This quiz works best with JavaScript enabled. Home > Class 12 > Class 12 Business Studies Chapter 3 Business Environment – Quiz 10 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 12 Business Studies Chapter 3 Business Environment Quiz 10 (25 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. A shift in consumer taste, away from the firm's product is considered a A) Political Factor. B) Economic Factor. C) Social Factor. D) Technological Factor. Show Answer Correct Answer: C) Social Factor. 2. 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. 3. 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. 4. How do we call the money brought by shareholders? A) Available funds. B) Equity. C) Cash. D) Shareholder Liability. Show Answer Correct Answer: B) Equity. 5. 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. 6. Shift of Youth in India toward packed foods, online buying is part of A) Political environment. B) Social environment. C) Legal environment. D) Technological environment. Show Answer Correct Answer: B) Social environment. 7. How many employees did Instagram have in 2012? A) Less than 20. B) More than 100. C) Between 50-60. D) 450 Employees. Show Answer Correct Answer: A) Less than 20. 8. 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. 9. 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. 10. 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) Technological Environment. B) Economic Environment. C) Social Environment. D) Political Environment. Show Answer Correct Answer: C) Social Environment. 11. 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. 12. 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. 13. 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. 14. Which of the following is an example of a micro environment element? A) Technological advancements. B) Customers. C) Economic conditions. D) Government policies. Show Answer Correct Answer: B) Customers. 15. 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. 16. What part of the internal environment have the most control? A) Owners/Managers. B) Employees. C) Organisational structure. D) Organisational culture. Show Answer Correct Answer: A) Owners/Managers. 17. An example of a contractionary fiscal policy would be if: A) Taxes were cut. B) The government bailed out GM. C) The Fed decrease the fed funds rate. D) Taxes were increased. Show Answer Correct Answer: D) Taxes were increased. 18. "The Trade Unions Act, 1926" is an example of: A) Legal Environment. B) Economic Environment. C) Social Environment. D) Political Environment. Show Answer Correct Answer: A) Legal Environment. 19. What are the key components of a successful marketing strategy? A) Product, Price, Place, Promotion. B) People, Process, Physical Evidence. C) Planning, Organizing, Leading, Controlling. D) Research, Development, Production, Sales. Show Answer Correct Answer: A) Product, Price, Place, Promotion. 20. 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. 21. It is the degree to which society is uncomfortable with risk, change, and situational uncertainty. A) Individualism-Collectivism. B) Masculinity-Femininity. C) Time Orientation. D) Uncertainty Avoidance. Show Answer Correct Answer: D) Uncertainty Avoidance. 22. A force representing external environment is ..... A) Manager. B) Owner. C) Customers. D) Legal. Show Answer Correct Answer: D) Legal. 23. What are the 5 M's that are part of the business environment? A) Material, Market, Manpower, Machinery, Management. B) Manpower, Machinery, Marketing, Money, Management. C) Market, Money, Management, Macro, Micro. D) Man, Material, Money, Machinery, Management. Show Answer Correct Answer: D) Man, Material, Money, Machinery, Management. 24. 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. 25. Which of the following is a controllable factor in the internal environment? A) Economic policies. B) Natural disasters. C) Shareholders. D) Market trends. Show Answer Correct Answer: C) Shareholders. ← PreviousNext →Related 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 8Class 12 Business Studies Chapter 3 Business Environment Quiz 9Class 12 Business Studies Chapter 3 Business Environment Quiz 11 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books