This quiz works best with JavaScript enabled. Home > Cbse > Class 12 > Commerce > Business Studies > Class 12 Business Studies Chapter 3 Business Environment – Quiz 30 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 12 Business Studies Chapter 3 Business Environment Quiz 30 (60 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Business environment consists of various forces such as social, political, legal and technological conditions which have impact on all business enterprises. Identify the forces being discussed here: A) Dynamic Forces. B) Specific Forces. C) External Forces. D) General Forces. Show Answer Correct Answer: D) General Forces. 2. What is the primary focus of the micro-environment? A) External market conditions. B) Regulatory compliance. C) Internal business operations. D) Global economic trends. Show Answer Correct Answer: C) Internal business operations. 3. 2) Identify out of the LPG, which one is highlighted:Lifting of unnecessary controls over the firms. A) Liberlization. B) Privatization. C) Globalization. D) None. Show Answer Correct Answer: A) Liberlization. 4. In a SWOT analysis, which factor is considered a business opportunity? A) A legal dispute within the company. B) High employee turnover. C) A competitor going out of business. D) Declining customer interest in a product. Show Answer Correct Answer: C) A competitor going out of business. 5. Which of the following headings does not highlight the importance of business environment? A) Coping with rapid changes. B) Tapping useful resources. C) Promoting innovative ideas. D) Improving performance. Show Answer Correct Answer: C) Promoting innovative ideas. 6. Can a business with limited technical expertise improve its operations by outsourcing to tech specialists? A) Yes. B) No. C) All the above. D) None of the above. Show Answer Correct Answer: A) Yes. 7. P for the PESTLE mnemonic stands for A) Political. B) Principal. C) Phenomenon. D) None of the above. Show Answer Correct Answer: A) Political. 8. The Brooks Company produces sneakers and studies trends in the marketplace to price their sneakers. The Brooks Company supplied as many sneakers as consumers demanded to create which market condition? A) C. shortage. B) D. surplus. C) B. rationing. D) A equilibrium. Show Answer Correct Answer: D) A equilibrium. 9. Why should a business know its target demographic? A) To reduce prices. B) To understand customer needs. C) To stop advertising. D) To sell to everyone. Show Answer Correct Answer: B) To understand customer needs. 10. Which of the following is a component of the internal business environment? A) Company culture. B) Political stability. C) Economic conditions. D) Technological advancements. Show Answer Correct Answer: A) Company culture. 11. What is a characteristic of the micro environment? A) It is uncontrollable. B) It is only about competition. C) It includes government policies. D) It consists of direct business factors. Show Answer Correct Answer: D) It consists of direct business factors. 12. When did the government of India make an announcement regarding demonetisation of ₹ 500 and ₹ 1, 000 currency notes? A) November 8, 2016. B) November 5, 2016. C) November 9, 2016. D) November 7, 2016. Show Answer Correct Answer: A) November 8, 2016. 13. Which is the prominent Sector for Make In India? A) Automobiles. B) IT and BPM. C) Railways. D) All of the above. Show Answer Correct Answer: D) All of the above. 14. A small business is defined as a business employing fewer than howmany people? A) 1, 000. B) 500. C) 1, 500. D) 750. Show Answer Correct Answer: B) 500. 15. When two businesses willingly combine to create a new business, this is known as: A) A merger. B) A takeover. C) An alliance. D) An acquisition. Show Answer Correct Answer: A) A merger. 16. What are stakeholders in a business? A) Government agencies only. B) Customers only. C) Employees only. D) Groups or organizations with a vested interest in a business. Show Answer Correct Answer: D) Groups or organizations with a vested interest in a business. 17. What is the significance of the legal environment for businesses? A) The legal environment only affects large corporations. B) The legal environment is irrelevant to business success. C) Businesses can ignore legal regulations without consequences. D) The legal environment is significant for businesses as it dictates compliance, risk management, and operational guidelines. Show Answer Correct Answer: D) The legal environment is significant for businesses as it dictates compliance, risk management, and operational guidelines. 18. In ETOP analysis, an opportunity is best described as: A) A challenge the company cannot control. B) A favorable external condition that can be leveraged. C) A weakness within the company's structure. D) A potential threat from competitors. Show Answer Correct Answer: B) A favorable external condition that can be leveraged. 19. North korea comes under? A) Mixed economy. B) Planned economy. C) Market economy. D) None of the above. Show Answer Correct Answer: B) Planned economy. 20. Organizational structure means: A) How the business divides its departments and manages them. B) How the business organizes sales. C) How the business organizes its profit and work. D) None of the above. Show Answer Correct Answer: A) How the business divides its departments and manages them. 21. An organisation that sells shares on the stock exchange is a what? A) Sole Trader. B) Public Limited Company. C) Partnership. D) Private Limited Company. Show Answer Correct Answer: B) Public Limited Company. 