This quiz works best with JavaScript enabled. Home > Class 12 > Class 12 Business Studies Chapter 3 Business Environment – Quiz 21 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 12 Business Studies Chapter 3 Business Environment Quiz 21 (25 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Which of the following is NOT a part of the micro-environment? A) Government policies. B) Customers. C) Suppliers. D) Trade unions. Show Answer Correct Answer: A) Government policies. 2. Can resource limitations be ignored when analyzing a company's weaknesses? A) Yes. B) No. C) All the above. D) None of the above. Show Answer Correct Answer: B) No. 3. The components of the business environment keeps on changing due to changes in the various circumstances. That shows business environment as ..... A) Dynamic. B) Complex. C) Uncertain. D) Relative. Show Answer Correct Answer: A) Dynamic. 4. What does the 'P' in PESTLE analysis represent? A) People. B) Profit. C) Political. D) Productivity. Show Answer Correct Answer: C) Political. 5. Business zoning refers to: A) The proximity of a business to suppliers. B) The proximity of a business to competitors. C) Which suburb the business is located in. D) A means by which local councils allocate land for different uses. Show Answer Correct Answer: D) A means by which local councils allocate land for different uses. 6. Which principle is being defined? You must comply with relevant laws and regulations, and avoid any action that may bring disrepute to the profession A) Integrity. B) Professional behaviour. C) Professional competency and due care. D) Confidentiality. Show Answer Correct Answer: B) Professional behaviour. 7. What is meant by the technological environment in business? A) The technological environment in business includes external technological factors that affect operations and strategy. B) The technological environment includes only the hardware used by employees. C) The technological environment is solely about software used in business operations. D) The technological environment refers to internal company policies and procedures. Show Answer Correct Answer: A) The technological environment in business includes external technological factors that affect operations and strategy. 8. How do environmental factors affect tourism development? A) Environmental factors only affect local businesses, not tourism. B) Environmental factors affect tourism development by influencing climate, natural attractions, and sustainability. C) Environmental factors have no impact on tourism development. D) Tourism development is solely determined by economic factors. Show Answer Correct Answer: B) Environmental factors affect tourism development by influencing climate, natural attractions, and sustainability. 9. What does the term "business environment" encompass? A) Only the internal factors affecting a business. B) Only the external factors affecting a business. C) Both internal and external factors affecting a business. D) Neither internal nor external factors affecting a business. Show Answer Correct Answer: C) Both internal and external factors affecting a business. 10. If your proprietary know-how of "green" processes is difficult to transfer to other firm, the most effective strategy would be A) Foreign Direct Investment. B) Licensing. C) Exporting. D) None of the above. Show Answer Correct Answer: A) Foreign Direct Investment. 11. Which environment includes customers and competitors? A) Micro environment. B) Macro environment. C) Legal environment. D) Natural environment. Show Answer Correct Answer: A) Micro environment. 12. Introduction of the 10p carrier bag charge would be a ..... A) Technological change. B) Environmental change. C) Economic change. D) Political change. Show Answer Correct Answer: B) Environmental change. 13. There is no need of consideration of the business environment factors in business. A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: B) False. 14. What is a key characteristic of the macro-environment? A) Limited influence by the business. B) Immediate feedback from consumers. C) Full control by the business. D) Direct management by the owners. Show Answer Correct Answer: A) Limited influence by the business. 15. It includes government policy in respect of public expenditure, taxation and public debt. A) Monetary policy. B) Fiscal policy. C) Foreign investment policy. D) Don't know. Show Answer Correct Answer: B) Fiscal policy. 16. When parastatals are sold to individuals because they are not profitable as state owned businesses A) Nationalisation. B) Privatisation. C) Spending power. D) Eskom. Show Answer Correct Answer: B) Privatisation. 17. Should a company avoid investing in training programs if it lacks skilled employees? A) Yes. B) No. C) All the above. D) None of the above. Show Answer Correct Answer: B) No. 18. Culture has strong influence in A) Eastern countries. B) Western countries. C) Developed countries. D) None of these. Show Answer Correct Answer: A) Eastern countries. 19. Which one is not a type of contract A) Valid contract. B) Void contract. C) Executory contract. D) Future Contract. Show Answer Correct Answer: D) Future Contract. 20. 'Twinkle Stars' is a well-known resort for organising parties, especially for children. However, in past 6 months its popularity has reduced considerably as a new resort with better ambience and facilities has opened within its vicinity. Name the related feature of business environment which has influenced the business of 'Twinkle Stars' adversely. A) Totality of external forces. B) Uncertainty. C) Interrelatedness. D) Dynamic nature. Show Answer Correct Answer: D) Dynamic nature. 21. A ..... exists when private enterprise reserves the right to own property and monitor the production and distribution of goods and services while the state simply supports competition and efficient practices: A) Command Economy. B) Market Economy. C) Mixed Economy. D) None of the above. Show Answer Correct Answer: B) Market Economy. 22. Which of the following best describes market trends? A) They are only relevant to product pricing. B) They reflect the evolving preferences and behaviors of consumers. C) They are determined solely by government regulations. D) They are static and do not change over time. Show Answer Correct Answer: B) They reflect the evolving preferences and behaviors of consumers. 23. Too much regulation of business will cause A) Loss of investments. B) Loss of employment. C) Regional imbalances. D) All of these. Show Answer Correct Answer: D) All of these. 24. ITC Hotels made a study of the business environment and planned to open ..... in India and abroad. A) Factories. B) Hotels. C) Shops. D) Offices. Show Answer Correct Answer: B) Hotels. 25. AAT's code of professinal ethics is based on a set of rules A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: B) False. ← 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