This quiz works best with JavaScript enabled. Home > Cbse > Class 12 > Commerce > Business Studies > Class 12 Business Studies Chapter 3 Business Environment – Quiz 10 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 12 Business Studies Chapter 3 Business Environment Quiz 10 (60 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. 'Representative democracy' is a political system where: A) Citizens elect members of parliament to vote on issue on their behalf. B) Citizens of a country have certain rights and responsibilities they must fulfil. C) All citizens vote on all issues that have a direct impact on them. D) All citizens of a country share the ruling powers. Show Answer Correct Answer: A) Citizens elect members of parliament to vote on issue on their behalf. 2. What does a company's microenvironment include? A) Only the company's internal environment. B) Only the company's external environment. C) Both the company's internal and external environment. D) Neither the company's internal nor external environment. Show Answer Correct Answer: C) Both the company's internal and external environment. 3. What is a common challenge in the micro environment? A) Changes in government regulations. B) Competition among businesses. C) Technological advancements in production. D) High employee turnover. Show Answer Correct Answer: B) Competition among businesses. 4. Which is an example of a macro factor A) Research and development. B) Interest rate. C) Climate change. D) None of the above. Show Answer Correct Answer: B) Interest rate. 5. Negative factors that are beyond the control of the Parks Management. A) Strength. B) Weaknesses. C) Threat. D) Opportunities. Show Answer Correct Answer: C) Threat. 6. What does the political environment include? A) Stability and peace in the country. B) Cultural values. C) Technological advancements. D) Only economic policies. Show Answer Correct Answer: A) Stability and peace in the country. 7. A business enterprise exists and operates within an environment consisting of ..... A) Social. B) Economical. C) Cultural. D) Political. E) All of the above. Show Answer Correct Answer: E) All of the above. 8. As per the Ratings agency ICRA, what is the estimated real GDP Growth of India in FY 2022? A) 9%. B) 11.5%. C) 12.5%. D) 11%. Show Answer Correct Answer: A) 9%. 9. How does the business environment influence decision-making? A) It shapes managerial decisions regarding various aspects. B) It has no impact on decision-making. C) It simplifies the decision-making process. D) It only affects marketing decisions. Show Answer Correct Answer: A) It shapes managerial decisions regarding various aspects. 10. An example of expansionary fiscal policy would be A) Cutting taxes. B) Cutting production of consumer goods. C) Cutting prices of consumer goods. D) Cutting government spending. Show Answer Correct Answer: A) Cutting taxes. 11. Why should businesses study their environment? A) To improve decision-making and growth. B) To ignore market changes. C) To avoid external factors. D) To copy other businesses. Show Answer Correct Answer: A) To improve decision-making and growth. 12. How can a business reduce the risk of failure? A) By carrying out market research. B) By selling less products. C) By staying open late. D) By keeping the cost of their products low. Show Answer Correct Answer: A) By carrying out market research. 13. The economic resource where people work to produce goods or services are: A) A capital goods. B) B. human resources. C) C. natural resources. D) D. noneconomic goods. Show Answer Correct Answer: B) B. human resources. 14. 6) True or False:After Globalization means integration of Indian economy with the European Economy. A) TRUE. B) FALSE. C) All the above. D) None of the above. Show Answer Correct Answer: B) FALSE. 15. When people who are blacklisted/unable to get credit at the bank, loan small amounts of money at large interest rates from someone willing to take a higher risk A) Demographics. B) Micro loan. C) Microlending. D) Gambling. Show Answer Correct Answer: C) Microlending. 16. Which of the following is a characteristic of the technological environment? A) It includes cultural and social values. B) It focuses on government policies and regulations. C) It involves advancements like automation and artificial intelligence. D) It is influenced by national income and inflation rates. Show Answer Correct Answer: C) It involves advancements like automation and artificial intelligence. 17. A recognised definition of an organisations is ..... A) A sole trader working alone. B) A group of people working to make money. C) A group of people who work together in an organised way for a shared purpose. D) Working individually to achieve a goal. Show Answer Correct Answer: B) A group of people working to make money. 18. 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. Show Answer Correct Answer: C) Interrelatedness. 19. Which among the following is not opened for private sector participation A) Telecommunication sector. B) Power sector. C) Education sector. D) Railways. Show Answer Correct Answer: D) Railways. 20. What are the three financial statements? A) Balance sheet, equity statement, and revenue statement. B) Balance sheet, income statement, and cash-flow statement. C) Asset statement, liability statement, and income statement. D) Cash-flow statement, accrual statement, and depreciation statement. Show Answer Correct Answer: B) Balance sheet, income statement, and cash-flow statement. 