This quiz works best with JavaScript enabled. Home > Cbse > Class 12 > Commerce > Business Studies > Class 12 Business Studies Chapter 3 Business Environment – Quiz 21 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 12 Business Studies Chapter 3 Business Environment Quiz 21 (60 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Complete awareness and understanding of business environment is also known as: A) Environment capturing. B) Environment planning. C) Environment checking. D) Environment scanning. Show Answer Correct Answer: D) Environment scanning. 2. It is rumored that President Ramaphosa is going to fire the Finance minister. Under which of the PESTLE factors will this fall? A) Legislative. B) Political. C) Economic. D) Social. Show Answer Correct Answer: B) Political. 3. What is the role of the government in capitalism? A) Government decides production activities. B) Government works for social welfare. C) Government has no role. D) Government controls the prices. Show Answer Correct Answer: C) Government has no role. 4. PickMe partnering with Uber Eats for promotions is an example of: A) Strategic Partners. B) Regulators. C) Competitors. D) Suppliers. Show Answer Correct Answer: A) Strategic Partners. 5. What is the most important job of the WTO? A) Set oil prices. B) Decide on border disputes. C) Resolve trade disputes. D) Support developing countries. Show Answer Correct Answer: C) Resolve trade disputes. 6. What is the primary characteristic of a monopoly? A) One seller controls the market. B) Easy entry and exit from the market. C) Many sellers and buyers. D) Products are identical. Show Answer Correct Answer: A) One seller controls the market. 7. Competitive rivalry will be high if: A) The industry is fragmented. B) There is a high degree of differentiation. C) The industry is in its infancy. D) There are a few strong players in the industry. Show Answer Correct Answer: D) There are a few strong players in the industry. 8. INdia continues to be a lower-middle-income country along with 46 others, while Sri Lanka has climbed to the upper-middle-income group for the fiscal year (FY) 2020, according to the World Bank's classification of countries by income levels, released on July 1, 2019.Identify the related dimensions of business environment. A) Social. B) Technological. C) Economic. D) Political. Show Answer Correct Answer: C) Economic. 9. Influencing the supervisory body does not include: A) Following regulations. B) Lobbying. C) Bribery. D) Auditing. Show Answer Correct Answer: C) Bribery. 10. What is a marketing strategy? A) A way to manage internal resources. B) A plan to reduce costs. C) A method to influence suppliers. D) A plan of action to achieve marketing goals. Show Answer Correct Answer: D) A plan of action to achieve marketing goals. 11. AI, robotics, automated machines and social media are the result of advancement in A) Natural environment. B) Demographic environment. C) Technological environment. D) Cultural environment. Show Answer Correct Answer: C) Technological environment. 12. Explain the functions of the executive in business regulation. A) Policy development, compliance oversight, stakeholder engagement, and strategic decision-making. B) Product development and design. C) Customer service and support. D) Market analysis and forecasting. Show Answer Correct Answer: A) Policy development, compliance oversight, stakeholder engagement, and strategic decision-making. 13. According to the Indian Constitution A) All are equal before law. B) Equals are equal. C) First among equals. D) None of these. Show Answer Correct Answer: A) All are equal before law. 14. Which of the following is an Australian franchise? A) The Coffee Club. B) Oporto. C) Aesop. D) Krispy Kreme. Show Answer Correct Answer: C) Aesop. 15. How do businesses contribute to community development? A) Businesses have no impact on local culture or social initiatives. B) Businesses contribute to community development by creating jobs, supporting local economies, and engaging in philanthropy. C) Businesses only contribute by paying taxes to the government. D) Businesses primarily focus on maximizing profits without community involvement. Show Answer Correct Answer: B) Businesses contribute to community development by creating jobs, supporting local economies, and engaging in philanthropy. 16. A business can get adequate stock and good prices from its supplier. We call this ..... A) Power of supplier. B) Rivalry in the market. C) Power of buyer. D) Power of seller. Show Answer Correct Answer: A) Power of supplier. 17. ..... environment involves knowledge, beliefs, morals, customs, etc, which are acquired by individuals and groups in a society. A) Demographic. B) International. C) Natural. D) Socio-cultural. Show Answer Correct Answer: D) Socio-cultural. 18. Which of the following is a true statement about the external factor of competition: A) Competition is more influential than political factors. B) The goal of competition is to cause other businesses to fail. C) Businesses cannot control their competition. D) Globalization has made competition less intense. Show Answer Correct Answer: C) Businesses cannot control their competition. 19. Which of the following is a characteristic of the social environment? A) Consumer preferences. B) Government regulations. C) Interest rates. D) Technological innovations. Show Answer Correct Answer: A) Consumer preferences. 