This quiz works best with JavaScript enabled. Home > Cbse > Class 12 > Commerce > Business Studies > Class 12 Business Studies Chapter 3 Business Environment – Quiz 4 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 12 Business Studies Chapter 3 Business Environment Quiz 4 (60 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Globalization is encouraged by A) Internet. B) Mobile phones. C) Computer. D) None of these. Show Answer Correct Answer: A) Internet. 2. Which of the following is a business function? A) Vision. B) Mission. C) Goals and objectives. D) Purchasing. Show Answer Correct Answer: D) Purchasing. 3. Great communication skills and analytical abilities is an example of a type of A) Opportunity. B) Weakness. C) Threat. D) Strength. Show Answer Correct Answer: D) Strength. 4. Privatization implies reduction in the role of ..... sector A) Public. B) Private. C) Foriegn. D) None of the above. Show Answer Correct Answer: A) Public. 5. Which of the following is an example of an internal factor in the business environment? A) Government regulations. B) Economic conditions. C) Technological advancements. D) Organizational culture. Show Answer Correct Answer: D) Organizational culture. 6. How often should fire drills be conducted in a low risk workplace? A) Monthly. B) Once a year. C) Twice a year. D) Quarterly. Show Answer Correct Answer: C) Twice a year. 7. What does the law of supply indicate? A) Supply increases as price decreases. B) Supply increases as price increases. C) Supply decreases as price increases. D) Supply remains constant regardless of price. Show Answer Correct Answer: B) Supply increases as price increases. 8. NDC stands for ..... A) National Defense company. B) National Development Corporation. C) National Development council. D) National Development Company. Show Answer Correct Answer: C) National Development council. 9. A company's product experienced a sudden increase in popularity due to a successful marketing campaign, resulting in a higher demand. Which of the following factors is MOST directly influencing this change in demand? A) A shift in consumer preferences. B) An increase in the price of a substitute good. C) An improvement in product quality. D) A decrease in production costs. Show Answer Correct Answer: A) A shift in consumer preferences. 10. New Gear studied trends in the marketplace to price their jerseys. There was an abundance of jerseys remaining after meeting the demand creating which market condition? A) C. shortage. B) B. rationing. C) D. surplus. D) A equilibrium. Show Answer Correct Answer: C) D. surplus. 11. Which of the following is NOT a micro environmental factor of business? A) Customers. B) Competitors. C) Government Policies. D) Suppliers. Show Answer Correct Answer: C) Government Policies. 12. ..... is not a branch of New Economic Policy. A) Legislation. B) Globalisation. C) Privatisation. D) Liberalisation. Show Answer Correct Answer: A) Legislation. 13. Which of the following is not a part of the business environment of business? A) Suppliers. B) Competitors. C) Legal. D) None. Show Answer Correct Answer: D) None. 14. Which of the following is a non-economic factor influencing the macro-environment? A) Demographic trends. B) Income distribution. C) Banking system. D) Inflation rate. Show Answer Correct Answer: A) Demographic trends. 15. What can be a consequence of poor working conditions? A) Improved communication among team members. B) Increased employee satisfaction and engagement. C) Higher rates of employee retention. D) Decreased employee morale and productivity. Show Answer Correct Answer: D) Decreased employee morale and productivity. 16. ..... are comprised of those who work for another or for an employer in exchange of salaries/wages or other considerations. A) Customers. B) Employees. C) Stakeholders. D) Suppliers. Show Answer Correct Answer: B) Employees. 17. What are the implications of intellectual property laws for companies? A) Intellectual property laws limit companies' ability to innovate. B) Intellectual property laws have no impact on a company's market position. C) Companies must pay fines for holding patents under intellectual property laws. D) Intellectual property laws provide companies with exclusive rights to their innovations, fostering innovation and competitive advantage. Show Answer Correct Answer: D) Intellectual property laws provide companies with exclusive rights to their innovations, fostering innovation and competitive advantage. 18. In a school project about international organizations, Ali and Priya are discussing who is responsible for the overall management of the World Bank. Who would they identify as the key person in charge? A) The finance minister. B) The president. C) The general assembly. D) The board of directors. Show Answer Correct Answer: B) The president. 19. What are the factors that facilitate globalization in India? A) Increased agricultural subsidies. B) Limited access to the internet. C) Strict trade regulations. D) Economic liberalization, technology advancements, foreign investment, improved infrastructure, and digital communication. Show Answer Correct Answer: D) Economic liberalization, technology advancements, foreign investment, improved infrastructure, and digital communication. 20. What does the 'M' stand for in SMART goals? A) More. B) Measurable. C) Money. D) Mine. Show Answer Correct Answer: B) Measurable. 21. ..... :subcontracting or contracting out of activities to endogenous organizations that had previously been performed by the firm.? A) Offshoring. B) Globalization. C) Internationalization. D) Outsourcing. Show Answer Correct Answer: D) Outsourcing. 