CBSE Class 12 Business Studies Business Environment MCQs Set F

Question: Introduction of mobile phones have negatively affected the business of cameras and watches. It is related to
a) Technological environment
b) Political environment
c) Legal environment
d) Social environment
Answer: a

Question: Which of the following best indicates the importance of business environment?
a) Identification
b) Improvement in performance
c) Coping with rapid changes
d) All of the above
Answer: d

Question: Investors, customers, competitors and suppliers come under…….forces.
a) General
b) Specific
c) General and Specific
d) None of the above
Answer: b

Question: The trend of Yoga as a result of COVID -19 relates to
a) Social
b) Political
c) Technological
d) Legal
Answer: a

Question: Which of the following is a component of economic environment?
a) Concern with quality of life
b) Rates of saving and investment
c) Extent of government intervention in business
d) Birth and death rate
Answer: b

Question: Non-discriminatory employment practices is the part of which dimension of business environment?
a) Political
b) Social
c) Economical
d) Legal
Answer: b

Question: WhatsApp was the first application for mobile chat. Afterwards, many other applications came but still WhatsApp is No.1 in mobile chat. Which importance of Business Environment is highlighted here?
a) Helps in tapping resources
b) Helps in policy making
c) Identifying threat and getting warning signal
d) Helps to identify opportunities and getting first mover advantages
Answer: d

Question: Business environment is the sum total of all the factors and forces………to a business.
a) Internal
b) Specific
c) External
d) All of these
Answer: c

Question: Which of the following dimensions of business environment includes legislations passed by the government and administrative orders issued by government authorities?
a) Technological environment
b) Political environment
c) Legal environment
d) Social environment
Answer: c

Question: Under which environment effect, IBM and Coca–Cola had to leave India?
a) Political
b) Social
c) Economical
d) Technical
Answer: a

Question: It is very difficult to predict the changes of Business environment. No one can predict business environment 100% accurately. Which of the following feature of the business environment is highlighted by this point?
a) Uncertainty
b) Dynamic
c) Relativity
d) Complexity
Answer: a

Question: The court issued an order that vehicles must be smokeless, and anyone violating this order shall have to pay a heavy fine. Identify the dimension of Business environment.
a) Economic environment
b) Political environment
c) Legal environment
d) Social environment
Answer: c

Question: Liberalisation is
a) Free flow of goods and services between different countries of the world
b) Increase participation of private sector
c) Reduction in formalities, taxes and tariff
d) Unity among political parties
Answer: d

Question: “There is a great demand for reservation in jobs for economically weaker sections of the society.” Identify the type of dimension of business environment mentioned.
a) Technological environment
b) Political environment
c) Legal environment
d) Social environment
Answer: d

Question: Specific attitudes that elected government representatives hold towards business is called……… environment.
a) Legal
b) Social
c) Technological
d) Political
Answer: d

Question: ‘Threats to law and order’ is an example of…….environment of business.
a) Political
b) Social
c) Economical
d) Legal
Answer: d

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

Question: Banking sector reform has led to many attractive schemes of deposits and lending money. The banks are offering loans at very nominal rates of interest and with minimum formalities. Identify the dimension of Business environment highlighted here.
a) Political
b) Social
c) Economical
d) Technical
Answer: c

Question: ……… is considered a major element of the economic environment.
a) Public debt
b) The nature of relationship of our country with foreign countries
c) Birth and death rate
d) Literacy rates
Answer: a

Question: The government of India proposed to encourage e-transactions by allowing deductions in usage charges, fees and income tax exemptions. Which component of business environment does it represent?
a) Economic environment
b) Political environment
c) Legal environment
d) Social environment
Answer: a

Question: Increase or decrease in the value of rupee is an example of
a) Political Environment
b) Economic Environment
c) Social Environment
d) Legal Environment
Answer: b

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) Social Environment
Answer: c

Question: Technological improvement and innovations result in
a) Increase in Tax
b) Render existing production obsolete
c) Reduction in profit margin
d) More demanding customers
Answer: b

Question: Face book, Twitter and Whatsapp are the result of
a) Political Environment
b) Economic Environment
c) Social Environment
d) Technological Environment
Answer: d

Question: “Sudden announcement of demonetisation by our Prime Minister” is an example of this feature of business environment
a) Relativity
b) Specific and general forces
c) Inter-related
d) Uncertain
Answer: d

Question: The laws of mining, rules and regulations, and licences required for running the business is an example of
a) Economic environment
b) Political environment
c) Social environment
d) Legal environment
Answer: d

Question: External environment trends and changes will provide
a) Threats
b) Less competition
c) Goodwill
d) Profits
Answer: a

Question: “Introduction of mobile phone has negatively affected the business of watches and cameras.” Which factor of business environment is related with the sentence?
a) Social environment
b) Technological environment
c) Political environment
d) Legal environment
Answer: b

Question: “Nowadays consumers are very health-conscious which is giving rise to increased demand of Organic products.” Which factor of business environment is highlighted in the above statement?
a) Legal environment
b) Political environment
c) Economic environment
d) Social environment
Answer: d

