This quiz works best with JavaScript enabled. Home > Class 12 > Class 12 Business Studies Chapter 3 Business Environment – Quiz 1 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 12 Business Studies Chapter 3 Business Environment Quiz 1 (25 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Name some Characteristics of the Formal Sector A) Legal Businesses pay tax and are included GDP of South Africa. B) Have Fixed Locations. C) Are in Cambodia. D) None of the above. Show Answer Correct Answer: A) Legal Businesses pay tax and are included GDP of South Africa. 2. Which state is number in human development in India A) Kerala. B) Maharashtra. C) Andhra Pradesh. D) Telangana. Show Answer Correct Answer: A) Kerala. 3. This principle says that only those that use the good or service should pay the tax A) Ability to Pay. B) Fiscal. C) Benefits. D) Monetary. Show Answer Correct Answer: C) Benefits. 4. Primarily Devaluation of Currency is done to ..... A) To control inflation. B) To make the Rupee cheaper. C) To Boost the export. D) To increase foreign reserves. Show Answer Correct Answer: C) To Boost the export. 5. Which of the following statements about the business environment is true? A) It is simple and static. B) It does not impact strategic decisions. C) It is complex and dynamic. D) It includes only internal elements. Show Answer Correct Answer: C) It is complex and dynamic. 6. How does international trade affect domestic markets? A) International trade has no impact on consumer choices. B) International trade affects domestic markets by increasing competition, lowering prices, and providing more choices for consumers, while also posing challenges for local industries. C) International trade eliminates all local businesses. D) International trade only benefits large corporations. Show Answer Correct Answer: B) International trade affects domestic markets by increasing competition, lowering prices, and providing more choices for consumers, while also posing challenges for local industries. 7. Which of the following factors is a part of the external business environment? A) Company policies and procedures. B) Internal communication systems. C) Employee training programs. D) Market competition and economic conditions. Show Answer Correct Answer: D) Market competition and economic conditions. 8. INDIA ASKED FOR A LOAN OF ..... FROM IMF IN 1991 A) $ 10 BILLION. B) $ 7 BILLION. C) $ 200 MILLION. D) NONE. Show Answer Correct Answer: B) $ 7 BILLION. 9. What do communities often seek from organizations as stakeholders? A) High profits. B) Sustainable business practices. C) Competitive pricing. D) Ethical leadership. Show Answer Correct Answer: B) Sustainable business practices. 10. Business environment consists of internal factors only? A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: B) False. 11. Which business environment does not affect the function of the business? A) Forces of economic factors. B) Forces of changing factors. C) Forces of technological factors. D) Forces of social factors. E) Forces of political factors. Show Answer Correct Answer: B) Forces of changing factors. 12. It is the degree to which a society emphasizes short-term thinking versus greater concern for the future or long-term thinking. A) Uncertainty Avoidance. B) Individualism-Collectivism. C) Time Orientation. D) Power Distance. Show Answer Correct Answer: C) Time Orientation. 13. Just after the declaration of the results of the Lok Sabha Elections, 2019, the Bombay Stock Exchange's price index (Sensex) rose by 2100 points in a day. Identify the environmental factor which led to this rise? A) Legal Environment. B) Political environment. C) Social environment. D) Economic environment. Show Answer Correct Answer: B) Political environment. 14. What is NDP? A) National domestic product. B) Net domestic product. C) Both. D) None. Show Answer Correct Answer: B) Net domestic product. 15. Socialisation is the process through which employees: A) Vocalise the thoughts and feelings that members of a culture take for granted and believe to be true. B) Develop the basic beliefs they have that influences general preferences and behaviours and define right/wrong. C) Use any visible objects, act or event that conveys meaning to others. D) Learn values, norms, behaviours and social skills expected and accepted from members of a culture. Show Answer Correct Answer: D) Learn values, norms, behaviours and social skills expected and accepted from members of a culture. 16. What role do stakeholders play in shaping the business environment? A) They have no influence on business decisions. B) They provide financial support only. C) They can impact business operations and decisions. D) They are only concerned with profit margins. Show Answer Correct Answer: C) They can impact business operations and decisions. 17. If floods affect the vegetable supply chain, which PESTEL factor is involved? A) Technological. B) Political. C) Environmental. D) Social. Show Answer Correct Answer: C) Environmental. 18. 1) "One of the features of business environment states that something which is new today, may become outdated or obsolete after sometime." identify the feature. A) Interrelatedness. B) Dynamic. C) Complexity. D) Relativity. Show Answer Correct Answer: B) Dynamic. 19. Which of these would NOT be a suitable location for a fast-food restaurant? A) Retail shopping strip. B) Shopping centre. C) The home of the business owner. D) On an interstate highway. Show Answer Correct Answer: C) The home of the business owner. 20. Which of the following dimensions of business environment includes legislation passed by the government administrative orders issued by govt authorities A) Technological. B) Social. C) Legal. D) Economic. Show Answer Correct Answer: C) Legal. 21. What does the social environment encompass? A) Government policies. B) Demographics and lifestyle trends. C) Legal regulations. D) Economic growth. Show Answer Correct Answer: B) Demographics and lifestyle trends. 22. Inflation A) Does not affect the business. B) Is the general increase in the price of goods and services. C) Is an increase in the petrol price. D) Is decided by parliament. Show Answer Correct Answer: B) Is the general increase in the price of goods and services. 23. 10) Liberalization means: A) Integration among economies. B) Reduced government controls and restrictions. C) Policy of planned disinvestments. D) None of them. Show Answer Correct Answer: B) Reduced government controls and restrictions. 24. Abigail is working for a company that is expanding its operations internationally. She needs to be aware of political factors that affect trade, such as civil unrest or: A) Business cycles. B) Currency rates. C) Competitors. D) Embargoes. Show Answer Correct Answer: D) Embargoes. 25. Who are primary stakeholders in an organization? A) Customers. B) Suppliers. C) Shareholders. D) All of the above. Show Answer Correct Answer: D) All of the above. 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