22. How often should employees review emergency procedures? A) Every year during their performance review. B) Only when a new threat arises. C) Quarterly or as needed. D) Only during onboarding. Show Answer Correct Answer: C) Quarterly or as needed. 23. Which best explains macro environment? A) Economic, social, political, legal, technological forces. B) Customers & suppliers. C) Employees & investors. D) None. Show Answer Correct Answer: A) Economic, social, political, legal, technological forces. 24. What are the techniques used for environment scanning? A) Product lifecycle management. B) Financial forecasting. C) Employee performance review. D) PESTLE analysis, SWOT analysis, competitor analysis, market research, trend analysis. Show Answer Correct Answer: D) PESTLE analysis, SWOT analysis, competitor analysis, market research, trend analysis. 25. The events and trends inside an organization that affects management, employees, and organizational culture. A) Specific Environment. B) Internal Environment. C) General Environment. D) External Environment. Show Answer Correct Answer: B) Internal Environment. 26. Which organisation is MOST likely to have the widest range of stakeholders? A) Small local shop. B) Start-up app company. C) National government service. D) Freelance developer. Show Answer Correct Answer: C) National government service. 27. Which of the following is a true statement about globalization: A) It is a purely economic term. B) Its pace is slowing down. C) It involves the flow of ideas across national borders. D) It has had a minimal impact on the world. Show Answer Correct Answer: C) It involves the flow of ideas across national borders. 28. How can emerging technologies impact businesses in the technological environment? A) By reducing competition. B) By increasing operational efficiency. C) By stabilizing market demand. D) By lowering labor costs. Show Answer Correct Answer: B) By increasing operational efficiency. 29. Apa tiga konsep umum lingkungan bisnis menurut Wilson (1992)? A) Pemindaian, pemantauan, peramalan, dan penilaian. B) Pemindaian, pemantauan, peramalan, dan penilaian. C) Fakta objektif, fakta subjektif, dan pembagian organisasi. D) Faktor ekonomi, faktor sosial, dan faktor teknologi. Show Answer Correct Answer: C) Fakta objektif, fakta subjektif, dan pembagian organisasi. 30. What role does the legislature play in the political environment? A) The legislature makes laws, represents citizens, and oversees the government. B) The legislature manages the military operations. C) The legislature conducts foreign policy negotiations. D) The legislature organizes public events and celebrations. Show Answer Correct Answer: A) The legislature makes laws, represents citizens, and oversees the government. 31. Which of the following BEST describes the role of consumers in the market environment? A) They create demand for goods and services, influencing business decisions. B) They regulate business operations and enforce industry laws. C) They supply raw materials and capital to businesses. D) They compete directly with businesses to gain market share. Show Answer Correct Answer: A) They create demand for goods and services, influencing business decisions. 32. A form of demand for products in which changes in price correspond to changes in demand is: A) C. equilibrium. B) B. elastic. C) A consumer. D) D. inelastic. Show Answer Correct Answer: B) B. elastic. 33. The PESTEL elements are found in which business environment? A) Operational. B) Internal. C) General. D) Local. Show Answer Correct Answer: C) General. 34. How can customers influence change in a business? A) By setting legal requirements. B) By demanding new products or services. C) By providing financial loans. D) By hiring new employees. Show Answer Correct Answer: B) By demanding new products or services. 35. The sum total of all individuals, institutions and other forces that are outside the control of a business enterprise but that may affect its performance is known as ..... A) Political environment. B) Social environment. C) Business environment. D) Economic environment. Show Answer Correct Answer: C) Business environment. 36. How has globalization affected consumers? A) It has increased competition among them. B) It has given them a bigger and better variety of products to choose from. C) It has made them more closed-minded toward other cultures and ethnicities. D) It has helped them save on taxes. Show Answer Correct Answer: B) It has given them a bigger and better variety of products to choose from. 37. A shift in consumer taste, away from the firm's product is considered a A) Economic Factor. B) Technological Factor. C) Political Factor. D) Social Factor. Show Answer Correct Answer: D) Social Factor. 38. What role does inflation play in the business environment? A) Inflation impacts purchasing power, costs, and pricing strategies in the business environment. B) Inflation has no effect on consumer behavior. C) Inflation only affects government policies, not businesses. D) Inflation decreases the overall cost of goods and services. Show Answer Correct Answer: A) Inflation impacts purchasing power, costs, and pricing strategies in the business environment. 39. Why are stakeholders important in software development? A) They write the code. B) They influence requirements and success of systems. C) They replace developers. D) They only exist in private companies. Show Answer Correct Answer: B) They influence requirements and success of systems. 40. How do we call the money brought by shareholders? A) Shareholder Liability. B) Equity. C) Available funds. D) Cash. Show Answer Correct Answer: B) Equity. 