This quiz works best with JavaScript enabled. Home > Class 12 > Class 12 Business Studies Chapter 3 Business Environment – Quiz 35 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 12 Business Studies Chapter 3 Business Environment Quiz 35 (25 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Why do businesses operate globally? A) To access new markets and resources. B) To limit product offerings and decrease brand visibility. C) To focus solely on local markets and avoid competition. D) To reduce operational costs and improve efficiency. Show Answer Correct Answer: A) To access new markets and resources. 2. How do internal factors differ from external factors in the business environment? A) Internal factors are controllable, while external factors are not. B) External factors are controllable, while internal factors are not. C) Internal and external factors are essentially the same. D) Internal factors relate to customers, while external factors relate to employees. Show Answer Correct Answer: A) Internal factors are controllable, while external factors are not. 3. New competition in the market, Price wars, Competitors oligopoly and monopoly, Taxation policy of the government etc will provide ..... to the business. A) Completion. B) Challenges. C) Opportunities. D) Strength. Show Answer Correct Answer: B) Challenges. 4. All are the features of business environment, except: A) Inter relations. B) Dynamic. C) Simple. D) Uncertainty. Show Answer Correct Answer: C) Simple. 5. Investing the business profits at a rate that grows faster than inflation is also known as: A) Hedging. B) Strategic Alliance Agreements. C) Persuasion of large investors. D) Acquisitions. Show Answer Correct Answer: A) Hedging. 6. A 'subsystem' is: A) The realisation of an individual's fullest potential. B) A complex system of people, task and technologies that were part of and interacted with a larger environment. C) A collaborative and trust-based relationship. D) A set of elements, which is a system itself and is a part of the larger system. Show Answer Correct Answer: D) A set of elements, which is a system itself and is a part of the larger system. 7. Business environment includes A) Customers and Employees. B) Surroundings of Business. C) Forces, Factors, institutions which directly or indirectly effect business. D) None of the above. Show Answer Correct Answer: C) Forces, Factors, institutions which directly or indirectly effect business. 8. ..... is considered a major element of the political environment: A) The extent and nature of government intervention in business. B) Planned outlay in public and private sectors. C) Expectations from the work force. D) An administrative order issued by government authorities. Show Answer Correct Answer: A) The extent and nature of government intervention in business. 9. Which of the following best describes a not-for-profit organisation? A) It only operates internationally. B) It is owned by the government. C) It reinvests surplus to achieve its social objectives. D) It aims to maximise profits for shareholders. Show Answer Correct Answer: C) It reinvests surplus to achieve its social objectives. 10. Which of these challenges in the market environment can lead to higher productivity and better innovation? A) Competition. B) Shortages of supply. C) Demographics. D) Socio-cultural factors. Show Answer Correct Answer: A) Competition. 11. The theory of survival of fittest is formulated by A) Charles Darwin. B) Richard Dawkin. C) Abraham Maslow. D) Henry Fayol. Show Answer Correct Answer: A) Charles Darwin. 12. Within the micro environment, the 'interest group' refers to: A) Other organisations which work together with a company in a joint venture or other partnership. B) Groups that attempt to influence organisations and their decisions. C) The part of the environment that is generally within an organisation's control. D) The factors that force the organisation to remain constant. Show Answer Correct Answer: B) Groups that attempt to influence organisations and their decisions. 13. Which of the following is a reason for business owners to make a difference? A) Personal satisfaction. B) Market competition. C) Tax benefits. D) Legal requirements. Show Answer Correct Answer: A) Personal satisfaction. 14. Which is not a general force environment? A) Political environment. B) Social environment. C) Political environment. D) Competitors environment. Show Answer Correct Answer: D) Competitors environment. 15. Approval body for plans in India A) National Development Council. B) Planning Commission. C) Prime Minister. D) President of India. Show Answer Correct Answer: A) National Development Council. 16. Which of the following is not the feature of Demonetization? A) Eradication of corruption. B) Money laundering. C) Elimination of counterfeit curruncy. D) Gulf crisis. Show Answer Correct Answer: D) Gulf crisis. 17. Main characteristic of first stage in Rostow's theory A) Industrialized society. B) Agrarian society. C) Service economy. D) None of these. Show Answer Correct Answer: A) Industrialized society. 18. Why is understanding cultural nuances important for businesses? A) To tailor products and marketing strategies. B) To avoid legal issues. C) To increase government intervention. D) To reduce operational costs. Show Answer Correct Answer: A) To tailor products and marketing strategies. 19. When a business outsources a function it means? A) Contracting with an external provider to perform a specific function or task. B) Hiring more internal employees to handle the function. C) Automating the function using software. D) Ignoring the function altogether. Show Answer Correct Answer: A) Contracting with an external provider to perform a specific function or task. 20. New Economic Policy was announced on A) 24/07/1991. B) 24/08/1991. C) 23/07/1991. D) 23/08/1991. Show Answer Correct Answer: A) 24/07/1991. 21. The micro environment: A) Is the immediate external environment with which the organisation is in constant interaction. B) Refers to the environment that is most remote from the operations of an organisation. C) Includes factors such as ecology, shareholders and political lobbyists. D) Represents the global dimensions of the business environment. Show Answer Correct Answer: A) Is the immediate external environment with which the organisation is in constant interaction. 22. ..... is the total amount that a borrower must pay annually to the lender and above the total amount borrowed. A) Inflation. B) Interest rates. C) Changing of options. D) People's spending habits. Show Answer Correct Answer: B) Interest rates. 23. You are conducting a SWOT analysis and find out that a new competitor is opening within 5 miles of your store. This would be considered a ..... A) Strength. B) Weakness. C) Opportunity. D) Threat. Show Answer Correct Answer: D) Threat. 24. Accounting is defined by PICPA as service activity. PICPA stands for ..... A) Philippine Institute of Certification of Public Accountant. B) Philippine Institute of Certified Private Accountant. C) Philippine Institute of Certified Public Accountant. D) None of the above. Show Answer Correct Answer: C) Philippine Institute of Certified Public Accountant. 25. Special programs being run by the government for the A) Vulnerable sections of the society. B) Those who are interested. C) All people. D) None of these. Show Answer Correct Answer: A) Vulnerable sections of the society. ← 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