This quiz works best with JavaScript enabled. Home > Cbse > Class 12 > Commerce > Business Studies > Class 12 Business Studies Chapter 3 Business Environment – Quiz 11 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 12 Business Studies Chapter 3 Business Environment Quiz 11 (60 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Buyer power is high if: A) Differentiation is low. B) Switching costs are low. C) The buyer requires a high quality product for their own production. D) They have little information. Show Answer Correct Answer: B) Switching costs are low. 2. Which of the following is a drawback of environmental analysis? A) It provides absolute certainty about future trends. B) It may lead to information overload, making analysis difficult. C) It eliminates the need for strategic planning. D) It simplifies the decision-making process completely. Show Answer Correct Answer: B) It may lead to information overload, making analysis difficult. 3. Photostat machines replaced carbon paper. Which environment is involved? A) Political. B) Economic. C) Technological. D) Social. Show Answer Correct Answer: C) Technological. 4. Population of Malaysian in 2019 A) 32.45 million. B) 29 billion. C) 29 million. D) 32.45 billion. Show Answer Correct Answer: A) 32.45 million. 5. What is a business primarily aimed at? A) Building houses. B) Creating art. C) Playing games. D) Satisfying human needs. Show Answer Correct Answer: D) Satisfying human needs. 6. How a company is situated relative to its competitors is referred to as: A) Competitive advantage. B) Market share. C) Brand leadership. D) Bargaining power. Show Answer Correct Answer: A) Competitive advantage. 7. Which of the following is not an interest group for a business? A) Trade Unions. B) Government. C) Professional Associations. D) Public Interest Groups. Show Answer Correct Answer: B) Government. 8. It is a strategic tool to identify the external and internal environment. A) Environmental Scanning. B) Business Analysis. C) Environmental Analysis. D) Business Environment. Show Answer Correct Answer: C) Environmental Analysis. 9. Which of the following is an example of an opportunity in the external environment? A) Low employee morale. B) Gaps in capabilities. C) Economic boom. D) Financial limitations. Show Answer Correct Answer: C) Economic boom. 10. Which comes first?Knowledge, Data, Information, Wisdom A) Knowledge. B) Wisdom. C) Data. D) Information. Show Answer Correct Answer: C) Data. 11. Marketing intermediaries help in A) Transporting the goods. B) Serving as a link. C) Supplying raw to the company. D) Selling the product. Show Answer Correct Answer: D) Selling the product. 12. Which group is directly involved in the day-to-day operations and is considered a primary stakeholder? A) Management. B) Creditors. C) Competitors. D) Customers. Show Answer Correct Answer: A) Management. 13. Which act is related to consumer protection? A) Indian Contract Act, 1872. B) Consumer Protection Act, 1986. C) Workmen's Compensation Act, 1923. D) Industrial Dispute Act, 1947. Show Answer Correct Answer: B) Consumer Protection Act, 1986. 14. What are the potential risks of entering a new market? A) Risks are only associated with domestic markets, not international ones. B) Entering a new market guarantees success. C) Potential risks include cultural misunderstandings, regulatory challenges, and increased competition. D) Entering a new market carries no risks. Show Answer Correct Answer: C) Potential risks include cultural misunderstandings, regulatory challenges, and increased competition. 15. Good reputation amongst the customer like Infosys, LAKEME, APPLE, GOOGLE, LIC etc. have in market. So all of these will termed as ..... of the company. A) Strength. B) Weakness. C) Opportunities. D) Threat. Show Answer Correct Answer: A) Strength. 16. Factors that create opportunities and threats to business units is known as A) Micro environment. B) Internal environment. C) External environment. D) Macro environment. Show Answer Correct Answer: A) Micro environment. 17. Which of the following is NOT an assumption of the law of demand? A) No change in the price of related goods. B) No change in government policy. C) No change in consumer's preferences. D) No change in consumer's income. Show Answer Correct Answer: B) No change in government policy. 18. For a contract to be valid it must have the intention to create a legal relationship A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: A) True. 19. Which of the following is NOT a component of PESTLE analysis? A) Social. B) Economic. C) Technological. D) Managerial. Show Answer Correct Answer: D) Managerial. 20. Which business model is MOST likely used by a national government digital service? A) B2C. B) B2S. C) B2M. D) B2B. Show Answer Correct Answer: C) B2M. 21. What is it called when a product loses value over time? A) Depreciation. B) Assets. C) Inflation. D) Growth. Show Answer Correct Answer: A) Depreciation. 22. Which of the following is a factor in the macro-environment? A) Internal communication. B) Technological advancements. C) Employee satisfaction. D) Company policies. Show Answer Correct Answer: B) Technological advancements. 23. Which of the following demonstrates the impact of a weak pound on a UK business that imports raw materials and exports finished goods? A) Imported raw materials dearer and exported finished goods cheaper. B) Imported raw materials cheaper and exported finished goods cheaper. C) Imported raw materials dearer and exported finished goods dearer. D) Imported raw materials cheaper and exported finished goods dearer. Show Answer Correct Answer: A) Imported raw materials dearer and exported finished goods cheaper. 