Business Environment MCQs

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: C

Question. Which of the following migration of population does not change the size of the population?
a) External migration
b) Internal migration
c) International migration
d) National migration.

Answer: B

Question. Fiscal policy is called as ________policy
a) Monetary
b) Budgetary
c) Industrial
d) Economic

Answer: B

Question. A multi-national corporation (MNC) is defined by
a) Carrying out production in more than one country.
b) Having sales in more than one country.
c) Having a multi-ethnic workforce .
d) Having suppliers in more than one country.

Answer: A

Question. The economic system in which both public and private sectors co-exist is known as ____ economy
a) Capitalism
b) Socialism
c) Democratic
d) Mixed

Answer: D

Question. The aim of the private sector is to maximize __________
a) Loss
b) Profit
c) Import
d) Export

Answer: B

Question. A valid definition of a business purpose is to __
a) Create a customer
b) Maximize profits
c) Serve the society
d) Increase the wealth in the firm

Answer: A

Question. Self fulfillment and immediate gratification are ____________ cultural values
a) Decreases
b) Rises
c) Diminishes
d) Corporate

Answer: B

Question. Economic environment refers to all forces which have a _______impact on business
a) Political
b) Natural
c) Economic
d) Social

Answer: C

Question. ____________ economy is not owned or managed by the government but owned by private individuals.
a) Social
b) Capitalist
c) Mixed
d) Macro

Answer: B

Question. FERA is foreign exchange regulation act for __
a) Industries
b) Small scale
c) Labor
d) Owner

Answer: A

Question. Under ____ economic system, all the economic activities of the country are controlled and regulated by the government in the interest of the Public
a) Capitalism
b) Socialism
c) Democratic
d) Republic

Answer: B

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. The short term financial instruments traded in money market is commonly called
a) Bonds
b) Shares
c) Notes
d) Commercial Papers

Answer: D

Question. ________ environment is beyond the control of the business
a) Internal
b) External
c) Micro
d) Macro

Answer: A

Question. Policy regarding population is termed/called as
a) Indian Population policy
b) National population policy
c) Demographic population policy.
d) Population policy.

Answer: B

Question. IMF stands
a) International money force
b) International monetary fund
c) Indian money fund
d) International multinational foreign

Answer: B

Question. The ________ of the government covers all those principles ,policies,rules and procedures and control the industrial enterprise of the economy.
a) Industrial
b) Fiscal
c) Monetary
d) Macro

Answer: A

Question. The operating risk in the host country does not include the risk of
a) Change in government policies.
b) Exchange control.
c) Price controls.
d) Sanctions.

Answer: D

Question. Who is responsible for presenting the Union Budget before the Parliament?
a) Prime Minister
b) RBI Governor
c) Finance Minister
d) None of the above

Answer: D

Question. The legal system in India is based on
a) Common law.
b) Civil law.
c) Theocratic law.
d) Hindu law.

Answer: D

Question. The _____________ is an introduction to the constitution and contains its basicphilosophy.
a) Preamble
b) Society
c) Process
d) Service

Answer: A

Question. Establishment Year of International Monetary Fund)
a) 1945
b) 1935
c) 1845
d) 2005

Answer: A

Question. Characteristic of population: calculation of sex ratio (Gender) means
a) Number of females per thousand male
b) Number of males per hundred female
c) Number of females per hundred male
d) Number of females per thousand male

Answer: A

Question. _______Is vast and fascinating subject for business
a) Technology
b) Profit making
c) Change
d) People

Answer: A

Question. _______plays the watch dog in order to ensure that both function in public interest and within the boundaries of constitution
a) Legislature
b) Executive
c) Judiciary
d) Public

Answer: C

Question. One concept of culture determines the ____________ of people
a) Experience
b) Ethos
c) Education
d) Wealth

Answer: B

Question. According to whom, business environment is defined as total of all things external to firms and industries which effect their organization and Operations
a) Arthur.m.welmer
b) John wick
c) Bayord)o.wheeler
d) Mathew smith

Answer: A

Question. The era of deregulation liberalization begin in _
a) 1950 - 51
b) 1980-81
c) 1991-92
d) 1960-61

Answer: A

Question. What is the single word that can best describe todays business
a) Technology
b) Profit making
c) Change
d) People

Answer: C

Question. Corporate values are the _______ of the corporate sector
a) Shared values
b) Moral beliefs
c) Customer satisfaction
d) Goodwill

