This quiz works best with JavaScript enabled. Home > Cbse > Class 12 > Commerce > Business Studies > Class 12 Business Studies Chapter 3 Business Environment – Quiz 26 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 12 Business Studies Chapter 3 Business Environment Quiz 26 (60 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. What role does contemporary legislation play in business operations? A) Contemporary legislation only applies to government entities. B) Contemporary legislation has no impact on business operations. C) Contemporary legislation ensures compliance, influences business practices, and establishes standards for operations. D) Contemporary legislation eliminates all business risks. Show Answer Correct Answer: C) Contemporary legislation ensures compliance, influences business practices, and establishes standards for operations. 2. What is the impact of technological advancements on a business? A) It increases efficiency and reduces costs. B) It has no effect on the business. C) It increases costs and reduces efficiency. D) It depends on the type of business. Show Answer Correct Answer: A) It increases efficiency and reduces costs. 3. Which of the following is an external environmental factor for a business? A) Interrelationships. B) Internal policies. C) Technology. D) Business objectives. Show Answer Correct Answer: C) Technology. 4. What is the first step in the business environment assessment process? A) Monitoring. B) Scanning. C) Forecasting. D) Making an assessment. Show Answer Correct Answer: B) Scanning. 5. Which of these are more representative of Price Elastic A) Fresh fruit and vegetables. B) Milk, Eggs and Bread. C) All the above. D) None of the above. Show Answer Correct Answer: A) Fresh fruit and vegetables. 6. A businesses ability to be profitable for this generation and the next, without damaging natural resources is known as: A) Sustainability. B) Hierarchy. C) Flexibility. D) Organisational design. Show Answer Correct Answer: A) Sustainability. 7. Why is it important to avoid using elevators during a fire evacuation? A) Elevators may stop working or trap occupants. B) Elevators are slower than stairs. C) Elevators cannot hold many people at once. D) None of the above. Show Answer Correct Answer: A) Elevators may stop working or trap occupants. 8. What is one of the impacts of the New Economic Policy on business? A) Decreased competition. B) Increased government regulations. C) More demanding customers. D) Less technological change. Show Answer Correct Answer: C) More demanding customers. 9. Which of the following is not a component of economic environment? A) Economic Development. B) Legislation passed by government. C) Infrastructure. D) Composition of Trade. Show Answer Correct Answer: B) Legislation passed by government. 10. According to Peter Drucker, how is business defined? A) A method of producing goods. B) A way to generate profits. C) An organization that creates and delivers customer value. D) A system of interrelated departments. Show Answer Correct Answer: C) An organization that creates and delivers customer value. 11. Reduction in number of industries reserved for public sector. A) Liberalisation. B) Privatisation. C) Globalisation. D) None of the above. Show Answer Correct Answer: B) Privatisation. 12. The agency responsible for monetary policy in India A) RBI. B) MOSPI. C) Finance Ministry. D) Parliament. Show Answer Correct Answer: A) RBI. 13. Which example fits the task environment best? A) Inflation affecting all businesses. B) Central Bank regulating commercial banks. C) Company culture among employees. D) Rainfall affecting crops. Show Answer Correct Answer: B) Central Bank regulating commercial banks. 14. Which of the following is not the component of internal business environment: A) Technological Capabilities. B) Financial Resources. C) Corporate Image. D) Market Intermediaries. Show Answer Correct Answer: D) Market Intermediaries. 15. Which of the following aspects of a business would be affected by legislation and government regulations? A) Taxation. B) The rights of employees. C) Permits and licenses. D) All of the above. Show Answer Correct Answer: D) All of the above. 16. Explain the concept of PESTEL analysis in the context of the external environment. A) PESTEL analysis is a framework used to analyze and monitor the macro-environmental factors that have an impact on an organization. B) PESTEL analysis is a type of pesticide used in agriculture. C) PESTEL analysis is a method for analyzing internal factors of an organization. D) PESTEL analysis is a tool for predicting stock market trends. Show Answer Correct Answer: A) PESTEL analysis is a framework used to analyze and monitor the macro-environmental factors that have an impact on an organization. 17. It is important to know what this group are doing and how successful they are for our own business longevity? A) Customers. B) Suppliers. C) Competitors. D) Interest Groups. Show Answer Correct Answer: C) Competitors. 18. Demonetization had direct impact on A) Social environment. B) Political environment. C) Economic environment. D) None of the above. Show Answer Correct Answer: C) Economic environment. 