This quiz works best with JavaScript enabled. Home > Cbse > Class 12 > Commerce > Business Studies > Class 12 Business Studies Chapter 3 Business Environment – Quiz 31 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 12 Business Studies Chapter 3 Business Environment Quiz 31 (44 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. The Candy Store is selling more and more chocolate each quarter. Applying the law of supply and demand, what is most likely to happen over the next few quarters? A) A The price will increase, and the supply will increase. B) B. The price will decrease, and the supply will increase. C) C. The price will increase, and the supply will decrease. D) D. The price will decrease, and the supply will decrease. Show Answer Correct Answer: A) A The price will increase, and the supply will increase. 2. What are the key economic factors that influence businesses? A) Key economic factors that influence businesses include supply and demand, inflation rates, interest rates, economic growth, and unemployment levels. B) Government regulations. C) Technological advancements. D) Consumer preferences. Show Answer Correct Answer: A) Key economic factors that influence businesses include supply and demand, inflation rates, interest rates, economic growth, and unemployment levels. 3. The current or emerging trends in lifestyle and fashions refer to ..... environmental analysis. A) Social. B) Technical. C) Demographic. D) Political. Show Answer Correct Answer: A) Social. 4. 4) Identify out of the LPG, which one is highlighted:Easy movement of information and technology with rest of the world. A) Liberalization. B) Privatization. C) Globalization. D) None. Show Answer Correct Answer: C) Globalization. 5. Environmental awareness can help managers to identify various ..... on time and serve as an early warning signal A) Threats. B) Signals. C) Opportunity. D) None of the above. Show Answer Correct Answer: A) Threats. 6. How does understanding the business environment contribute to image building? A) By ignoring consumer expectations. B) By showing sensitivity to the environment. C) By disregarding government regulations. D) By neglecting employee concerns. Show Answer Correct Answer: B) By showing sensitivity to the environment. 7. Malaysia's legislature passes a new tax law that increases corporate tax rates. Which function of the legislature does this action BEST illustrate? A) Enforcing laws. B) Implementing laws. C) Making laws. D) Interpreting laws. Show Answer Correct Answer: C) Making laws. 8. A business primarily aims to: A) Earn Profit. B) Influence government policy. C) Solve social problems. D) Provide charity. Show Answer Correct Answer: A) Earn Profit. 9. In what ways has technology changed the business landscape? A) Technology has reduced the need for customer feedback. B) Technology has changed the business landscape by increasing efficiency, enabling global reach, and enhancing customer experiences. C) Technology has made businesses less competitive. D) Technology has limited access to global markets. Show Answer Correct Answer: B) Technology has changed the business landscape by increasing efficiency, enabling global reach, and enhancing customer experiences. 10. What happens to demand when consumer income increases for a normal good? A) Demand fluctuates unpredictably. B) Demand decreases. C) Demand remains unchanged. D) Demand increases. Show Answer Correct Answer: D) Demand increases. 11. Which type of market do we buy most of our goods and services from? A) Stock. B) Retail. C) Labour. D) Financial. Show Answer Correct Answer: C) Labour. 12. Describe the social and cultural factors influencing tourism. A) Social and cultural factors influencing tourism include local customs, traditions, cultural heritage, social trends, and the demographic profile of tourists. B) Economic factors like currency exchange rates. C) Environmental impacts of tourism. D) Technological advancements in travel booking. Show Answer Correct Answer: A) Social and cultural factors influencing tourism include local customs, traditions, cultural heritage, social trends, and the demographic profile of tourists. 13. Which of the following best describes the technological environment? A) The culture and values of society. B) Laws and political regulations. C) Knowledge, tools, and techniques used in production. D) Marketing strategies for distribution. Show Answer Correct Answer: C) Knowledge, tools, and techniques used in production. 14. How can a business adapt to changes in the external environment? A) By ignoring the changes and focusing on internal factors. B) By adjusting their strategies and operations to accommodate the changes. C) By increasing their prices to cover any potential losses. D) By reducing their workforce to save on costs. Show Answer Correct Answer: B) By adjusting their strategies and operations to accommodate the changes. 15. Liberalization in India began in the year: A) 1995. B) 1991. C) 2005. D) 1985. Show Answer Correct Answer: B) 1991. 16. An example of indirect competition A) McDonalds and Burger King. B) Burger King and KFC. C) Pappa Jones and Dominos. D) Dominos and KFC. Show Answer Correct Answer: D) Dominos and KFC. 17. What factors determine the market structure of an industry? A) Number of firms, product differentiation, barriers to entry, level of competition, and market power. B) Government regulations. C) Consumer preferences. D) Technological advancements. Show Answer Correct Answer: A) Number of firms, product differentiation, barriers to entry, level of competition, and market power. 18. Creating a website and selling online is related to A) Social environment. B) Political environment. C) Economic environment. D) Technological environment. Show Answer Correct Answer: D) Technological environment. 19. Who among the following is a stakeholder that influences change in a business? A) Suppliers. B) Media. C) Competitors. D) Owners. Show Answer Correct Answer: D) Owners. 20. What is an example of a cultural adaptation by global companies? A) Adjusting product flavors to local tastes. B) Implementing strict data privacy laws. C) Reducing workforce during a recession. D) Raising prices during inflation. Show Answer Correct Answer: A) Adjusting product flavors to local tastes. 21. What does IMF do? A) Promotes International financial stability and monetary cooperation. B) Helps its members use trade as a means to raise living standards. C) The principle goal is to ensure that goods, services and labour can move easily across boarders. D) Promotes work to build better policies for better lives. Show Answer Correct Answer: A) Promotes International financial stability and monetary cooperation. 