This quiz works best with JavaScript enabled. Home > Cbse > Class 12 > Commerce > Business Studies > Class 12 Business Studies Chapter 3 Business Environment – Quiz 15 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 12 Business Studies Chapter 3 Business Environment Quiz 15 (60 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Approval body for plans in India A) Planning Commission. B) President of India. C) National Development Council. D) Prime Minister. Show Answer Correct Answer: C) National Development Council. 2. Which of the following is not the feature of Demonetization? A) Gulf crisis. B) Money laundering. C) Elimination of counterfeit curruncy. D) Eradication of corruption. Show Answer Correct Answer: A) Gulf crisis. 3. Main characteristic of first stage in Rostow's theory A) Industrialized society. B) Agrarian society. C) Service economy. D) None of these. Show Answer Correct Answer: A) Industrialized society. 4. Why is understanding cultural nuances important for businesses? A) To tailor products and marketing strategies. B) To avoid legal issues. C) To increase government intervention. D) To reduce operational costs. Show Answer Correct Answer: A) To tailor products and marketing strategies. 5. When a business outsources a function it means? A) Contracting with an external provider to perform a specific function or task. B) Hiring more internal employees to handle the function. C) Automating the function using software. D) Ignoring the function altogether. Show Answer Correct Answer: A) Contracting with an external provider to perform a specific function or task. 6. New Economic Policy was announced on A) 23/07/1991. B) 24/08/1991. C) 24/07/1991. D) 23/08/1991. Show Answer Correct Answer: C) 24/07/1991. 7. The micro environment: A) Is the immediate external environment with which the organisation is in constant interaction. B) Refers to the environment that is most remote from the operations of an organisation. C) Includes factors such as ecology, shareholders and political lobbyists. D) Represents the global dimensions of the business environment. Show Answer Correct Answer: A) Is the immediate external environment with which the organisation is in constant interaction. 8. ..... is the total amount that a borrower must pay annually to the lender and above the total amount borrowed. A) Interest rates. B) People's spending habits. C) Changing of options. D) Inflation. Show Answer Correct Answer: A) Interest rates. 9. You are conducting a SWOT analysis and find out that a new competitor is opening within 5 miles of your store. This would be considered a ..... A) Threat. B) Opportunity. C) Strength. D) Weakness. Show Answer Correct Answer: A) Threat. 10. Accounting is defined by PICPA as service activity. PICPA stands for ..... A) Philippine Institute of Certification of Public Accountant. B) Philippine Institute of Certified Private Accountant. C) Philippine Institute of Certified Public Accountant. D) None of the above. Show Answer Correct Answer: C) Philippine Institute of Certified Public Accountant. 11. Special programs being run by the government for the A) Vulnerable sections of the society. B) Those who are interested. C) All people. D) None of these. Show Answer Correct Answer: A) Vulnerable sections of the society. 12. Which of the following is NOT a component of the microenvironment of a business? A) Competitors. B) Technological Advancements. C) Suppliers. D) Customers. Show Answer Correct Answer: B) Technological Advancements. 13. Which of the following is a component of ETOP analysis? A) Financial accounting standards. B) Political, economic, and technological factors. C) Employee engagement scores. D) Inventory turnover ratios. Show Answer Correct Answer: B) Political, economic, and technological factors. 14. Following business activity is more relevant to local trade, EXCEPT: A) Taxable income payer. B) State code of ethics. C) Trade mark. D) Coorperate social responsibility. Show Answer Correct Answer: C) Trade mark. 15. What type of business environment do the following examples represent?A recession hits the country, causing consumers to reduce spending on non-essential items. A) Economic. B) Political. C) All the above. D) None of the above. Show Answer Correct Answer: A) Economic. 16. What would happen if the exchange rate of the Euro increases against the pound? A) EU goods would become cheaper to buy in the UK. B) UK businesses would expect to sell less in the EU. C) UK goods would become cheaper to buy in the EU. D) None of the above. Show Answer Correct Answer: A) EU goods would become cheaper to buy in the UK. 17. What role does competitor analysis play in business environment assessment? A) It helps in understanding customer needs. B) It identifies potential market gaps. C) It evaluates the effectiveness of marketing strategies. D) It assesses the financial health of the company. Show Answer Correct Answer: B) It identifies potential market gaps. 18. What social influences can affect consumer behavior? A) Advertising strategies. B) Market research techniques. C) Family, friends, social status, cultural norms, and peer pressure. D) Product pricing. Show Answer Correct Answer: C) Family, friends, social status, cultural norms, and peer pressure. 19. List the types of tourism environments. A) Natural, Cultural, Built. B) Religious, Recreational, Agricultural. C) Adventure, Historical, Urban. D) Wildlife, Industrial, Social. Show Answer Correct Answer: A) Natural, Cultural, Built. 20. What are the 4Ps of marketing strategy? A) Psychographic, potential, price, product. B) Place, primary, packaging, promotion. C) Product, price, promotion, place. D) Psychographic, potential, packaging, primary. Show Answer Correct Answer: C) Product, price, promotion, place. 