This quiz works best with JavaScript enabled. Home > Cbse > Class 12 > Commerce > Business Studies > Class 12 Business Studies Chapter 3 Business Environment – Quiz 7 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 12 Business Studies Chapter 3 Business Environment Quiz 7 (60 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. What does a company's technological environment impact? A) Only the company's production processes. B) Only the company's marketing strategies. C) Both the company's production processes and marketing strategies. D) Only the company's customer service. Show Answer Correct Answer: C) Both the company's production processes and marketing strategies. 2. As prices increase, supply will A) Rise. B) Fall. C) All the above. D) None of the above. Show Answer Correct Answer: A) Rise. 3. What is the primary focus of environmental analysis? A) Analyzing financial statements. B) Evaluating external factors affecting business. C) Identifying internal weaknesses. D) Assessing employee performance. Show Answer Correct Answer: B) Evaluating external factors affecting business. 4. Which factor is not included in Internal Environment? A) Objectives. B) Production-Method. C) Public. D) Policies. Show Answer Correct Answer: C) Public. 5. ..... is the practice of fixing price by the Government A) Minimum Support PrIce. B) Administerred pricing. C) Floor Pricing. D) None of these. Show Answer Correct Answer: A) Minimum Support PrIce. 6. What does S stand for in SWOT? A) Small. B) Strong. C) Strengths. D) Slow. Show Answer Correct Answer: C) Strengths. 7. To reduce the financial burden on the Government release larger amount of public resources locked up in non-strategic PSU's trough A) Disinvestment. B) Investment. C) Nationalisation. D) Production. Show Answer Correct Answer: A) Disinvestment. 8. A project manager is working on a project that is subject to frequent changes in government policy. What is the best strategy to manage this uncertainty? A) Develop a robust change management plan and monitor policy changes continuously. B) Ignore government policy changes and stick to the original project plan. C) Delay the project until government policies stabilize. D) Focus on project execution and deal with policy changes as they arise. Show Answer Correct Answer: A) Develop a robust change management plan and monitor policy changes continuously. 9. What does SWOT analysis help a firm to understand? A) Suppliers, Workers, Owners, Traders. B) Sales, Wages, Operations, Taxes. C) Systems, Workflows, Outputs, Targets. D) Strengths, Weaknesses, Opportunities, Threats. Show Answer Correct Answer: D) Strengths, Weaknesses, Opportunities, Threats. 10. The microenvironment directly affects a company's ability to: A) Compete in the market. B) Reduce production costs. C) Increase employee satisfaction. D) Expand globally. Show Answer Correct Answer: A) Compete in the market. 11. The entry of the multinational companies in large numbers in the Indian market hascreated . A) Huge Demand. B) Huge Supply. C) Tough Competition. D) Huge Demand and Supply. Show Answer Correct Answer: C) Tough Competition. 12. What is meant by the dynamic nature of the business environment? A) It is constantly changing due to various developments. B) It remains static over time. C) It only changes during economic downturns. D) It is predictable and stable. Show Answer Correct Answer: A) It is constantly changing due to various developments. 13. A gym's customers are part of which environment? A) Natural. B) Internal. C) General. D) Task. Show Answer Correct Answer: D) Task. 14. Which of the following is an example of a macro environment element? A) Technology. B) Customers. C) Suppliers. D) Competitors. Show Answer Correct Answer: A) Technology. 15. Why is it important for a business to understand its environment? A) To identify opportunities and threats. B) To minimize risks and capitalize on opportunities. C) To anticipate and adapt to changes in the market. D) All of the above. Show Answer Correct Answer: D) All of the above. 16. The following are under specific business environment except for ..... A) Sociocultural. B) Suppliers. C) Shareholders. D) Stakeholders. Show Answer Correct Answer: A) Sociocultural. 17. What are the major challenges faced by Indian industries in the global market? A) Trade restrictions. B) Lack of skilled labor. C) Language barriers. D) High production costs. Show Answer Correct Answer: D) High production costs. 18. What is the role of suppliers? A) To set prices. B) To create competition. C) To provide resources for business. D) To manage customer relations. Show Answer Correct Answer: C) To provide resources for business. 19. These factors are beyond the control of the management however, have a great impact on the performance, decision making, and strategy of the business. A) External Environment. B) Internal Environment. C) Micro Environment. D) Macro Environment. Show Answer Correct Answer: A) External Environment. 20. Business units from America, Canada, Australia, Germany, UK, are coming to India due to easy availability of skilled manpower A) Natural environment. B) Technological environment. C) Legal environment. D) Demographic environment. Show Answer Correct Answer: D) Demographic environment. 