This quiz works best with JavaScript enabled. Home > Cbse > Class 12 > Commerce > Business Studies > Class 12 Business Studies Chapter 3 Business Environment – Quiz 22 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 12 Business Studies Chapter 3 Business Environment Quiz 22 (60 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Which of the following business would NOT be suited to a shopping centre location? A) A clothing retailer. B) A manufacturing business. C) A cafe. D) A fast-food restaurant. Show Answer Correct Answer: B) A manufacturing business. 2. It deals with the independent verification and examination of accounting records for the purpose of giving credibility to financial statements. A) Cost Accounting. B) Financial Accounting. C) Auditing. D) None of the above. Show Answer Correct Answer: C) Auditing. 3. How do suppliers and customers influence the micro environment of a business? A) By not influencing the operations or sales. B) By affecting its operations, sales, and overall performance. C) By having no impact on the business. D) By only affecting the macro environment. Show Answer Correct Answer: B) By affecting its operations, sales, and overall performance. 4. For the fraudulent act or willful wrong of a sub-agent who had been duly appointed, the sub-agent is A) Responsible to the agent only. B) Responsible to the principal only. C) Responsible to the agent and principal both. D) Responsible to the third party. Show Answer Correct Answer: C) Responsible to the agent and principal both. 5. What is the name for markets with only a few sellers, such as the markets for automobiles, pharmaceuticals, or oil? A) D. monopolistic competition. B) A oligopolies. C) B. monopolies. D) C. perfect competition. Show Answer Correct Answer: B) A oligopolies. 6. Which element is related to individuals and entities who provide goods and services needed by the firm? A) Competitor. B) Supplier. C) Customer. D) Pressure group. Show Answer Correct Answer: B) Supplier. 7. A PEST Analysis is used to examine the external indicators of the SWOT Analysis A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: A) True. 8. Which of the following is a militant function of trade unions? A) Promoting welfare schemes for workers. B) Organizing strikes and demonstrations against unfair practices. C) Providing educational and training programs for workers. D) Establishing cooperative societies for members. Show Answer Correct Answer: B) Organizing strikes and demonstrations against unfair practices. 9. Are suppliers weak when companies can easily substitute their products? A) Yes. B) No. C) All the above. D) None of the above. Show Answer Correct Answer: A) Yes. 10. What is the main focus of the legal environment in business? A) Government regulations. B) Employee performance. C) Customer satisfaction. D) Market competition. Show Answer Correct Answer: A) Government regulations. 11. What is the effect of a price increase on a perfectly inelastic supply? A) Supply increases. B) Supply decreases. C) Supply remains unchanged. D) Supply fluctuates. Show Answer Correct Answer: C) Supply remains unchanged. 12. Emerging customer needs would be considered a A) Political Factor. B) Economic Factor. C) Social Factor. D) Technological Factor. Show Answer Correct Answer: B) Economic Factor. 13. How can geography affect a country's ability to trade? A) Geography only affects cultural exchanges, not trade. B) Geography has no impact on trade dynamics. C) Trade is solely determined by political agreements. D) Influences access to natural resources and ports. Show Answer Correct Answer: D) Influences access to natural resources and ports. 14. How can a business influence its market environment? A) By changing economic conditions. B) Through effective marketing strategies. C) By eliminating competitors. D) By controlling government policies. Show Answer Correct Answer: B) Through effective marketing strategies. 15. PESTLE is not used in analyzing potential economic problems that may arise in small businesses that are about to established or are already established. A) TRUE. B) FALSE. C) All the above. D) None of the above. Show Answer Correct Answer: B) FALSE. 16. How can political changes create challenges for businesses? A) Political changes can create challenges for businesses by introducing uncertainty, increasing compliance costs, altering market access, and disrupting supply chains. B) Political changes always benefit businesses. C) Political changes only affect consumer behavior. D) Political changes have no impact on supply chains. Show Answer Correct Answer: A) Political changes can create challenges for businesses by introducing uncertainty, increasing compliance costs, altering market access, and disrupting supply chains. 17. What is the recommended seating position to maintain proper posture at a workstation? A) Reclining at a 45-degree angle. B) Sitting upright with feet flat on the floor. C) Leaning forward toward the screen. D) Sitting cross-legged on the chair. Show Answer Correct Answer: B) Sitting upright with feet flat on the floor. 18. Which of the following is not an advantage of the single market? A) Increased trade and investment between the EU countries. B) Huge economies of scale. C) Cost reductions. D) Goods can be imported from outside the EU without paying any tariffs. Show Answer Correct Answer: D) Goods can be imported from outside the EU without paying any tariffs. 19. Internal resources such as skilled, knowledgeable staff. A) Threat. B) Weakness. C) Opportunity. D) Strength. Show Answer Correct Answer: D) Strength. 20. Advances in production technology2. Popularity of e-banking can all be grouped under ..... A) Technological environment. B) Internal environment. C) Specific forces. D) Dynamic environment. Show Answer Correct Answer: A) Technological environment. 