This quiz works best with JavaScript enabled. Home > Cbse > Class 12 > Commerce > Business Studies > Class 12 Business Studies Chapter 3 Business Environment – Quiz 14 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 12 Business Studies Chapter 3 Business Environment Quiz 14 (60 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Define corporate social responsibility (CSR). A) CSR is a legal requirement for all businesses. B) CSR is solely focused on maximizing profits. C) Corporate social responsibility (CSR) helps a company be socially accountable. D) CSR is a marketing strategy to increase sales. Show Answer Correct Answer: C) Corporate social responsibility (CSR) helps a company be socially accountable. 2. After new economic policy customers became more demanding A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: A) True. 3. What does liberalisation in the context of business environment mean? A) Increased taxation. B) Nationalisation of industries. C) Reduction of restrictions on business. D) Increased government control. Show Answer Correct Answer: C) Reduction of restrictions on business. 4. How do legal regulations impact business operations? A) Legal regulations are solely focused on employee rights. B) Legal regulations have no effect on business operations. C) Legal regulations impact business operations by establishing compliance requirements, influencing costs, and shaping strategies. D) Legal regulations only benefit large corporations. Show Answer Correct Answer: C) Legal regulations impact business operations by establishing compliance requirements, influencing costs, and shaping strategies. 5. LPG or Liberalization Privatization and Globalization were a part of which Indian Policy: A) Foreign Investment Policy. B) Industrial Policy 1956. C) Industrial Licensing Policy. D) New Economic Policy 1991. Show Answer Correct Answer: D) New Economic Policy 1991. 6. Which of the following would be an example of financing from internal sources? A) An owner contributing $ 30, 000 of savings to help start up a business. B) An owner organising a bank overdraft facility for the business. C) The owner arranging for the supplier of the business to provide trade credit. D) All of above. Show Answer Correct Answer: A) An owner contributing $ 30, 000 of savings to help start up a business. 7. What is the role of the judiciary in the business environment? A) The judiciary interprets laws, resolves disputes, and ensures compliance, providing a stable legal framework for businesses. B) The judiciary provides financial support to businesses. C) The judiciary manages business operations directly. D) The judiciary creates new business laws and regulations. Show Answer Correct Answer: A) The judiciary interprets laws, resolves disputes, and ensures compliance, providing a stable legal framework for businesses. 8. A company with outdated machinery and poor workforce morale is facing challenges due to its: A) External environment. B) Economic system. C) Political-legal environment. D) Internal weaknesses. Show Answer Correct Answer: D) Internal weaknesses. 9. This characteristic of a Mixed Economy describes the natural rivalry created when two businesses offer the same, or similar, goods. A) Competition. B) Freedom of Enterprise and Choice. C) Private Property. D) Motive of Self-Interest. Show Answer Correct Answer: A) Competition. 10. Economic factors include economic growth, interest rates, exchange rates, inflation, disposable income of consumers and businesses A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: A) True. 11. Population is a component of the total ..... environment, while composition of population is component of ..... environment. A) Social, Economic. B) Economic, social. C) Technological, political. D) Natural, Legal. Show Answer Correct Answer: B) Economic, social. 12. Which model is used to analyze competitive structure? A) SWOT Analysis. B) QUEST Analysis. C) PEST Analysis. D) Porter's Five Forces Model. Show Answer Correct Answer: D) Porter's Five Forces Model. 13. Why is Continual innovation important to business success today? A) To survive in the market in the short run. B) Keep up with the rapidly changing market. C) To improve product development. D) To be Obsolete. Show Answer Correct Answer: B) Keep up with the rapidly changing market. 14. ..... means transfer of ownership, management and control of public sector enterprises to entrepreneurs in the private sector. A) Liberalisation. B) Privatisation. C) Globalisation. D) None of the above. Show Answer Correct Answer: B) Privatisation. 15. What can a business do when consumer patterns change? A) Update the marketing mix. B) Use Porter's five forces to analyse the Macro environment. C) Use a PESTLE analysis to scan the market environment. D) Do a SWOT analysis. Show Answer Correct Answer: A) Update the marketing mix. 16. What does the term 'strikes' refer to in a business context? A) Work stoppages initiated by employees or labor unions. B) Mandatory overtime policies enforced by employers. C) Employee bonuses offered by management. D) Annual performance reviews conducted by supervisors. Show Answer Correct Answer: A) Work stoppages initiated by employees or labor unions. 17. What is the primary reason for managing change in a business? A) To increase employee workload. B) To ensure business survival and success. C) To reduce product quality. D) To decrease customer satisfaction. Show Answer Correct Answer: B) To ensure business survival and success. 18. What is the primary focus of the public sector? A) Exporting products. B) Profit generation. C) Providing public services. D) Manufacturing goods. Show Answer Correct Answer: C) Providing public services. 