This quiz works best with JavaScript enabled. Home > Cbse > Class 12 > Commerce > Business Studies > Class 12 Business Studies Chapter 3 Business Environment – Quiz 13 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 12 Business Studies Chapter 3 Business Environment Quiz 13 (60 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Party making the offer is called A) Offeror. B) Offeree. C) All the above. D) None of the above. Show Answer Correct Answer: A) Offeror. 2. List the main types of business environment. A) Internal environment, external environment (macro and micro), economic, social, technological, legal, political. B) Natural environment. C) Cultural environment. D) Digital environment. Show Answer Correct Answer: A) Internal environment, external environment (macro and micro), economic, social, technological, legal, political. 3. A breakthrough in renewable energy technology leads to cheaper and more efficient solar panels. A) Technological. B) Economic. C) All the above. D) None of the above. Show Answer Correct Answer: A) Technological. 4. Which of the following is a characteristic of modern business? A) Technology-driven. B) Static in nature. C) Limited to local markets. D) Focus solely on profit. Show Answer Correct Answer: A) Technology-driven. 5. Businesses that both sell All Gold Tomato sauce are an example of A) Indirect competition. B) A monopoly. C) Direct competition. D) Suppliers. Show Answer Correct Answer: C) Direct competition. 6. How does the Consumer Protection Act benefit consumers? A) It eliminates all forms of advertising. B) The Consumer Protection Act benefits consumers by safeguarding their rights and providing mechanisms for redress against grievances. C) It allows consumers to ignore product defects. D) It mandates higher prices for all goods. Show Answer Correct Answer: B) The Consumer Protection Act benefits consumers by safeguarding their rights and providing mechanisms for redress against grievances. 7. Which sector is made up of consumers? A) Overseas. B) Household. C) Financial. D) Government. Show Answer Correct Answer: B) Household. 8. Ali and Monica are discussing how countries can ensure that international laws are followed. What are some methods they might consider for enforcing international law internationally? A) Military intervention and occupation. B) Voluntary compliance and economic or political pressures. C) Ignoring international disputes. D) Only through the United Nations. Show Answer Correct Answer: B) Voluntary compliance and economic or political pressures. 9. Disposable income refers A) Gross salary. B) Total income received by an individual. C) Income remaining after deduction of taxes available for spending. D) None of the above. Show Answer Correct Answer: C) Income remaining after deduction of taxes available for spending. 10. Which is not the significance of study the business environment? A) It helps to forecast the impact of socio cultural factors. B) It helps to frame policies. C) It is complex in nature. D) It ensures optimum utilisation of resources. Show Answer Correct Answer: C) It is complex in nature. 11. What is meant by 'adding value'? A) The money a company invests into a new product. B) The difference between the price of the finished product/service and the cost of the inputs involved in making it. C) All the above. D) None of the above. Show Answer Correct Answer: B) The difference between the price of the finished product/service and the cost of the inputs involved in making it. 12. What are the effects of income level changes on businesses? A) Income level changes have no impact on business operations. B) Higher income levels always lead to increased business costs. C) Changes in income levels only affect large corporations, not small businesses. D) Income level changes directly influence consumer spending, affecting business sales and revenue. Show Answer Correct Answer: D) Income level changes directly influence consumer spending, affecting business sales and revenue. 13. Which external factor can influence change in a business? A) Internal communication. B) Employee skills. C) Market trends. D) Company policies. Show Answer Correct Answer: C) Market trends. 14. Trade restrictions, Tariffs and political stability etc are the example of ..... environment. A) Demographic. B) Social. C) Political. D) Economic. Show Answer Correct Answer: C) Political. 15. Apa langkah pertama dalam proses Design Thinking? A) Menentukan masalah. B) Empati dengan pengguna. C) Membuat prototipe. D) Menguji solusi. Show Answer Correct Answer: B) Empati dengan pengguna. 16. Why is adapting to change important for businesses? A) Because some changes can be controlled while others cannot. B) To limit market expansion. C) To increase product prices. D) To reduce employee wages. Show Answer Correct Answer: A) Because some changes can be controlled while others cannot. 17. Which Act is replaced with Competition Act 2002. A) Contact Act. B) The sales of goods act. C) MRTP Act. D) None of the above. Show Answer Correct Answer: C) MRTP Act. 18. What is the source of most business opportunities? A) Profits. B) Demand. C) Investment. D) Change. Show Answer Correct Answer: D) Change. 19. Which of the following is a sustainable policy? A) Ignoring environmental regulations for short-term profit. B) Increasing reliance on fossil fuels. C) Implementing renewable energy sources to reduce carbon emissions. D) Encouraging deforestation for economic growth. Show Answer Correct Answer: C) Implementing renewable energy sources to reduce carbon emissions. 20. Stability of the govt at the centre is an instance of A) Legal environment. B) Technological environment. C) Economic environment. D) Political environment. Show Answer Correct Answer: D) Political environment. 21. 