21. Political stability impacts the business A) Directly. B) Indirectly. C) No influence. D) None of these. Show Answer Correct Answer: A) Directly. 22. Things outside a business that managers cannot control (as it relates to SWOT) A) Weather. B) External Factors. C) Internal Factors. D) Temperature. Show Answer Correct Answer: B) External Factors. 23. In the BCG Matrix, which category represents products with high market growth and high market share? A) Question Marks. B) Stars. C) Cash Cows. D) Dogs. Show Answer Correct Answer: B) Stars. 24. The three inter-related environments that impact a business include: A) Internal, Micro, and Legislation. B) Internal, External, and Operations. C) Internal, External Operating, and Socio-cultural. D) Internal, External Operating, and External Macro. Show Answer Correct Answer: D) Internal, External Operating, and External Macro. 25. What is the proper way to use a fire extinguisher? A) Point, Activate, Spray, Sway. B) Pull, Angle, Squeeze, Stop. C) Pump, Angle, Sweep, Stabilize. D) Pull, Aim, Squeeze, Sweep. Show Answer Correct Answer: D) Pull, Aim, Squeeze, Sweep. 26. The term "business environment" refers to: A) The physical location of a business. B) All internal factors within a company. C) All external factors that can affect a business. D) The company's management structure. Show Answer Correct Answer: C) All external factors that can affect a business. 27. In a multiphase project, when are assumptions validated and risks analyzed? A) As specified in the project governance document. B) At the end of the project. C) At the end of each phase. D) At the beginning of each phase. Show Answer Correct Answer: D) At the beginning of each phase. 28. These are principles (including concepts and assumptions), which have gained international acceptance in the business world and accountancy profession. A) PAAP. B) SAAP. C) GAAP. D) None of the above. Show Answer Correct Answer: C) GAAP. 29. What is the purpose of monitoring in business environment assessment? A) To increase sales. B) To gather data on competitors. C) To track performance measures. D) To develop new products. Show Answer Correct Answer: C) To track performance measures. 30. It is a form of business organizations where owner/s are jointly and individually liable for the actions of the other owner/s. A) Incorporation. B) Corporation. C) Sole Proprietorship. D) Partnership. Show Answer Correct Answer: D) Partnership. 31. Explain the role of social media in promoting tourism businesses. A) Social media has no impact on tourism businesses. B) Tourism businesses should avoid using social media. C) Social media is only useful for personal use, not for businesses. D) Social media helps tourism businesses reach a wider audience, engage with customers, showcase services, receive feedback, and build a community. Show Answer Correct Answer: D) Social media helps tourism businesses reach a wider audience, engage with customers, showcase services, receive feedback, and build a community. 32. How can changes in the nature of target markets impact labor costs? A) Changes in specific skills may require businesses to change their purchasing and operating policies. B) Changes in target markets have no impact on labor costs. C) Changes in target markets may lead to a decrease in labor costs. D) Changes in target markets may lead to an increase in labor costs. Show Answer Correct Answer: A) Changes in specific skills may require businesses to change their purchasing and operating policies. 33. A business can create a wholly owned subsidiary by building a facility in a foreign market or by A) Finding a franchisee. B) Buying an existing firm in the market. C) Signing a licensing agreement. D) Exporting to the market. Show Answer Correct Answer: B) Buying an existing firm in the market. 34. Apa yang dimaksud dengan istilah 'value proposition'? A) Nilai unik yang ditawarkan produk kepada pelanggan. B) Strategi pemasaran yang digunakan. C) Saluran distribusi. D) Biaya produk. Show Answer Correct Answer: A) Nilai unik yang ditawarkan produk kepada pelanggan. 35. Who have a direct impact on the operations of a business and the business should maintain a positive and open relationship with them? A) Suppliers. B) Competitors. C) Interest Groups. D) Customers. Show Answer Correct Answer: D) Customers. 36. Industry associations differ from regulatory agencies in that they A) Don't have government authority. B) Have been created to protect consumers. C) Are formed for social purposes only. D) Exist to make a profit. Show Answer Correct Answer: A) Don't have government authority. 37. The factors of Business Environment are ..... A) Continuous learning, vision. B) Determining threat, physical assets. C) Meeting competition, human resources. D) Value system, marketting resources. Show Answer Correct Answer: D) Value system, marketting resources. 38. Which example best fits a B2B business model? A) Streaming service for individuals. B) Online shopping website. C) Payroll software sold to companies. D) Government tax portal. Show Answer Correct Answer: C) Payroll software sold to companies. 39. Which of the following BEST describes how a business can apply information about customer needs from the microenvironment to enhance product development? A) By evaluating competitors' strengths and weaknesses. B) By launching similar products to competitors. C) By conducting market research to tailor products to customer needs. D) By establishing global partnerships. Show Answer Correct Answer: C) By conducting market research to tailor products to customer needs. 