This quiz works best with JavaScript enabled. Home > Cbse > Class 12 > Commerce > Business Studies > Class 12 Business Studies Chapter 3 Business Environment – Quiz 5 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 12 Business Studies Chapter 3 Business Environment Quiz 5 (60 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Which of the following is a controllable factor in the internal environment? A) Natural disasters. B) Market trends. C) Economic policies. D) Shareholders. Show Answer Correct Answer: D) Shareholders. 2. This simply means that the expenses of the business are recognized or recorded when incurred whether paid or not the revenue is recognized when earned whether collected or not. A) Objectivity. B) Accrual Basis of Accounting. C) Cost Principle. D) None of the above. Show Answer Correct Answer: B) Accrual Basis of Accounting. 3. What is the primary focus of the economic environment? A) Economic conditions and policies. B) Technological advancements. C) Social trends. D) Legal regulations. Show Answer Correct Answer: A) Economic conditions and policies. 4. The business environment has: A) 1 level. B) 2 levels. C) 5 levels. D) 3 levels. Show Answer Correct Answer: D) 3 levels. 5. What are the four PATHS to establishing an entrepreneurial venture? A) Incubation, Start-up, Breakthrough, Maturity. B) Starting a new business, Buying an already established business, Franchise, Family Business. C) Identifying an opportunity, Assessing resources required, Developing a business plan, Managing an entrepreneurial venture. D) Innovation, Growth potential, sound objectives, Management. Show Answer Correct Answer: B) Starting a new business, Buying an already established business, Franchise, Family Business. 6. The following are variables of demography EXCEPT A) Age. B) Interest. C) Level of income. D) Population. Show Answer Correct Answer: B) Interest. 7. A general rise in prices across all sectors of the economy, causing money to lose its value is referred to as A) Equilibrium. B) Investment. C) Imports. D) Inflation. Show Answer Correct Answer: D) Inflation. 8. Media plays important role in public life A) Agree. B) Disagree. C) All the above. D) None of the above. Show Answer Correct Answer: A) Agree. 9. Which of the following belongs to Macro Environment A) Size of the business. B) Technological environment. C) Structure of business. D) Policy relating to business. Show Answer Correct Answer: B) Technological environment. 10. Strengths and Weaknesses in a business as referred to by SWOT analysis A) Poor Planning. B) Good Management. C) Internal Factors. D) External Factors. Show Answer Correct Answer: C) Internal Factors. 11. Why should businesses change their strategies? A) To stop competitors from entering the market. B) To avoid making changes. C) To focus only on profits. D) To follow new trends or rules in the business environment. Show Answer Correct Answer: D) To follow new trends or rules in the business environment. 12. Brain drain occurs when A) A country loses talented employees to better opportunities in other countries. B) People who speak different languages try to communicate with one another. C) Businesses outsource jobs to other countries. D) Consumers spend too much time shopping online. Show Answer Correct Answer: A) A country loses talented employees to better opportunities in other countries. 13. ..... does not cause a shortage of supply A) A good supply network. B) Strikes. C) Climate conditions. D) Natural disasters. Show Answer Correct Answer: A) A good supply network. 14. What is meant by the competitive landscape in business? A) The competitive landscape describes the historical trends of a market. B) The competitive landscape is the financial performance of a company. C) The competitive landscape is the environment of competitors and market dynamics in which a business operates. D) The competitive landscape refers to the internal structure of a business. Show Answer Correct Answer: C) The competitive landscape is the environment of competitors and market dynamics in which a business operates. 15. Which of the following is NOT a step in the business environment assessment process? A) Scanning. B) Budgeting. C) Monitoring. D) Forecasting. Show Answer Correct Answer: B) Budgeting. 16. What is one way a business can gain a competitive advantage? A) By offering consumers a worse quality product. B) By charging a higher price for a product. C) By doing what everyone else is doing in the market. D) By creating something entirely new for the market. Show Answer Correct Answer: D) By creating something entirely new for the market. 17. Business is the product of different environmental factors. A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: A) True. 18. Which of the following is NOT considered part of the internal business environment? A) Organizational culture. B) Company policies. C) Human resources. D) Economic conditions. Show Answer Correct Answer: D) Economic conditions. 19. Who among the following is NOT part of the internal environment? A) Board of Directors. B) Employees. C) Owners. D) Customers. Show Answer Correct Answer: D) Customers. 20. Competition Act 2002 enabled A) Repeal of MRTP Act 1969. B) More stringent rules. C) Tight control over mergers. D) None of these. Show Answer Correct Answer: A) Repeal of MRTP Act 1969. 21. How has the ability to travel more freely contributed to globalization? A) It breaks down political barriers between countries. B) It escalates competition between businesses. C) It helps enable the spread of culture and ideas. D) It promotes a sense of nationalism. Show Answer Correct Answer: C) It helps enable the spread of culture and ideas. 