This quiz works best with JavaScript enabled. Home > Class 12 > Class 12 Business Studies Chapter 3 Business Environment – Quiz 2 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 12 Business Studies Chapter 3 Business Environment Quiz 2 (25 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Which of the following are actions taken by the government under an expansionary fiscal policy? A) A deliberate reduction in spending and/or increase of taxes. B) A deliberate increase in government spending and/or reduction in income taxes. C) A deliberate increase in interest rates. D) A deliberate increase in reserve requirements. Show Answer Correct Answer: B) A deliberate increase in government spending and/or reduction in income taxes. 2. By identifying areas under the weaknesses section, how does this help you develop? A) So that you can avoid them. B) So that you can pretend they don't exist and ignore them. C) Use them to identify areas for development and focus on them. D) By allowing other people to see them and use them against you. Show Answer Correct Answer: C) Use them to identify areas for development and focus on them. 3. ..... needs to Plan, Lead, Control and Organise resources and individuals within a business or this could lead to challenges in the micro environment. A) Management. B) Owners. C) Stakeholders. D) Unions. Show Answer Correct Answer: A) Management. 4. Profit maximization was aim of which concept of business A) Old concept. B) New concept. C) All the above. D) None of the above. Show Answer Correct Answer: A) Old concept. 5. What is the primary focus of the GBE module? A) Understanding the internal workings of a company. B) Examining external factors that affect global business operations. C) Learning about accounting practices. D) Developing manufacturing processes. Show Answer Correct Answer: B) Examining external factors that affect global business operations. 6. Analyzing 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. Business environment differs from country to country and even region to region.Which feature of business environment is discussed in the given sentence? A) Uncertainty. B) Complexity. C) Relativity. D) Inter-relatedness. Show Answer Correct Answer: C) Relativity. 8. How can political stability affect businesses? A) By influencing consumer preferences. B) By shaping government policies and regulations. C) By determining GDP growth. D) By impacting technological advancements. Show Answer Correct Answer: B) By shaping government policies and regulations. 9. A business has a poor reputation among customers, this would be considered to be a(n) A) Strength. B) Weakness. C) Opportunity. D) Threat. Show Answer Correct Answer: B) Weakness. 10. What is a characteristic of deadweight debt? A) It creates real assets. B) It is used for productive purposes. C) It does not increase productivity. D) It is always beneficial. Show Answer Correct Answer: C) It does not increase productivity. 11. Which of the following would be an environmental factor? A) A rift between the USA and China. B) Increased use of smart phones and tablets. C) The use of organic materials instead of scare materials. D) Lower consumer income. Show Answer Correct Answer: C) The use of organic materials instead of scare materials. 12. During a class discussion, Saba mentioned that Canada imposed countermeasures on certain types of products. What type of products were these? A) Electronics. B) Steel, aluminum, and consumer products. C) Pharmaceuticals. D) Automobiles. Show Answer Correct Answer: B) Steel, aluminum, and consumer products. 13. What does the term 'competitive rivalry' refer to? A) The threat of new entrants. B) The intensity of competition among existing firms. C) The bargaining power of suppliers. D) The availability of substitute products. Show Answer Correct Answer: B) The intensity of competition among existing firms. 14. How do economic conditions affect business strategies? A) They have no impact. B) They influence pricing and hiring decisions. C) They only affect marketing strategies. D) They simplify legal compliance. Show Answer Correct Answer: B) They influence pricing and hiring decisions. 15. In a socialist economy, what determines how basic economic questions are answered? A) A government. B) B. products. C) C. resources. D) D. retailers. Show Answer Correct Answer: A) A government. 16. When two firms agree to integrate their operations called ..... A) Merger. B) Acquisition. C) All the above. D) None of the above. Show Answer Correct Answer: A) Merger. 17. Which of the following is considered part of the internal business environment? A) Government regulations. B) Technological advancements. C) Organizational culture. D) Economic conditions. Show Answer Correct Answer: C) Organizational culture. 18. Which of the following is not a characteristic of business environment? A) Absolute. B) Integral. C) Dynamic. D) Complexity. Show Answer Correct Answer: A) Absolute. 19. Is SWOT analysis only useful for large corporations and not for small businesses? A) Yes. B) No. C) All the above. D) None of the above. Show Answer Correct Answer: B) No. 20. Current Indian business environment includes; A) Globalisation. B) Fast growth in service sector. C) Increase in foreign trade. D) All of the above. Show Answer Correct Answer: D) All of the above. 21. He Economic Survey, 2019 suggests that the psychological biases can be used in the realm of tax compliance. It is in favour of using religious norms such "dying in debt is a sin" to improve tax compliance. Identify the related dimensions of business environment. A) Legal dimension and Social dimension. B) Social dimension and Economic dimension. C) Technological dimension and Political dimension. D) Political dimension and Economic dimension. Show Answer Correct Answer: B) Social dimension and Economic dimension. 22. The impact of deflation on the purchasing power is? A) Decreases. B) Fluctuates. C) Increases. D) Remains the same. Show Answer Correct Answer: C) Increases. 23. What does the term 'business environment' primarily refer to? A) Internal company policies. B) External and internal factors affecting a business. C) Market share of a company. D) Technological resources only. Show Answer Correct Answer: B) External and internal factors affecting a business. 24. Sale of Goods act was enacted in the year ..... A) 1930. B) 1832. C) 1882. D) 1933. Show Answer Correct Answer: A) 1930. 25. Which is the strategy of globalization? A) Exporting. B) Joint venture. C) Assembly contract. D) All of the above. Show Answer Correct Answer: D) All of the above. ← PreviousNext →Related QuizzesClass 12 Business Studies Chapter 3 Business Environment Quiz 1Class 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 10Class 12 Business Studies Chapter 3 Business Environment Quiz 11 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books