This quiz works best with JavaScript enabled. Home > Cbse > Class 12 > Commerce > Business Studies > Class 12 Business Studies Chapter 3 Business Environment – Quiz 27 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 12 Business Studies Chapter 3 Business Environment Quiz 27 (60 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Which economic system promotes competition? A) Communism. B) Capitalism. C) Socialism. D) None of the above. Show Answer Correct Answer: B) Capitalism. 2. What are the two components of the external business environment? A) Internal and External. B) Microenvironment and Macroenvironment. C) Suppliers and Competitors. D) SWOT Analysis. Show Answer Correct Answer: B) Microenvironment and Macroenvironment. 3. Which of the following skills does the GBE module help develop? A) Marketing campaign creation. B) Research, critical analysis, and communication. C) Product assembly. D) Accounting and bookkeeping. Show Answer Correct Answer: B) Research, critical analysis, and communication. 4. The success of business depends on adapting itself to the environment within which it functions? A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: A) True. 5. What is the purpose of public debt? A) To increase personal wealth. B) To finance government projects. C) To reduce taxes. D) To limit spending. Show Answer Correct Answer: B) To finance government projects. 6. How can technological advancements impact the business environment? A) They can lead to increased operational efficiency. B) They are irrelevant in traditional industries. C) They only benefit large corporations. D) They have no effect on consumer preferences. Show Answer Correct Answer: A) They can lead to increased operational efficiency. 7. Which sector of the economy is responsible for providing essential services such as healthcare, education, and policing? A) Private Sector. B) Primary Sector. C) Secondary Sector. D) Public Sector. Show Answer Correct Answer: D) Public Sector. 8. How do labor laws influence business practices? A) Labor laws are optional guidelines for businesses. B) Labor laws influence business practices by establishing mandatory standards for employee treatment and workplace conditions. C) Labor laws only apply to large corporations. D) Labor laws have no impact on employee wages. Show Answer Correct Answer: B) Labor laws influence business practices by establishing mandatory standards for employee treatment and workplace conditions. 9. What is one of the benefits of understanding the business environment? A) Limiting growth. B) Ignoring market trends. C) Identifying opportunities and threats. D) Reducing competition. Show Answer Correct Answer: C) Identifying opportunities and threats. 10. Change in sensex and Nifty during election is part of A) Economic Environment. B) Social Environment. C) Political Environment. D) Legal Environment. Show Answer Correct Answer: C) Political Environment. 11. Growing demand for wellness clinics demonstrates which feature? A) Dynamic nature. B) Interrelatedness. C) Relativity. D) Totality of external forces. Show Answer Correct Answer: B) Interrelatedness. 12. How does the diversity of India's population impact businesses? A) It simplifies marketing strategies due to homogenous preferences. B) It necessitates tailored products and marketing approaches for different segments. C) It reduces the need for market research. D) It makes understanding consumer behavior unnecessary. Show Answer Correct Answer: B) It necessitates tailored products and marketing approaches for different segments. 13. When Sri Lanka exports more tea to foreign countries, it shows the influence of: A) Technological environment. B) Legal environment. C) Internal environment. D) Global environment. Show Answer Correct Answer: D) Global environment. 14. Aiden noticed that his local supermarket now offers exotic fruits and international snacks that were not available a few years ago. How has globalization affected consumers like Aiden? A) It has made them more closed-minded toward other cultures and ethnicities. B) It has helped them to save on taxes. C) It has increased competition among them. D) It has given them a bigger and better variety of products to choose from. Show Answer Correct Answer: D) It has given them a bigger and better variety of products to choose from. 15. What is the primary purpose of an Emergency Action Plan (EAP)? A) To ensure employees know their work schedules. B) To detail the responsibilities of business managers. C) To define the organizational hierarchy. D) To outline procedures for responding to workplace emergencies. Show Answer Correct Answer: D) To outline procedures for responding to workplace emergencies. 16. The processing and storing of data is known as A) VAT. B) Information management. C) Competition. D) Malware. Show Answer Correct Answer: B) Information management. 17. Businesses are affected by social factors in the external environment because A) A business cannot survive without social networking. B) Customers no longer value quality. C) Every business creates consumer products. D) Customer needs are affected by these factors as well. Show Answer Correct Answer: D) Customer needs are affected by these factors as well. 18. Which of the following is an example of a voluntary / charity organisation? A) Charity donation website. B) Local council. C) Tesco. D) NHS. Show Answer Correct Answer: A) Charity donation website. 19. What does a company's cultural environment include? A) Only the company's internal culture. B) Only the culture of the country where the company is located. C) Both the culture of the country where the company is located and the company's internal culture. D) Only the culture of the countries where the company's customers are located. Show Answer Correct Answer: C) Both the culture of the country where the company is located and the company's internal culture. 