CBSE Class 12 Business Studies Business Environment MCQs Set G

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 above
Answer: (d)

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)

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)

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)

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) Interrelatedness
(d) Uncertainty
Answer: (b)

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: (b)

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 Eco Sport 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 \( 260^\circ \text{C} \). Identify the related dimension of business environment.
(a) Economic dimension
(b) Social dimension
(c) Technological dimension
(d) Political dimension
Answer: (b)

Question. Digi Locker 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 Digi Locker since its launch last year is one of the biggest of its kind. It will spare people the trouble of carrying licences & vehicle papers, which can be accessed on phones using the Digi Locker app. Identify the related dimension of business environment.
(a) Economic dimension
(b) Technological dimension
(c) Social dimension
(d) Political dimension
Answer: (b)

Question. The Uttarakhand 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)

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: (d)

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) 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)

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) 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)

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 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)

Question. Through environmental scanning business can enjoy______
(a) First mover advantage
(b) Benefit of taxes
(c) Last mover advantage
(d) None of the above
Answer: (a)

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) Social dimension and Technological dimension
(c) Technological dimension and Legal dimension
(d) Political dimension and Technological dimension
Answer: (a)

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)

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)

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

Question. Advertisement of cigarettes carries the statutory warning. This is because of
(a) Legal environment
(b) Social environment
(c) Political environment
(d) None of the above
Answer: (a)

Question. ________ refers to negative and unfavorable external factors that are likely to create hurdles for a firm:-
(a) Opportunities
(b) Warning
(c) Threats
(d) None of these
Answer: (c)

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

Question. Proper understanding of business environment is not a prerequisite for
(a) tapping of useful resources.
(b) identification of opportunities and threats.
(c) formulation of strategies.
(d) better coordination of employee efforts.
Answer: (d)

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

Question. ___ feature of business environment states that various factors of business environment affect each other.
(a) Pervasive
(b) Continuous
(c) Dynamic
(d) Interrelatedness
Answer: (d)

Question. Which of the following is not a feature of Business environment
(a) Interrelated Elements
(b) Dynamics
(c) Complexity
(d) Continuous
Answer: (d)

Question. Identification of opportunities to get first more advantage is one of the importance of business environment
(a) True
(b) False
(c) Cannot say
(d) Partially correct
Answer: (a)

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

Question. The term business environment refers to …….. factors which impact functioning of a firm
(a) External factors
(b) Internal factors
(c) Management related factors
(d) Internal and External factors
Answer: (a)

Question. ………are generally considered as controllable factors.
(a) Internal factors
(b) External factors
(c) Cost of production
(d) None of these
Answer: (a)

Question. Factors which are beyond the control of a business are called…..
(a) Supply
(b) Demand
(c) Profit
(d) External factors
Answer: (d)

Question. Value system followed by the management of a firm as certain influence on its ……. environment.
(a) Internal
(b) External
(c) Macro
(d) None of the above
Answer: (a)

Question. General forces consist of…..
(a) Political system
(b) Demographic factors
(c) Culture of the society
(d) All the above
Answer: (d)

Question. Technological improvements and innovations results in ______
(a) Render existing products obsolete
(b) Increase in tax
(c) Reduction in profit margin
(d) none of the above
Answer: (a)

Question. Which one of the following is a part of economic environment?
(a) Public debt
(b) Lifestyle of people
(c) Technological changes
(d) Level of education
Answer: (a)

Question. …… is the process of analysing the environment for the identification of the factors which impact on the business.
(a) Environmental analysis
(b) Environment scanning
(c) Business analysis
(d) Factor analysis
Answer: (b)

Question. …………….. is a part of economic policy of a country
(a) Industrial policy
(b) Import policy
(c) Export policy
(d) All the above
Answer: (d)

Question. Which of the following best indicates features of business environment
(a) Identification
(b) Improvement in performance
(c) Coping with rapid changes
(d) All of them
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 India
(d) Composition of family
Answer: (d)

Question. Business environment is group of forces
(a) Specific
(b) General
(c) Internal
(d) Specific and general
Answer: (d)

Question. ___ feature of business environment states that various factors of business environment affect each other.
(a) Pervasive
(b) Continuous
(c) Dynamic
(d) Interrelatedness
Answer: (d)

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

Question. Which of the following cases, would a continuous study of business environment help in : –
(a) Raw material supplying company increases the price of raw material ;
(b) Handset mobile phone manufacturer losing its market due to failure to introduce android mobile phones.
(c) Information that labour union is going on strike
(d) All of the above
Answer: (d)

Question. The entry of multinational companies in the Indian markets has created
(a) Huge demand
(b) Huge supply
(c) Tough competition
(d) Huge demand and supply
Answer: (c)

Question. Increase in price of petrol can increase the sale of diesel cars. This is an example of business environment being : –
(a) Inter-related
(b) Unrelated
(c) Perfect correlation
(d) None of the above
Answer: (a)

Question. What creates fear in the minds of investors to invest in long term projects?
(a) Political uncertainty
(b) Society
(c) Reserve Bank of India
(d) All of the above
Answer: (a)

Question. Given that the Business environment is relative even within the same industry , Negative impact on one company ; –
(a) Would be negative for another
(b) Would be positive for another
(c) Can be either negative for positive for another
(d) None of the above
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, ‘Clap away’ 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: (a)

Question. With the introduction of photocopier machines in the market the carbon paper industry was badly affected. Which component of environment was responsible for it
(a) Economic
(b) Political
(c) Technological
(d) All of the above
Answer: (c)

Question. Which factor is not included in internal environment
(a) Objectives
(b) Policies
(c) Public
(d) Production methods
Answer: (c)

Question. Company image and brand loyalty is factor affecting business
(a) Externally
(b) Internally
(c) Government policy
(d) None of the above
Answer: (b)