19. The technology that has had the most influence on globalization has been A) The internet. B) Television. C) Wireless connections. D) Inexpensive phone service. Show Answer Correct Answer: A) The internet. 20. LPG Policy has empowered the customers who has more choices and the result is fragmented market. Identify the impact of LPG policy. A) Increasing competition. B) More demanding customers. C) Rapidly changing technology. D) Market orientation. Show Answer Correct Answer: B) More demanding customers. 21. These factors are controllable by the management. A) Micro Environment. B) External Environment. C) Internal Environment. D) Macro Environment. Show Answer Correct Answer: C) Internal Environment. 22. This simply means that for the financial statements to be comparative, the application of the accounting methods, procedures, or principles must be consistent with the previous period. A) Objectivity. B) Consistency. C) Comparability. D) None of the above. Show Answer Correct Answer: B) Consistency. 23. What is the 'common market'? A) A situation where EU member states were encouraged to trade freely and to bring their economies closer together. B) A market which is supposed to be achieved through liquidating the single market. C) A market which uses the Euro currency as the legal tender. D) A market which uses the new European constitution. Show Answer Correct Answer: A) A situation where EU member states were encouraged to trade freely and to bring their economies closer together. 24. When an employee has a grievance and the grievance has not been resolved through internal procedures or trough having a middle man and an objective party needs to make the final decision A) Arbitration. B) Mediation. C) Conciliation. D) Strategic response. Show Answer Correct Answer: A) Arbitration. 25. Identify the dimension:National Digital Library of India is a pilot project initiated by the HRD ministry. It works towards developing a framework of virtual repository of learning resources with a researchers, life long learners and differently abled free of cost. A) Social. B) Economic. C) Technological. D) Technological and Social. Show Answer Correct Answer: D) Technological and Social. 26. Business environment is dynamic in that it keeps on A) Liberal. B) Rigid. C) Changing. D) Stagnant. Show Answer Correct Answer: C) Changing. 27. What company required many employees? A) Kodak. B) Youtube. C) Instagram. D) WhatsApp. Show Answer Correct Answer: A) Kodak. 28. Who owns the resources in a Capitalist economy? A) Government. B) Private Individuals. C) Both Government and Individuals. D) None of the above. Show Answer Correct Answer: B) Private Individuals. 29. Which of the following elements of a SWOT analysis are based on the business's internal environment? A) Strengths and Weaknesses. B) Opportunities and Threats. C) Profitability. D) All of the above. Show Answer Correct Answer: A) Strengths and Weaknesses. 30. Free exchange of ideas contributes to A) Fewer choices for consumers. B) Decreased competition. C) Greater business innovation. D) More instances of offshoring. Show Answer Correct Answer: C) Greater business innovation. 31. What does a business mainly do? A) Follow government rules. B) Provide goods and services to earn profit. C) Work for the environment. D) Train employees. Show Answer Correct Answer: B) Provide goods and services to earn profit. 32. PESTLE analysis includes the following factors EXCEPT: A) Technological. B) Political. C) Economic. D) Production. Show Answer Correct Answer: D) Production. 33. Which sector is primarily driven by profit and owned by individuals or shareholders? A) Governmental. B) Not-for-profit/voluntary. C) Public. D) Private. Show Answer Correct Answer: D) Private. 34. How does the increase of global business operations affect the demand for goods and services? A) It increases demand for goods and services that are produced in low-cost countries. B) It increases demand for goods and services that are produced in high-income countries. C) It increases demand for goods and services that are unique to different cultures. D) All of the above. Show Answer Correct Answer: D) All of the above. 35. The taking over of PSU's by private parties happened under ..... A) Liberalization. B) Privatization. C) Globalization. D) None of these. Show Answer Correct Answer: B) Privatization. 36. Identify one major problem faced by small scale tourism enterprises. A) Lack of interest from tourists. B) Excessive government regulations. C) Limited access to funding. D) High competition from large resorts. Show Answer Correct Answer: C) Limited access to funding. 37. Identify which of the following is not a general force environment: A) Political envt. B) Economic envt. C) Competitors envt. D) Social envt. Show Answer Correct Answer: C) Competitors envt. 38. In which market structure do firms sell differentiated products? A) Monopoly. B) Monopolistic competition. C) Oligopoly. D) Perfect competition. Show Answer Correct Answer: B) Monopolistic competition. 39. The following are effects in cultural environment EXCEPT A) Cultural convergence. B) Set of beliefs. C) Multi cultural. D) Social class. Show Answer Correct Answer: B) Set of beliefs. 