This quiz works best with JavaScript enabled. Home > Cbse > Class 12 > Commerce > Business Studies > Class 12 Business Studies Chapter 3 Business Environment – Quiz 12 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 12 Business Studies Chapter 3 Business Environment Quiz 12 (60 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Swachcha bharat abhiyaan started by bjp government is a part of A) Legal environment. B) Social environment. C) Political environment. D) Economic environment. Show Answer Correct Answer: C) Political environment. 2. ..... environment includes policies of the government. A) Social. B) Economic. C) Technological. D) Demographic. Show Answer Correct Answer: B) Economic. 3. If you were using Email to chat on the company intranet, who might you be talking to? A) Your mom. B) Someone in another company. C) Your roommate. D) Your manager. Show Answer Correct Answer: D) Your manager. 4. How have economic reforms impacted the tourism sector in India? A) Economic reforms have primarily focused on agriculture, neglecting tourism. B) Economic reforms have significantly boosted the tourism sector in India by increasing accessibility, attracting foreign investment, and promoting domestic tourism. C) Economic reforms have led to a decline in tourism due to increased costs. D) Tourism in India has remained unchanged despite economic reforms. Show Answer Correct Answer: B) Economic reforms have significantly boosted the tourism sector in India by increasing accessibility, attracting foreign investment, and promoting domestic tourism. 5. How does the increase of global business operations affect the role of governments? A) It requires governments to adapt their policies and regulations to the global economy. B) It reduces the power of governments to regulate businesses. C) It has no significant impact on the role of governments. D) All of the above. Show Answer Correct Answer: D) All of the above. 6. *Innovation*Rate of technology changes*Automation*Research and development etc . are fall under ..... environment . A) Technical. B) Economic. C) Social. D) Political. Show Answer Correct Answer: A) Technical. 7. What is the economic environment of business? A) Overall economic factors that influence a company's operations. B) Only the financial performance of a business. C) The social and cultural aspects of business. D) The legal regulations affecting business. Show Answer Correct Answer: A) Overall economic factors that influence a company's operations. 8. Which of the following internal stakeholders are interested in the day-to-day operations of a business and meeting operational objectives? A) Supervisors and foremen. B) Senior managers. C) Government. D) Shareholders. Show Answer Correct Answer: A) Supervisors and foremen. 9. A threat whether actual or perceived is known as A) Physical threat. B) Intimidation threat. C) Advocacy threat. D) None of the above. Show Answer Correct Answer: B) Intimidation threat. 10. A slogan, logo or jingle must be??? for it to be effective. A) Silly. B) Short. C) Memorable. D) Loud. Show Answer Correct Answer: C) Memorable. 11. Tax on company's profit is known as A) Capital gains tax. B) Income tax. C) Corporation tax. D) Gift tax. Show Answer Correct Answer: C) Corporation tax. 12. Does low industry concentration lead to intense rivalry among competitors? A) Yes. B) No. C) All the above. D) None of the above. Show Answer Correct Answer: A) Yes. 13. Which of the following is NOT a component of the business environment? A) Government policies and regulations. B) Nature of the economy. C) Both of the option. D) None of the option. Show Answer Correct Answer: D) None of the option. 14. Which of the following is not a primary objective of trade unions? A) Protecting workers' rights. B) Improving working conditions. C) Securing fair wages and benefits. D) Maximizing employer's profit. Show Answer Correct Answer: D) Maximizing employer's profit. 15. One of the challenges of the market economic system is that it: A) Lacks competition and efficiency. B) Has low levels of inequality and unemployment. C) Emphasises the customs, traditions and beliefs of a country. D) Lacks strong regulatory oversight by the government. Show Answer Correct Answer: D) Lacks strong regulatory oversight by the government. 16. Face book, Twitter and WhatsApp is the result of A) Social environment. B) Legal environment. C) Technological environment. D) Political environment. Show Answer Correct Answer: C) Technological environment. 17. The political environment includes: A) Laws and government stability. B) Festivals. C) Technology. D) Education. Show Answer Correct Answer: A) Laws and government stability. 18. What does a company's ethical environment refer to? A) Only the company's internal ethical policies. B) Only the ethical standards of the country where the company is located. C) Both the company's internal ethical policies and the ethical standards of the country where the company is located. D) Only the ethical standards of the countries where the company's customers are located. Show Answer Correct Answer: C) Both the company's internal ethical policies and the ethical standards of the country where the company is located. 19. Which factor does not fall under the economic environment? A) Inflation rate. B) GDP Growth. C) Population growth. D) Interest rates. Show Answer Correct Answer: C) Population growth. 