21. Techonological environment influnce the business in terms of investment in technology, consistant application of technology and the effect of technology on markets. A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: A) True. 22. According to Bayard O. Wheeler, what is included in the business environment? A) Only economic factors. B) All things external to firms and industries. C) Only social factors. D) Only technological factors. Show Answer Correct Answer: B) All things external to firms and industries. 23. A clothing manufacturer in the United States allows a company in Argentina to use its name and logo in exchange for a fee and royalties. This is an example of A) A joint venture. B) Franchising. C) Exporting. D) Licensing. Show Answer Correct Answer: D) Licensing. 24. The best type of regulation is A) Self regulation. B) Industry regulation. C) Government regulation. D) None of these. Show Answer Correct Answer: A) Self regulation. 25. What is the business environment? A) The business environment refers to the physical location of a business. B) The business environment encompasses all external and internal factors affecting a business's performance. C) The business environment is solely determined by government regulations. D) The business environment only includes internal company policies. Show Answer Correct Answer: B) The business environment encompasses all external and internal factors affecting a business's performance. 26. An example of an interest group is ..... A) Trade Union. B) Competitors. C) Employees. D) None of the above. Show Answer Correct Answer: A) Trade Union. 27. What does B2C stand for? A) Business to Consumer. B) Business to Company. C) Business to Client. D) Buyer to Customer. Show Answer Correct Answer: A) Business to Consumer. 28. Sagar is studying international organizations and wants to know what the main focus of the World Bank is. Can you help him? A) Short-term economic stability. B) Long-term development and poverty reduction. C) Military aid. D) Environmental conservation. Show Answer Correct Answer: B) Long-term development and poverty reduction. 29. Which type of factors are emphasized in the GBE module? A) Financial market growth. B) Technological, political, economic, and cultural influences. C) Advertising strategies. D) Internal HR policies. Show Answer Correct Answer: B) Technological, political, economic, and cultural influences. 30. Tool to evaluate MACRO Environment A) SWOT. B) PESTLE. C) Porter's 5 Forces. D) None of the above. Show Answer Correct Answer: B) PESTLE. 31. What is the main aim of the Industrial Policy? A) To reduce taxes. B) To maintain steady growth. C) To increase competition. D) To limit foreign investment. Show Answer Correct Answer: B) To maintain steady growth. 32. Which institution supervises and determines the monetary policy in the Euroland? A) The European Commission. B) The European Central Bank. C) The European Council. D) The European Parliament. Show Answer Correct Answer: B) The European Central Bank. 33. The largest contributor to India's GDP in recent years has been: A) Mining sector. B) Services sector. C) Agriculture sector. D) Industrial sector. Show Answer Correct Answer: B) Services sector. 34. What is the purpose of the Industrial Policy Resolution of 1948? A) To restrict small industries. B) To eliminate public sector. C) To declare a mixed economy. D) To promote foreign investment. Show Answer Correct Answer: C) To declare a mixed economy. 35. What are the three principal demographic factors that can affect demand for products or services? A) Employment level, economic activity, and tax cuts. B) Location, income, and education level of population. C) Age, gender, and race of population. D) Size, makeup, and distribution of population. Show Answer Correct Answer: D) Size, makeup, and distribution of population. 36. Cindy and Sagar are studying international relations and come across a situation where two countries are in a financial dispute. They learn about an organization that helps in resolving such disputes. What is the role of the International Monetary Fund in dispute resolution? A) To impose economic sanctions. B) To assist in negotiations. C) To draft new treaties. D) To provide military support. Show Answer Correct Answer: B) To assist in negotiations. 37. TRUE OR FALSE:A terrorist attack in a shopping mall is likely to affect many business. A) TRUE. B) FALSE. C) All the above. D) None of the above. Show Answer Correct Answer: A) TRUE. 38. The mission statement of a company: A) Gives the organization a sense of character as seen through the eyes of employees and stakeholders. B) Are the values that help build a clear organizational identity. C) Are broad beliefs about what is or is not appropriate behavior. D) Expresses theorganization's reason for existence in society. Show Answer Correct Answer: D) Expresses theorganization's reason for existence in society. 39. When is the promise said to be express: A) When the proposal or acceptance of any promise is made in words. B) When the proposal or acceptance of any promise is made in any way other than words. C) When the proposal or acceptance of any promise is made through visual representation. D) When the proposal or acceptance is made by either in words or in any way other than words. Show Answer Correct Answer: A) When the proposal or acceptance of any promise is made in words. 40. Under which type of economy does the government own the basic means of production, but with some private ownership of businesses? A) Command. B) Communism. C) Entrepreneurship. D) Socialism. Show Answer Correct Answer: D) Socialism. 41. The management of the business has ..... the market environment A) Full control over. B) No control over. C) Little control. D) No control but can influence. Show Answer Correct Answer: D) No control but can influence. 