19. Ali is studying international relations and learns about the impact of international treaties on countries. What is the limitation of sovereignty in international treaty arrangements? A) They enhance national government freedom. B) They limit national government actions and policies. C) They have no effect on domestic policies. D) They only affect international organizations. Show Answer Correct Answer: B) They limit national government actions and policies. 20. Social pressures against child labour leading to enactment of laws is an example of A) Complexity. B) Universality. C) Uncertainty. D) Interdependence. Show Answer Correct Answer: D) Interdependence. 21. At each organization's core should be a commitment to A) Beating the competition. B) Expanding globally. C) Meeting customer needs. D) Making a profit. Show Answer Correct Answer: C) Meeting customer needs. 22. How can government influence change in a business? A) By offering customer feedback. B) By enacting new laws and regulations. C) By managing employee performance. D) By designing product packaging. Show Answer Correct Answer: B) By enacting new laws and regulations. 23. Reducing the role of Public Sector and increasing the role of Private Sector fall sunder . A) Liberalisation. B) Privatisation. C) Liberalisation and Privatisation. D) Globalisation. Show Answer Correct Answer: B) Privatisation. 24. What must businesses do when there is pressure from the macro environment? A) Reduce employee wages. B) Comply with the pressures. C) Increase prices. D) Ignore the pressure. Show Answer Correct Answer: B) Comply with the pressures. 25. In a large organization that utilizes a project management office (PMO), who is responsible for managing the governance of projects? A) The PMO. B) The organization's governance committee. C) The project managers of the individual projects within the PMO. D) The organization's change control board. Show Answer Correct Answer: A) The PMO. 26. Which of the following is an example of a threat in the external environment? A) Economic boom. B) New competitors entering the market. C) Favorable demographics. D) Increased consumer demand. Show Answer Correct Answer: B) New competitors entering the market. 27. ..... is a period of above normal general price increases, as reflected in the consumer and wholesale price index. A) Inflation. B) Changing of options. C) Interest rates. D) People's spending habit. Show Answer Correct Answer: A) Inflation. 28. It is the degree to which a society emphasizes individual accomplishments versus collective accomplishments. A) Time Orientation. B) Power Distance. C) Individualism-Collectivism. D) Masculinity-Femininity. Show Answer Correct Answer: C) Individualism-Collectivism. 29. "Baby milk powder should necessarily inform the buyers that mothers milk is the best for the baby." Which component of business environment is highlighted in this case? A) Legal environment. B) Political environment. C) Social environment. D) Economic environment. Show Answer Correct Answer: A) Legal environment. 30. What can happen if a company fails to comply with legal regulations? A) Lower operational costs. B) Enhanced customer loyalty. C) Fines and reputational damage. D) Increased market share. Show Answer Correct Answer: C) Fines and reputational damage. 31. It summarizes the cash receipts and cash disbursements for the accounting period. A) Statement of Cash Flows. B) Statement of Financial Position. C) Statement of Changes in Owner's Equity. D) Income Statement. Show Answer Correct Answer: A) Statement of Cash Flows. 32. In a command economy, economic decisions are made by the A) Market. B) Producers. C) Government. D) Consumers. Show Answer Correct Answer: C) Government. 33. Fiscal Policy is controlled by ..... A) The Department of Commerce. B) The Government. C) The Federal Reserve System. D) The states. Show Answer Correct Answer: B) The Government. 34. Which of the following is a way that businesses can plan proactively for environmental changes: A) Conducting research on a new market. B) Buying advertising time on TV. C) Reviewing last year's tax code. D) Publishing an annual report. Show Answer Correct Answer: A) Conducting research on a new market. 35. According to the European Commission, a business that employs fewer than 250 persons and has an annual turnover not exceeding EUR 50 million is classified as A) Public Limited Company. B) Medium Enterprise. C) Small and medium sized enterprise. D) Sole proprietership. Show Answer Correct Answer: C) Small and medium sized enterprise. 36. Which of the following best defines the term business environment? A) The internal rules and policies of a company. B) The totality of external and internal factors that affect a business. C) Only the economic policies of a government. D) The human resource practices within an organization. Show Answer Correct Answer: B) The totality of external and internal factors that affect a business. 37. Apa peran tren dalam menganalisis lingkungan bisnis? A) Tren memperumit pengambilan keputusan. B) Tren memberikan wawasan tentang perubahan pasar. C) Tren tidak relevan. D) Tren hanya mempengaruhi perusahaan besar. Show Answer Correct Answer: B) Tren memberikan wawasan tentang perubahan pasar. 38. The PESTLE analysis is used to analyse which business environment? A) Macro Environment. B) Micro Environment. C) Market Environment. D) Industry Environment. Show Answer Correct Answer: A) Macro Environment. 39. What role does customer feedback play in a company's marketing environment? A) To help in improving the quality of goods. B) To help in improving the marketing strategies. C) To help in both improving the quality of goods and marketing strategies. D) It does not play any role. Show Answer Correct Answer: C) To help in both improving the quality of goods and marketing strategies. 40. 