Companies
(b) Multinational Companies
(c) Imports
(d) All the above.

Answer : D

Question. Which factor is not included in Micro Environment?
(a) Customer
(b) Public
(c) Supplier
(d) Production Capacity

Answer : D

Question Which of the following has got the First Mover Advantage?
(a) Asian Paints
(b) Goodlass Nerolac
(c) Kansai Paints
(d) Maruti Udyog

Answer : B

Question. Read the following statements: Assertion and Reason. Choose one of the correct alternatives given below:
Assertion (A) : Technological environment includes forces related to scientific improvements and innovations which provide new ways of producing goods and services and new way of operating business.
Reason (R): Import and export of technology is important for a nation to develop.
Alternatives:
(a) Both Assertion (A) and Reason (R) are True and Reason (R) is the correct explanation of Assertion (A) .
(b) both assertion (A) and reason(R) are true and assertion (R) is not the correct explanation of assertion(A)
(c) Assertion (A) is True but Reason (R) is False.
(d) Assertion (A) False but Reason (R) is True.

Answer : B

Question. Read the following statements: Assertion and Reason. Choose one of the correct alternatives given below:
Assertion (A) : Business environment is a complex phenomenon.
Reason (R): It is relatively easier to understand in parts but difficult to grasp in its totality;
Alternatives:
(a) Both Assertion (A) and Reason (R) are True and Reason (R) is the correct explanation of Assertion (A) .
(b) both assertion (A) and reason(R) are true and assertion (R) is not the correct explanation of assertion(A)
(c) Assertion (A) is True but Reason (R) is False.
(d) Assertion (A) False but Reason (R) is True.

Answer : A

Question. Read the following statements: Assertion and Reason. Choose one of the correct alternatives given below:
Assertion (A) : The political environment has immediate and great impact on the business transactions so businessmen must scan this environment very carefully.
Reason (R): The business man has to make changes in his organisation according to the changing factor of political environment.
Alternatives:
(a) Both Assertion (A) and Reason (R) are True and Reason (R) is the correct explanation of Assertion (A) .
(b) both assertion (A) and reason(R) are true and assertion (R) is not the correct explanation of assertion(A)
(c) Assertion (A) is True but Reason (R) is False.
(d) Assertion (A) False but Reason (R) is True.

Answer : A

Question. Read the following statements: Assertion and Reason. Choose one of the correct alternatives given below:
Assertion (A) : Business environment is very complex.
Reason (R): it helps the firm to identify threats and early warning signals.
Alternatives:
(a) Both Assertion (A) and Reason (R) are True and Reason (R) is the correct explanation of Assertion (A) .
(b) both assertion (A) and reason(R) are true and assertion (R) is not the correct explanation of assertion(A)
(c) Assertion (A) is True but Reason (R) is False.
(d) Assertion (A) False but Reason (R) is True.

Answer : B

Question. Business environment is a group of ________ powers.
(a) Special
(b) General
(c) Internal
(d) Special and General

Answer : D

Question. Which of the following is a factor of the social environment of business?
(a) Customs
(b) Level /Standard of Education
(c) Rate of Interest
(d) All the above

Answer : D

Question. Which of the following is included in the Micro Environment (Operating Environment)?
(a) Suppliers
(b) Competitor
(c) Suppliers and Competitor
(d) Economic Environment

Answer : C

Question. Which of the following is included under the Macro Environment (or General Environment)?
(a) Economic Environment
(b) Political Environment
(c) Social and Legal Environment
(d) All the above

Answer : D

Question. Under which environmental effect, IBM and Coca-Cola had to leave India?
(a) Political
(b) Social
(c) Economic
(d) Technical

Answer : A

Question. Which factor is not included in Internal Environment?
(a) Objective
(b) Policies
(c) Public
(d) Production-Method

Answer : C

Question. The study of environment makes available ________ resources.
(a) Costly
(b) Cheap
(c) Inferior
(d) Useful

Answer : D

Question. Under Industrial Policy the role of ________ has been decided.
(a) Public Sector
(b) Private Sector
(c) Public Sector and Private Sector
(d) Government

Answer : C

Question. Under ________ the Reserve Bank keeps control on the money supply in order to achieve the objectives of the general economic policy.
(a) Fiscal Policy
(b) Monetary Policy
(c) Trade Policy
(d) Industrial Policy

Answer : B

Question. Read the following statements: Assertion and Reason. Choose one of the correct alternatives given below:
Assertion (A) : Business environment helps in improving performance.
Reason (R): Enterprises that continuously monitor their environment and adopt suitable business practices are the ones which not only improve their present performance but also continue to succeed in the market for a longer period.
Alternatives:
(a) Both Assertion (A) and Reason (R) are True and Reason (R) is the correct explanation of Assertion (A) .
(b) both assertion (A) and reason(R) are true and assertion (R) is not the correct explanation of assertion(A)
(c) Assertion (A) is True but Reason (R) is False.
(d) Assertion (A) False but Reason (R) is True.