24. When the company produces good quality products and sells it at reasonable price. A) Responsibility towards Consumers. B) Responsibility towards Employees. C) Responsibility towards Government. D) Responsibility towards Society. Show Answer Correct Answer: A) Responsibility towards Consumers. 25. Which environment is the easiest to influence, monitor and control? A) Internal Environment. B) External (Macro) Environment. C) Environments can't be influenced. D) External Operating (Micro) Environment. Show Answer Correct Answer: A) Internal Environment. 26. Which part of the internal environment organises the people within the business into roles and responsibilities? A) Organisational structure. B) Employees. C) Owners/Managers. D) Organisational culture. Show Answer Correct Answer: A) Organisational structure. 27. Can buyers have high bargaining power if they purchase in small quantities? A) Yes. B) No. C) All the above. D) None of the above. Show Answer Correct Answer: B) No. 28. Which of the following is a characteristic of the macro environment? A) Directly controllable by the organization. B) Includes factors like demographics and economy. C) Focuses on internal company policies. D) Consists of immediate competitors. Show Answer Correct Answer: B) Includes factors like demographics and economy. 29. Identify some impediments to globalization in India. A) Advanced technological infrastructure. B) Strong economic growth. C) High levels of foreign investment. D) Regulatory barriers, protectionist policies, inadequate infrastructure, cultural resistance, bureaucratic red tape. Show Answer Correct Answer: D) Regulatory barriers, protectionist policies, inadequate infrastructure, cultural resistance, bureaucratic red tape. 30. Can an organization with low employee retention avoid external threats without improving HR practices? A) Yes. B) No. C) All the above. D) None of the above. Show Answer Correct Answer: B) No. 31. External environment includes micro and ..... factors A) Macro. B) Wide. C) Internal. D) Narrow. Show Answer Correct Answer: A) Macro. 32. ..... is not a feature of demonetization. A) Elimination of currency. B) Elimination of Counterfeit currency. C) Money laundering. D) Elimination of Corruption. Show Answer Correct Answer: A) Elimination of currency. 33. It is a process of identifying the internal and external elements that affect the organization's performance. A) Environmental Analysis. B) Business Environment. C) Environmental Scanning. D) Business Analysis. Show Answer Correct Answer: C) Environmental Scanning. 34. "Busy lifestyle gave rise to fast food and instant food; increasing health consciousness has given rise to services such as spas, gyms, and vanity shops." Which element of the business environment is being pertained to? A) Economic. B) Environmental. C) Sociocultural. D) Technological. Show Answer Correct Answer: C) Sociocultural. 35. What is the primary goal of CPR (Cardiopulmonary Resuscitation)? A) To diagnose the victim's condition. B) To keep oxygenated blood flowing to vital organs until medical help arrives. C) To assist in pain relief. D) To restart the heart immediately. Show Answer Correct Answer: B) To keep oxygenated blood flowing to vital organs until medical help arrives. 36. How do interest rates impact business investment decisions? A) Lower interest rates make borrowing more difficult for businesses. B) Interest rates impact business investment decisions by affecting borrowing costs; lower rates encourage investment, while higher rates discourage it. C) Interest rates have no effect on business investment decisions. D) Higher interest rates always lead to increased investment. Show Answer Correct Answer: B) Interest rates impact business investment decisions by affecting borrowing costs; lower rates encourage investment, while higher rates discourage it. 37. Understanding the Indian business environment is crucial for success because it helps companies: A) Guarantee market dominance. B) Adapt to changing regulations and market dynamics. C) Eliminate all risks. D) Avoid competition. Show Answer Correct Answer: B) Adapt to changing regulations and market dynamics. 38. Which of the following is a true statement about how technology affects the external business environment: A) Not all businesses are affected by technology. B) Businesses must look for updated technology all the time. C) Technology is the main way to compete with other businesses. D) Certain target markets do not use technological products. Show Answer Correct Answer: B) Businesses must look for updated technology all the time. 39. Debonairs, Panarottis and Roman's Pizza all operating in the same suburb would be an example of ..... A) An advantage of franchising. B) A low level of rivalry. C) A high level rivalry. D) A threat of new entrants to the market. Show Answer Correct Answer: C) A high level rivalry. 40. Apa saja tiga faktor yang mempengaruhi persaingan global? A) Produktivitas, inovasi, dan pembentukan bisnis. B) Produktivitas, inovasi, dan klaster bisnis. C) Pertumbuhan ekonomi, inovasi, dan pembentukan bisnis. D) Pertumbuhan ekonomi, kemajuan teknologi, dan kebijakan pemerintah. Show Answer Correct Answer: A) Produktivitas, inovasi, dan pembentukan bisnis. 