This quiz works best with JavaScript enabled. Home > Class 12 > Class 12 Business Studies Chapter 3 Business Environment – Quiz 39 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 12 Business Studies Chapter 3 Business Environment Quiz 39 (25 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Which of the following is not characterise the business environment A) Uncertainty. B) Employees. C) Relativity. D) Complexity. Show Answer Correct Answer: B) Employees. 2. Reference group is ..... A) Groups that expressed in a complex set of beliefs. B) Groups that influence individuals in making decision. C) Groups in family composition. D) Groups thats always support family members. Show Answer Correct Answer: B) Groups that influence individuals in making decision. 3. A project is developing a new product in a highly competitive market. The project manager needs to ensure that the product is successful in the market. What is the MOST important factor to consider? A) The project team's technical expertise. B) The project's budget and schedule. C) The product's unique selling proposition and differentiation from competitors. D) The project sponsor's personal preferences for the product. Show Answer Correct Answer: C) The product's unique selling proposition and differentiation from competitors. 4. Businesses can control the effect of trade unions through A) Collective bargaining. B) Strikes. C) Destruction of property. D) Management control. Show Answer Correct Answer: A) Collective bargaining. 5. Changes in demographics results in shifting demand away from products, this is classified as a A) Strength. B) Weakness. C) Opportunity. D) Threat. Show Answer Correct Answer: D) Threat. 6. What is the primary purpose of a for-profit business? A) Fulfill a charitable mission. B) Provide goods or services to generate profit. C) Educate customers. D) Donate to social causes. Show Answer Correct Answer: B) Provide goods or services to generate profit. 7. New Economic Policy was initiated in the year A) 1980. B) 1988. C) 1990. D) 1991. Show Answer Correct Answer: D) 1991. 8. The surroundings of business operations, consisting of factors within and outside business entities is known as A) Business. B) Business Environment. C) Sustainable Development. D) Thrifting. Show Answer Correct Answer: B) Business Environment. 9. Which of the following best defines a trade union? A) An association of employers formed to promote profits. B) A group of workers formed to protect and promote their common interests. C) A government body that regulates industrial policies. D) A financial institution that provides loans to workers. Show Answer Correct Answer: B) A group of workers formed to protect and promote their common interests. 10. Even after opening of Indian Economy and 1991 foreign companies found it extreme difficult to cut through the bureaucratic red tape to get permit for doing business in India, which created negative impact on the business. Identify the dimensions of the business environment which led to creation of negative impact on business A) Social. B) Technologocal. C) Political. D) Legal. Show Answer Correct Answer: C) Political. 11. ..... forces affect individual enterprises directly and immediately in their day to day working ..... affects all the firms indirectly A) Specific, general. B) General, specific. C) Technological, legal. D) Customers, investors. Show Answer Correct Answer: A) Specific, general. 12. Consumers, producers, and owners of resources use money to create a flow ofresources, goods, and services through which economic activity? A) Consumption. B) Distribution. C) Exchange. D) Marketing. Show Answer Correct Answer: C) Exchange. 13. Presently who is responsible for fund allocation to implement plans in India ..... A) NITI AAYOG. B) Planning Commission. C) Ministery of Finance. D) RBI. Show Answer Correct Answer: C) Ministery of Finance. 14. What are the main components of the tourism environment? A) Natural resources, cultural resources, infrastructure, socio-economic environment. B) Cultural festivals, climate change, international relations, local government. C) Wildlife conservation, urban development, tourism policies, recreational activities. D) Historical landmarks, weather patterns, transportation methods, local cuisine. Show Answer Correct Answer: A) Natural resources, cultural resources, infrastructure, socio-economic environment. 15. Planning is a A) Managerial function. B) Economic function. C) Promotional function. D) None of these. Show Answer Correct Answer: A) Managerial function. 16. What is the main motive of an entrepreneur under capitalism? A) Social welfare. B) Government welfare. C) Maximum labourers. D) Maximum profit. Show Answer Correct Answer: D) Maximum profit. 17. Which of the following is a main reason for businesses to expand into foreign markets: A) To build brand value. B) To spread culture. C) To pay taxes. D) To help the less fortunate. Show Answer Correct Answer: A) To build brand value. 18. Which factor is NOT part of the economic environment? A) Interest rates. B) Unemployment rates. C) Cultural values. D) Inflation. Show Answer Correct Answer: C) Cultural values. 19. It is assumed that the business will continue operations indefinitely unless there is evidence to the contrary. A) Going Concern Concept. B) Business Entity Concept. C) Cost Principle. D) None of the above. Show Answer Correct Answer: A) Going Concern Concept. 20. 1) Identify out of the LPG, which one is highlighted:Selling shares of public sector undertakings A) Liberalization. B) Privatization. C) Globalization. D) None. Show Answer Correct Answer: B) Privatization. 21. FDI in India refers to: A) Foreign Direct Investment. B) Federal Development Index. C) Foreign Debt Inflow. D) Financial Development Institution. Show Answer Correct Answer: A) Foreign Direct Investment. 22. Consideration must by law be sufficient A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: A) True. 23. Which of the following situation is more relevant to external environment business analysis? A) Restaurant that offers 3 options of menu (a la carte menu, Buffet and set menu). B) Using ready made seasoning instead of making it. C) Follow the new tax policy for all dairy product used in food production. D) Using organic products for food production. Show Answer Correct Answer: D) Using organic products for food production. 24. Which set below is showing resources used in a business? A) Printer, papers, folder, computer. B) Chicken, board, stove. C) Water, fruits, clothing. D) None of the above. Show Answer Correct Answer: A) Printer, papers, folder, computer. 25. Which of these is a responsibility of a socially responsible business? A) Avoid paying taxes. B) Donate expired goods. C) Care for the environment. D) Ignore safety rules. Show Answer Correct Answer: C) Care for the environment. ← 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