This quiz works best with JavaScript enabled. Home > Cbse > Class 12 > Commerce > Business Studies > Class 12 Business Studies Chapter 3 Business Environment – Quiz 16 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 12 Business Studies Chapter 3 Business Environment Quiz 16 (60 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. It means the end points towards which all activities are directed A) Strategy. B) Method. C) Rule. D) Objective. Show Answer Correct Answer: D) Objective. 2. What does the term global business environment refer to? A) The international factors that affect business operations. B) The term describes only the economic conditions of a country. C) The global business environment is limited to local market trends. D) It refers to the internal dynamics of a single company. Show Answer Correct Answer: A) The international factors that affect business operations. 3. An organisation with 60 employees would be categorised as a xxxxxx business A) Micro. B) Small. C) Medium. D) Large. Show Answer Correct Answer: C) Medium. 4. Which of the following term used in business operation is not the element of Micro external business environment? A) Surchage. B) Invoice. C) Customer. D) Contract cleaner. Show Answer Correct Answer: A) Surchage. 5. The Government increase the national minimum wage, how will this affect businesses? A) Negative effect due to employment cost increases. B) Positive effect as staff will be more motivated. C) Neutral effect, it won't make any difference. D) None of the above. Show Answer Correct Answer: A) Negative effect due to employment cost increases. 6. A public school is a tenant of which economic system? A) Socialism. B) Capitalism. C) All the above. D) None of the above. Show Answer Correct Answer: A) Socialism. 7. What can businesses do to mitigate the challenges of global business operations? A) Carefully research the regulatory and legal environments of the countries in which they operate. B) Develop training programs to help employees understand and adapt to cultural differences. C) Invest in measures to protect their intellectual property rights. D) All of the above. Show Answer Correct Answer: D) All of the above. 8. 6) Attractive rate of interest on home loans have increased the demand for homes and has given a boost to the business to the business builders and property dealers. Which dimension of business environment is highlighted by the statement? A) Legal environment. B) Social environment. C) Economic environment. D) Political environment. Show Answer Correct Answer: C) Economic environment. 9. Acting after watching paid review by Aiman Tino is example of influenced by ..... A) Primary reference group. B) Families. C) Secondary reference group. D) Favourite artist. Show Answer Correct Answer: C) Secondary reference group. 10. Question 10:What encompasses the economic environment of a business? A) Laws and regulations. B) Inflation, unemployment, and economic growth. C) Corporate governance policies. D) Social responsibilities of businesses. Show Answer Correct Answer: B) Inflation, unemployment, and economic growth. 11. What is digital waste (e-waste)? A) Any type of digital/electronical equipment that is no longer used and is discarded. B) The amount of data stored on a computer. C) The number of emails sent by a company. D) The total number of digital devices owned by a household. Show Answer Correct Answer: A) Any type of digital/electronical equipment that is no longer used and is discarded. 12. Which stakeholder relationship is crucial for the internal environment? A) Government and citizens. B) Shareholders, employees, and board of directors. C) NGOs and community. D) Foreign investors and public. Show Answer Correct Answer: B) Shareholders, employees, and board of directors. 13. Which type of emergency plan is most useful for a workplace prone to flooding? A) Fire evacuation plan. B) Shelter-in-place plan. C) Chemical spill response plan. D) Flood response and evacuation plan. Show Answer Correct Answer: D) Flood response and evacuation plan. 14. ..... is an approach that ignores Ethical Considerations. A) Vendor Model. B) Household Model. C) Moral management. D) Amoral Management. Show Answer Correct Answer: D) Amoral Management. 15. Which is NOT part of non-economic environment? A) Technology. B) Income level. C) Customs. D) Population. Show Answer Correct Answer: B) Income level. 16. What do suppliers provide to a company? A) Raw materials, services, and goods. B) Only goods. C) Only services. D) Only raw materials. Show Answer Correct Answer: A) Raw materials, services, and goods. 17. Question 8:What role do suppliers play in the task environment? A) They are competitors for the business. B) They provide the resources needed for production. C) They create consumer demand. D) They regulate market practices. Show Answer Correct Answer: B) They provide the resources needed for production. 18. Question 10:Which of the following is NOT typically considered a component of the general business environment? A) Cultural factors. B) Technological factors. C) Economic factors. D) Competitor dynamics. Show Answer Correct Answer: D) Competitor dynamics. 19. Customer, competitors, supplier and special interest groups are all part of the which environment A) Operating. B) External. C) Macro. D) Internal. Show Answer Correct Answer: A) Operating. 20. Is the following statement true or false? Enterprise environmental factors (EEFs) are conditions either internal or external to the organization that are not under the control of the project team, which can influence, constrain, or direct the project at the organizational, portfolio, program, or project level. A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: A) True. 21. Global expansion in a company is an example of a(n) A) Weakness. B) Threat. C) Strength. D) Opportunity. Show Answer Correct Answer: D) Opportunity. 