20. Do high barriers to entry reduce the threat of new competitors in an industry? A) Yes. B) No. C) All the above. D) None of the above. Show Answer Correct Answer: A) Yes. 21. Saigon Halal restaurant is an example of ..... restaurant that exist because of multi society in Malaysia. A) Korea. B) Japan. C) Thailand. D) Vietnam. Show Answer Correct Answer: D) Vietnam. 22. What does the term R&D mean? A) Read and Draw. B) Research and Development. C) Run and Duck. D) Revise and Develop. Show Answer Correct Answer: B) Research and Development. 23. In SWOT analysis 'W' stands for A) World. B) Worst. C) Worry. D) None of above. Show Answer Correct Answer: D) None of above. 24. An overall reduction in consumer spending power is known as A) Legislation. B) Entrepreneurial factors. C) Socio economic issues. D) Recession. Show Answer Correct Answer: D) Recession. 25. Trade between two contries is known as A) Multi lateral trade. B) Bilateral trade. C) Unilateral trade. D) None of the above. Show Answer Correct Answer: B) Bilateral trade. 26. Which component is part of the macro-environment? A) Consumer behavior. B) Supplier relationships. C) Political factors. D) Organizational structure. Show Answer Correct Answer: C) Political factors. 27. When there is period of prolonged economic growth, this is called a: A) Slump. B) Recovery. C) Recession. D) Boom. Show Answer Correct Answer: D) Boom. 28. How can businesses respond to macro-environment challenges? A) By reducing their workforce. B) By forming coalitions with other businesses. C) By ignoring them. D) By increasing prices. Show Answer Correct Answer: B) By forming coalitions with other businesses. 29. Define the doctrine of judicial precedent A) Bindingness of all courts. B) It is mandatory to bind all decisions from all stages of courts. C) Decisions of the higher courts in previous cases must be followed by the lower courts in similar cases/situations. D) Decisions of all superior courts to follow decisions made by the subordinate courts. Show Answer Correct Answer: C) Decisions of the higher courts in previous cases must be followed by the lower courts in similar cases/situations. 30. Lily's company wants to expand internationally and is considering creating a wholly owned subsidiary. They can do this by building a facility in a foreign market or by A) Exporting to the market. B) Finding a franchisee. C) Signing a licensing agreement. D) Buying an existing firm in the market. Show Answer Correct Answer: D) Buying an existing firm in the market. 31. Which of the following is NOT an importance of the Business Environment? A) Enables identifying business opportunities. B) Helps in tapping useful resources. C) Increases uncertainty and confusion. D) Helps in improving performance. Show Answer Correct Answer: C) Increases uncertainty and confusion. 32. The Person making the offer can not revoke the offer A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: B) False. 33. Which of the following is an example of an internal factor? A) Government policies. B) Employees. C) Central Bank regulations. D) Competitors. Show Answer Correct Answer: B) Employees. 34. Do buyers have low bargaining power when there are no substitutes for a product? A) Yes. B) No. C) All the above. D) None of the above. Show Answer Correct Answer: A) Yes. 35. Things within a business that managers can influence and control (as it relates to SWOT) A) Employee Performance. B) Sales Revenue. C) Internal Factors. D) External Factors. Show Answer Correct Answer: C) Internal Factors. 36. Which of the following is a challenge of global business operations? A) Complying with different regulatory and legal environments. B) Managing cultural differences. C) Protecting intellectual property rights. D) All of the above. Show Answer Correct Answer: D) All of the above. 37. What tools can be used for business environment analysis? A) Employee satisfaction surveys. B) Financial forecasting methods. C) Sales performance metrics. D) Porter's Five Forces. Show Answer Correct Answer: D) Porter's Five Forces. 38. Who has control over the factors in the internal environment? A) The government. B) The business itself. C) Financial institutions. D) Competitors. Show Answer Correct Answer: B) The business itself. 39. What does a company's legal environment refer to? A) The company's internal legal policies. B) The legal regulations of the country where the company is located. C) The legal regulations of the country where the company is located and the company's internal legal policies. D) The legal regulations of the countries where the company's customers are located. Show Answer Correct Answer: B) The legal regulations of the country where the company is located. 40. What does the internal environment of a business include? A) Pressures from the economy. B) Pressures from owners, management, employees, and other internal influences. C) Global crisis. D) Legal regulations. Show Answer Correct Answer: B) Pressures from owners, management, employees, and other internal influences. 