This quiz works best with JavaScript enabled. Home > Class 12 > Class 12 Business Studies Chapter 3 Business Environment – Quiz 26 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 12 Business Studies Chapter 3 Business Environment Quiz 26 (25 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. It is a strategic tool to identify the external and internal environment. A) Environmental Analysis. B) Environmental Scanning. C) Business Analysis. D) Business Environment. Show Answer Correct Answer: A) Environmental Analysis. 2. Which of the following is an example of an opportunity in the external environment? A) Financial limitations. B) Gaps in capabilities. C) Economic boom. D) Low employee morale. Show Answer Correct Answer: C) Economic boom. 3. Which comes first?Knowledge, Data, Information, Wisdom A) Information. B) Knowledge. C) Wisdom. D) Data. Show Answer Correct Answer: D) Data. 4. Marketing intermediaries help in A) Supplying raw to the company. B) Transporting the goods. C) Serving as a link. D) Selling the product. Show Answer Correct Answer: D) Selling the product. 5. Which group is directly involved in the day-to-day operations and is considered a primary stakeholder? A) Customers. B) Management. C) Competitors. D) Creditors. Show Answer Correct Answer: B) Management. 6. Which act is related to consumer protection? A) Indian Contract Act, 1872. B) Consumer Protection Act, 1986. C) Industrial Dispute Act, 1947. D) Workmen's Compensation Act, 1923. Show Answer Correct Answer: B) Consumer Protection Act, 1986. 7. What are the potential risks of entering a new market? A) Risks are only associated with domestic markets, not international ones. B) Entering a new market guarantees success. C) Potential risks include cultural misunderstandings, regulatory challenges, and increased competition. D) Entering a new market carries no risks. Show Answer Correct Answer: C) Potential risks include cultural misunderstandings, regulatory challenges, and increased competition. 8. Good reputation amongst the customer like Infosys, LAKEME, APPLE, GOOGLE, LIC etc. have in market. So all of these will termed as ..... of the company. A) Opportunities. B) Strength. C) Weakness. D) Threat. Show Answer Correct Answer: B) Strength. 9. Factors that create opportunities and threats to business units is known as A) Internal environment. B) External environment. C) Micro environment. D) Macro environment. Show Answer Correct Answer: C) Micro environment. 10. Which of the following is NOT an assumption of the law of demand? A) No change in consumer's income. B) No change in consumer's preferences. C) No change in the price of related goods. D) No change in government policy. Show Answer Correct Answer: D) No change in government policy. 11. For a contract to be valid it must have the intention to create a legal relationship A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: A) True. 12. Which of the following is NOT a component of PESTLE analysis? A) Economic. B) Social. C) Technological. D) Managerial. Show Answer Correct Answer: D) Managerial. 13. Which business model is MOST likely used by a national government digital service? A) B2C. B) B2B. C) B2M. D) B2S. Show Answer Correct Answer: C) B2M. 14. What is it called when a product loses value over time? A) Depreciation. B) Inflation. C) Assets. D) Growth. Show Answer Correct Answer: A) Depreciation. 15. Which of the following is a factor in the macro-environment? A) Company policies. B) Employee satisfaction. C) Technological advancements. D) Internal communication. Show Answer Correct Answer: C) Technological advancements. 16. Which of the following demonstrates the impact of a weak pound on a UK business that imports raw materials and exports finished goods? A) Imported raw materials dearer and exported finished goods cheaper. B) Imported raw materials cheaper and exported finished goods cheaper. C) Imported raw materials dearer and exported finished goods dearer. D) Imported raw materials cheaper and exported finished goods dearer. Show Answer Correct Answer: A) Imported raw materials dearer and exported finished goods cheaper. 17. When the company produces good quality products and sells it at reasonable price. A) Responsibility towards Consumers. B) Responsibility towards Government. C) Responsibility towards Employees. D) Responsibility towards Society. Show Answer Correct Answer: A) Responsibility towards Consumers. 18. Which environment is the easiest to influence, monitor and control? A) Internal Environment. B) External Operating (Micro) Environment. C) External (Macro) Environment. D) Environments can't be influenced. Show Answer Correct Answer: A) Internal Environment. 19. Which part of the internal environment organises the people within the business into roles and responsibilities? A) Owners/Managers. B) Employees. C) Organisational structure. D) Organisational culture. Show Answer Correct Answer: C) Organisational structure. 20. Can buyers have high bargaining power if they purchase in small quantities? A) Yes. B) No. C) All the above. D) None of the above. Show Answer Correct Answer: B) No. 21. Which of the following is a characteristic of the macro environment? A) Directly controllable by the organization. B) Includes factors like demographics and economy. C) Focuses on internal company policies. D) Consists of immediate competitors. Show Answer Correct Answer: B) Includes factors like demographics and economy. 22. Identify some impediments to globalization in India. A) Strong economic growth. B) High levels of foreign investment. C) Advanced technological infrastructure. D) Regulatory barriers, protectionist policies, inadequate infrastructure, cultural resistance, bureaucratic red tape. Show Answer Correct Answer: D) Regulatory barriers, protectionist policies, inadequate infrastructure, cultural resistance, bureaucratic red tape. 23. Can an organization with low employee retention avoid external threats without improving HR practices? A) Yes. B) No. C) All the above. D) None of the above. Show Answer Correct Answer: B) No. 24. External environment includes micro and ..... factors A) Internal. B) Macro. C) Narrow. D) Wide. Show Answer Correct Answer: B) Macro. 25. ..... is not a feature of demonetization. A) Elimination of Corruption. B) Elimination of Counterfeit currency. C) Money laundering. D) Elimination of currency. Show Answer Correct Answer: D) Elimination of currency. ← 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