22. Which of these is an example of a social environment factor? A) Changes in government. B) Import-export policies. C) Customer preferences. D) Rate of inflation. Show Answer Correct Answer: C) Customer preferences. 23. What is the role of suppliers in the micro environment? A) They provide raw materials. B) They manage human resources. C) They set government policies. D) They create competition. Show Answer Correct Answer: A) They provide raw materials. 24. An examination of the organization's Strengths, Weaknesses, Opportunity & Threats A) SWOT Analysis. B) Business Plan of Action. C) Mission Statement. D) PEST Analysis. Show Answer Correct Answer: A) SWOT Analysis. 25. A country with advanced technology and strong infrastructure is most likely to: A) Experience high unemployment and poverty rates. B) Struggle with outdated infrastructure and services. C) Face technological stagnation and decline. D) Compete successfully in international markets. Show Answer Correct Answer: D) Compete successfully in international markets. 26. Which of the following is not characterise the business environment A) Complexity. B) Uncertainty. C) Employees. D) Relativity. Show Answer Correct Answer: C) Employees. 27. Reference group is ..... A) Groups that expressed in a complex set of beliefs. B) Groups that influence individuals in making decision. C) Groups in family composition. D) Groups thats always support family members. Show Answer Correct Answer: B) Groups that influence individuals in making decision. 28. A project is developing a new product in a highly competitive market. The project manager needs to ensure that the product is successful in the market. What is the MOST important factor to consider? A) The project team's technical expertise. B) The project's budget and schedule. C) The product's unique selling proposition and differentiation from competitors. D) The project sponsor's personal preferences for the product. Show Answer Correct Answer: C) The product's unique selling proposition and differentiation from competitors. 29. Businesses can control the effect of trade unions through A) Destruction of property. B) Management control. C) Collective bargaining. D) Strikes. Show Answer Correct Answer: C) Collective bargaining. 30. Changes in demographics results in shifting demand away from products, this is classified as a A) Strength. B) Weakness. C) Opportunity. D) Threat. Show Answer Correct Answer: D) Threat. 31. What is the primary purpose of a for-profit business? A) Provide goods or services to generate profit. B) Donate to social causes. C) Fulfill a charitable mission. D) Educate customers. Show Answer Correct Answer: A) Provide goods or services to generate profit. 32. New Economic Policy was initiated in the year A) 1990. B) 1980. C) 1991. D) 1988. Show Answer Correct Answer: C) 1991. 33. The surroundings of business operations, consisting of factors within and outside business entities is known as A) Thrifting. B) Business Environment. C) Business. D) Sustainable Development. Show Answer Correct Answer: B) Business Environment. 34. Which of the following best defines a trade union? A) An association of employers formed to promote profits. B) A group of workers formed to protect and promote their common interests. C) A government body that regulates industrial policies. D) A financial institution that provides loans to workers. Show Answer Correct Answer: B) A group of workers formed to protect and promote their common interests. 35. Even after opening of Indian Economy and 1991 foreign companies found it extreme difficult to cut through the bureaucratic red tape to get permit for doing business in India, which created negative impact on the business. Identify the dimensions of the business environment which led to creation of negative impact on business A) Technologocal. B) Legal. C) Social. D) Political. Show Answer Correct Answer: D) Political. 36. ..... forces affect individual enterprises directly and immediately in their day to day working ..... affects all the firms indirectly A) Technological, legal. B) General, specific. C) Specific, general. D) Customers, investors. Show Answer Correct Answer: C) Specific, general. 37. Consumers, producers, and owners of resources use money to create a flow ofresources, goods, and services through which economic activity? A) Consumption. B) Marketing. C) Exchange. D) Distribution. Show Answer Correct Answer: C) Exchange. 38. Presently who is responsible for fund allocation to implement plans in India ..... A) RBI. B) NITI AAYOG. C) Ministery of Finance. D) Planning Commission. Show Answer Correct Answer: C) Ministery of Finance. 39. What are the main components of the tourism environment? A) Natural resources, cultural resources, infrastructure, socio-economic environment. B) Cultural festivals, climate change, international relations, local government. C) Wildlife conservation, urban development, tourism policies, recreational activities. D) Historical landmarks, weather patterns, transportation methods, local cuisine. Show Answer Correct Answer: A) Natural resources, cultural resources, infrastructure, socio-economic environment. 40. What is the main motive of an entrepreneur under capitalism? A) Government welfare. B) Maximum profit. C) Social welfare. D) Maximum labourers. Show Answer Correct Answer: B) Maximum profit. 