22. Which organization is responsible for formulating India's monetary policy? A) Ministry of Finance. B) Reserve Bank of India (RBI). C) Securities and Exchange Board of India (SEBI). D) NITI Aayog. Show Answer Correct Answer: B) Reserve Bank of India (RBI). 23. An organization is implementing a project that will significantly change its existing business processes. What is the MOST important factor for the project manager to consider to ensure successful implementation? A) The project's budget and schedule. B) The technical specifications of the new processes. C) The organizational change management and employee adoption. D) The project sponsor's approval of the new processes. Show Answer Correct Answer: C) The organizational change management and employee adoption. 24. An employee is part of: A) Internal Environment. B) Task Environment. C) Natural Environment. D) General Environment. Show Answer Correct Answer: A) Internal Environment. 25. Which of the following best defines the internal environment of a business? A) All the economic policies impacting a business. B) Factors external to the firm like government and public. C) Framework, structure, and relationships within the organization. D) The socio-political system of the country. Show Answer Correct Answer: C) Framework, structure, and relationships within the organization. 26. Stakeholder theory suggests that businesses should consider the interests of: A) Only Shareholders. B) Shareholders and top management. C) All parties affected by or who can affect the business. D) Government regulators only. Show Answer Correct Answer: C) All parties affected by or who can affect the business. 27. What is the amount of money paid for raw materials and products sold? A) Operating expenses. B) Net profit. C) Cost of goods. D) Gross profit. Show Answer Correct Answer: C) Cost of goods. 28. Which of the following is an example of a social responsibility initiative by a business? A) Maximizing profits for shareholders. B) Reducing pollution and promoting sustainable practices. C) Lobbying for favorable tax policies. D) Conducting aggressive marketing campaigns. Show Answer Correct Answer: B) Reducing pollution and promoting sustainable practices. 29. This helps to analyze the strategies of competitors: A) Financial Statement of the Company. B) Business Environment. C) Management of the Company. D) None of the above. Show Answer Correct Answer: B) Business Environment. 30. Ali and Amulya are participating in a global summit where they are discussing the main objectives of various international organizations. What is the primary focus of the OECD? A) Military cooperation. B) Economic, social, and environmental challenges. C) Religious integration. D) Space exploration. Show Answer Correct Answer: B) Economic, social, and environmental challenges. 31. What does PEST analysis stand for? A) Product, Environment, Strategy, Technology. B) Political, Economic, Social, Technological. C) Political, Economic, Strategy, Technology. D) People, Environment, Society, Technology. Show Answer Correct Answer: B) Political, Economic, Social, Technological. 32. Which aspects of business environment get affected when government of most of the nations around the globe announces lockdown? A) Social. B) Economical. C) Technological. D) All of these. Show Answer Correct Answer: D) All of these. 33. How does technology impact the business environment? A) It simplifies communication and increases efficiency. B) It reduces the need for human resources. C) It has no significant impact on business operations. D) It increases manual labor and production costs. Show Answer Correct Answer: A) It simplifies communication and increases efficiency. 34. Literacy is the most important part of ..... environment A) Social. B) Politicial. C) All the above. D) None of the above. Show Answer Correct Answer: A) Social. 35. Globalization can be a disadvantage for domestic workers when they lose their jobs due to the practice of. A) Offshoring. B) Exporting. C) Environmental degradation. D) Nationalism. Show Answer Correct Answer: A) Offshoring. 36. Just after the Budget 2024, the Bombay Stock Exchange's price index (Sensex) jumping by 1, 277 points points in a day. Identify the environmental factor which led to this rise? A) Political environment. B) Economic Environment. C) Social Environment. D) Legal Environment. Show Answer Correct Answer: A) Political environment. 37. India continues to be a lower middle income country along with 46 others, while Sri Lanka has climbed to the upper middle income group for the fiscal year 2020, according to the World Bank's classification of countries by income levels, released on July 1, 2019. Identify the related dimensions of business environment. A) Economic Dimension. B) Political Dimension. C) Social Dimension. D) Technological Dimension. Show Answer Correct Answer: A) Economic Dimension. 38. 9) There has been tremendous growth in BPO and KPO services. Identify the economic reform responsible for this trend? A) Liberalization. B) Privatization. C) Globalization. D) None. Show Answer Correct Answer: C) Globalization. 39. Can a company with a strong supply chain adapt to external risks like global shipping delays? A) Yes. B) No. C) All the above. D) None of the above. Show Answer Correct Answer: A) Yes. 40. Jim maintains his family by using his private vehicle for hire. A) Private. B) Public. C) All the above. D) None of the above. Show Answer Correct Answer: A) Private. 