22. Which of the following is an example of the external business environment? A) Customer preferences. B) Organizational structure. C) Employee motivation. D) Company's mission statement. Show Answer Correct Answer: A) Customer preferences. 23. A business decides against opening a store in the next town because its research shows the location will be unprofitable. What form of risk management is this? A) B. reduction. B) D. transfer. C) C. retention. D) A avoidance. Show Answer Correct Answer: D) A avoidance. 24. How does inflation impact businesses in the economic environment? A) Increases purchasing power. B) Decreases interest rates. C) Raises the cost of goods and services. D) Promotes economic stability. Show Answer Correct Answer: C) Raises the cost of goods and services. 25. Economic factors can affect a business's operations by A) Increasing or decreasing costs. B) Eliminating the competition. C) Creating new legislation. D) Transforming family roles. Show Answer Correct Answer: A) Increasing or decreasing costs. 26. Which of the following is not a component of demographic environment? A) Gender. B) Economic policy. C) Age. D) Occupation. Show Answer Correct Answer: B) Economic policy. 27. The level of Management that makes strategic decisions A) Lower. B) Middle. C) Top. D) None of the above. Show Answer Correct Answer: C) Top. 28. The Board of Directors is/are the: A) Individuals who have legal property rights and control of a business. B) Governing body elected by shareholders and are responsible for overseeing he general management of the company. C) Individuals who are employed by the company for their skills, knowledge and expertise. D) Organisations or individuals who pay money to acquire an organisation's products or services. Show Answer Correct Answer: B) Governing body elected by shareholders and are responsible for overseeing he general management of the company. 29. Which of the following statement best describes the policy of Liberalisation? A) Abolition of licensing requirements in most of the indistries. B) Reduction in tax rates and lifting of unnecessary controls over the economy. C) Both (a) and (b). D) Setting up of Board of Industrial and Financial Reconstruction. Show Answer Correct Answer: C) Both (a) and (b). 30. Every new business owner must pay attention to forces operating outside the company that affect its chances for success. These forces are referred to as A) Demographics. B) Cultural intelligence. C) The external environment. D) Competition. Show Answer Correct Answer: C) The external environment. 31. Which of the following makes up the external operating environment (micro)? A) Operations, Finance, Marketing, Human Resources. B) Socio-Cultural, Technological, Economic, Environmental, Political, Legal, Ethical. C) Owners/managers, Employees, Organisational structure & Organisational culture. D) Customers, Competitors, Suppliers & Interest Groups. Show Answer Correct Answer: D) Customers, Competitors, Suppliers & Interest Groups. 32. What type of ownership is a market stall holder in Wolverhampton? A) Sole Trader. B) Private Limited Company. C) Charitable Trust. D) Government Department. Show Answer Correct Answer: A) Sole Trader. 33. You pay Burger King for the right to set up a location in Barcelona under the guidance and regulation of the corporate headquarters. This is an example of A) A joint venture. B) A wholly owned subsidiary. C) Exporting. D) Franchising. Show Answer Correct Answer: D) Franchising. 34. Which question is NOT part of the assessment process? A) Are the current marketing methods appropriate?. B) What is the company's market share?. C) What issues arise concerning price?. D) Who are the competitors?. Show Answer Correct Answer: B) What is the company's market share?. 35. Which macro environmental factors affect the operation of a business and include all regulations and laws imposed by the Government such as Consumer Law and Health & Safety Law? A) Political Factors. B) Economic Factors. C) Legal Factors. D) Environmental Factors. Show Answer Correct Answer: C) Legal Factors. 36. Just take the universe, subtract from it the subset that represents the organisation, and the remainder is A) Environment. B) Organisation. C) You. D) Universe. Show Answer Correct Answer: A) Environment. 37. 'Surface culture' is seen in: A) Attitudes, perceptions and feelings employees have about their work. B) Workplace ambiance, dress code, systems, policies, processes, procedures, structure etc. C) Shared values and beliefs, attitudes towards authority, competition, underlying assumptions, traditions etc. D) Shared system of sounds, written signs, gestures that convey meaning to members of a culture. Show Answer Correct Answer: B) Workplace ambiance, dress code, systems, policies, processes, procedures, structure etc. 38. It includes all those activities and interventions that aim at smooth supply of credit to the business and a boost to trade and industry A) Fiscal policy. B) Monetary policy. C) Both. D) None. Show Answer Correct Answer: B) Monetary policy. 39. What does the 'A' stand for in SMART goals? A) Any. B) Achievable. C) Ace. D) Awesome. Show Answer Correct Answer: B) Achievable. 