40. What does the economic environment include? A) Cultural values and traditions. B) Technological advancements and tools. C) Economic factors like inflation, taxation policies, and national income. D) Political stability and trade policies. Show Answer Correct Answer: C) Economic factors like inflation, taxation policies, and national income. 41. How can technological advancements create new business opportunities? A) Technological advancements create new business opportunities by enabling innovation, improving efficiency, and facilitating new business models. B) Technological advancements only benefit large corporations. C) Technological advancements reduce the need for innovation. D) Technological advancements eliminate all business risks. Show Answer Correct Answer: A) Technological advancements create new business opportunities by enabling innovation, improving efficiency, and facilitating new business models. 42. It is the degree to which a society values assertiveness and feelings of material success versus concern for relationships. A) Uncertainty Avoidance. B) Time Orientation. C) Power Distance. D) Masculinity-Femininity. Show Answer Correct Answer: D) Masculinity-Femininity. 43. An agreement to sale is related to following type of goods ..... A) Disowned Goods. B) Owned Goods. C) Future Goods. D) Present Goods. Show Answer Correct Answer: C) Future Goods. 44. What is the impact of globalization on local markets? A) Higher prices for goods. B) Decreased foreign investment. C) Increased local competition. D) Limited product variety. Show Answer Correct Answer: C) Increased local competition. 45. QUEST analysis primarily focuses on: A) Streamlining supply chain processes. B) Monitoring internal business operations. C) Enhancing customer relationship management. D) Identifying environmental factors that influence strategy. Show Answer Correct Answer: D) Identifying environmental factors that influence strategy. 46. Which stakeholder group is responsible for providing financial resources to a business? A) Customers. B) Employees. C) Government. D) Financial institutions. Show Answer Correct Answer: D) Financial institutions. 47. In which year was the system of E Way Bills was introduced in India? A) 2015. B) 2017. C) 2014. D) 2018. Show Answer Correct Answer: D) 2018. 48. Can a rise in inflation rates reduce consumer purchasing power and affect sales? A) Yes. B) No. C) All the above. D) None of the above. Show Answer Correct Answer: A) Yes. 49. Global business environment refers to all the conditions in different countries that can affect how a company makes decisions about using its resources and skills. A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: A) True. 50. PESTLE analysis is used to examine the: A) External business environment. B) Economic growth rate. C) Internal structure of a company. D) Customer satisfaction level. Show Answer Correct Answer: A) External business environment. 51. Consumerism is the characteristic of which stage A) Fifth. B) Third. C) Fourth. D) None of these. Show Answer Correct Answer: A) Fifth. 52. Sugar factories are set up only at those places where sugarcane can be grown A) Legal. B) Natural. C) Political. D) Technological. Show Answer Correct Answer: B) Natural. 53. A new competitor enters the market with a disruptive business model, challenging existing industry leaders. A) Political. B) Competitive. C) All the above. D) None of the above. Show Answer Correct Answer: B) Competitive. 54. How do supply and demand affect pricing strategies? A) Supply and demand directly influence pricing strategies by determining market equilibrium and guiding price adjustments. B) Market trends are the only factor influencing pricing strategies. C) Pricing strategies are solely determined by production costs. D) Supply and demand have no impact on pricing strategies. Show Answer Correct Answer: A) Supply and demand directly influence pricing strategies by determining market equilibrium and guiding price adjustments. 55. True or false:Certain industries are more sensitive to specific environmental changes than others. A) True; some environmental factors have a greater impact on certain industries. B) True; the financial services industry is more sensitive to most environmental factors. C) False; environmental factors affect all businesses and industries the same way. D) False; industries are not affected by environmental factors. Show Answer Correct Answer: A) True; some environmental factors have a greater impact on certain industries. 56. Changes in rural government is an aspect of ..... Environment A) Political. B) Technological. C) Economic. D) None of the above. Show Answer Correct Answer: A) Political. 57. Should a business with high operational costs ignore economic downturns? A) Yes. B) No. C) All the above. D) None of the above. Show Answer Correct Answer: B) No. 58. Macro environment is controlled by A) Business. B) None. C) Government. D) International relations. Show Answer Correct Answer: B) None. 59. A multinational project is facing challenges due to differing labor laws in the countries involved. How should the project manager handle this situation? A) Apply the labor laws of the project's home country to all countries involved. B) Develop a compliance management plan to address the labor laws of each country. C) Ignore the labor laws and focus on project deliverables. D) Escalate the issue to the project sponsor and seek guidance. Show Answer Correct Answer: B) Develop a compliance management plan to address the labor laws of each country. 60. What does a technological environment include? A) Only innovative practices and products. B) Only technological equipment. C) All of the above. D) Only a specific market. Show Answer Correct Answer: C) All of the above. ← 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