21. How does political instability affect businesses? A) It increases customer demand for products. B) It creates uncertainty and risks for businesses. C) It improves the efficiency of production processes. D) It reduces the need for government regulations. Show Answer Correct Answer: B) It creates uncertainty and risks for businesses. 22. The Reserve Bank of India reduces CRR (Cash Reserve Ratio) by 0.5% to control recession.This is related to which dimension of Business Environment. A) Political Environment. B) Economic Environment. C) Legal Environment. D) Social Environment. Show Answer Correct Answer: B) Economic Environment. 23. Introduction of mobile phones have negatively effected the business of cameras and watchesit is related to A) Economic Environment. B) Politial Environment. C) Social Environment. D) Technological Environment. Show Answer Correct Answer: D) Technological Environment. 24. A common tool used to evaluate the Macro environment is the ..... analysis. A) SWOT. B) Scenario planning. C) PESTLE. D) Porter's 5 forces. Show Answer Correct Answer: C) PESTLE. 25. Which of the following are responsible for making fiscal policy decision? A) The President and Congress. B) The Federal Reserve System. C) The National Council of Economic Advisors. D) The commerce Department. Show Answer Correct Answer: A) The President and Congress. 26. Subsidies are part of which environment? A) Economic. B) Social. C) Legal. D) Political. Show Answer Correct Answer: D) Political. 27. Apa definisi lingkungan bisnis? A) Strategi pemasaran sebuah organisasi. B) Faktor-faktor internal yang mempengaruhi sebuah organisasi. C) Faktor-faktor eksternal yang mempengaruhi sebuah organisasi. D) Status keuangan sebuah organisasi. Show Answer Correct Answer: C) Faktor-faktor eksternal yang mempengaruhi sebuah organisasi. 28. How does competition impact a business in the market environment? A) Competition encourages innovation, improves quality, lowers prices, and can reduce profit margins. B) Competition leads to higher prices for consumers. C) Competition guarantees higher profit margins for all businesses. D) Competition eliminates the need for innovation. Show Answer Correct Answer: A) Competition encourages innovation, improves quality, lowers prices, and can reduce profit margins. 29. What should you do before using any equipment you're unfamiliar with? A) Test it to see how it works. B) Assume it functions like similar equipment. C) Ask a coworker to demonstrate. D) Read the operating instructions and safety guidelines. Show Answer Correct Answer: D) Read the operating instructions and safety guidelines. 30. 4) It is fascinating to know that the clothing items of the multinational apparel brands are customized to suit the preferences of the local people. Zara, apparel market leader changed its products to suit new market to accommodate their style. Company even reduced the product price by close to 10-20% to suit Indian pockets. Identify the feature of business Environment . A) Inter-related. B) Dynamic. C) Relativity. D) Totality of external forces. Show Answer Correct Answer: C) Relativity. 31. Which sector contributes DIRECTLY to the Gross Domestic Profit (GDP) of South Africa A) Formal. B) Public. C) Informal. D) Private. Show Answer Correct Answer: A) Formal. 32. If a new Government is elected, this would be a ..... ? A) Economic change. B) Political change. C) Technological change. D) Legal change. Show Answer Correct Answer: B) Political change. 33. What is a characteristic of legal factors? A) They are static and unchanging. B) They can be introduced, amended, and changed. C) They are irrelevant to small businesses. D) They are only applicable to international companies. Show Answer Correct Answer: B) They can be introduced, amended, and changed. 34. "The U.S. Federal Reserve is almost certain to hike interest rates Wednesday to the highest level in a decade:1.5 to 1.75 percent. '' A) Fiscal policy. B) Monetary policy. C) All the above. D) None of the above. Show Answer Correct Answer: B) Monetary policy. 35. An increase in interest rates encourages increases in: A) Savings. B) Borrowing. C) Consumer spending. D) None of the above. Show Answer Correct Answer: A) Savings. 36. How does education level impact global trade? A) Lower education levels decrease workforce efficiency, harming global trade. B) Higher education leads to a more skilled workforce. C) Education has no significant effect on trade dynamics or economic growth. D) Higher education leads to increased unemployment rates in global markets. Show Answer Correct Answer: B) Higher education leads to a more skilled workforce. 37. A document that is signed off by all owners when the company is formed is a: A) Memorandum of association. B) Articles of association. C) All the above. D) None of the above. Show Answer Correct Answer: A) Memorandum of association. 38. Specific environment of business includes- A) Investors & customers. B) Investors, Suppliers, Competitors & Customers. C) Competitors. D) Investors & customers & social environment. Show Answer Correct Answer: B) Investors, Suppliers, Competitors & Customers. 39. A business which has offices in several countries must perform all financial operations in one country. A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: B) False. 40. What is the external environment in the context of a business? A) An internal part of the business structure. B) An area where a business has full control over factors. C) An area where a business has little or no control over factors. D) An area controlled by competitors. Show Answer Correct Answer: C) An area where a business has little or no control over factors. 