Answer : A

Question. Read the following statements: Assertion and Reason. Choose one of the correct alternatives given below:
Assertion (A) : Political factors play a major role in shaping the environment, in which business firms operate.
Reason (R): Political instability builds up confidence among the business people to invest in the long term projects.
Alternatives:
(a) Both Assertion (A) and Reason (R) are True and Reason (R) is the correct explanation of Assertion (A) .
(b) both assertion (A) and reason(R) are true and assertion (R) is not the correct explanation of assertion(A)
(c) Assertion (A) is True but Reason (R) is False.
(d) Assertion (A) False but Reason (R) is True.

Answer : C

Question. Read the following statements: Assertion and Reason. Choose one of the correct alternatives given below:
Assertion (A) : Business Environment is largely uncertain.
Reason (R): It is very difficult to predict future happenings
Alternatives:
(a) Both Assertion (A) and Reason (R) are True and Reason (R) is the correct explanation of Assertion (A) .
(b) both assertion (A) and reason(R) are true and assertion (R) is not the correct explanation of assertion(A)
(c) Assertion (A) is True but Reason (R) is False.
(d) Assertion (A) False but Reason (R) is True.

Answer : A

Question. Which of the following is not included in special powers of the business environment.
(a) Technical Situations
(b) Customers
(c) Suppliers
(d) Investors

Answer : A

Question. Which of the following is available in time with the help of the study of environment?
(a) Government Help
(b) Foreign Aid
(c) Warning Signal
(d) Material

Answer : C

Question. Which component of business environment resulted in the relaxation of ban imposed on the Foreign Direct Investment?
(a) Economic Environment
(b) Political Environment
(c) Social Environment
(d) Legal Regulatory Environment

Answer : D

Question. Which factor is not included in Macro Environment?
(a) Economic Environment
(b) Competitors
(c) Social Environment
(d) Political Environment

Answer : B

Question. ________ is included in Economic Environment.
(a) Economic System
(b) Economic Policies
(c) Economic Conditions
(d) All of the above

Answer : D

Question. Read the following statements: Assertion and Reason. Choose one of the correct alternatives given below:
Assertion (A) : Study of business Environment helps in coping with rapid changes.
Reason (R): Changes in Business environment affects all firms in the same way.
Alternatives:
(a) Both Assertion (A) and Reason (R) are True and Reason (R) is the correct explanation of Assertion (A) .
(b) both assertion (A) and reason(R) are true and assertion (R) is not the correct explanation of assertion(A)
(c) Assertion (A) is True but Reason (R) is False.
(d) Assertion (A) False but Reason (R) is True.

Answer : C

Question. Price control means that the companies will sell goods on the ________ price.
(a) Government
(b) Market
(c) Printed
(d) Voluntary

Answer : A

Question. As a result of the Economic Reforms the Seller Market has been replaced by ________ .
(a) Buyer Market
(b) Foreign Market
(c) Whole-sale Market
(d) Retail Market

Answer : A

Question. These days companies cannot avoid investing in ________ .
(a) Research
(b) Development
(c) Research and Development
(d) Employees

Answer : C

Question. With the introduction of Photostat Machines in the market, the carbon paper industry was adversely affected. Which component of environment was responsible for it?
(a) Economic
(b) Political
(c) Technical
(d) All the above

Answer : C

Question. Which of the following is included in the Economic Environment?
(a) Economic System
(b) Economic Policies
(c) Economic Conditions
(d) All the above

Answer : D

Question. The income and expenditure policy of the government is called ________ .
(a) Fiscal Policy
(b) Industrial Policy
(c) Trade Policy
(d) Monetary Reforms

Answer : A

Question. In all the countries there is a free-flow of goods and services under which of the following does it come?
(a) Liberalisation
(b) Privatisation
(c) Liberalisation and Privatisation
(d) Globalisation

Answer : D

Question. Read the following statements: Assertion and Reason. Choose one of the correct alternatives given below:
Assertion (A) : A company, which is conscious about the changes of business environment, can take better advantage of opportunities instead of losing them to competitors.
Reason (R): External environment provides numerous opportunities for business units.
Alternatives:
(a) Both Assertion (A) and Reason (R) are True and Reason (R) is the correct explanation of Assertion (A) .
(b) both assertion (A) and reason(R) are true and assertion (R) is not the correct explanation of assertion( A)
(c) Assertion (A) is True but Reason (R) is False.
(d) Assertion (A) False but Reason (R) is True.

Answer : B

Question. Read the following statements: Assertion and Reason. Choose one of the correct alternatives given below:
Assertion (A) : Business environment cannot be predicted. It is highly uncertain and unpredictable.
Reason (R): Business environment keeps on changing. Sometimes there is a change in technology, tastes and preferences of consumers, etc.
Alternatives:
(a) Both Assertion (A) and Reason (R) are True and Reason (R) is the correct explanation of Assertion (A) .
(b) both assertion (A) and reason(R) are true and assertion (R) is not the correct explanation of assertion(A)
(c) Assertion (A) is True but Reason (R) is False.
(d) Assertion (A) False but Reason (R) is True.

Answer : B