Answer: B

Question. __________ means the proportion of a nation population living in urban areas.
a) Privatization
b) Globalization
c) Urbanization
d) Liberalization

Answer: C

Question. __________ environment sets the basis for developmental activity of the business system.
a) Financial environment
b) Technology environment
c) Global environment
d) Macro environment

Answer: A

Question. Identification of companies technological assets that may provide ___________ in new businesses
a) Opportunities
b) Development
c) Failure
d) Authority

Answer: A

Question. ________is also called government which implements whatever is decided by the parliament
a) Legislature
b) Executive
c) Judiciary
d) Public

Answer: B

Question. _______ refers to all forces which have an economic impact
a) Technological environment
b) Political environment
c) Economic environment
d) Social environment

Answer: C

Question. State directive principles are
a) Suggestion to direction
b) Instruments of instruction
c) Principles of instruction
d) Responsibility to state principles

Answer: B

Question. Which of the following is not a fundamental right in the Constitution of India?
a) Right to work
b) Right to Equality
c) Right to Education
d) Right against exploitation

Answer: A

Question. Competition is beneficial to the competing firms besides benefiting the ___
a) Producers
b) Intermediaries
c) Finances
d) Consumers

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. ________is the business through which new ideas and innovations are given a sharp and are converted into useful products and services
a) Market leadership
b) Challenge
c) Joy of creation
d) Growth

Answer: C

Question. Which can be a method of privatization
a) Denationalization
b) Purchasing shares
c) Takeover
d) Merger

Answer: A

Question. 'World Bank' was founded in
a) October, 1948
b) April, 1949
c) July, 1944
d) May, 1945

Answer: C

Question. ________ signifies the absence of any arbitrary restraint on the freedom of individual action and creations for the development of personality of The individual.
a) Fraternity
b) Liberty
c) Secularism
d) Socialism

Answer: B

Question. A systematic application of scientific knowledge to practical task is known as_
a) Technology
b) Culture
c) Demographic
d) Legal

Answer: A

Question. Corporate contribution to political parties are now been ____________ in our country
a) Legalized
b) Customized
c) Introduced
d) Authorized

Answer: B

Question. Study of human population is called as _______ environment
a) Political
b) Social
c) Demographic
d) Economic

Answer: C

Question. _______ technology require more human efforts.
a) Capital intensive technology
b) Labor intensive technology
c) Both
d) Cant say

Answer: B

Question. The economic system in which business units or factors of production are privately owned and governed is called as _____
a) Capitalism
b) Socialism
c) Democratic
d) Republic

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. Micro environment is also called as_______
a) General environment
b) Operating environment
c) Economic environment
d) Political environment

Answer: B

Question. An effective crisis management plan will __
a) Minimize the seriousness of the problem
b) Exaggerate minor incident
c) Use the internet to convey the public affairs message
d) Immediately apologize to the public and accept any liability

Answer: A

Question. _____________ audit implies a report on the social performance of business unit.
a) Global
b) Local
c) Natural
d) Social

Answer: D

Question. Industrial policy was set up in the year __
a) 1955
b) 1956
c) 1957
d) 1958

Answer: B

Question. “Gujarat is dry state” - what can we conclude from statement.
a) Taboo
b) Social stratification
c) Taste and preference
d) None of the Above

Answer: A

Question. What is the main role of the World Bank?
a) To be a forum for trade and liberalization.
b) To facilitate private investment around the world)
c) To assist countries in development.
d) All of the options given are correct.

Answer: C

Question. Governments policy towards industries is called as ____
a) Economic policy
b) Industrial policy
c) Monetary policy
d) Work policy

Answer: B

Question. ________environment refers to all economic factors which have a bearing on the functioning of a business
a) Economic
b) Technological
c) Natural
d) Social

Answer: A

Question. --------- is a very important factor that provides competitive advantage
a) Innovation
b) Modulation
c) Dimension
d) Variation

Answer: A

Question. The following factors are key drivers of globalisation
a) Government action, exchange rates, competition and sociodemographic factors.
b) Market convergence, competition, exchange rates and cost advantages.
c) Cost advantages, government action, economic cycles and competition.
d) Market, cost, competition and government policies.

Answer: D

Question. Export control refers to restrictions on
a) Domestic firms from engaging in exports.
b) Items that can be exported from the country.
c) Foreign countries exporting to the country.
d) Domestic firms engaging in trade with nation.