8) One of the components of New Industrial Policy has led to reduction in tax rates and lifting of unnecessary control and restrictions over private sector? A) Liberalization. B) Privatization. C) Globalization. D) None. Show Answer Correct Answer: A) Liberalization. 22. Which one is not an essential for a valid contract? A) Two parties. B) Not declared void. C) Only written. D) Competency of the parties. Show Answer Correct Answer: C) Only written. 23. Which of the following best defines environmental analysis? A) A process of hiring employees based on environmental conditions. B) The evaluation of internal operations only. C) The process of monitoring, evaluating, and interpreting information about the business environment. D) A strategy to avoid competition in the market. Show Answer Correct Answer: C) The process of monitoring, evaluating, and interpreting information about the business environment. 24. Collective goods are also known as ..... A) Infrastructure. B) Informal goods. C) Teamwork. D) Formal goods. Show Answer Correct Answer: A) Infrastructure. 25. It is an advantage of a corporation where company owners are only liable for the amount they invested. Creditors and lenders have no claim to the owners' personal assets for payments owed by the shareholders. A) Limited Liability. B) Unlimited Life. C) Competent Management. D) Source of Capital. Show Answer Correct Answer: A) Limited Liability. 26. An organisational structure outlines the roles and responsibilities of each member of a business. True or False? A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: A) True. 27. Exports are best described as ..... A) Goods and services that are produced overseas and brought into Australia. B) Goods and services that are produced in Australia and sold overseas. C) All the above. D) None of the above. Show Answer Correct Answer: B) Goods and services that are produced in Australia and sold overseas. 28. What is the role of technology in modern business? A) To reduce competition. B) To limit market reach. C) To enhance efficiency and innovation. D) To maintain traditional practices. Show Answer Correct Answer: C) To enhance efficiency and innovation. 29. What would affect a cold drink company the most? A) Cold weather. B) High taxes. C) Rainfall in another country. D) Books being expensive. Show Answer Correct Answer: A) Cold weather. 30. What does a company's economic environment refer to? A) Factors that influence consumer buying habits and the company's performance. B) Only government funding. C) Only market trends. D) Only interest rates. Show Answer Correct Answer: A) Factors that influence consumer buying habits and the company's performance. 31. How does environmental understanding help a business organization? A) By increasing production costs. B) By showing sensitivity to the environment and meeting stakeholder expectations. C) By reducing employee engagement. D) By ignoring government regulations. Show Answer Correct Answer: B) By showing sensitivity to the environment and meeting stakeholder expectations. 32. What can affect a company's performance? A) Only internal factors. B) Only external factors. C) Both internal and external factors. D) Only customer preferences. Show Answer Correct Answer: C) Both internal and external factors. 33. Consumers are now buying SMART televisions because their old televisions are becoming obsolete. In which market environment would this be a challenge? A) Competition. B) Changes in consumer behaviour. C) Demographics. D) Socio-cultural factors. Show Answer Correct Answer: B) Changes in consumer behaviour. 34. What is a potential impact of trade barriers? A) Higher pricing strategies. B) Lower legal compliance costs. C) Increased sourcing options. D) Enhanced cultural understanding. Show Answer Correct Answer: A) Higher pricing strategies. 35. Forms of international investment are: A) International franchising. B) International franchising. C) Investing in enterprises with 100% international capita. D) Exporting goods. Show Answer Correct Answer: C) Investing in enterprises with 100% international capita. 36. What is the significance of economic planning in India? A) It is crucial for resource allocation, balanced development, poverty alleviation, and sustainable growth in India. B) Economic planning is only important for urban areas. C) Economic planning is solely focused on foreign investments. D) Economic planning has no impact on poverty levels. Show Answer Correct Answer: A) It is crucial for resource allocation, balanced development, poverty alleviation, and sustainable growth in India. 37. Privatization was done by A) Selling stakes in loss making PSUs. B) Sale of partial interest in other PSUs. C) Strategic sale of PSUs. D) All of these. Show Answer Correct Answer: D) All of these. 38. Why is environmental analysis important for businesses? A) It helps to avoid competition completely. B) It enables better decision-making and strategic planning. C) It eliminates the need for risk management. D) It ensures a business never faces external threats. Show Answer Correct Answer: B) It enables better decision-making and strategic planning. 39. Which of the following makes up the external environment (macro)? 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: A) Socio-Cultural, Technological, Economic, Environmental, Political, Legal, Ethical. 40. What is the primary interest of shareholders? A) Receiving fair wages. B) Profitability of the business and receiving dividends. C) Ensuring customer satisfaction. D) Complying with government regulations. Show Answer Correct Answer: B) Profitability of the business and receiving dividends. 41. Establishing a strong customer base, gaining loyalty, and building relationships are all examples of which External Operating factor? A) Competitors. B) Suppliers. C) Interest Groups. D) Customers. Show Answer Correct Answer: D) Customers. 