20. In Malaysia, the Superior Courts are made up of the: A) High Court of Malaya and the High Court of Sabah and Sarawak. B) High Court of Sabah and Sarawak. C) Sessions Courts and the Magistrates' Courts. D) High Court of Malaya and the Sessions Courts. Show Answer Correct Answer: A) High Court of Malaya and the High Court of Sabah and Sarawak. 21. Given the variety of management perspectives, how should managers determine their approach to managing an organisation? A) Select the simplest perspective to implement and stay focused for effectiveness. B) Allow employees to determine the appropriate perspective, and delegate as many tasks as possible. C) Rely on recent management perspectives and avoid those that are obsolete. D) Recognise the situational context and draw from any or all perspectives. Show Answer Correct Answer: D) Recognise the situational context and draw from any or all perspectives. 22. What is the difference between a shareholder and a debtholder? A) Shareholders are the owners of a company whereas debtholders own debt issued by a company. B) Shareholders are not different from debtholders as both hold stakes in a company. C) Shareholders provide money when starting a company whereas debtholders supply funds during its course of business. D) Shareholders have less rights than debtholders who have the actual control over a company. Show Answer Correct Answer: A) Shareholders are the owners of a company whereas debtholders own debt issued by a company. 23. An agreement to sale is related to ..... A) Executed contract. B) Valid Contract. C) Voidable Contract. D) Executory Contract. Show Answer Correct Answer: D) Executory Contract. 24. The jeans industry would fall into what type of market structure? ( jeans are similar but there are some differences in the product) A) Perfect competition. B) Monopolistic competition. C) Oligopoly. D) Monopoly. Show Answer Correct Answer: B) Monopolistic competition. 25. The emphasis of the Classical School of management theories is on: A) Understanding human behaviour in the organisation. B) Understanding organization as a system that transforms inputs into outputs. C) Managing workers and organisations efficiently. D) Managing people within the context of the internal and external environments. Show Answer Correct Answer: C) Managing workers and organisations efficiently. 26. What is a strength in a SWOT analysis? A) A negative point. B) A market opportunity. C) A positive force. D) An external threat. Show Answer Correct Answer: C) A positive force. 27. Which of the following is not ethical practice? A) Prompt payment of taxes by business. B) Sell products with correct measurement. C) Providing fair wages to workers. D) Black marketing. Show Answer Correct Answer: D) Black marketing. 28. The new industrial policy was formulated in, A) 1991. B) 1951. C) 1947. D) Jab Modiji paida hue they. Show Answer Correct Answer: A) 1991. 29. Avery's company is considering expanding its operations internationally. Globalization can be an advantage for businesses like Avery's because it A) Can help them to cut costs for certain resources. B) Increases direct competition. C) Can contribute to a phenomenon called brain drain. D) Inhibits the ideas of other businesses. Show Answer Correct Answer: A) Can help them to cut costs for certain resources. 30. Can political instability in a region discourage foreign investments? A) Yes. B) No. C) All the above. D) None of the above. Show Answer Correct Answer: A) Yes. 31. Which of the following are External factors in the Business Environment of an organisation:- A) Employees,. B) Labour unions. C) Value systems. D) None of the above. Show Answer Correct Answer: D) None of the above. 32. What are the main components of the business environment? A) Employee satisfaction and retention. B) Market trends and consumer preferences. C) The main components of the business environment are internal factors (like organizational culture and resources) and external factors (such as economic, social, technological, legal, and political influences). D) Branding and advertising strategies. Show Answer Correct Answer: C) The main components of the business environment are internal factors (like organizational culture and resources) and external factors (such as economic, social, technological, legal, and political influences). 33. Which area of sustainability is being referred to?Use refillable ink cartridge's in the office printer A) Social. B) Environmental. C) Economic. D) None of the above. Show Answer Correct Answer: B) Environmental. 34. Which of the following is NOT a government objective A) Controlling inflation. B) Increasing unemployment rate. C) Controlling balance of payments. D) Increasing GDP. Show Answer Correct Answer: B) Increasing unemployment rate. 35. Determining organisation short term objectives and long term objectives are part of management ..... duties A) Planning. B) Leading. C) Staffing. D) Forecasting. Show Answer Correct Answer: D) Forecasting. 36. Which part of the internal environment refers to the shared values, beliefs, expectations, attitudes and behaviours of the people in a business? A) Organisational structure. B) Employees. C) Organisational culture. D) Owners/Managers. Show Answer Correct Answer: C) Organisational culture. 37. Nowadays the market is flooded with better quality of home appliances of foreign origin. The result in fall in the revenue of local companies as their products are much inferior and are also costlier so they are in less demand in the market.Which dimension of business environment can be seen here affecting the local companies' revenue? A) Social. B) Political. C) Economic. D) Technological. Show Answer Correct Answer: D) Technological. 