This quiz works best with JavaScript enabled. Home > Class 12 > Class 12 Business Studies Chapter 3 Business Environment – Quiz 3 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 12 Business Studies Chapter 3 Business Environment Quiz 3 (25 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. The government has some control over the economy and provides basic services like health care and housing. A) Capitalism. B) Socialism. C) Communism. D) None of the above. Show Answer Correct Answer: B) Socialism. 2. 'Ooty, hill station in Tamil Nadu, banned the sale of single-use plastic items considering its negative impact on the environment ' ..... environment is highlighted here A) Political. B) Legal. C) Technological. D) Social. Show Answer Correct Answer: B) Legal. 3. List the four market structures in order from LEAST competitive to MOST competitive. A) Oligopoly, Monopoly, Perfect Competition, Monopolistic Competition. B) Perfect Competition, Oligopoly, Monopoly, Monopolistic Competition. C) Monopoly, Oligopoly, Monopolistic Competition, Perfect Competition. D) Monopoly, Monopolistic Competition, Perfect Competition, Oligopoly. Show Answer Correct Answer: C) Monopoly, Oligopoly, Monopolistic Competition, Perfect Competition. 4. Which indicates importance of business environment? A) Identification of opportunities. B) Coping with rapid changes. C) Improvement in performance. D) All of them. Show Answer Correct Answer: D) All of them. 5. Central Bank is an example of which group in the task environment? A) Suppliers. B) Regulators. C) Strategic Partners. D) Competitors. Show Answer Correct Answer: B) Regulators. 6. What is the significance of the macro environment in shaping the business landscape? A) It has no impact on the business landscape. B) It has a significant impact on the business landscape. C) It is only relevant for small businesses, not large corporations. D) It only affects certain industries, not all businesses. Show Answer Correct Answer: B) It has a significant impact on the business landscape. 7. What is the recommended strategy for 'Cash Cows' in the BCG Matrix? A) Invest heavily to grow market share. B) Harvest profits with minimal investment. C) Divest immediately. D) Use aggressive marketing strategies. Show Answer Correct Answer: B) Harvest profits with minimal investment. 8. Why is it important for businesses to understand the competitive environment? A) To develop strategies to gain an advantage over rivals. B) To reduce the number of competitors in the market. C) To avoid innovation and cost reduction. D) To focus solely on internal operations. Show Answer Correct Answer: A) To develop strategies to gain an advantage over rivals. 9. Give an example of how the internal environment of a business can affect its performance. A) Employee benefits, office location, and company logo. B) Product quality, pricing strategy, and distribution channels. C) Organizational structure, culture, and resources. D) Customer satisfaction, marketing, and sales. Show Answer Correct Answer: C) Organizational structure, culture, and resources. 10. Partnerships are run by directors and owned by shareholders A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: B) False. 11. A company has decided to merge with another company. Which of the following internal factors will be affected, implying possible changes to business objectives? A) All of the choices. B) Leadership. C) HR. D) Finance. Show Answer Correct Answer: A) All of the choices. 12. Technique of environmental scanning A) Sensex. B) SWOT Analysis. C) ETOP. D) Stock Market. Show Answer Correct Answer: B) SWOT Analysis. 13. What is the purpose of an automated external defibrillator (AED)? A) To treat minor burns. B) To restart the heart in case of cardiac arrest. C) To diagnose medical conditions. D) To administer medication. Show Answer Correct Answer: B) To restart the heart in case of cardiac arrest. 14. Change in taxes is part of A) Economic environment. B) Political environment. C) Legal environment. D) Social environment. Show Answer Correct Answer: A) Economic environment. 15. Inelastic demand is: A) A variable. B) B. fluctuating. C) C. limited to luxury goods. D) D. unaffected by price changes. Show Answer Correct Answer: D) D. unaffected by price changes. 16. Political and Legal Factors affect businesses by: A) Helping businesses skip regulations. B) Influencing how a business operates in a region. C) Making businesses unaffected by taxes. D) Limiting businesses to only certain customers. Show Answer Correct Answer: B) Influencing how a business operates in a region. 17. Which of the following is an ergonomic practice to prevent wrist strain while typing? A) Typing with hands flat on the desk. B) Using a wrist rest to maintain a neutral position. C) Keeping wrists raised above the keyboard at all times. D) Typing with one hand while resting the other. Show Answer Correct Answer: B) Using a wrist rest to maintain a neutral position. 18. Which of the following tools is the best for staff evalution method? A) Balance score evalution. B) Key performance evaluation. C) Balance score card. D) Key performance indicator. Show Answer Correct Answer: C) Balance score card. 19. Liberalisation was introduced to put an end to A) Controls and restrictions And open various sectors. B) Foreign exchange regulation. C) To empower private sector. D) Public sector power. Show Answer Correct Answer: A) Controls and restrictions And open various sectors. 20. How do legal regulations affect the business environment? A) They create barriers to entry for new businesses. B) They have no impact on business operations. C) They only apply to international companies. D) They are only relevant during economic booms. Show Answer Correct Answer: A) They create barriers to entry for new businesses. 21. What does SWOT analysis assess? A) Financial performance. B) Only external factors. C) Only internal factors. D) Internal and external factors. Show Answer Correct Answer: D) Internal and external factors. 22. Cuba and North Korea are examples of which type of economy? A) Mixed. B) Free Market. C) Traditional. D) Command. Show Answer Correct Answer: D) Command. 23. A new law requires all businesses to reduce plastic use. This is an example of: A) Economic environment. B) Suppliers. C) Technological Environment. D) Legal Environment. Show Answer Correct Answer: D) Legal Environment. 24. What factors contribute to the challenges faced by Indian industries in the global market? A) Lack of technological advancements. B) High production costs. C) Language barriers. D) Trade liberalization. Show Answer Correct Answer: B) High production costs. 25. To be effective the objectives of a business need to be SMART. A local car dealership aspires to have the highest market share of cars sold in the area, by the end of the year. However, in the objectives it did not lay out how many cars it plans to sell. Based on the information provided, which element of the SMART tool has it overlooked? A) M-measurable. B) T-time-specific. C) S-specific. D) R-relevant. Show Answer Correct Answer: A) M-measurable. ← 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 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