This quiz works best with JavaScript enabled. Home > Cbse > Class 12 > Commerce > Business Studies > Class 12 Business Studies Chapter 3 Business Environment – Quiz 8 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 12 Business Studies Chapter 3 Business Environment Quiz 8 (60 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Prices are used in our economy to: A) A offer excessive demand. B) B. cause no change demand. C) C. encourage excessive supply of products. D) D. determine what goods are to be produced and in what quantities. Show Answer Correct Answer: D) D. determine what goods are to be produced and in what quantities. 2. Explain the effects of privatization on tourism in India. A) Privatization has no impact on tourism in India. B) Privatization has improved infrastructure and service quality in Indian tourism but may increase costs and create inequalities. C) Privatization has made tourism in India more affordable for everyone. D) Privatization has solely decreased service quality in Indian tourism. Show Answer Correct Answer: B) Privatization has improved infrastructure and service quality in Indian tourism but may increase costs and create inequalities. 3. An organisation that has outlets in 20 countries is classed as ..... A) Local. B) Global. C) International. D) National. Show Answer Correct Answer: B) Global. 4. ..... are interested in the returns they receive on their investment in the company. A) Shareholders. B) Customers. C) Pressure Groups. D) Employees. Show Answer Correct Answer: A) Shareholders. 5. A bus fare is $ 2.00 in the morning rush hour, but only $ 1.50 during the afternoon. The morning fare can be explained by the fact that the demand for morning bus rides is A) Price Elastic. B) Price Inelastic. C) All the above. D) None of the above. Show Answer Correct Answer: B) Price Inelastic. 6. The business environment is like: A) A boat and the ocean. B) A cup of tea. C) A textbook. D) A cricket team. Show Answer Correct Answer: A) A boat and the ocean. 7. Maya is studying how the ability to travel more freely has impacted globalization. What has she discovered? A) It helps enable the spread of culture and ideas. B) It promotes a sense of nationalism. C) It escalates competition between businesses. D) It breaks down political barriers between countries. Show Answer Correct Answer: A) It helps enable the spread of culture and ideas. 8. Elastic demand is more likely when the good is: A) D. inexpensive. B) C. a lower price. C) B. imported. D) A a luxury. Show Answer Correct Answer: D) A a luxury. 9. Things your competitor does better than you. A) Threat. B) Weakness. C) Strength. D) Opportunity. Show Answer Correct Answer: B) Weakness. 10. Arc Electric Company holds regular safety training meetings for its employees. What form of risk management is this? A) C. retention. B) B. reduction. C) D. transfer. D) A capital. Show Answer Correct Answer: B) B. reduction. 11. A business that buys goods or services and sells them to the ultimate consumer is a: A) C. retailer. B) B. producer. C) D. wholesaler. D) A manufacturer. Show Answer Correct Answer: A) C. retailer. 12. NITI Aayog's core concept is A) Cooperative federalism. B) Federal union. C) Completion among states. D) States' autonomy. Show Answer Correct Answer: A) Cooperative federalism. 13. What is the role of employees in influencing change within a business? A) They provide regulatory guidelines. B) They implement and adapt to changes. C) They determine interest rates. D) They set industry standards. Show Answer Correct Answer: B) They implement and adapt to changes. 14. Kebijakan pemerintah untuk menurunkan nilai mata uang dalam negeri (rupiah) terhadap mata uang asing, disebut dengan A) Subsidi. B) Premi. C) Devaluasi. D) Dumping. Show Answer Correct Answer: C) Devaluasi. 15. How can legal factors affect business decisions? A) Legal factors only impact employee morale. B) Legal factors have no influence on pricing strategies. C) Legal factors are irrelevant to market competition. D) Legal factors can dictate operational practices. Show Answer Correct Answer: D) Legal factors can dictate operational practices. 16. Which of the following could be a strength? A) A price that is too high. B) Weather. C) A new international market. D) The location of a business. Show Answer Correct Answer: D) The location of a business. 17. Which of the following is an example of a governmental regulatory agency: A) Air Conditioning Contractors of America. B) Better Business Bureau (BBB). C) Sporting Goods Manufacturers Association. D) Federal Aviation Administration (FAA). Show Answer Correct Answer: D) Federal Aviation Administration (FAA). 18. A firm should make efforts that it has ..... type of customers? A) 1. B) 2. C) Many. D) 3. Show Answer Correct Answer: C) Many. 19. It is important to have positive and open relationships with this group as they provide inputs to a business to create goods and services A) Suppliers. B) Customers. C) Interest Groups. D) Competitors. Show Answer Correct Answer: A) Suppliers. 20. How does the increase of global business operations affect the environment? A) It can lead to increased pollution and environmental degradation. B) It can encourage businesses to adopt more sustainable practices. C) It has no significant impact on the environment. D) All of the above. Show Answer Correct Answer: D) All of the above. 