42. What is a distinguishing feature of a not-for-profit organisation? A) It focuses on achieving social objectives rather than profit. B) It is always owned by the government. C) It operates only in the private sector. D) It distributes profits to its members. Show Answer Correct Answer: A) It focuses on achieving social objectives rather than profit. 43. Name the 5 economic sectors A) Primary Sector Tertiary sector Quinary sector Quaternary sector Secondary sector. B) Coffee Sector. C) Primary Sector Toy making sector Quinary sector Quaternary sector Secondary sector. D) Primary Sector Secondary sector Tertiary sector Quaternary sector Quinary sector. Show Answer Correct Answer: D) Primary Sector Secondary sector Tertiary sector Quaternary sector Quinary sector. 44. Konsep bisnis yang bertindak lebih jauh lagi dari bisnis domestik dan bukan sekedar pemasaran ekspor, tetapi lebih jauh terlibat dalam lingkungan pemasaran dalam negara tempat perusahaan tadi melakukan bisnis adalah ..... A) Bisnis global. B) Bisnis multinasional. C) Bisnis internasional. D) Bisnis transnasional. Show Answer Correct Answer: C) Bisnis internasional. 45. How do economic factors influence the business environment? A) They determine the organization's internal processes. B) They affect consumer purchasing power and demand for goods/services. C) They define the company's core values and mission. D) They regulate the organization's ethical standards. Show Answer Correct Answer: B) They affect consumer purchasing power and demand for goods/services. 46. Why might a charity organisation prioritise usability over advanced features? A) They do not use technology. B) They usually have limited funding and technical resources. C) They do not care about quality. D) They never use digital systems. Show Answer Correct Answer: B) They usually have limited funding and technical resources. 47. A feature of good communication is A) Clear. B) Irrelevance. C) Volume. D) Ambiguity. Show Answer Correct Answer: A) Clear. 48. The sale of gift items increases during the time of Diwali and Christmas. Popular firms dealing in gift items in major towns and cities make special plans of sale during this period.Which dimension of business environment comes into picture here? A) Economic. B) Social. C) Political. D) Legal. Show Answer Correct Answer: B) Social. 49. The last stage in Rostow's theory A) Drive to maturity. B) Age of mass consumption. C) Both. D) None of these. Show Answer Correct Answer: B) Age of mass consumption. 50. Jim recently merged his company's personnel and employee-training departments into a single human resources department. which management function has Jim performed? A) Leadership. B) Quality control. C) Organising. D) Leading. Show Answer Correct Answer: C) Organising. 51. Balance sheet consists of the following except: A) Costs. B) Liabilities. C) Owner's equity. D) Assets. Show Answer Correct Answer: A) Costs. 52. What is a 'customs union'? A) A protected free trade area which does not apply a common external tariff. B) A protected free trade area which does not use a common agricultural policy. C) It is a union which consits of the countries of European Economic Area (EEA) and the EU. D) A protected free trade area which involves the removal of tariff barriers between member states. Show Answer Correct Answer: D) A protected free trade area which involves the removal of tariff barriers between member states. 53. Which of the following is not an important objective of a business? A) Social responsibility. B) Social status. C) Growth. D) Survival. E) Profitablity. Show Answer Correct Answer: B) Social status. 54. A document detailing a company's rules and guidelines on staff behaviour that must be followed by all employees. A) Corporate social responsibility. B) Management by objectives. C) Mission Statement. D) Ethical code. Show Answer Correct Answer: D) Ethical code. 55. Which of the following is a feature of demonetization? A) Development of less-cash economy. B) All of the above. C) Channelizing savings into the formal financial system. D) Tax administration measure. Show Answer Correct Answer: B) All of the above. 56. Deciding to stay home and study, instead of going to a basketball game, is an example of a/an: A) D. economic service. B) A trade-off. C) B. capital good. D) C. economic want. Show Answer Correct Answer: B) A trade-off. 57. Which of the following would be considered an advantage of debt as a source of finance? A) It allows the owner to withdraw the money for personal use. B) Australia's tax system provides businesses tax deductions for interest payments. C) It is safer for the owner as it gurantees personal wealth even if the business incurs losses. D) All of the above. Show Answer Correct Answer: B) Australia's tax system provides businesses tax deductions for interest payments. 58. Which of the following is not a problem solving technique? A) Brainstorming. B) Indigenous knowledge. C) Deep thinking and analysis. D) Force field. Show Answer Correct Answer: C) Deep thinking and analysis. 59. What does the term 'liberalization' refer to in the context of the New Economic Policy? A) Increasing government control. B) Eliminating unnecessary controls and restrictions. C) Globalizing all businesses. D) Privatizing all public sectors. Show Answer Correct Answer: B) Eliminating unnecessary controls and restrictions. 60. Which of the following is NOT an element of Porter's Five Forces Model? A) The firm's macroeconomic environment. B) The potential competition from new entrants. C) The bargaining power of suppliers. D) The firm's existing competition. Show Answer Correct Answer: A) The firm's macroeconomic environment. ← 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