This quiz works best with JavaScript enabled. Home > Cbse > Class 12 > Commerce > Business Studies > Class 12 Business Studies Chapter 3 Business Environment – Quiz 28 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 12 Business Studies Chapter 3 Business Environment Quiz 28 (60 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Why do organisations set ethical objectives? A) All of the choices. B) To build customer loyalty. C) To create a positive image and work environment. D) To reduce the risk of legal damages. Show Answer Correct Answer: A) All of the choices. 2. What is consent under the Indian Contract Act, 1872? A) When acceptance of proposal is made by the party to whom the proposal is made. B) When the acceptance is made by another person other than the person to whom the proposal is made. C) When they agree upon the same thing in the same sense. D) When both the parties agree upon a thing in the way it is understood by them. Show Answer Correct Answer: C) When they agree upon the same thing in the same sense. 3. Important stakeholders in micro environment A) Customers. B) Suppliers. C) Employees. D) All of these. Show Answer Correct Answer: D) All of these. 4. Identify the social factors that can influence a business. A) Cultural norms, demographics, lifestyle changes, education levels, social trends, consumer behavior. B) Technological advancements. C) Environmental regulations. D) Economic policies. Show Answer Correct Answer: A) Cultural norms, demographics, lifestyle changes, education levels, social trends, consumer behavior. 5. Which of the following best defines the business environment? A) The sum total of internal factors only. B) The external factors affecting business activities only. C) Both internal and external factors influencing business operations. D) Government regulations affecting businesses. Show Answer Correct Answer: C) Both internal and external factors influencing business operations. 6. Is the following statement true or false? The Agile Manifesto states, "We value individuals and interaction over process and tools?" A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: A) True. 7. Introducing new employment regulations protecting disabled workers would be a ..... A) Economic change. B) Political change. C) Environmental change. D) Legal change. Show Answer Correct Answer: D) Legal change. 8. Which of the following is a true statement about the social factor of lifestyle and fashion trends: A) They change quite frequently. B) They do not affect customer needs. C) They influence retail businesses only. D) They are more important than economic trends. Show Answer Correct Answer: A) They change quite frequently. 9. A local fire station and police-station are seen in this type of system A) Socialism. B) Capitalism. C) All the above. D) None of the above. Show Answer Correct Answer: A) Socialism. 10. Which of the following is a true statement about globalization and political barriers: A) The world is much more politically open than it used to be. B) Many countries are sealed off from the rest of the world due to communism. C) The United States has very few trading partnerships with other countries. D) In the future, there will be more political barriers between countries. Show Answer Correct Answer: A) The world is much more politically open than it used to be. 11. What is a demerit of LPG policies? A) Improvement in rural economy. B) Reduction in foreign investment. C) Increase in agricultural growth. D) Urban concentration of growth. Show Answer Correct Answer: D) Urban concentration of growth. 12. Best method for reducing regional imbalances A) Incentives for people. B) Concentrating at single place. C) Cluster development. D) Large scale industries. Show Answer Correct Answer: C) Cluster development. 13. During a recession, which of the following is likely to occur? A) An increase in real wages. B) An increase in production. C) And increase in the GDP growth rate. D) An increase in the unemployment rate. Show Answer Correct Answer: D) An increase in the unemployment rate. 14. Why is ethical behavior important in business? A) Ethical behavior is important in business because it builds trust, enhances reputation, ensures compliance, and contributes to long-term success. B) Ethical behavior is irrelevant to customer satisfaction. C) Ethical behavior can be ignored if profits are high. D) Ethical behavior is only important for large corporations. Show Answer Correct Answer: A) Ethical behavior is important in business because it builds trust, enhances reputation, ensures compliance, and contributes to long-term success. 15. Products that have low market share but operate in high-growth markets are called: A) Cash Cows. B) Stars. C) Question Marks. D) Dogs. Show Answer Correct Answer: C) Question Marks. 16. Integration of world economy by removing trade barriers is called: A) Liberalisation. B) Privatisation. C) Globalisation. D) All of the above. Show Answer Correct Answer: C) Globalisation. 17. What is a depreciation? A) Accounting expression for the act of selling an asset. B) An income-decreasing expense that does not affect cash-flows. C) A cash outflow. D) A side calculation done by auditors. Show Answer Correct Answer: B) An income-decreasing expense that does not affect cash-flows. 18. Tool to evaluate MARKET Environment A) SWOT. B) PESTLE. C) Porter's 5 Forces. D) None of the above. Show Answer Correct Answer: C) Porter's 5 Forces. 19. If the government increases corporation tax ..... A) Businesses have less profit to reinvest. B) Businesses have more profit to reinvest. C) All the above. D) None of the above. Show Answer Correct Answer: A) Businesses have less profit to reinvest. 