41. Explain how technological advancements impact the business environment. A) Technological advancements have no effect on business operations or strategies. B) Technological advancements lead to increased job losses and unemployment. C) Technological advancements primarily focus on reducing product quality. D) Technological advancements significantly enhance efficiency, communication, and innovation in the business environment. Show Answer Correct Answer: D) Technological advancements significantly enhance efficiency, communication, and innovation in the business environment. 42. What is the impact of Canada's support for the UNGPs on companies like those run by Zajeeba and Ali? A) It results in military enforcement. B) It causes economic decline. C) It leads to the adoption of the UNGPs by Canadian companies. D) It has no impact. Show Answer Correct Answer: C) It leads to the adoption of the UNGPs by Canadian companies. 43. What are the characteristics of perfect competition? A) High barriers to entry. B) Differentiated products. C) Few buyers and sellers. D) Characteristics of perfect competition include many buyers and sellers, identical products, free market entry and exit, perfect information, and price takers. Show Answer Correct Answer: D) Characteristics of perfect competition include many buyers and sellers, identical products, free market entry and exit, perfect information, and price takers. 44. What factors should be considered to judge the impact of the external environment on a business? A) Cost of borrowing, return on saving, and interest rates. B) Nature of the product, customer type, location, and potential changes. C) Size of the business, competition level, and marketing strategies. D) Distribution of population, changes in target markets, and labor costs. Show Answer Correct Answer: B) Nature of the product, customer type, location, and potential changes. 45. How can financial institutions influence change in a business? A) By providing loans and credit. B) By setting product prices. C) By hiring new staff. D) By developing marketing campaigns. Show Answer Correct Answer: A) By providing loans and credit. 46. Which of the following elements belong to the micro business environment? A) Legal and political environment. B) Technological environment. C) Competitors and suppliers. D) Demographic environment. Show Answer Correct Answer: C) Competitors and suppliers. 47. The business environment is a sum or collection of all internal and external factors which affect the functions of a company. A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: A) True. 48. Which of the following is an example of a macroenvironment factor? A) Organizational culture. B) Demographic trends. C) Company suppliers. D) Internal processes. Show Answer Correct Answer: B) Demographic trends. 49. 1) Nature of relationships of a country with foreign countries influences the business. A) Legal environment. B) Political environment. C) Social environment. D) Economic environment. Show Answer Correct Answer: B) Political environment. 50. Formal Sector + Informal Sector=? A) The Private Sector. B) Business. C) A good Government. D) Legal persona. Show Answer Correct Answer: A) The Private Sector. 51. What is the first step in the process of environmental analysis? A) Decision-making. B) Environmental scanning. C) Forecasting future trends. D) Implementing strategies. Show Answer Correct Answer: B) Environmental scanning. 52. What does cross elasticity of demand measure? A) Change in demand due to price changes of related goods. B) Change in demand due to price changes of the same good. C) Change in income affecting demand. D) Change in supply due to price changes. Show Answer Correct Answer: A) Change in demand due to price changes of related goods. 53. Jonathan has some extra money to spend this month, so he purchases an iPad. He doesn't need this product, but he wants it, making it a A) Technological product. B) Poor buying decision. C) Discretionary item. D) Consumer staple. Show Answer Correct Answer: C) Discretionary item. 54. Which of the following is NOT an external factor? A) Demographical. B) Workplace relationships. C) Technology. D) Political. Show Answer Correct Answer: B) Workplace relationships. 55. Business and its environment is ..... A) Interdependent. B) Not dependent. C) Over dependent. D) Independent. Show Answer Correct Answer: A) Interdependent. 56. What is a Giffen good? A) A necessity with elastic demand. B) A good that has no substitutes. C) A good that is demanded more as its price rises. D) A luxury good with high demand. Show Answer Correct Answer: C) A good that is demanded more as its price rises. 57. In all the countries there is a free-flow of goods and services under which of the following does it come? A) Liberalisation. B) Privatisation. C) Liberalisation and Privatisation. D) Globalisation. Show Answer Correct Answer: D) Globalisation. 58. What is the macro environment? A) The internal factors of a business. B) The competition within a business. C) The employees of a business. D) The external factors affecting a business. Show Answer Correct Answer: D) The external factors affecting a business. 59. The shift of demand from soft drink to juice is an opportunity for juice companies and threat for soft drink companies. Identify the feature of business environment A) Uncertain. B) Complex. C) Relative. D) Dynamic. Show Answer Correct Answer: A) Uncertain. 60. What does the term value system refer to in a business environment? A) Set of taxes imposed on the company. B) Relationship between company and customers. C) Ethical beliefs and norms guiding the company. D) Number of stakeholders in a business. Show Answer Correct Answer: C) Ethical beliefs and norms guiding the company. ← 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 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