40. What does the micro environment refer to? A) External uncontrollable factors. B) Specific controllable factors. C) Global market trends. D) Government regulations. Show Answer Correct Answer: B) Specific controllable factors. 41. Another name for Intermediaries is ..... A) Supplier. B) Middle Man. C) Regulator. D) Consumer. Show Answer Correct Answer: B) Middle Man. 42. A new government policy imposes stricter regulations on environmental protection, impacting manufacturing processes. A) Natural. B) Political. C) All the above. D) None of the above. Show Answer Correct Answer: B) Political. 43. Which of the following represents a Monopoly? A) A farmer produces green beans for sale at a market. B) A small number of cereal companies produce most of the cereal in the market. C) A local water company is the sole provider of water for a small town. D) A dry cleaner specialises in environmentally friendly cleaning methods. Show Answer Correct Answer: B) A small number of cereal companies produce most of the cereal in the market. 44. In 1890, Congress passed a law that prevents monopolies from forming and hinders price fixing. What law is this? A) D. Celler-Kefauver Antimerger Act. B) B. Robinson-Patman Act. C) A Clayton Act. D) C. Sherman Antitrust Act. Show Answer Correct Answer: D) C. Sherman Antitrust Act. 45. Why is survival in business compared to staying relevant? A) Because businesses must continuously adapt to their environment. B) Because ignoring changes leads to long-term success. C) Because businesses should always remain unchanged. D) Because competition does not affect businesses. Show Answer Correct Answer: A) Because businesses must continuously adapt to their environment. 46. Major source of revenue for Indian government is A) Corporation Tax. B) Income Tax. C) GST. D) All of these. Show Answer Correct Answer: D) All of these. 47. The management values are the part of the ..... environment. A) Internal. B) External. C) Macro. D) Micro. Show Answer Correct Answer: A) Internal. 48. I am concerned with which where I am to establish my business. What Part of the PESTLE analysis am I to look at? A) Technological. B) Political. C) Environmental. D) Legal. Show Answer Correct Answer: C) Environmental. 49. Credits in the financial account of the BoP A) Are matched by equal debits in primary income. B) Are matched by equal credits in primary income. C) Increase a country's foreign assets. D) Increase a country's foreign liabilities. Show Answer Correct Answer: D) Increase a country's foreign liabilities. 50. The opportunity cost is defined as the value of a proposed project selected. Is this statement true or false? A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: B) False. 51. Which of the functions does not fall into four main areas of activity of the European Parliament? A) Respoding to legislative proposals put forward by the Commission. B) The budget. C) Legislation. D) Supervision of the European Commission. Show Answer Correct Answer: A) Respoding to legislative proposals put forward by the Commission. 52. Question 4:What is the primary focus of the microenvironment? A) National and international economy. B) Industry regulations. C) Internal operations of a business. D) Direct competition and suppliers. Show Answer Correct Answer: D) Direct competition and suppliers. 53. This simply means that the financial statements should reflect all significant events or facts, which might influence the decisions to be made by any interested party. A) Going Concern Concept. B) Consistency. C) Full Disclosure. D) None of the above. Show Answer Correct Answer: C) Full Disclosure. 54. Which is an example of social environment? A) Consumer Protection Act. B) Composition of family. C) Money supply. D) Constitution. Show Answer Correct Answer: B) Composition of family. 55. ..... environment includes study of population in terms of age, gender, income, occupation, etc. A) Legal. B) Political. C) International. D) Demographic. Show Answer Correct Answer: D) Demographic. 56. How can social factors influence business operations? A) Social factors influence business operations by affecting marketing strategies, product development, and corporate social responsibility. B) Social factors only affect employee salaries. C) Social factors are irrelevant to marketing and product design. D) Social factors have no impact on business operations. Show Answer Correct Answer: A) Social factors influence business operations by affecting marketing strategies, product development, and corporate social responsibility. 57. Nora and Maya are planning a trip to different countries, but they find it challenging to communicate with locals. What is one of the biggest barriers that separates countries/regions? A) Methods of travel. B) Brain drain. C) Language. D) Technology. Show Answer Correct Answer: C) Language. 58. What is the primary focus of the Indian Union Budget? A) Regulating prices of goods. B) Allocating government spending and revenue. C) Setting interest rates. D) Controlling inflation. Show Answer Correct Answer: B) Allocating government spending and revenue. 59. Macro Environment focuses on political-legal, financial, technological, and economic. A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: B) False. 60. The main objective of the public sector is A) To provide advice. B) To make a profit. C) To provide a service. D) To pay dividends. Show Answer Correct Answer: C) To provide a service. ← 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