This quiz works best with JavaScript enabled. Home > Class 12 > Class 12 Business Studies Chapter 3 Business Environment – Quiz 11 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 12 Business Studies Chapter 3 Business Environment Quiz 11 (25 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. 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. 2. 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. 3. The business environment has: A) 1 level. B) 2 levels. C) 5 levels. D) 3 levels. Show Answer Correct Answer: D) 3 levels. 4. What are the four PATHS to establishing an entrepreneurial venture? A) Innovation, Growth potential, sound objectives, Management. B) Identifying an opportunity, Assessing resources required, Developing a business plan, Managing an entrepreneurial venture. C) Incubation, Start-up, Breakthrough, Maturity. D) Starting a new business, Buying an already established business, Franchise, Family Business. Show Answer Correct Answer: D) Starting a new business, Buying an already established business, Franchise, Family Business. 5. The following are variables of demography EXCEPT A) Age. B) Interest. C) Population. D) Level of income. Show Answer Correct Answer: B) Interest. 6. Analysing the changes in business environment explains which feature of business environment? A) Complex. B) Static. C) Dynamic. D) Diverse. Show Answer Correct Answer: C) Dynamic. 7. A general rise in prices across all sectors of the economy, causing money to lose its value is referred to as A) Imports. B) Inflation. C) Investment. D) Equilibrium. Show Answer Correct Answer: B) 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) Policy relating to business. B) Technological environment. C) Size of the business. D) Structure of business. Show Answer Correct Answer: B) Technological environment. 10. Strengths and Weaknesses in a business as referred to by SWOT analysis A) External Factors. B) Poor Planning. C) Internal Factors. D) Good Management. Show Answer Correct Answer: C) Internal Factors. 11. Why should businesses change their strategies? A) To follow new trends or rules in the business environment. B) To avoid making changes. C) To focus only on profits. D) To stop competitors from entering the market. Show Answer Correct Answer: A) 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) Consumers spend too much time shopping online. C) Businesses outsource jobs to other countries. D) People who speak different languages try to communicate with one another. 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) Strikes. B) Climate conditions. C) Natural disasters. D) A good supply network. Show Answer Correct Answer: D) 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) Budgeting. B) Forecasting. C) Monitoring. D) Scanning. Show Answer Correct Answer: A) 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) Economic conditions. D) Human resources. Show Answer Correct Answer: C) Economic conditions. 19. Who among the following is NOT part of the internal environment? A) Owners. B) Customers. C) Employees. D) Board of Directors. Show Answer Correct Answer: B) 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) General Environment. C) Task Environment. D) Natural 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. ← 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 10 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books