21. What factors should be considered in pursuing a business in commercial cooking? A) Manpower, Skills, Capital, Technology, Markets. B) Demographic, International, Man, Material, Money. C) Suppliers, Customers, Competitors, Public, Intermediaries. D) Economic, Political, Socio-cultural, Technological, Natural. Show Answer Correct Answer: A) Manpower, Skills, Capital, Technology, Markets. 22. Globalisation is concerned with ..... Market A) Global. B) Local. C) Kalyan. D) Rural. Show Answer Correct Answer: A) Global. 23. Deficit in balance of payments arises when foreign payments for ..... exceeds foreign receipts from ..... A) Import, export. B) Export, import. C) All the above. D) None of the above. Show Answer Correct Answer: A) Import, export. 24. Which factor is not included in Macro Environment? A) Social Environment. B) Competitors. C) Economic Environment. D) Political Environment. Show Answer Correct Answer: B) Competitors. 25. R & R Real Estate company buys errors and omissions liability insurance. What form of risk management is this? A) A avoidance. B) D. transfer. C) B. reduction. D) C. retention. Show Answer Correct Answer: B) D. transfer. 26. Vision and Mission are in the ..... environment A) Micro. B) Market. C) Macro. D) None of the above. Show Answer Correct Answer: A) Micro. 27. Environmental scanning is a strategic tool in assessing the level of threat or opportunity the factors might affect the business. A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: B) False. 28. How do demographic changes affect business strategies? A) Businesses should ignore demographic trends in their planning. B) Demographic shifts only affect marketing, not overall strategy. C) Demographic changes require businesses to adapt their strategies to meet new consumer needs and preferences. D) Demographic changes have no impact on business strategies. Show Answer Correct Answer: C) Demographic changes require businesses to adapt their strategies to meet new consumer needs and preferences. 29. Shared beliefs, values, expectations, attitudes and behaviours are all examples of which Internal Environmental factor? A) Owner/s/Management. B) Organisational Culture. C) Organisational Structure. D) Employees. Show Answer Correct Answer: B) Organisational Culture. 30. Non-Human resources are physical item A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: A) True. 31. Ethan noticed that the local river was becoming increasingly polluted and the air quality was deteriorating. He wondered if this environmental degradation was occurring because of A) Nationalism. B) Offshoring. C) Increased production. D) Decreased competition. Show Answer Correct Answer: C) Increased production. 32. What are the only two ways to finance a firm? A) By the owner's funds or funds from relatives. B) By raising equity or taking on debt. C) By government grants or tax subsidies. D) By selling assets or taking on a bank loan. Show Answer Correct Answer: B) By raising equity or taking on debt. 33. A go-slow is when ..... , A) Workers still do their work but at a much slower pace affecting the productivity of the business. B) Workers stop working like they do in a strike. C) The internet is not working and affects the productivity of the staff. D) None of the above. Show Answer Correct Answer: A) Workers still do their work but at a much slower pace affecting the productivity of the business. 34. How do economic cycles influence business planning? A) Economic cycles only affect employee morale. B) Economic cycles are irrelevant to resource allocation. C) Economic cycles influence business planning by affecting demand, investment, and resource allocation. D) Economic cycles have no impact on business planning. Show Answer Correct Answer: C) Economic cycles influence business planning by affecting demand, investment, and resource allocation. 35. Planning commission was dissolved in the year A) 2007. B) 2017. C) 1997. D) None of the above. Show Answer Correct Answer: B) 2017. 36. How can businesses reduce their carbon footprint through transportation? A) Encouraging carpooling and public transportation. B) Increasing the number of company cars. C) Building more parking spaces. D) Offering free gasoline. Show Answer Correct Answer: A) Encouraging carpooling and public transportation. 37. The price of one currency in terms of another is called: A) The tax rate. B) Inflation. C) The interest rate. D) The exchange rate. Show Answer Correct Answer: D) The exchange rate. 38. The environment scanning helps to identify A) Opportunities. B) Threats. C) Both a) and b). D) None of the above. Show Answer Correct Answer: C) Both a) and b). 39. What are the implications of demographic changes for businesses? A) Demographic changes only affect government policies, not businesses. B) Businesses should ignore demographic trends and focus on traditional methods. C) Demographic changes require businesses to adapt their strategies to meet evolving consumer needs and labor market dynamics. D) Demographic changes have no impact on business strategies. Show Answer Correct Answer: C) Demographic changes require businesses to adapt their strategies to meet evolving consumer needs and labor market dynamics. 40. 4) The finance minister reduced the repo rate to overcome recession. Which dimension of business is highlighted here? A) Legal environment. B) Social environment. C) Political environment. D) Economic environment. Show Answer Correct Answer: D) Economic environment. 