20. How does competition influence the business environment? A) Competition leads to higher prices for consumers. B) Competition eliminates the need for customer service. C) Competition influences to foster innovation. D) Competition reduces the variety of products available. Show Answer Correct Answer: C) Competition influences to foster innovation. 21. ABC Corporation bought a new conveyor belt. What type of good is the conveyor belt? A) D. consumer good. B) A capital good. C) C. public good. D) B. natural good. Show Answer Correct Answer: B) A capital good. 22. If a student purchases a laptop to use for homework assignments, then the computer is considered what type of good? A) B. consumer. B) A capital. C) D. ultimate. D) C. industrial. Show Answer Correct Answer: A) B. consumer. 23. It is the degree to which a society accepts or rejects the unequal distribution of power among people in organizations and the institutions of society. A) Uncertainty Avoidance. B) Masculinity-Femininity. C) Power Distance. D) Individualism-Collectivism. Show Answer Correct Answer: C) Power Distance. 24. Cultural changes are in the ..... environment A) Micro. B) Market. C) Macro. D) None of the above. Show Answer Correct Answer: C) Macro. 25. Ali is studying the role of international organizations in developing countries. He wants to know what the World Bank focuses on in these regions. Can you help him? A) Cultural exchange programs. B) Space exploration. C) Military development. D) Infrastructure projects. Show Answer Correct Answer: D) Infrastructure projects. 26. What are the advantages of Public LTD company over a PVT LTD company in Pakistan? A) It has small number of share holders. B) It has unlimited liability. C) It can trade it's share on PSX. D) It has no minimum capital requirement. Show Answer Correct Answer: C) It can trade it's share on PSX. 27. An example of a business that frequently participates in strategic alliances is A) Starbucks. B) Pick n pay. C) Woolworths. D) Krispy Kreme. Show Answer Correct Answer: D) Krispy Kreme. 28. It is ideal to use the PESTLE analysis only during if you have encountered a problem in your own business. A) TRUE. B) FALSE. C) All the above. D) None of the above. Show Answer Correct Answer: B) FALSE. 29. What is the primary goal of corporate social responsibility (CSR)? A) Contributing to societal well-being. B) Increasing market share. C) Reducing operational costs. D) Maximizing shareholder profits. Show Answer Correct Answer: A) Contributing to societal well-being. 30. In order to stimulate the growth of the economy, the government, through its central bank, would: A) Increase interest rates, raise bank reserves and sell government securities. B) Decrease interest rates, reduce bank reserves and buy government securities. C) Increase the cash reserve ratios commercial banks have to keep on deposit. D) Decrease the discount rate offered to commercial banks. Show Answer Correct Answer: B) Decrease interest rates, reduce bank reserves and buy government securities. 31. All Care pays for all of its expenses this fiscal year. The amount left over after all expenses have been paid is called what? A) A capital. B) D. profit. C) C. loss. D) B. debt. Show Answer Correct Answer: B) D. profit. 32. What is the significance of understanding the business environment? A) It helps firms spot and seize market opportunities. B) It complicates business operations. C) It has no relevance to business success. D) It only benefits large corporations. Show Answer Correct Answer: A) It helps firms spot and seize market opportunities. 33. A customer is an individual or business that purchases products. A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: A) True. 34. What is a key aspect of the cultural environment? A) Government regulations. B) Consumer behavior and preferences. C) Economic growth rates. D) Legal compliance. Show Answer Correct Answer: B) Consumer behavior and preferences. 35. What is the impact of technological advancements on tourism? A) Technological advancements have made travel more expensive and complicated. B) Technological advancements have made tourism more accessible, efficient, and personalized. C) Technological advancements have no effect on the tourism industry. D) Technological advancements have decreased the number of tourists. Show Answer Correct Answer: B) Technological advancements have made tourism more accessible, efficient, and personalized. 36. What is the primary purpose of conducting a SWOT analysis? A) To evaluate internal strengths and weaknesses. B) To analyze market trends. C) To assess financial performance. D) To identify customer preferences. Show Answer Correct Answer: A) To evaluate internal strengths and weaknesses. 37. How can businesses adapt to changes in the business environment? A) Businesses can adapt by reducing their workforce and cutting costs. B) Businesses can adapt by ignoring customer feedback and maintaining the status quo. C) Businesses can adapt by focusing solely on traditional marketing methods. D) Businesses can adapt by analyzing the market, leveraging technology, innovating, being flexible, and engaging with customers. Show Answer Correct Answer: D) Businesses can adapt by analyzing the market, leveraging technology, innovating, being flexible, and engaging with customers. 38. The business environment is static in nature. A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: B) False. 39. Identify the features in corporate culture. A) How the organization conducts its business, treats its employees, customers, and wider the community. B) How commited employees are towards collective objectives. C) How power and information flow through its hierarchy. D) The extent to which freedom is allowed in decision making, developing new ideas, and personal expression. E) All of the answers above. Show Answer Correct Answer: E) All of the answers above. 