10) HUL and several other FMCG companies launched small sachets of shampoo and other products according to the needs of the customers. A) Enables firm to identify opportunities and first mover advantage. B) Helps in tapping useful resources. C) Helps in assisting in planning and policy formulation. D) It helps in improving performance. Show Answer Correct Answer: D) It helps in improving performance. 41. What type of business activity does a Vulcanizing shop has? A) Service. B) Merchandising. C) Manufacturing. D) None of the above. Show Answer Correct Answer: A) Service. 42. Which of the following is a secondary stakeholder? A) Competitors. B) Management. C) Shareholder. D) Employees. Show Answer Correct Answer: A) Competitors. 43. Tax on factory workers weekly wage is known as A) Gift tax. B) Corporation tax. C) Income tax. D) VAT. Show Answer Correct Answer: C) Income tax. 44. Business and environment are inseparable from each other. A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: A) True. 45. The following are key trends in age structure of the population EXCEPT A) Significant growth of very young people. B) Growing numbers of elderly people. C) Curently rising number young people. D) All og the above. Show Answer Correct Answer: A) Significant growth of very young people. 46. If an economy experiences a dramatic rise in prices, which fiscal policy action could be taken? A) Reducing government spending. B) Raising reserve requirements. C) Selling securities on the open market. D) Raising interest rates. Show Answer Correct Answer: A) Reducing government spending. 47. Why do businesses operate globally? A) To access new markets and resources. B) To limit product offerings and decrease brand visibility. C) To focus solely on local markets and avoid competition. D) To reduce operational costs and improve efficiency. Show Answer Correct Answer: A) To access new markets and resources. 48. How do internal factors differ from external factors in the business environment? A) Internal factors are controllable, while external factors are not. B) External factors are controllable, while internal factors are not. C) Internal and external factors are essentially the same. D) Internal factors relate to customers, while external factors relate to employees. Show Answer Correct Answer: A) Internal factors are controllable, while external factors are not. 49. New competition in the market, Price wars, Competitors oligopoly and monopoly, Taxation policy of the government etc will provide ..... to the business. A) Completion. B) Challenges. C) Opportunities. D) Strength. Show Answer Correct Answer: B) Challenges. 50. All are the features of business environment, except: A) Dynamic. B) Simple. C) Uncertainty. D) Inter relations. Show Answer Correct Answer: B) Simple. 51. Investing the business profits at a rate that grows faster than inflation is also known as: A) Hedging. B) Strategic Alliance Agreements. C) Persuasion of large investors. D) Acquisitions. Show Answer Correct Answer: A) Hedging. 52. A 'subsystem' is: A) The realisation of an individual's fullest potential. B) A complex system of people, task and technologies that were part of and interacted with a larger environment. C) A collaborative and trust-based relationship. D) A set of elements, which is a system itself and is a part of the larger system. Show Answer Correct Answer: D) A set of elements, which is a system itself and is a part of the larger system. 53. Business environment includes A) Customers and Employees. B) Surroundings of Business. C) Forces, Factors, institutions which directly or indirectly effect business. D) None of the above. Show Answer Correct Answer: C) Forces, Factors, institutions which directly or indirectly effect business. 54. ..... is considered a major element of the political environment: A) The extent and nature of government intervention in business. B) Planned outlay in public and private sectors. C) Expectations from the work force. D) An administrative order issued by government authorities. Show Answer Correct Answer: A) The extent and nature of government intervention in business. 55. Which of the following best describes a not-for-profit organisation? A) It only operates internationally. B) It is owned by the government. C) It reinvests surplus to achieve its social objectives. D) It aims to maximise profits for shareholders. Show Answer Correct Answer: C) It reinvests surplus to achieve its social objectives. 56. Which of these challenges in the market environment can lead to higher productivity and better innovation? A) Socio-cultural factors. B) Shortages of supply. C) Demographics. D) Competition. Show Answer Correct Answer: D) Competition. 57. The theory of survival of fittest is formulated by A) Henry Fayol. B) Abraham Maslow. C) Charles Darwin. D) Richard Dawkin. Show Answer Correct Answer: C) Charles Darwin. 58. Within the micro environment, the 'interest group' refers to: A) Other organisations which work together with a company in a joint venture or other partnership. B) Groups that attempt to influence organisations and their decisions. C) The part of the environment that is generally within an organisation's control. D) The factors that force the organisation to remain constant. Show Answer Correct Answer: B) Groups that attempt to influence organisations and their decisions. 59. Which of the following is a reason for business owners to make a difference? A) Legal requirements. B) Market competition. C) Tax benefits. D) Personal satisfaction. Show Answer Correct Answer: D) Personal satisfaction. 60. Which is not a general force environment? A) Political environment. B) Social environment. C) Political environment. D) Competitors environment. Show Answer Correct Answer: D) Competitors 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