41. Which of the following is a main reason for businesses to expand into foreign markets: A) To build brand value. B) To spread culture. C) To pay taxes. D) To help the less fortunate. Show Answer Correct Answer: A) To build brand value. 42. Which factor is NOT part of the economic environment? A) Unemployment rates. B) Cultural values. C) Interest rates. D) Inflation. Show Answer Correct Answer: B) Cultural values. 43. It is assumed that the business will continue operations indefinitely unless there is evidence to the contrary. A) Going Concern Concept. B) Business Entity Concept. C) Cost Principle. D) None of the above. Show Answer Correct Answer: A) Going Concern Concept. 44. 1) Identify out of the LPG, which one is highlighted:Selling shares of public sector undertakings A) Liberalization. B) Privatization. C) Globalization. D) None. Show Answer Correct Answer: B) Privatization. 45. FDI in India refers to: A) Foreign Debt Inflow. B) Financial Development Institution. C) Federal Development Index. D) Foreign Direct Investment. Show Answer Correct Answer: D) Foreign Direct Investment. 46. Consideration must by law be sufficient A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: A) True. 47. Which of the following situation is more relevant to external environment business analysis? A) Restaurant that offers 3 options of menu (a la carte menu, Buffet and set menu). B) Using ready made seasoning instead of making it. C) Follow the new tax policy for all dairy product used in food production. D) Using organic products for food production. Show Answer Correct Answer: D) Using organic products for food production. 48. Which set below is showing resources used in a business? A) Printer, papers, folder, computer. B) Chicken, board, stove. C) Water, fruits, clothing. D) None of the above. Show Answer Correct Answer: A) Printer, papers, folder, computer. 49. Which of these is a responsibility of a socially responsible business? A) Donate expired goods. B) Ignore safety rules. C) Care for the environment. D) Avoid paying taxes. Show Answer Correct Answer: C) Care for the environment. 50. Metode mana yang dapat digunakan untuk mengeksplorasi kebutuhan pelanggan? A) Mengabaikan. B) Mengamati. C) Menduga. D) Berasumsi. Show Answer Correct Answer: B) Mengamati. 51. It involves the preparation of tax returns, interpretations, and application of tax rules in the determination of tax liability, analyzing tax effect on a firm's or individual's projects or plans. A) Forensic Accounting. B) Cost Accounting. C) Tax Accounting. D) None of the above. Show Answer Correct Answer: C) Tax Accounting. 52. Which organization releases the All-India Consumer Price Index? A) National Statistical Office. B) Ministry of Finance. C) Centre for Agriculture costs and prices. D) NITI Aayog. Show Answer Correct Answer: A) National Statistical Office. 53. What does a natural environment refer to? A) Only climate change. B) Both the location a business operates and the place it sources any natural resources it needs. C) Only the place it sources any natural resources it needs. D) Only the location a business operates. Show Answer Correct Answer: B) Both the location a business operates and the place it sources any natural resources it needs. 54. With the launch of make in India which among the following was further liberalised A) Foreign direct investment. B) Foreign institutional investment. C) Foreign exchange reserve. D) All of these. Show Answer Correct Answer: A) Foreign direct investment. 55. As a result of the Economic Reforms the Seller Market has been replaced by ..... A) Foreign Market. B) Retail Market. C) Buyer Market. D) Wholesale Market. Show Answer Correct Answer: C) Buyer Market. 56. A business has decided to cut its workforce by 25%. Which of the following stakeholders will be affected by this decision? A) All of the choices. B) Employees. C) Local community. D) Government. Show Answer Correct Answer: A) All of the choices. 57. How do consumer trends influence product development? A) Consumer trends only affect pricing strategies, not product features. B) Consumer trends guide product development by identifying market demands and preferences, leading to more successful products. C) Product development is solely based on company vision, ignoring consumer trends. D) Consumer trends have no influence on product development. Show Answer Correct Answer: B) Consumer trends guide product development by identifying market demands and preferences, leading to more successful products. 58. Which of the following is the best example of Personal Protective Equipment (PPE) in an office setting? A) Safety goggles for chemical handling. B) Fire extinguisher near the exit. C) Ergonomic chair and desk setup. D) Noise-canceling headphones. Show Answer Correct Answer: A) Safety goggles for chemical handling. 59. What are the essentials for a person to employ an agent? A) The person should not be of sound mind. B) The person should be a major, according to the law to which the agent is subject. C) The person should be a major, according to the law to which he is subject and should also be of sound mind. D) The person should have executed a contract of indemnity before employing an agent. Show Answer Correct Answer: C) The person should be a major, according to the law to which he is subject and should also be of sound mind. 60. In this environment the business can influence outside role players and convince customers to buy its products. A) The business cannot influence the outside environment. B) Micro environment. C) Macro environment. D) Market environment. Show Answer Correct Answer: D) Market 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