Answer: B

Question. Which of the following is not an economic activity
a) A doctor practicing
b) A lawyer practicing law
c) A professional cricketer playing cricket
d) A student playing cricket

Answer: D

Question. India is good example for ________economy
a) Socialist
b) Mixed
c) Capitalist
d) Communist

Answer: B

Question. What was the period of the 12th five-year plan of India?
a) 2007 to 2012
b) 2012 to 2017
c) 2017 to 2022
d) 2010 to 2015

Answer: B

Question. The following statement with respect to culture is false
a) Culture is enduring
b) Culture is changing
c) Culture is evolved among the members of a society
d) Culture is determined by national boundaries

Answer: D

Question. ____________ environment is very significantly influenced by the world trade organization principles and agreements.
a) Economic
b) Global
c) Legal
d) Political

Answer: B

Question. ________ is a statement which derives the role that an organization plays in a society
a) Goals
b) Mission
c) Objective
d) Success

Answer: B

Question. What was the predecessor of WTO?
a) GAAT
b) IMF
c) ADB
d) UNCTAD

Answer: D

Question. A company is affected by two broad set of factors are _________________
a) Local and regional
b) Regional and national
c) Internal and external
d) Financial and non-financial

Answer: C

Question. ________________ environment can be defined as that part of the environment that is concerned with the entire social system.
a) General environment
b) Operating environment
c) Social environment
d) Political environment

Answer: C

Question. ________ change is a potent fame the reconfiguration of industrial boundaries
a) Technological
b) Economical
c) Organizational
d) Environmental

Answer: A

Question. What is the main occupation of kshatriyas
a) Engaged in cleaning
b) Engaged in trade
c) Engaged in army work
d) None of the above

Answer: C

Question. ________ is a source of financing to meet very short-term fund requirements of commercial banks with a provision of renewal.
a) Treasury Bill
b) Commercial Paper
c) Certificate of Deposit
d) Call Money

Answer: D

Question. Which plan gives priority for family planning
a) State policy
b) Judicial policy
c) Industrial
d) Energy

Answer: A

Question. In india liberalization and privatization began from__
a) 1991
b) 1971
c) 1981
d) 1947

Answer: A

Question. Business are raising/generate fund through
a) Capital market
b) Money market
c) Both
d) None of the above

Answer: C

Question. Which one of the following is a money market instrument?
a) Unit of mutual fund
b) Debenture
c) Bond
d) Treasury bill

Answer: D

Question. Secularism is understood to mean according equal encouragement to all ________
a) Country
b) Ethics
c) Values
d) Religion

Answer: D

Question. What does micro environment consists of ___
a) Economic
b) Political &legal
c) Consumers competitors
d) Demographic

Answer: C

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

Answer: B

Question. _______ are a primary mechanism for motivating business activities
a) Social relationship
b) Profit
c) Customers
d) Assets

Answer: A

Question. As per Malthu’s theory growth of population is increase
a) Geometrically
b) Arithmetically
c) Progressively.
d) Drastically

Answer: A

Question. The environmental factor that includes peoples attitude to family, religion etc is
a) Cultural.
b) Economic
c) Socio- cultural.
d) Political.

Answer: C

Question. External factors affecting a business environment also be referred to ____factors
a) Controllable
b) Uncontrollable factors
c) Relevant
d) Global

Answer: B

Question. Which of the following is not an essential feature of social environment?
a) Competitiveness
b) Respect for the individual
c) Better quality of life
d) Bailment

Answer: D

Question. The term fraternity implies the spirit of _________________
a) Brotherhood
b) Judiciary
c) Justice
d) Value

Answer: A

Question. _______ state can have an elected or hereditary head
a) Democratic
b) Autocratic
c) Socialized
d) Republic

Answer: A

Question. Fundamental Rights have no value without….
a) Right to Freedom
b) Right to Freedom of Religion
c) Right to Constitutional Remedies
d) Right to Property

Answer: C

Question. Culture spreads from one place to another and such transmission is called as____
a) Difference
b) Reputation
c) Adoption
d) Heritage

Answer: A

Question. --------- is the process of analyzing the environment for the identification of the factors which have implication for the business.
a) Scanning
b) Assessment
c) Evaluation
d) Information

Answer: A

Question. The objectives of import duty is/are
a) To raise income for the government.
b) To restrict imports.
c) To encourage exports.
d) To raise income and restrict imports.