41. What are the four factors contributing to the Internal Business Environment? A) Employees, Employers, Customers, Clients. B) Owners/Management, Employees, Organisational Culture, Organisational Structure. C) Customers, Competitors, Suppliers, Interest Groups. D) Customers, Clients, Suppliers, Distributors. Show Answer Correct Answer: B) Owners/Management, Employees, Organisational Culture, Organisational Structure. 42. Internal components of environment provide ..... and Strength A) Weaknesses. B) Opportunities. C) Threats. D) Challenges. Show Answer Correct Answer: A) Weaknesses. 43. Apa yang dimaksud dengan 'biaya beralih'? A) Biaya pemasaran. B) Biaya produksi. C) Biaya untuk mendapatkan pelanggan baru. D) Biaya yang dikeluarkan oleh pelanggan saat mengganti merek. Show Answer Correct Answer: D) Biaya yang dikeluarkan oleh pelanggan saat mengganti merek. 44. Which of the following reflect a person's values and beliefs? A) Their behaviour. B) The way in which they treat others. C) The way in which they prioritise things. D) All of the above. Show Answer Correct Answer: D) All of the above. 45. The tea industry in Sri Lanka has competitors such as: A) Electricity suppliers. B) International tea brands like Lipton. C) Central Bank. D) The Tea Board. Show Answer Correct Answer: B) International tea brands like Lipton. 46. Liberalization implies: A) Greater role of public sector. B) Free economy with no control. C) Reduction in government control over the private sector. D) None of these. Show Answer Correct Answer: C) Reduction in government control over the private sector. 47. You conduct a SWOT analysis and find out that a new competitor is opening within 5 miles of your store. This would be considered a ..... A) Opportunity. B) Strength. C) Threat. D) Weakness. Show Answer Correct Answer: C) Threat. 48. Primary reference group refer to the following EXCEPT A) Class lecturer. B) Best friend. C) Favourite artist. D) Family. Show Answer Correct Answer: C) Favourite artist. 49. What is the primary importance of understanding the business environment? A) To enhance product quality. B) To identify opportunities and threats. C) To increase competition. D) To reduce costs. Show Answer Correct Answer: B) To identify opportunities and threats. 50. Which of the following is a financial tool that calculates the present value of all cash outflows minus the present value of all cash inflows? A) Return on investment. B) Internal rate of return. C) Net present value. D) Benefit cost value. Show Answer Correct Answer: C) Net present value. 51. Economic environment include ..... A) Economic indices. B) Economic structure. C) Economic Planning. D) All of these. Show Answer Correct Answer: D) All of these. 52. Is rivalry less intense when the market is growing rapidly? A) Yes. B) No. C) All the above. D) None of the above. Show Answer Correct Answer: A) Yes. 53. He growing awareness about the negative effects on plastic on health and environment has led to the decrease in the demand for plastic products in the country. Identify the feature of business environment being described in the above case. A) Inter-related. B) Relative. C) Dynamic. D) Uncertainty. Show Answer Correct Answer: A) Inter-related. 54. What are the 2 components of Business Environment? A) Man and Machinery. B) Money and Management. C) Suppliers and Customers. D) Internal Environment and External Environment. Show Answer Correct Answer: D) Internal Environment and External Environment. 55. ..... means removal of entry and growth restrictions on the private sector. A) Liberalisation. B) Privatisation. C) Globalisation. D) None of the above. Show Answer Correct Answer: A) Liberalisation. 56. What is the purpose of college? A) To provide a product. B) To provide a service. C) All the above. D) None of the above. Show Answer Correct Answer: B) To provide a service. 57. What does the Global Business Environment (GBE) refer to? A) Internal management policies. B) External forces influencing international business operations. C) External forces influencing businesses within a single country. D) Employee satisfaction strategies. Show Answer Correct Answer: B) External forces influencing international business operations. 58. Trade policy refers? A) Money supply. B) Traffis. C) Labour market. D) None of the above. Show Answer Correct Answer: B) Traffis. 59. What are the external factors affecting the business environment? A) Economic conditions, political and legal factors, social and cultural trends, technological advancements, environmental factors, competitive dynamics. B) Market fluctuations, consumer preferences, supply chain issues. C) Brand loyalty, employee satisfaction, market segmentation. D) Global trade agreements, inflation rates, interest rates. Show Answer Correct Answer: A) Economic conditions, political and legal factors, social and cultural trends, technological advancements, environmental factors, competitive dynamics. 60. Trade restrictions such as tariffs (a tax placed on imported goods) are usually created to: A) Increase government revenue and support imports. B) Encourage foreign competition and lower prices. C) Promote international cooperation and trade agreements. D) Protect domestic industries by reducing competition from cheaper foreign goods. Show Answer Correct Answer: D) Protect domestic industries by reducing competition from cheaper foreign goods. ← 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 8Class 12 Business Studies Chapter 3 Business Environment Quiz 9 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books