21. South Africa's political environment is A) Unstable. B) Responsive to citizens. C) Relatable. D) Stable. Show Answer Correct Answer: A) Unstable. 22. What kind of mindset will help you learn despite the changing environments? A) Growth mindset. B) Fixed Mindset. C) All the above. D) None of the above. Show Answer Correct Answer: A) Growth mindset. 23. Which is an example of a Technological factor? A) Inflation rate. B) QR code payments. C) Tax increase. D) Consumer protection laws. Show Answer Correct Answer: B) QR code payments. 24. What is one factor of the external operating environment of a business? A) Customers. B) Competitors. C) Suppliers. D) Interest Groups. E) All of the above. Show Answer Correct Answer: E) All of the above. 25. Condition affecting business vary from region to region A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: A) True. 26. Quantity demanded refers to: A) The willingness of buyer and his affordability to pay the price for the economic good or service. B) An exact quantity (how much) of a good or service is demanded by consumers at a particular price. C) The number of goods or services that the provider is making available to the customers at each particular price. D) A particular point in the supply curve at a specific intersection point between a certain price and quantity. Show Answer Correct Answer: B) An exact quantity (how much) of a good or service is demanded by consumers at a particular price. 27. What can environmental factors include? A) Only technological changes. B) Only legal issues. C) Climate change and pollution. D) Only economic trends. Show Answer Correct Answer: C) Climate change and pollution. 28. Organisations use all of the following kinds of resource EXCEPT ..... resources A) Human. B) Political. C) Physical. D) Financial. Show Answer Correct Answer: B) Political. 29. A company facing high competitive rivalry in its industry is likely to do which of the following? A) Ignore customer service to cut costs. B) Increase its market prices significantly. C) Focus on product differentiation. D) Reduce production quality to save cost. Show Answer Correct Answer: C) Focus on product differentiation. 30. Apa pentingnya mendefinisikan sebuah masalah dalam bisnis? A) Ini mengarah pada solusi yang lebih baik. B) Ini mengurangi biaya operasional. C) Ini meningkatkan kepuasan karyawan. D) Ini membantu dalam membuat rencana pemasaran. Show Answer Correct Answer: A) Ini mengarah pada solusi yang lebih baik. 31. Which of the following is not an environmental factor affecting a business? A) Economic conditions. B) Internal staff promotions. C) Technological changes. D) Government policies. Show Answer Correct Answer: B) Internal staff promotions. 32. One way a business can be international is by producing goods in a different country but selling them domestically. A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: A) True. 33. Which of the following does not explain the impact of Government policy changes on business and industry? A) More demanding customers. B) Increasing competition. C) Change in agricultural prices. D) Market orientation. Show Answer Correct Answer: C) Change in agricultural prices. 34. 3) Identify out of the LPG, which one is highlighted:NDPL and BSES instead of Delhi Vidyut Board A) Liberalization. B) Privatization. C) Globalization. D) None. Show Answer Correct Answer: B) Privatization. 35. Societal attitudes and behaviours are considered apart of which business environment? A) Macro environment. B) Operating environment. C) Micro environment. D) None of the above. Show Answer Correct Answer: A) Macro environment. 36. Faisal is a manager, he thinks that to incentivise his team it is appropriate to compare them to each other and constantly talk about how some of them are hard-workers while the others are not doing enough. Is Faisal a good manager? A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: B) False. 37. Which part of the five-sector circular flow of income model focuses on imports and exports? A) Overseas sector. B) Financial sector. C) Business sector. D) Government sector. Show Answer Correct Answer: A) Overseas sector. 38. What are the main categories of market segmentation? A) Location, Demographics and Income. B) Where they go to school. C) All the above. D) None of the above. Show Answer Correct Answer: A) Location, Demographics and Income. 39. TRUE OR FALSE:Demonetization is viewed as a tax administration measure. A) TRUE. B) FALSE. C) All the above. D) None of the above. Show Answer Correct Answer: A) TRUE. 40. What does the market environment include? A) Global economic conditions. B) Government regulations. C) External factors affecting the business. D) Internal business processes. Show Answer Correct Answer: C) External factors affecting the business. 41. Which of the following is a component of the macro environment? A) Company policies. B) Economic conditions. C) Employee skills. D) Organizational culture. Show Answer Correct Answer: B) Economic conditions. 