41. What is the Foreign Exchange Management Act (FEMA)? A) A law that promotes foreign investment in India. B) A regulation that governs domestic currency transactions. C) An act that restricts all foreign trade activities. D) The Foreign Exchange Management Act (FEMA) is an Indian law that regulates foreign exchange transactions. Show Answer Correct Answer: D) The Foreign Exchange Management Act (FEMA) is an Indian law that regulates foreign exchange transactions. 42. Shift of Youth in India toward packed foods, online buying is part of A) Political environment. B) Technological environment. C) Legal environment. D) Social environment. Show Answer Correct Answer: D) Social environment. 43. How many employees did Instagram have in 2012? A) More than 100. B) Less than 20. C) Between 50-60. D) 450 Employees. Show Answer Correct Answer: B) Less than 20. 44. Regional disparities arise because of A) Negligence of some areas. B) Lack of planning. C) Lack of skill set. D) All of these. Show Answer Correct Answer: D) All of these. 45. The elements within the external environment will have a direct affect on the business A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: B) False. 46. Which environment refers to the cultural, demographic, and social factors that influence business activities and decisions, including people's values, beliefs, lifestyles, education levels, traditions, and social attitudes? A) Social Environment. B) Technological Environment. C) Political Environment. D) Economic Environment. Show Answer Correct Answer: A) Social Environment. 47. Which of the following are parts of the business strategy? A) All of the choices. B) Where the business is located. C) A plan on how to achieve aims. D) Evaluation of whether the plan is working or not. Show Answer Correct Answer: A) All of the choices. 48. During an earthquake, the best action to take indoors is to: A) Run outside immediately. B) Seek shelter under a sturdy table or desk. C) Stand near a window to watch the outside. D) Move to the highest point in the building. Show Answer Correct Answer: B) Seek shelter under a sturdy table or desk. 49. If you drill for oil what sector do you work in? A) Primary. B) Secondary. C) Tertiary. D) None of the above. Show Answer Correct Answer: A) Primary. 50. Which of the following is an example of a micro environment element? A) Government policies. B) Technological advancements. C) Customers. D) Economic conditions. Show Answer Correct Answer: C) Customers. 51. How do changing consumer preferences affect tourism businesses? A) Changing consumer preferences have no impact on tourism businesses. B) Tourism businesses do not need to adjust to changing consumer preferences. C) Consumer preferences in tourism remain constant and do not change. D) Changing consumer preferences can impact tourism businesses by requiring them to adjust their offerings to align with what customers want. Show Answer Correct Answer: D) Changing consumer preferences can impact tourism businesses by requiring them to adjust their offerings to align with what customers want. 52. What part of the internal environment have the most control? A) Employees. B) Organisational structure. C) Organisational culture. D) Owners/Managers. Show Answer Correct Answer: D) Owners/Managers. 53. An example of a contractionary fiscal policy would be if: A) The Fed decrease the fed funds rate. B) Taxes were cut. C) The government bailed out GM. D) Taxes were increased. Show Answer Correct Answer: D) Taxes were increased. 54. "The Trade Unions Act, 1926" is an example of: A) Legal Environment. B) Political Environment. C) Social Environment. D) Economic Environment. Show Answer Correct Answer: A) Legal Environment. 55. What are the key components of a successful marketing strategy? A) People, Process, Physical Evidence. B) Planning, Organizing, Leading, Controlling. C) Research, Development, Production, Sales. D) Product, Price, Place, Promotion. Show Answer Correct Answer: D) Product, Price, Place, Promotion. 56. What is the significance of the economic environment in tourism? A) Tourism is solely influenced by cultural factors. B) The economic environment shapes travel costs, consumer spending, and investment in tourism, directly affecting demand and growth in the sector. C) The economic environment has no impact on tourism. D) The economic environment only affects local businesses, not tourism. Show Answer Correct Answer: B) The economic environment shapes travel costs, consumer spending, and investment in tourism, directly affecting demand and growth in the sector. 57. It is the degree to which society is uncomfortable with risk, change, and situational uncertainty. A) Uncertainty Avoidance. B) Individualism-Collectivism. C) Time Orientation. D) Masculinity-Femininity. Show Answer Correct Answer: A) Uncertainty Avoidance. 58. A force representing external environment is ..... A) Legal. B) Manager. C) Customers. D) Owner. Show Answer Correct Answer: A) Legal. 59. What are the 5 M's that are part of the business environment? A) Market, Money, Management, Macro, Micro. B) Material, Market, Manpower, Machinery, Management. C) Man, Material, Money, Machinery, Management. D) Manpower, Machinery, Marketing, Money, Management. Show Answer Correct Answer: C) Man, Material, Money, Machinery, Management. 60. As a monopolistic competition type of firm, Netflix has to ..... in order to remain ahead of the competition. A) Ensure it has economies of scale. B) Increase the barriers to market entry. C) Differentiate its products using branding. D) Sell homogenous products. Show Answer Correct Answer: C) Differentiate its products using branding. ← 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 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 8Class 12 Business Studies Chapter 3 Business Environment Quiz 9 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books