40. Businesses can use globalization to their advantage by A) Creating trade barriers to other countries. B) Finding customers in other countries. C) Insourcing jobs in other countries. D) Reducing exports to other countries. Show Answer Correct Answer: B) Finding customers in other countries. 41. When should you attempt to move an injured person at the workplace? A) To clear space for others. B) To make them more comfortable. C) Immediately, regardless of the situation. D) Only if the area poses an immediate danger. Show Answer Correct Answer: D) Only if the area poses an immediate danger. 42. What is the primary focus of a micro environment analysis? A) Understanding external market forces. B) Evaluating internal company dynamics. C) Assessing global competition. D) Identifying technological innovations. Show Answer Correct Answer: B) Evaluating internal company dynamics. 43. What role do regulators play in influencing change in a business? A) They provide funding for new projects. B) They set rules and standards that businesses must follow. C) They manage day-to-day operations. D) They develop marketing strategies. Show Answer Correct Answer: B) They set rules and standards that businesses must follow. 44. Corporate governance is concerned with ..... A) Governing corporates. B) Values and ethical norms. C) Increasing profits. D) All of these. Show Answer Correct Answer: B) Values and ethical norms. 45. ..... is an external environment factor affecting business. A) Political environment. B) Customers. C) Vision. D) Employees. Show Answer Correct Answer: A) Political environment. 46. The 'Make in India' initiative was launched to: A) Focus solely on increasing agricultural production. B) Reduce the number of startups in the country. C) Promote foreign companies to invest in India's education sector. D) Encourage companies to manufacture their products in India. Show Answer Correct Answer: D) Encourage companies to manufacture their products in India. 47. The importance of business environment which helps to know in advance forthcoming threats of business A) Helps in getting first mover advantage. B) Early warning signals. C) Tapping useful resources. D) None. Show Answer Correct Answer: B) Early warning signals. 48. Business Environment is a group of ..... powers. A) Special. B) General. C) Internal. D) Special and General. Show Answer Correct Answer: D) Special and General. 49. A back up plan made in advance I saw known as A) A contingency plan. B) A back up plan. C) A floor plan. D) An ad hoc plan. Show Answer Correct Answer: A) A contingency plan. 50. Outsourcing is one of the important outcome of A) Globalisation. B) Privatisation. C) Liberalisation. D) Liberalisation all of these. Show Answer Correct Answer: A) Globalisation. 51. Manakah di antara berikut ini yang BUKAN merupakan jenis segmentasi pasar yang disebutkan? A) Demosgrafis. B) Geografis. C) Psikografis. D) Teknografis. Show Answer Correct Answer: D) Teknografis. 52. What does the term "competitive environment" refer to in the business context? A) The organization's internal structure and operations. B) The level of competition among firms in the same industry. C) The company's relationships with its suppliers and customers. D) The impact of government regulations on the organization's operations. Show Answer Correct Answer: B) The level of competition among firms in the same industry. 53. Which of the following is not an impact of economic policy changes? A) Enhanced competition. B) Market orientation. C) Necessity for change. D) Static technology. Show Answer Correct Answer: D) Static technology. 54. Which of the following is a factor of the social environment of business? A) Customs. B) Rate of Interest. C) Level of education. D) All of the above. Show Answer Correct Answer: A) Customs. 55. What is an entrepreneur? A) Someone who takes a calculated risk through starting a business. B) Someone who gives up when something goes wrong. C) Someone who doe not understand the business environment. D) Someone who does not take time to consider the risks. Show Answer Correct Answer: A) Someone who takes a calculated risk through starting a business. 56. Globalization signifies A) Integration among various economies of the word. B) Disinvestment in public sector. C) Reduced government controls and restrictions. D) Nationalization of industries. Show Answer Correct Answer: A) Integration among various economies of the word. 57. 'Sudden announcement of demonetisation by our Prime Minister" is an example of this feature of business environment A) Relativity. B) Specific and general forces. C) Inter related. D) Uncertain. Show Answer Correct Answer: D) Uncertain. 58. What is the main goal of business environment assessment? A) To increase product prices. B) To identify trends and external forces. C) To reduce employee turnover. D) To expand the business internationally. Show Answer Correct Answer: B) To identify trends and external forces. 59. What is a key characteristic of effective business objectives? A) Vagueness. B) Complexity. C) Measurability. D) None of the above. Show Answer Correct Answer: C) Measurability. 60. Which business model, when a firm sells online directly to consumers? A) B2B. B) C2C. C) B2C. D) B2G. Show Answer Correct Answer: C) B2C. ← 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