This quiz works best with JavaScript enabled. Home > Class 12 > Class 12 Business Studies Chapter 3 Business Environment – Quiz 37 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 12 Business Studies Chapter 3 Business Environment Quiz 37 (25 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. TRUE OR FALSE:A terrorist attack in a shopping mall is likely to affect many business. A) TRUE. B) FALSE. C) All the above. D) None of the above. Show Answer Correct Answer: A) TRUE. 2. The mission statement of a company: A) Gives the organization a sense of character as seen through the eyes of employees and stakeholders. B) Are the values that help build a clear organizational identity. C) Are broad beliefs about what is or is not appropriate behavior. D) Expresses theorganization's reason for existence in society. Show Answer Correct Answer: D) Expresses theorganization's reason for existence in society. 3. When is the promise said to be express: A) When the proposal or acceptance of any promise is made in words. B) When the proposal or acceptance of any promise is made through visual representation. C) When the proposal or acceptance of any promise is made in any way other than words. D) When the proposal or acceptance is made by either in words or in any way other than words. Show Answer Correct Answer: A) When the proposal or acceptance of any promise is made in words. 4. Under which type of economy does the government own the basic means of production, but with some private ownership of businesses? A) Command. B) Communism. C) Entrepreneurship. D) Socialism. Show Answer Correct Answer: D) Socialism. 5. The management of the business has ..... the market environment A) Full control over. B) No control over. C) No control but can influence. D) Little control. Show Answer Correct Answer: C) No control but can influence. 6. Spoon feeding solutions means: A) Allowing the employees to gather and talk to each other without reaching a solution. B) Allowing the employees to discuss and come up with ideas for an appropriate solution. C) Allowing the manager to dictate the solution without listening or discussing anything with his team. D) None of the above. Show Answer Correct Answer: C) Allowing the manager to dictate the solution without listening or discussing anything with his team. 7. What is a benefit of public borrowing? A) Increased taxes. B) Creation of capital assets. C) Less government control. D) Higher interest rates. Show Answer Correct Answer: B) Creation of capital assets. 8. What is the role of e-commerce in today's business landscape? A) E-commerce is primarily used for physical store management. B) E-commerce limits market access and reduces customer interaction. C) E-commerce has no impact on operational costs or efficiency. D) E-commerce is essential for expanding market reach, improving operational efficiency, and enhancing customer engagement in modern business. Show Answer Correct Answer: D) E-commerce is essential for expanding market reach, improving operational efficiency, and enhancing customer engagement in modern business. 9. Which of the following is an external factor affecting business? A) Organizational policies. B) Organizational structure. C) Customers. D) Human resources. Show Answer Correct Answer: C) Customers. 10. What does FDI stand for? A) Foreign Direct Investment. B) Financial Development Initiative. C) Fiscal Direct Income. D) Foreign Debt Investment. Show Answer Correct Answer: A) Foreign Direct Investment. 11. 7) Which of the following statement best describes the policy of Liberalization? A) Abolition of licensing requirement in most of the industries. B) Reduction in tax rates and lifting of unnecessary controls over the economy. C) Both a and b. D) Setting up Board of Industrial and Financial Reconstruction. Show Answer Correct Answer: C) Both a and b. 12. Chairperson of NITI Aayog A) Prime Minister. B) President. C) Finance Minister. D) None of these. Show Answer Correct Answer: A) Prime Minister. 13. What is a common internal factor that can necessitate change in a business? A) Economic recession. B) Changes in leadership. C) New government policies. D) Competitor actions. Show Answer Correct Answer: B) Changes in leadership. 14. How can a lack of vision affect a business? A) A lack of vision can negatively impact a business by causing confusion, low morale, and reduced performance. B) A lack of vision can lead to increased profits and growth. C) A lack of vision fosters strong teamwork and collaboration. D) A lack of vision ensures clear communication among employees. Show Answer Correct Answer: A) A lack of vision can negatively impact a business by causing confusion, low morale, and reduced performance. 15. Regulation of business is done by A) Company itself. B) Government. C) Outsiders. D) Directors. Show Answer Correct Answer: B) Government. 16. Which of the following is considered a NEGATIVE consequence of improvements in technology? A) As technology replaces workers, businesses can reduce their labour costs. B) As technology replaces workers, many people are left unemployed. C) Technological advances have created jobs in the industries that provide technological products. D) All of the above. Show Answer Correct Answer: B) As technology replaces workers, many people are left unemployed. 17. Backward areas require A) Financial assistance. B) Entrepreneurial support. C) Tax incentives. D) All of these. Show Answer Correct Answer: D) All of these. 18. The business is treated, as having a separate personality from the owner/s such the transactions of the business must be divorced from the transactions of the owner/s. A) Business Entity Concept. B) Objectivity. C) Cost Principle. D) None of the above. Show Answer Correct Answer: A) Business Entity Concept. 19. What are consequences? A) Something that is possible but is not yet real. B) Money charged to do something for a service. C) Task that demands time and effort to complete. D) The results (positive or negative) of an action or decision. Show Answer Correct Answer: D) The results (positive or negative) of an action or decision. 20. What is the primary goal of a business? A) Operate internationally. B) Serve customers and generate profits. C) Set government policies. D) Innovate technology. Show Answer Correct Answer: B) Serve customers and generate profits. 21. Which factor can businesses NOT control in the macro-environment? A) Market competition. B) Internal policies. C) Employee relations. D) Technological changes. Show Answer Correct Answer: D) Technological changes. 22. What are the implications of having unmotivated employees? A) Decreased productivity and morale, higher turnover, and lower quality of work. B) Increased employee satisfaction and engagement. C) Higher chances of promotions and raises. D) Improved teamwork and collaboration. Show Answer Correct Answer: A) Decreased productivity and morale, higher turnover, and lower quality of work. 23. Planning commission A) Formulates the plans. B) Approves the plans. C) Apex body for plans. D) None of these. Show Answer Correct Answer: A) Formulates the plans. 24. The correct sequence in formation of a contract is: A) Offer, acceptance, consideration, agreement. B) Offer, Consideration, acceptance, agreement. C) Agreement, consideration, offer, acceptance. D) Offer, acceptance, agreement, considerationption 4. Show Answer Correct Answer: A) Offer, acceptance, consideration, agreement. 25. It means the end points towards which all activities are directed A) Strategy. B) Rule. C) Objective. D) Method. Show Answer Correct Answer: C) Objective. ← 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