Question: Which of the following creates fear in the mind of investors?
a) Political uncertainty
b) New innovations
c) Technological improvement
d) Change in taste and preference of customers
Answer: a

Question: Giving freedom to Indian business and industries from all unnecessary government controls and restrictions is an example of
a) Privatization
b) Globalization
c) Liberalization
d) Demonetization
Answer: c

Question: With the introduction of mineral water bottles in India, Bisleri was able to capture a big market share. Which importance of business environment is highlighted in this case?
a) Helps in tapping resources
b) Helps in policy making
c) Improves performance
d) Helps to identify opportunity and get first mover advantage
Answer: d

Question: Packets of cigarettes carry the statutory warning ‘Cigarette smoking is injurious to health’. It is an example of
a) Political Environment
b) Technological Environment
c) Legal Environment
d) Social Environment
Answer: c

Question: “Free flow of goods and services between different countries of the world” is an example of
a) Globalisation
b) Privatisation
c) Liberalisation
d) Demonetisation
Answer: a

Question: Correct example of political environment is
a) Money supply
b) Innovation and development
c) Change in preference and taste
d) Profile of political leaders
Answer: d

Question: What will be the effect of increase in tax by government?
a) Increase in cost of production
b) Creates fear in the mind of investors
c) Increase in profit margin
d) Increase in competition
Answer: a

Question: “Nowadays women are very health conscious which is giving rise to increased demand for organic products.” This statement is related with which factor of business environment?
a) Political environment
b) Legal environment
c) Social environment
d) Technological environment
Answer: c

Question: Which one is a specific force for a garment manufacturing industry?
a) Change in law
b) Change in government
c) Change in fashion
d) Change in technology
Answer: c

Question: Through environmental scanning, business firms can enjoy
a) Competition
b) First mover advantages
c) Benefit of tax
d) Tapping useful resources
Answer: b

Question: Match the following
    Column I                                                                Column II
a) Stock Market indicates                                        (i) Political environment
b) Customs and traditions                                       (ii) Social environment
c) New techniques of operating business                (iii) Technoogical environment
d) General stability and peace in the country          (iv) Economic environment
Find the correct option.
(a) (iv) (iii) (i) (ii)
(b) (ii) (iii) (iv) (i)
(c) (iii) (iv) (ii) (i)
(d) (iv) (ii) (iii) (i)
Answer:  d

Direction questions There are two statements marked as Assertion (A) and Reason (R). Read the statements and choose the appropriate option from the options given below
(a) Both Assertion(A) and Reason (R) is the correct explanation of Assertion (A)
(b) Both Assertion (A) and Reason (R) are true but reason (R) is not the correct explanation of Assertion (A)
(c) Assertion (A) is true but Reason (R) is false
(d) Assertion (A) is false but Reason (R) is true

Question:
Assertion (A) Demand for sarees may be fairly high in India whereas it may be almost non existent in America.
Reason (R) Business environment consists of numerous inter-related and dynamic conditions of forces which arise from different sources.
Answer: b

Question:
Assertion (A) Reservation of jobs for backward classes as per the constitution of India affects the business environment.
Reason (R) Various elements of legal dimensions affect the business environment.
Answer: b

Question:
Assertion (A) Entry of new firms in the market may make an enterprise think afresh about how to deal with the situations
Reason (R) Business environment assist in planning and policy formulation.
Answer: a

Question:
Assertion (A) Manufacturers have now flexible manufacturing systems.
Reason (R) Agricultural and industrial production trends are the economic dimensions of the environment which affect the business environment.
Answer: b

Question:
Assertion (A) Turbulent market conditions, less brand loyalty, Kodivision and subdivision of market are just a few of the images to describe business environment.
Reason (R) Business environment is getting dynamic where changes are taking place at a slow pace.
Answer: c

Match the followings:

Question: Match the statement with suitable feature of business environment.
i. Specific force                                                     a. Dynamic nature
ii. Shift in consumer preference                            b. Uncertainty
                                                                              c. Investors, customers
Answer: i. c , ii. a

Question: Match example with the importance of Business environment
i. Indian firm finds that a foreign Multinational is entering the Indian Market with new substitutes      a. tapping useful resources
ii. It decide to provide resources with firm’s Own expectations to get something in return                  b. Identify threats and early warming signals
                                                                                                                                                             c. identify opportunities and getting first mover advantage
Answer: i. b, ii. a

Question: Identify the statement with the importance of business environment
i. Managers must understand and examine the environment and develop suitable courses of action             a. improving performance
ii. Adapting suitable business practices formulation                                                                                          b. planning and policy
                                                                                                                                                                          c. coping with rapid
Answer: i. b, ii. c

Question: Match meaning with the term :
i. Relaxing the restriction and control imposed On business and industry means Scanning              a. Privatization
ii. The complete awareness and understanding Of business environment is called                          b. Environmental
                                                                                                                                                            c. Liberalization
Answer: i. c, ii. b

Question: Match with the dimension of Business environment
i. Subsidy to cotton textile business is the                           a. Political Environment
ii. Gross Domestic Product is concerned with                     b. legal Environment
                                                                                            c. Economic Environment
Answer: i. a, ii. c