38. How do political factors impact the tourism industry? A) Diplomatic relations do not play a role in tourism. B) Political factors can impact the tourism industry through changes in government policies, regulations, stability, and diplomatic relations. C) Tourism industry is not affected by changes in government policies. D) Political factors have no impact on the tourism industry. Show Answer Correct Answer: B) Political factors can impact the tourism industry through changes in government policies, regulations, stability, and diplomatic relations. 39. Manakah di antara berikut ini yang merupakan tren yang dapat mempengaruhi model bisnis? A) Peristiwa acak. B) Preferensi pribadi. C) Data historis. D) Perkembangan teknologi. Show Answer Correct Answer: D) Perkembangan teknologi. 40. Which element is related to government affairs and laws or regulations? A) Legal. B) Economic. C) Political. D) Sociocultural. Show Answer Correct Answer: C) Political. 41. The Corona Virus pandemic has led to many people earning less money than before. This challenge takes place in the ..... A) Macro environment. B) Market environment. C) Micro environment. D) None of the above. Show Answer Correct Answer: A) Macro environment. 42. What do service businesses sell? A) A raw goods and services. B) B. retail goods and services. C) C. intangible goods and services. D) D. wholesale goods and services. Show Answer Correct Answer: C) C. intangible goods and services. 43. True or FalseTaking someone else's work and rephrasing it then submitting it as your own work would be considered plagiarism. A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: A) True. 44. In which year WTO was formulated A) 2005. B) 1995. C) 1988. D) 1991. Show Answer Correct Answer: B) 1995. 45. When people from one country/region eat and dress differently from people in another country/region, it is due to differences in A) Political climate. B) Infrastructure. C) Nationalism. D) Culture. Show Answer Correct Answer: D) Culture. 46. A company has a strong brand name, this would be a(n) A) Threat. B) Weakness. C) Strength. D) Opportunity. Show Answer Correct Answer: C) Strength. 47. Which of the following are all examples of leakages from the circular flow of income model? A) Expenditure, savings, taxation. B) Savings, taxation, imports. C) Exports, savings, investment. D) Exports, taxation, investment. Show Answer Correct Answer: B) Savings, taxation, imports. 48. Is adopting new technologies unnecessary for a business to remain competitive in a tech-driven market? A) Yes. B) No. C) All the above. D) None of the above. Show Answer Correct Answer: B) No. 49. What are some benefits of understanding your marketing environment? A) All of the above. B) Aiding you in assessing current trends. C) Assisting you in understanding the company's competitors and the market. D) Helping you determine future marketing plans. Show Answer Correct Answer: A) All of the above. 50. Do favorable exchange rates create opportunities for businesses engaging in international trade? A) Yes. B) No. C) All the above. D) None of the above. Show Answer Correct Answer: A) Yes. 51. Fundamental duties are given in A) Article 31 A. B) Article 41 A. C) Article 21 A. D) Article 51 A. Show Answer Correct Answer: D) Article 51 A. 52. What does the political environment of business refer to? A) The influence of government policies and political stability. B) Only the economic factors affecting business. C) The social aspects of the business environment. D) The technological advancements in the industry. Show Answer Correct Answer: A) The influence of government policies and political stability. 53. The socialization process involved the following EXCEPT A) Changing roles of family members. B) Changing composition of families. C) Growth of nuclear and cellular families. D) Greater diversity of society. Show Answer Correct Answer: D) Greater diversity of society. 54. Governmental agencies, laws and pressure groups are elements of A) Natural environment. B) Cultural environment. C) Demographic environment. D) Legal environment. Show Answer Correct Answer: D) Legal environment. 55. Ronald is worried about adjusting in his new company. He is especially concerned about his ability to cope with the 'deeper culture'. What aspects of culture should Ronald look out for so that he is better able to understand the deeper culture of the new company? A) Workplace ambiance and dress codes. B) Company systems, policies and processes. C) Shared values and beliefs as well as traditions. D) Organisational structures and formal reporting relationships. Show Answer Correct Answer: C) Shared values and beliefs as well as traditions. 56. What does the business environment encompass? A) Only external factors. B) Only internal factors. C) Both internal and external factors. D) None of the above. Show Answer Correct Answer: C) Both internal and external factors. 57. It refers to an individual's ability to favorably receive and adjust to an unfamiliar way of doing things. A) Culture Intelligence. B) Cultural Intelligence. C) Culture Different. D) Cultural Difference. Show Answer Correct Answer: B) Cultural Intelligence. 58. A PEST Analysis examines which two external SWOT components A) Strengths & Threats. B) Opportunity & Weakness. C) Strengths & Weakness. D) Opportunity & Threats. Show Answer Correct Answer: D) Opportunity & Threats. 59. When the government raises taxes, what does it take out of circulation? A) Credit. B) Jobs. C) People. D) Money. Show Answer Correct Answer: D) Money. 60. Foreign Investment includes ..... A) Foreign Direct Investment. B) Portfolio Investment. C) Both of the above. D) None of the above. Show Answer Correct Answer: C) Both 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