Answer: D

Question. Which is not the part of compositional characteristics of population?
a) Size and growth
b) Power
c) Density
d) Literacy rate

Answer: B

Question. ___________ is a systematic application of scientific or other organized knowledge to practical task.
a) Technology
b) Society
c) Demography
d) Responsibility

Answer: A

Question. Economic growth can be measured by ___________
a) The cpi
b) The cbi
c) Gdp
d) Mpc

Answer: C

Question. Goals of World bank includes
a) Promotion of foreign investment
b) Promotion of international trade
c) Facilitation of capital investment
d) All of the Above

Answer: D

Question. The first MNC came to India in ___
a) 1920
b) 1921
c) 1919
d) 1923

Answer: B

Question. Macro environment is also known as ____
a) Direct environment
b) Indirect environment
c) Competitive environment
d) Social environment

Answer: B

Question. When was the first Five year Plan?
a) 1950.
b) 1951.
c) 1952.
d) 1953.

Answer: B

Question. _______ technology helps to gain more profit.
a) Capital intensive technology
b) Labor intensive technology
c) Both
d) Cant say

Answer: D

Question. _______ technology having less chance of Error.
a) Capital intensive technology
b) Labor intensive technology
c) Both
d) Cant say

Answer: A

Question. Globalization does not involve.
a) Reduction of barrier
b) Free flow of goods and services.
c) Global mechanism for settlement of Economic disputes.
d) Free flow of Capital

Answer: A

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

Answer: B

Question. World Bank has cleared a loan to aid which Indian mission?
a) Start up India
b) Stand up India
c) Skill India
d) None of the above

Answer: C

Question. Industrial policy of 1948 aimed at ____
a) Industrialization
b) Growth of agriculture
c) Development of infrastructure
d) Development of service sector

Answer: A

Question. Which is the one not included in national culture
a) Language
b) Internet
c) Belief
d) Attitude

Answer: B

Question. ________should facilitate & enhance strategies thinking in organization
a) Strategic management
b) Environmental analysis
c) Business environment
d) Business analysis

Answer: B

Question. ________ is concerned with developing projection of direction, scope, speed & intensity of environmental change
a) Scanning
b) Monitoring
c) Forecasting
d) Assessing

Answer: B

Question. Which of the following is not a business opportunity generated by Globalisation ?
a) Access to low cost labour
b) Cheap International Transport
c) Currency Crisis
d) Less stringent regulations of the Business Environment

Answer: C

Question. In some circles a multinational corporations is referred to ____________
a) Multinational collaboration
b) Multinational entity
c) Multinational enterprises
d) Multinational development

Answer: C

Question. The following is not a feature of globalisation
a) Similar strategies are adopted by a firm in all markets.
b) Only multinational firms engage in international business.
c) The convergence of ideas and culture.
d) Obliteration of national boundaries.

Answer: A

Question. _________ decides on a particular course of action
a) Legislature
b) Executive
c) Judiciary
d) Public

Answer: A

Question. The Constitution declares India to be a sovereign, socialist, secular, democratic republic, assuring its citizens of justice, equality, and liberty, and endeavours to promote fraternity among them. The words "socialist" and "secular" were added to the definition in year:
a) 1956
b) 1976
c) 1970
d) 1952

Answer: B

Question. Currently ________ is implemented by government in place of Five year plan.
a) Make in India
b) NITI aayog
c) Skill India
d) PM aayog

Answer: B

Question. _______ technology saves time.
a) Capital intensive technology
b) Labor intensive technology
c) Both
d) None of the above

Answer: A

Question. ______ involves freedom of doing business.
a) Globalization
b) Privatization
c) Liberalization
d) None of the Above

Answer: C

Question. Political environments refers to the influence excreted by the ______political institutions
a) 2
b) 3
c) 4
d) 5

Answer: B

Question. ____________ is the institution which provides a platform for trading of existing securities having long-term maturity.
a) SEBI
b) WTO
c) Stock exchange
d) RBI

Answer: C

Question. Fiscal policy refers to the policy of government regarding taxation, public expenditure and___
a) Public debt
b) Budgets
c) Policies
d) Deposits

Answer: B

Question. Technological environment consist of
a) Proves cause and effect relationship
b) Creation of Knowledge and its application
c) Finding facts and maintenance
d) Management of technology

Answer: B

Question. What are the bodies which political environment consists of
a) Middlemen
b) Suppliers
c) Customer
d) Legislature executive & judiciary

Answer: D

Question. Business includes ___
a) Non-economic activities
b) Economic activities
c) Social activities
d) Production activities

Answer: B

Question. One of the long term objectives of the five year plan is reducing inequalities of ___ wealth and income
a) Increased
b) Decreased
c) Medium
d) Low level

Answer: A

Question. Social Stratification is done on the basis of
a) Income level
b) Caste
c) Education
d) All of the Above

Answer: D

Question. The macro environment consists of ___
a) Economic political &legal
b) Consumer competitors
c) Public
d) Middlemen

Answer: A

Question. SEBI is a regulator of
a) Capital market.
b) Money market.
c) Commodity market.
d) Overseas market.