41. Metode mana yang digunakan untuk mengumpulkan data tentang kebutuhan pelanggan? A) Menghindari interaksi. B) Terbatasnya penelitian. C) Menelusuri. D) Fokus pada asumsi. Show Answer Correct Answer: C) Menelusuri. 42. Demonetisation has lead to: A) Depletion of public wealth. B) Reduced digitalisation. C) Rise in tax evasion. D) Decreased real estate prices. Show Answer Correct Answer: D) Decreased real estate prices. 43. ..... is referred to as something that has never been made before, or the process of creating something that has never been made before. A) Resource. B) Invention. C) Skill. D) Technology. Show Answer Correct Answer: B) Invention. 44. Select the argument against Social Responbility. A) 1. Social responsibility creates a favourable public image. B) 2. Business is not really accountable to society. C) 3. Social responsibility would create excessive costs for business. D) Both 2 and 3. Show Answer Correct Answer: D) Both 2 and 3. 45. Corporate Social Responsibility is a must practice for all organisations as this will encourage the growth of country economic. A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: B) False. 46. What can governments do to support businesses in the global economy? A) Invest in education and training to develop a skilled workforce. B) Create a supportive regulatory environment for businesses. C) Promote trade and investment. D) All of the above. Show Answer Correct Answer: D) All of the above. 47. A characteristic of a seller's market is: A) A lower profits. B) B. higher prices. C) C. larger supply. D) D. smaller demand. Show Answer Correct Answer: B) B. higher prices. 48. Software companies mainly located at some places because of A) Government incentives. B) Abundant supply of man power. C) Easy transport facilities. D) All of these. Show Answer Correct Answer: D) All of these. 49. Apa istilah yang digunakan untuk menggambarkan konsentrasi geografis perusahaan dan lembaga yang saling terhubung dalam bidang tertentu? A) Klaster bisnis. B) Zona ekonomi. C) Distrik industri. D) Pusat korporat. Show Answer Correct Answer: C) Distrik industri. 50. As a result of Economic Reforms, the production-oriented approach has been replaced by ..... A) Market Oriented Approach. B) Seller Oriented Approach. C) Both (a) and (b). D) None of these. Show Answer Correct Answer: A) Market Oriented Approach. 51. How does globalization impact the business environment? A) It reduces competition. B) It simplifies business operations. C) It isolates businesses within their domestic markets. D) It creates new markets and opportunities but also increases competition and complexity. Show Answer Correct Answer: D) It creates new markets and opportunities but also increases competition and complexity. 52. McDonald's made significant changes in ingredients of finger chips in India. Identify the dimension of business environment which is responsible for this step of McDonald's? A) Economic environment. B) Legal environment. C) Political environment. D) Social environment. Show Answer Correct Answer: D) Social environment. 53. Even though the political conditions vary from country to country, they impact the sentiment of the investor in the business.If there instability of political condition cause uncertainity and make it difficult for him to predict the future. which feature of the business environment is highlighted in the above statement? A) Specific and general forces. B) Dynamic nature. C) Relativelty. D) All of the above. Show Answer Correct Answer: D) All of the above. 54. What does the 'T' stand for in SMART goals? A) Timely. B) Test. C) Tough. D) True. Show Answer Correct Answer: A) Timely. 55. Which among the following is not a componentbof economic environment? A) Technological environment. B) Legal environment. C) Economic environment. D) Political environment. Show Answer Correct Answer: D) Political environment. 56. What is the role of the judiciary in the political environment? A) Enforcing laws. B) Making laws. C) Creating economic policies. D) Determining the method of government working. Show Answer Correct Answer: D) Determining the method of government working. 57. Organisasi Internasional yang mengatur perdagangan internasional adalah A) NATO. B) WTO. C) IMF. D) United Nation. Show Answer Correct Answer: B) WTO. 58. Olivia and Benjamin are considering forming a joint venture to launch a new product. How does forming a joint venture reduce their risk? A) Allowing costs to be shared. B) Ensuring business success. C) Increasing technology. D) Cutting down on taxes. Show Answer Correct Answer: A) Allowing costs to be shared. 59. SAPS, Johannesburg Hospital, and Randpark High School are part of which business world sector? A) Private. B) Informal. C) Public. D) Formal. Show Answer Correct Answer: C) Public. 60. This characteristic of a mixed economy states that the vast majority of labor, resources, and capital goods are owned by individuals rather than by the government. A) Private Property. B) Freedom of enterprise and choice. C) Motive of Self-Interest. D) Competition. Show Answer Correct Answer: A) Private Property. ← PreviousNext →Related QuizzesCommerce QuizzesClass 12 QuizzesClass 12 Business Studies Chapter 3 Business Environment Quiz 1Class 12 Business Studies Chapter 3 Business Environment Quiz 2Class 12 Business Studies Chapter 3 Business Environment Quiz 3Class 12 Business Studies Chapter 3 Business Environment Quiz 4Class 12 Business Studies Chapter 3 Business Environment Quiz 5Class 12 Business Studies Chapter 3 Business Environment Quiz 6Class 12 Business Studies Chapter 3 Business Environment Quiz 7Class 12 Business Studies Chapter 3 Business Environment Quiz 8 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books