41. Describe how technological advancements can disrupt markets. A) Technological advancements lead to a decrease in product variety. B) Technological advancements have no impact on consumer preferences. C) Technological advancements can disrupt markets by creating new products, changing consumer behavior, and altering business models. D) Technological advancements only benefit established companies. Show Answer Correct Answer: C) Technological advancements can disrupt markets by creating new products, changing consumer behavior, and altering business models. 42. What are some examples of technological innovations that have revolutionized the tourism sector? A) Teleportation devices for instant travel, Holographic tour guides, Time travel excursions. B) Online booking platforms, mobile applications for travel planning, virtual reality tours, smart destination management systems. C) All the above. D) None of the above. Show Answer Correct Answer: B) Online booking platforms, mobile applications for travel planning, virtual reality tours, smart destination management systems. 43. Which is not part of business environment? A) Customers. B) Suppliers. C) Competitors. D) None. Show Answer Correct Answer: D) None. 44. "Make in India" is a government initiative that aims to: A) Focus solely on the service sector. B) Restrict international trade. C) Discourage foreign investment. D) Promote domestic manufacturing. Show Answer Correct Answer: D) Promote domestic manufacturing. 45. Which of the following is a want rather than a need? A) Food. B) Shelter. C) Education. D) A branded smartphone. Show Answer Correct Answer: D) A branded smartphone. 46. What are the interests of the government in a business? A) Reducing competition. B) Collecting tax revenue, implementing laws and regulations, and providing assistance. C) Lowering employee wages. D) Reducing product quality. Show Answer Correct Answer: B) Collecting tax revenue, implementing laws and regulations, and providing assistance. 47. Economic reform in India were initiated in the year A) 1990. B) 1991. C) 1993. D) 1995. Show Answer Correct Answer: B) 1991. 48. Which of the following combinations correctly represents macro-environmental factors affecting business? A) Management, Employees, Organizational Culture. B) Economic, Political, Technological, Socio-cultural, Legal. C) Customers, Competitors, Suppliers. D) Product, Price, Promotion, Place. Show Answer Correct Answer: B) Economic, Political, Technological, Socio-cultural, Legal. 49. LPG Policy was introduced in A) 1990. B) 1999. C) 1995. D) 1991. Show Answer Correct Answer: D) 1991. 50. A country with many natural ports and harbors is more likely to: A) Limit international relations. B) Engage in international trade. C) Develop extensive road networks. D) Focus on agriculture exclusively. Show Answer Correct Answer: B) Engage in international trade. 51. Which of the following is a potential consequence of not managing change effectively? A) Enhanced customer loyalty. B) Improved employee morale. C) Increased market share. D) Business failure. Show Answer Correct Answer: D) Business failure. 52. Which of the following is not a dimension of business environment? A) Internal. B) Economical. C) Social. D) Political. Show Answer Correct Answer: A) Internal. 53. Identify the characteristic of Business Environment:The company knows the demand for these products is unpredictable as new designs keep on coming and the industry keeps changing frequently. A) Uncertainity. B) Complexity. C) Relativity. D) Inter-relatedness. Show Answer Correct Answer: A) Uncertainity. 54. It is a form of business organization managed by an elected board of directors. A) Partnership. B) Cooperatives. C) Corporation. D) None of the above. Show Answer Correct Answer: C) Corporation. 55. ..... refers to the rules or principles that define right and wrong conduct. A) Policies. B) Business Ehtics. C) Procedures. D) Corporate governance. Show Answer Correct Answer: B) Business Ehtics. 56. Which of the following is a characteristic of the private sector? A) It consists mainly of government-owned businesses. B) It focuses primarily on providing public services rather than making a profit. C) It has unlimited access to government funding. D) It includes businesses owned and operated by individuals or corporations. Show Answer Correct Answer: D) It includes businesses owned and operated by individuals or corporations. 57. What is the role of a designated first responder in the workplace? A) To oversee employee productivity. B) To ensure compliance with company policies. C) To provide initial care and assistance in emergencies. D) To conduct safety training sessions. Show Answer Correct Answer: C) To provide initial care and assistance in emergencies. 58. Why do suppliers want a business to be profitable? A) To receive dividends. B) So they get paid promptly and can develop a long-term relationship. C) To avoid taxes. D) To reduce competition. Show Answer Correct Answer: B) So they get paid promptly and can develop a long-term relationship. 59. When was the WTO set up? A) 1949. B) 1995. C) 1945. D) 1980. Show Answer Correct Answer: B) 1995. 60. What is the European Commission organised into? A) Directorates-General. B) Councils of Ministers. C) Individual commissions?. D) Commissioners. Show Answer Correct Answer: A) Directorates-General. ← 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