Answer: A

Question. The second five year plan was given during 1956 regarding _
a) Legal planning
b) Soviet planning
c) Government planning
d) Agricultural planning

Answer: A

Question. _____ micro environment is also known as direct environment
a) Economic
b) Political & legal
c) Competitors
d) Suppliers

Answer: A

Question. Free trade is based on the principle of ___
a) Comparative advantage
b) Comparative scale
c) Economies of advantage
d) Production possibility advantage

Answer: A

Question. ____________ is the market which helps existing investors to sell their securities.
a) Primary market
b) Secondary market
c) Capital market
d) Commodity market

Answer: B

Question. For the society, religion has no influence on.
a) Holidays
b) Language
c) Role of women
d) Marketing Practices

Answer: B

Question. ________ identifies the early signals of possible environment changes
a) Scanning
b) Monitoring
c) Forecasting
d) Assessing

Answer: A

Question. Headquarters of World Trade Organization at
a) Geneva
b) Japan
c) South Korea
d) Russia

Answer: A

Question. Which of the following modern business is dynamic
a) Mass production
b) Mass marketing
c) Mass sales
d) Mass purchase

Answer: A

Question. Strata means....
a) Group of same kind of people
b) Group of different kind of people
c) Both
d) Cant say

Answer: A

Question. Secondary market is in the form of
a) Stock exchange.
b) Money market.
c) New issue market.
d) Commercial exchange.

Answer: A

Question. _______is the primary motive for a business enterprise
a) Profit
b) Maximize customers
c) Human objective
d) Maximize suppliers

Answer: A

Question. Which of the following institutions cannot be included in the international financial and monetary system?
a) World Bank
b) WTO
c) Bank for International Settlements
d) IMF

Answer: C

Question. Which is not the member of World bank Group
a) International monetory fund
b) International finance corporation
c) International development Association
d) International bank for development and reconstruction

Answer: A

Question.___________ is a short-term unsecured promissory note issued by reputed business organisations at a price lower than its face value and redeemable at par.
a) Treasury bill
b) Commercial paper
c) Certificate of deposit
d) Promissory note

Answer: B

Question. Psu is ___
a) Private sector unit
b) Private serious unit
c) Private steel unit
d) Private scale unit

Answer: A

Question. The World Bank is a recognized member of
a) United Nations Development Council
b) United Nations Development Group
c) United Nations Security Council
d) United Nations General Assembly

Answer: B

Question. Which one of the following is not a function of financial market?
a) Mobilisation of savings
b) Price determination of securities
c) Floating of companies
d) Lowering transaction cost

Answer: C

Question. The environment analysis that provides inputs for strategies decision making is _
a) Strategic management
b) Environmental analysis
c) Business environment
d) Business analysis

Answer: A

Question. Gdp is _
a) Gross domestic product
b) Gross domestic percentage
c) Gross domestic personnel
d) Gross domestic public

Answer: A

Question. WTO aims at:
a) Establishing rules for domestic trade
b) Restricting trade practices
c) Liberalising international trade
d) None of these

Answer: C

Question. Multinational corporations is also referred to ____
a) Multinational collaboration
b) Multinational entity
c) Transnational corporation
d) Multinational development

Answer: C

Question. Population is a component of the ______environment
a) Demographic
b) Social
c) Natural
d) Technology

Answer: A

Question. Who gave a practical shape to privatization
a) Margrat thatcher
b) Louis peter
c) Williams
d) Fayol

Answer: A

Question. Primary and secondary markets develop simultaneously because they
a) Complement each other.
b) Compete with each other.
c) Control each other.
d) Function independently.

Answer: A

Question. Which condition population remain stable
I. High birthrate and high death rate
II. Low birthrate and high death rate
III. High birthrate and low death rate
IV. Low birthrate and low death rate
a) I & III
b) I & IV
c) II & III
d) All of the above

Answer: B