20. What does the 'R' stand for in SMART goals? A) Rich. B) Rush. C) Rarely. D) Realistic. Show Answer Correct Answer: D) Realistic. 21. What are the two main factors that impact a business in a competitive market? A) Quality and marketing of their product. B) Size and number of firms in the market. C) Demand for their product and their costs. D) Disposable incomes and interest rates. Show Answer Correct Answer: C) Demand for their product and their costs. 22. Which of the following is an example of a strategic alliance in the market environment? A) A clothing store buys fabric from a supplier. B) A government agency imposes regulations on businesses. C) A mobile phone company partners with a software company to create a new app. D) Two competing restaurants merge to form one business. Show Answer Correct Answer: C) A mobile phone company partners with a software company to create a new app. 23. What is corporate social responsibility (CSR)? A) A marketing tactic to improve brand image. B) Corporate social responsibility (CSR) is the commitment of businesses to contribute to sustainable economic development while improving the quality of life of the workforce, their families, the local community, and society at large. C) A government regulation for environmental protection. D) A strategy for maximizing profits at any cost. Show Answer Correct Answer: B) Corporate social responsibility (CSR) is the commitment of businesses to contribute to sustainable economic development while improving the quality of life of the workforce, their families, the local community, and society at large. 24. ..... is the tool to achieve privatization. A) Abolishing licenses. B) Disinvestment. C) Free movement of goods and services. D) Globalisation. Show Answer Correct Answer: B) Disinvestment. 25. The full form of PESTLE is: A) Price, Economic, Structure, Trade, Law, Ethics. B) Political, Ethical, Social, Technical, Legal, Education. C) Political, Economic, Social, Technological, Legal, Environmental. D) Policy, Employment, System, Trade, Labor, Economy. Show Answer Correct Answer: C) Political, Economic, Social, Technological, Legal, Environmental. 26. The external environment of business environment is made up of two layers. True or False? A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: A) True. 27. James, a factory worker, lost his job when the company decided to move its manufacturing operations to another country. This is an example of how globalization can be a disadvantage for domestic workers due to the practice of A) Exporting. B) Nationalism. C) Offshoring. D) Environmental degradation. Show Answer Correct Answer: C) Offshoring. 28. What are the major impacts of technological advancements on Indian industries? A) Trade restrictions. B) Language barriers. C) Increased productivity. D) Reduced competition. Show Answer Correct Answer: C) Increased productivity. 29. What does the business environment include A) Only competitors and customers. B) .Only internal factors. C) Internal and external factors influencing business operations. D) Only government policies. Show Answer Correct Answer: C) Internal and external factors influencing business operations. 30. What happens to the employment level with the advancement of technology A) Employment level increases. B) Unemployment level increases. C) Fall in the level of unemployment. D) No change to the unemployment level. Show Answer Correct Answer: B) Unemployment level increases. 31. Population change can be attributed to the following EXCEPT A) Immigrant. B) Birth rate. C) Death rate. D) Inward migration. Show Answer Correct Answer: A) Immigrant. 32. Managers and organisations who fail to continuously monitor their business environments: A) Will be unable to sustain their business operations in the long term. B) Will be able to win over new markets and customers. C) Will succeed as closed systems. D) Will develop strategies that overcome the demands of their external environment. Show Answer Correct Answer: A) Will be unable to sustain their business operations in the long term. 33. What is the primary purpose of ETOP analysis? A) To evaluate the environmental factors affecting a business. B) To determine market segmentation. C) To analyze employee performance. D) To identify the internal strengths of an organization. Show Answer Correct Answer: A) To evaluate the environmental factors affecting a business. 34. The judiciary is responsible for: A) Making laws for a country. B) The implementation of laws in a country. C) The interpretation and application of the laws in a country. D) Policy making for a country. Show Answer Correct Answer: C) The interpretation and application of the laws in a country. 35. Which economic system is followed in India? A) Socialism. B) Capitalism. C) Communism. D) Mixed Economy. Show Answer Correct Answer: D) Mixed Economy. 36. Which of the following shakes the confidence among the business people to invest in the long-term projects: A) Technological improvement. B) Political instability. C) New innovation. D) Change in preference of customers. Show Answer Correct Answer: B) Political instability. 37. What are the potential benefits of being socially responsible? A) Decreased market share. B) Enhanced reputation. C) Increased operational costs. D) Lower employee satisfaction. Show Answer Correct Answer: B) Enhanced reputation. 