41. What is the first step to take during a fire emergency in the workplace? A) Gather your belongings. B) Alert coworkers and follow the evacuation plan. C) Attempt to extinguish the fire yourself. D) Call your supervisor. Show Answer Correct Answer: B) Alert coworkers and follow the evacuation plan. 42. Competition helps create a healthy society by: A) A creating new jobs. B) B. increasing the money supply. C) C. making new government regulations. D) D. replacing small businesses with large businesses. Show Answer Correct Answer: A) A creating new jobs. 43. It is an association of small producers and consumers who come together voluntarily to form a business which they own, manage, and patronize. A) Corporation. B) Cooperatives. C) Partnership. D) None of the above. Show Answer Correct Answer: B) Cooperatives. 44. ..... environment consists of economic conditions in the market, economic policies of the Government and economic system of the country. A) Economic. B) Political. C) Socio-cultural. D) Legal. Show Answer Correct Answer: A) Economic. 45. Which of the following statements is TRUE about the external business environment? A) It does not affect the decision-making process. B) It consists of factors beyond the control of the business. C) It is entirely controllable by the organization. D) It includes only economic factors. Show Answer Correct Answer: B) It consists of factors beyond the control of the business. 46. Which of the following practices in organisation will lead to fairness issue among staff? A) All Housekeeper should perform 12 credits room cleaning. B) Operator job specification is open for diabled applicant. C) All carrying tasks should be perform by male staff. D) Staff Uniform deposit charge is based on departmental uniform. Show Answer Correct Answer: C) All carrying tasks should be perform by male staff. 47. Are companies unaffected by changes in labor laws? A) Yes. B) No. C) All the above. D) None of the above. Show Answer Correct Answer: B) No. 48. Which of the following best indicates the importance of business environment? A) Passing of new criminal law. B) Coping with rapid changes. C) Result-oriented performance. D) Employing new workers. Show Answer Correct Answer: A) Passing of new criminal law. 49. The mission is part of the internal environment: A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: A) True. 50. Which of the following makes up the internal environment? A) Socio-Cultural, Technological, Economic, Environmental, Political, Legal, Ethical. B) Operations, Finance, Marketing, Human Resources. C) Customers, Competitors, Suppliers & Interest Groups. D) Owners/managers, Employees, Organisational structure & Organisational culture. Show Answer Correct Answer: D) Owners/managers, Employees, Organisational structure & Organisational culture. 51. 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) Interrelatedness. B) Dynamic nature. C) Relativity. D) Uncertainty. Show Answer Correct Answer: D) Uncertainty. 52. What benefit will the business gain if they are advanced in technology? A) The low initial cost to start up. B) Less productive. C) Increase lead time. D) Increase efficiency. Show Answer Correct Answer: D) Increase efficiency. 53. What is the micro-environment? A) The global business environment. B) The internal business environment. C) The competitive environment. D) The external business environment. Show Answer Correct Answer: B) The internal business environment. 54. Functions and processes to create and maintain an overall integrated governance structure and framework (a) A) A. Alignment. B) Communications. C) Performance. D) Risk. Show Answer Correct Answer: A) A. Alignment. 55. Which of the following is an example of an external influence? A) Government regulations. B) Employee satisfaction. C) Owner's working style. D) Company policies. Show Answer Correct Answer: A) Government regulations. 56. In Ava's country, many skilled engineers and doctors are moving abroad for better job opportunities. This situation is an example of A) People who speak different languages trying to communicate with one another. B) A country losing talented employees to better opportunities in other countries. C) Businesses outsourcing jobs to other countries. D) Consumers spending too much time shopping online. Show Answer Correct Answer: B) A country losing talented employees to better opportunities in other countries. 57. The new economic policy was announced in the year ..... A) 1990. B) 1991. C) 1992. D) None of the above. Show Answer Correct Answer: B) 1991. 58. How does the increase of global business operations affect technological innovation? A) It encourages businesses to invest in new technologies. B) It discourages businesses from investing in new technologies. C) It does not have a significant impact on technological innovation. D) All of the above. Show Answer Correct Answer: D) All of the above. 59. Priya is a diplomat representing her country in international relations. She is considering implementing retorsions to address a recent trade dispute with another nation. What is the purpose of retorsions in this context? A) To provide humanitarian aid. B) To influence another state's actions in furtherance of national-interest goals. C) To promote international cooperation. D) To establish new trade agreements. Show Answer Correct Answer: B) To influence another state's actions in furtherance of national-interest goals. 60. Since Amie deals with people from many different countries, she attempts to become sensitive to differences in their customs and traditions. Amie is developing A) Competition. B) Social responsibility. C) Economic growth. D) Cultural intelligence. Show Answer Correct Answer: D) Cultural intelligence. ← 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