22. Should a company ignore advancements in technology if it has been operating successfully for years? A) Yes. B) No. C) All the above. D) None of the above. Show Answer Correct Answer: B) No. 23. ..... is a dimension of business environment. A) Monetary Policy. B) Fashion. C) Economic Environment. D) Legislation. Show Answer Correct Answer: C) Economic Environment. 24. What is a cost-benefit analysis? A) The taxes that people pay when they buy something. B) A process that allows businesses and individuals to analyze where to spend money. C) The amount of money required to have or do something. D) None of the above. Show Answer Correct Answer: B) A process that allows businesses and individuals to analyze where to spend money. 25. Business environment is ..... A) Simple. B) Specific. C) Static. D) Dynamic. Show Answer Correct Answer: D) Dynamic. 26. A large retailer wants to contribute to the well-being of society. It donates 10% of its proceeds to a charity that helps the environment. The retailer is demonstrating: A) A e-tailing. B) B. wholesaling. C) C. social responsibility. D) D. voluntary merchandise. Show Answer Correct Answer: C) C. social responsibility. 27. How does a change in consumer preferences affect the demand for a product? A) It has no effect on demand. B) It leads to an increase in demand. C) It leads to a decrease in demand. D) It depends on the type of product. Show Answer Correct Answer: D) It depends on the type of product. 28. Main characteristic of Indian society A) Unity. B) Social stratification. C) Single identity. D) None of these. Show Answer Correct Answer: B) Social stratification. 29. Business has ..... control over the MICRO Environment A) Complete. B) Some Control/influence. C) No. D) None of the above. Show Answer Correct Answer: A) Complete. 30. Define liberalization in the context of the Indian economy. A) Liberalization in the Indian economy is the reduction of government restrictions on trade and investment to promote economic growth. B) Liberalization involves increasing government control over trade and investment. C) Liberalization means restricting foreign investment to boost domestic companies. D) Liberalization refers to the imposition of tariffs on imports to protect local industries. Show Answer Correct Answer: A) Liberalization in the Indian economy is the reduction of government restrictions on trade and investment to promote economic growth. 31. Which of the following is NOT an element of the Macro Environment? A) Cultural. B) Technological. C) Economic. D) Competitors. Show Answer Correct Answer: D) Competitors. 32. Subcontractors can be best described as ..... A) A person that is not directly employed by the business but has been contracted to perform certain tasks. B) A person that is hired from overseas to complete tasks for the business. C) A person that is directly employed by the business and has to perform certain tasks. D) A person within the business that writes contracts for deals with other businesses. Show Answer Correct Answer: A) A person that is not directly employed by the business but has been contracted to perform certain tasks. 33. Antitrust laws are created to keep competition fair. Which of the following external factors are these laws a part of: A) Ethnic/Cultural. B) Economic. C) Political. D) Social. Show Answer Correct Answer: C) Political. 34. The opportunity cost of Australian households moving away from coal-powered energy to solar-powered energy includes:(i) the loss of jobs in the coal industry, (ii) a cleaner environment, (iii) reduced coal production. A) (i), (ii) and (iii). B) (ii) and (iii). C) (iii) only. D) (i) and (iii). Show Answer Correct Answer: D) (i) and (iii). 35. Which of the following is a weakness in a SWOT analysis? A) Strong brand identity. B) Lack of capital. C) Expansion into new markets. D) Advanced technology. Show Answer Correct Answer: B) Lack of capital. 36. A business' need to give back to the community in which they operate A) Globalisation. B) Triple bottom line. C) Corporate social responsibility. D) Strategic response. Show Answer Correct Answer: C) Corporate social responsibility. 37. Over which environment does the business have the largest degree of control? A) Operating. B) Internal. C) Macro. D) The business has no control over any of its environments. Show Answer Correct Answer: B) Internal. 38. Why might businesses choose to be environmentally friendly? A) To be socially responsible and reduce their impact on the environment. B) To increase costs and attract more customers. C) To increase their market power and force down selling prices. D) To import goods at a lower price. Show Answer Correct Answer: A) To be socially responsible and reduce their impact on the environment. 39. Which macro environmental factors refer to ecological factors? They can include pollution, fossil fuel usage, climate change, and waste disposal. A) Legal Factors. B) Environmental Factors. C) Economic Factors. D) Socio-Cultural Factors. Show Answer Correct Answer: B) Environmental Factors. 40. Discuss the impact of economic factors on the macro environment of a business. A) Economic factors only impact the micro environment of a business. B) The macro environment of a business is only influenced by social factors. C) Economic factors have no impact on the macro environment of a business. D) Economic factors have a significant impact on the macro environment of a business. Show Answer Correct Answer: D) Economic factors have a significant impact on the macro environment of a business. 41. Which of the following is a limitation of environmental analysis? A) Provides clear and certain future predictions. B) Completely eliminates business risks. C) Can be time-consuming and complex. D) Guarantees accurate business forecasting. Show Answer Correct Answer: C) Can be time-consuming and complex. 42. Why is it important to analyze the business environment? A) To play games in class. B) To understand opportunities and threats. C) To avoid hiring employees. D) To remove competitors. Show Answer Correct Answer: B) To understand opportunities and threats. 43. 'Remuneration of employees should be just and fair' is related to which Business environment? A) Economic. B) Legal. C) Social. D) Political. Show Answer Correct Answer: C) Social. 44. Disturbances in the environment may either bring threats or opportunities for the firm? A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: A) True. ← PreviousRelated 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