42. Spoon feeding solutions means: A) Allowing the employees to gather and talk to each other without reaching a solution. B) Allowing the employees to discuss and come up with ideas for an appropriate solution. C) Allowing the manager to dictate the solution without listening or discussing anything with his team. D) None of the above. Show Answer Correct Answer: C) Allowing the manager to dictate the solution without listening or discussing anything with his team. 43. What is a benefit of public borrowing? A) Higher interest rates. B) Creation of capital assets. C) Less government control. D) Increased taxes. Show Answer Correct Answer: B) Creation of capital assets. 44. What is the role of e-commerce in today's business landscape? A) E-commerce is primarily used for physical store management. B) E-commerce limits market access and reduces customer interaction. C) E-commerce has no impact on operational costs or efficiency. D) E-commerce is essential for expanding market reach, improving operational efficiency, and enhancing customer engagement in modern business. Show Answer Correct Answer: D) E-commerce is essential for expanding market reach, improving operational efficiency, and enhancing customer engagement in modern business. 45. Which of the following is an external factor affecting business? A) Organizational structure. B) Human resources. C) Organizational policies. D) Customers. Show Answer Correct Answer: D) Customers. 46. What does FDI stand for? A) Financial Development Initiative. B) Fiscal Direct Income. C) Foreign Debt Investment. D) Foreign Direct Investment. Show Answer Correct Answer: D) Foreign Direct Investment. 47. 7) Which of the following statement best describes the policy of Liberalization? A) Abolition of licensing requirement in most of the industries. B) Reduction in tax rates and lifting of unnecessary controls over the economy. C) Both a and b. D) Setting up Board of Industrial and Financial Reconstruction. Show Answer Correct Answer: C) Both a and b. 48. Chairperson of NITI Aayog A) Prime Minister. B) President. C) Finance Minister. D) None of these. Show Answer Correct Answer: A) Prime Minister. 49. What is a common internal factor that can necessitate change in a business? A) Changes in leadership. B) Economic recession. C) Competitor actions. D) New government policies. Show Answer Correct Answer: A) Changes in leadership. 50. How can a lack of vision affect a business? A) A lack of vision can negatively impact a business by causing confusion, low morale, and reduced performance. B) A lack of vision can lead to increased profits and growth. C) A lack of vision fosters strong teamwork and collaboration. D) A lack of vision ensures clear communication among employees. Show Answer Correct Answer: A) A lack of vision can negatively impact a business by causing confusion, low morale, and reduced performance. 51. Regulation of business is done by A) Directors. B) Company itself. C) Government. D) Outsiders. Show Answer Correct Answer: C) Government. 52. Which of the following is considered a NEGATIVE consequence of improvements in technology? A) As technology replaces workers, businesses can reduce their labour costs. B) As technology replaces workers, many people are left unemployed. C) Technological advances have created jobs in the industries that provide technological products. D) All of the above. Show Answer Correct Answer: B) As technology replaces workers, many people are left unemployed. 53. Backward areas require A) Financial assistance. B) Entrepreneurial support. C) Tax incentives. D) All of these. Show Answer Correct Answer: D) All of these. 54. The business is treated, as having a separate personality from the owner/s such the transactions of the business must be divorced from the transactions of the owner/s. A) Business Entity Concept. B) Objectivity. C) Cost Principle. D) None of the above. Show Answer Correct Answer: A) Business Entity Concept. 55. What are consequences? A) Something that is possible but is not yet real. B) Money charged to do something for a service. C) Task that demands time and effort to complete. D) The results (positive or negative) of an action or decision. Show Answer Correct Answer: D) The results (positive or negative) of an action or decision. 56. What is the primary goal of a business? A) Operate internationally. B) Serve customers and generate profits. C) Set government policies. D) Innovate technology. Show Answer Correct Answer: B) Serve customers and generate profits. 57. Which factor can businesses NOT control in the macro-environment? A) Market competition. B) Technological changes. C) Employee relations. D) Internal policies. Show Answer Correct Answer: B) Technological changes. 58. What are the implications of having unmotivated employees? A) Decreased productivity and morale, higher turnover, and lower quality of work. B) Increased employee satisfaction and engagement. C) Higher chances of promotions and raises. D) Improved teamwork and collaboration. Show Answer Correct Answer: A) Decreased productivity and morale, higher turnover, and lower quality of work. 59. Planning commission A) Formulates the plans. B) Approves the plans. C) Apex body for plans. D) None of these. Show Answer Correct Answer: A) Formulates the plans. 60. The correct sequence in formation of a contract is: A) Offer, Consideration, acceptance, agreement. B) Offer, acceptance, consideration, agreement. C) Offer, acceptance, agreement, considerationption 4. D) Agreement, consideration, offer, acceptance. Show Answer Correct Answer: B) Offer, acceptance, consideration, agreement. ← 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