38. Does the TOWS matrix require considering both internal and external factors for strategic planning? A) Yes. B) No. C) All the above. D) None of the above. Show Answer Correct Answer: A) Yes. 39. In case of voidable contract ..... A) Undue influence is suspected. B) No agreement. C) A valid contract can be made. D) None of the above. Show Answer Correct Answer: A) Undue influence is suspected. 40. What does the macro environment include? A) Company culture. B) Political and legal factors. C) Customers and suppliers. D) Internal resources. Show Answer Correct Answer: B) Political and legal factors. 41. What is the main disadvantage of a sole proprietorship compared to a corporation? A) More difficult taxation rules. B) Unlimted liability of the owner. C) More costly to set up. D) More disclosure requirements to inform the public. Show Answer Correct Answer: B) Unlimted liability of the owner. 42. Which one is an example of economic environment? A) Changes in technology. B) Expectation of society. C) Change in exchange rate. D) Change in government's rule and regulation. Show Answer Correct Answer: C) Change in exchange rate. 43. Environment consisting of components sucj as beliefs, traditions is come under which environment A) Social. B) Legal. C) Economic. D) Political. Show Answer Correct Answer: A) Social. 44. Which of the following is a technique used in environmental analysis? A) Inventory Management. B) Employee Appraisal. C) Budget Forecasting. D) SWOT Analysis. Show Answer Correct Answer: D) SWOT Analysis. 45. Why is setting time-bound objectives important? A) To discourage employees. B) To provide a sense of urgency. C) To avoid achievement. D) To create vagueness. Show Answer Correct Answer: B) To provide a sense of urgency. 46. The fundamental set of assumptions, values, and ways of doing things, that has been accepted by most of a company's members is called its ..... A) Rules and Regulations. B) Culture. C) Environment. D) Values. Show Answer Correct Answer: B) Culture. 47. What was the Date of announcement of Demonetization announced by our prime minister Narendra Modi. A) 8th November 2016. B) 9th october 2015. C) 10th january 2015. D) 6thDecember 2017. Show Answer Correct Answer: A) 8th November 2016. 48. Which of the following is not considered as one of the environments of business? A) Macro. B) Internal. C) Operating. D) Operations. Show Answer Correct Answer: D) Operations. 49. How do industry regulators influence the business environment? A) By setting rules and standards that businesses must follow. B) By increasing competition among businesses. C) By providing free resources to businesses. D) By preventing consumers from making complaints. Show Answer Correct Answer: A) By setting rules and standards that businesses must follow. 50. Encompass a wide variety of specific items and objects depending on the nature of the business refer to A) Human Resources. B) Physical Resources. C) Organizational Resources. D) Financial Resources. Show Answer Correct Answer: B) Physical Resources. 51. A steel manufacturing company has experienced steady growth in recent years and thus has increased its pollution levels in violation of environmental laws. Which of the following stakeholder interests have been affected? A) All of the choices. B) Pressure groups. C) Government. D) Media. Show Answer Correct Answer: A) All of the choices. 52. How does the external business environment influence a company's strategy? A) It is only relevant for large corporations. B) It has no impact on strategy. C) It can dictate market opportunities and threats. D) It only affects pricing strategies. Show Answer Correct Answer: C) It can dictate market opportunities and threats. 53. 5) After new economic policy, there is a shift from Production oriented approach to ..... approach. A) Social. B) Commercial. C) Seller. D) Market. Show Answer Correct Answer: D) Market. 54. Statement of Financial Position:Balance Sheet::Statement of Financial Performance: ..... A) Cash Flows. B) Income Statement. C) Owner's Equity. D) None of the above. Show Answer Correct Answer: B) Income Statement. 55. Macro Environment consists of A) Economic Environment. B) Political Environment. C) Social Environment. D) All of the above. Show Answer Correct Answer: D) All of the above. 56. Company images and brand equity is factor affecting business A) Externally. B) Internally. C) Government policy. D) None of the above. Show Answer Correct Answer: A) Externally. 57. Attitude of customers towards innovation, lifestyle, etc, is part of A) Social Environmentc. B) Technological Environment. C) Political Environment. D) Legal Environment. Show Answer Correct Answer: A) Social Environmentc. 58. What do logistics flows include? A) Cash flows only. B) Raw materials and finished products. C) Only work in progress. D) Only cash transactions. Show Answer Correct Answer: B) Raw materials and finished products. 59. Businesses have the most control over the ..... environment A) Micro. B) Market. C) Macro. D) None of the above. Show Answer Correct Answer: A) Micro. 60. What role does the political environment play in business? A) The political environment shapes business operations, regulations, and market conditions. B) The political environment only affects employee morale and not operations. C) The political environment is solely about international relations and trade. D) The political environment has no impact on business strategies. Show Answer Correct Answer: A) The political environment shapes business operations, regulations, and market conditions. ← 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