42. Untuk meningkatkan daya saing produk, pemerintah Indonesia menjual Sepatu dengan harga yang lebih murah di Amerika, hal ini merupakan kebijakan dari ..... A) Subsidi. B) Tarif. C) Dumping. D) Premi. Show Answer Correct Answer: C) Dumping. 43. Which tool would we use to analyse the Macro environment? A) Porter's 5 Forces. B) Contingency plan. C) SWOT. D) PESTLE. Show Answer Correct Answer: D) PESTLE. 44. What is the impact of competition on the business environment? A) Competition creates monopolies that harm consumers. B) Competition leads to higher prices and reduced quality. C) Competition enhances innovation, quality, and efficiency while lowering prices in the business environment. D) Competition stifles innovation and creativity in businesses. Show Answer Correct Answer: C) Competition enhances innovation, quality, and efficiency while lowering prices in the business environment. 45. What does the term 'LPG' in economic policies stand for? A) Local, Private, Government. B) Labor, Production, Goods. C) Loans, Profits, Growth. D) Liberalization, Privatization, Globalization. Show Answer Correct Answer: D) Liberalization, Privatization, Globalization. 46. Repayment of a foreign loan A) Is recorded as a debit in primary income. B) Decreases foreign liabilities. C) Increases foreign assets. D) Is recorded as a debit in the financial account. Show Answer Correct Answer: D) Is recorded as a debit in the financial account. 47. Theorists of free trade believe that free world trade will create inequality and high costs due to interconnectivity of economies A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: B) False. 48. 7) The project of Nano car re-established in Gujarat is indicated by which factor of environment? A) Economic factor. B) Political factor. C) Social factor. D) Legal factor. Show Answer Correct Answer: B) Political factor. 49. Psychographics are: A) The physical attributes of the target market. B) The wants and needs of the consumers. C) The beliefs and values of the consumers. D) The education level of the consumers. Show Answer Correct Answer: C) The beliefs and values of the consumers. 50. Both internal and external factors can impact the global business environment. A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: A) True. 51. A company launches a new product and advertises it by making false claims about its effectiveness, which misleads customers. Under the legal environment of business, this act will be governed by: A) The Indian Contract Act, 1872. B) The Partnership Act, 1932. C) The Companies Act, 2013. D) The Consumer Protection Act, 2019. Show Answer Correct Answer: D) The Consumer Protection Act, 2019. 52. As a monopolistic competition type of firm, ASTRO has to ..... in order to remain ahead of the competition. A) Sell homogenous products. B) Ensure it has economies of scale. C) Increase the barriers to market entry. D) Differentiate its products using branding. Show Answer Correct Answer: D) Differentiate its products using branding. 53. A project is in the execution phase when a new environmental regulation is passed that affects the project's deliverables. What should the project manager do? A) Update the project management plan to comply with the new regulation. B) Wait for the regulatory body to contact them directly. C) Apply for an exemption from the new regulation. D) Ignore the regulation until an audit is scheduled. Show Answer Correct Answer: A) Update the project management plan to comply with the new regulation. 54. Which of the following factors is considered part of the micro environment? A) Market trends. B) Supplier relationships. C) Regulatory changes. D) Global economic shifts. Show Answer Correct Answer: B) Supplier relationships. 55. Economic dimension includes: A) Balance of payments & forex reserves. B) Industrial trends. C) Imports & exports volume. D) All of the above. Show Answer Correct Answer: D) All of the above. 56. Who are regarded as the king of the market in the business environment? A) Customers. B) Suppliers. C) Public. D) Competitors. Show Answer Correct Answer: A) Customers. 57. A lumber company has implemented a policy that for every tree that it cuts down, it will plant two new trees in an urban area of the city. The company's aim is to help reduce pollution in the city, while increasing sustainability. What would this type of initiative be considered? A) CSR. B) Political stability. C) Profitable objectives. D) All of the choices. Show Answer Correct Answer: A) CSR. 58. Apa tujuan empati dalam lingkungan bisnis? A) Untuk meningkatkan strategi pemasaran. B) Untuk meningkatkan keuntungan. C) Untuk memahami kebutuhan pelanggan. D) Untuk mengurangi biaya. Show Answer Correct Answer: C) Untuk memahami kebutuhan pelanggan. 59. Hiring a lawyer can help safeguard against changes in this environment. A) Environmental. B) Economic. C) Political. D) Legislative. Show Answer Correct Answer: D) Legislative. 60. Which of the following was not one of the reasons for introducing new economic policy? A) Increasing fiscal deficit. B) Fall in the price levels. C) Gulf crisis. D) Poor performances of public sector. Show Answer Correct Answer: B) Fall in the price levels. ← 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 9 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books