40. What is the impact of competition on a business? A) It always increases profits. B) It only affects large companies. C) It has no effect. D) It can lower profits. Show Answer Correct Answer: D) It can lower profits. 41. The Basic Conditions of Employment Act is an example of A) Contemporary legislation. B) Globalisation. C) Employee protection. D) Employer insurance. Show Answer Correct Answer: A) Contemporary legislation. 42. What is another name for a slogan? A) Graphics. B) Brand. C) Logo. D) Catchphrase. Show Answer Correct Answer: D) Catchphrase. 43. Which of the following is an example of a general force in the business environment? A) A rise in interest rates. B) A new competitor entering the market. C) Changes in consumer preferences. D) Government regulations. Show Answer Correct Answer: D) Government regulations. 44. During a class discussion, Cindy asked, "Which country holds the largest share in the World Bank?" A) United States. B) United Kingdom. C) France. D) Germany. Show Answer Correct Answer: A) United States. 45. Why is understanding the demographic environment important for a business? A) It helps determine company goals. B) It guides legal compliance. C) It influences product demand and marketing strategies. D) It controls internal company policies. Show Answer Correct Answer: C) It influences product demand and marketing strategies. 46. When the organisation provides proper medical facility to the staff members is responsibility towards A) Shareholders. B) Community. C) Employees. D) Government. Show Answer Correct Answer: C) Employees. 47. Technique used by Enterpreneur to generate new ideas and forecasts by doing mental excercise ..... A) Start ups. B) Brain Storming. C) Survey Method. D) Input-output Method. Show Answer Correct Answer: B) Brain Storming. 48. Relaxation or removal of strict rules and regulations is a part of A) Liberalisation. B) Globalization. C) Privatization. D) All of the above. Show Answer Correct Answer: A) Liberalisation. 49. Which external factor would most likely be analysed under the 'L' in PESTLE? A) Labour laws. B) Language barriers. C) Logistics challenges. D) Leadership styles. Show Answer Correct Answer: A) Labour laws. 50. SWOT analysis stands for: A) Strategic, Workable, Operational, Tactical. B) Success, Weakness, Outlook, Trends. C) Strengths, Weaknesses, Opportunities, Threats. D) System, Workflow, Optimization, Technology. Show Answer Correct Answer: C) Strengths, Weaknesses, Opportunities, Threats. 51. Question 6:Which of the following best describes 'stakeholders' in the context of the task environment? A) Legal institutions governing business practices. B) Employees within the organization. C) Groups that compete for market share. D) Individuals or groups that have an interest in the outcomes of a company's actions. Show Answer Correct Answer: D) Individuals or groups that have an interest in the outcomes of a company's actions. 52. What is the significance of the internal business environment? A) It is beyond the control of the organization. B) It is only relevant for large companies. C) It directly influences operations and performance. D) It includes external market trends. Show Answer Correct Answer: C) It directly influences operations and performance. 53. The Scientific Management approach argues that: A) Management should provide detailed instructions, supervision of performance & cooperation with employees to ensure methods are followed. B) People are lazy by nature and need to be forced to complete the work or tasks they have been assigned. C) Social groups and leadership play a very important role in ensuring greater cohesion and productivity in an organisation. D) All of the above. Show Answer Correct Answer: A) Management should provide detailed instructions, supervision of performance & cooperation with employees to ensure methods are followed. 54. Demonetization is an example of ..... environment A) Social. B) Political. C) Legal. D) Economic. Show Answer Correct Answer: D) Economic. 55. Once an offer has been terminated, it cannot be accepted A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: A) True. 56. Apa pentingnya menganalisis masalah pasar? A) Untuk mengabaikan persaingan. B) Untuk mengidentifikasi perubahan pelanggan. C) Untuk fokus pada masalah internal. D) Untuk menciptakan kebingungan. Show Answer Correct Answer: B) Untuk mengidentifikasi perubahan pelanggan. 57. Which of the following is NOT a benefit of global business operations? A) Increased access to new markets and customers. B) Reduced costs due to economies of scale. C) Improved access to new technologies and resources. D) Increased competition. Show Answer Correct Answer: D) Increased competition. 58. With the introduction of mineral water bottle in India, Bisleri was able to capture thebig market share in India. Which importance of Business Environment is highlighted here. A) Helps in Policy Making. B) Identifiying threat and getting warning signals. C) Helps in tapping resoures. D) Help to identify opportunitites and getting first mover advantage. Show Answer Correct Answer: D) Help to identify opportunitites and getting first mover advantage. 59. How are prices determined in a capitalist economy? A) By the government. B) By the producers. C) By the forces of demand and supply. D) By the consumers. Show Answer Correct Answer: C) By the forces of demand and supply. 60. Which macro environmental factors influence how a business operates, what it provides, the price of the product and/or service? A) Legal Factors. B) Economic Factors. C) Socio-Cultural Factors. D) Environmental Factors. Show Answer Correct Answer: C) Socio-Cultural Factors. ← 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