This quiz works best with JavaScript enabled. Home > Class 12 > Class 12 Business Studies Chapter 3 Business Environment – Quiz 42 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 12 Business Studies Chapter 3 Business Environment Quiz 42 (25 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. How does the increase of global business operations affect employment? A) It can lead to job creation in both developed and developing countries. B) It can lead to job losses in developed countries as businesses move to developing countries in search of lower labor costs. C) It has no significant impact on employment. D) All of the above. Show Answer Correct Answer: D) All of the above. 2. Which of the following actions must a business take as a result of political factors in the external environment: A) Paying taxes. B) Developing cultural intelligence. C) Looking for new technologies. D) Adapting to changing values. Show Answer Correct Answer: A) Paying taxes. 3. All businesses should be socially responsible to whom? A) Endorsers. B) Producers. C) Providers. D) Users. Show Answer Correct Answer: D) Users. 4. Do changing consumer lifestyles have no impact on a company's product offerings? A) Yes. B) No. C) All the above. D) None of the above. Show Answer Correct Answer: B) No. 5. Which of the following SWOT elements are internal factors for a business? A) Strengths and Weaknesses. B) Opportunities and Threats. C) Strengths and Opportunities. D) Weaknesses and Threats. Show Answer Correct Answer: A) Strengths and Weaknesses. 6. What do political factors influence? A) The price of products. B) The weather. C) How freely a business can operate. D) The number of employees. Show Answer Correct Answer: C) How freely a business can operate. 7. Which sector is responsible for delivering essential services like healthcare and education? A) Private sector. B) Public sector. C) Voluntary sector. D) Informal sector. Show Answer Correct Answer: B) Public sector. 8. Economic resources that help people be more productive are: A) A human resources. B) B. natural resources. C) C. capital goods resources. D) D. nonrenewable resources. Show Answer Correct Answer: C) C. capital goods resources. 9. What strategies can businesses use to analyze their competition? A) Focusing solely on internal metrics. B) Ignoring customer feedback. C) Avoiding competitor analysis altogether. D) Market research, SWOT analysis, online monitoring, customer reviews analysis, and performance benchmarking. Show Answer Correct Answer: D) Market research, SWOT analysis, online monitoring, customer reviews analysis, and performance benchmarking. 10. What is the role of competition in the business environment? A) Competition leads to higher prices and reduced choices for consumers. B) Competition decreases the quality of products and services offered. C) Competition eliminates the need for customer feedback and improvement. D) Competition fosters innovation, efficiency, and better customer service in the business environment. Show Answer Correct Answer: D) Competition fosters innovation, efficiency, and better customer service in the business environment. 11. In some places, a company can have exclusive control of the supply of a good or service such as the trash service. This is an example of: A) A price competition. B) B. price discrimination. C) C. nonprice competition. D) D. a regulated monopoly. Show Answer Correct Answer: D) D. a regulated monopoly. 12. Accounting is the systematic process recording of business transactions to its respective journals and ledgers in a prescribed manner. A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: B) False. 13. What does the term "business environment" refer to? A) The physical layout of a company's office space. B) The internal and external factors that influence a company's operations and performance. C) The number of employees within a company. D) The marketing strategies employed by a company. Show Answer Correct Answer: B) The internal and external factors that influence a company's operations and performance. 14. Globalisation does not involve: A) Reduction of barriers. B) Free flow of goods & services. C) Capital flow. D) Global mechanism for dispute settlement. Show Answer Correct Answer: D) Global mechanism for dispute settlement. 15. Which of the following elements is NOT found in the internal business environment? A) Customer. B) Resources. C) Culture. D) Structure. Show Answer Correct Answer: A) Customer. 16. Apex body of legislation in India A) Parliament. B) Assembly. C) Lok Sabha. D) Vidhan Sabha. Show Answer Correct Answer: A) Parliament. 17. The macro-environment includes all EXCEPT: A) Economic policies. B) Competitors. C) Socio-cultural forces. D) Legal framework. Show Answer Correct Answer: B) Competitors. 18. For the acts of a person appointed as a sub-agent by the agent without having an authority to do so: A) The agent is responsible to the sub-agent only. B) The agent is responsible to the principal only. C) The agent is responsible to third person only. D) The agent is responsible to both the principal and third person. Show Answer Correct Answer: D) The agent is responsible to both the principal and third person. 19. The two main divisions of the trade industry are: A) A producers and retailers. B) B. wholesalers and retailers. C) C. wholesalers and producers. D) D. manufacturers and wholesalers. Show Answer Correct Answer: B) B. wholesalers and retailers. 20. What is the main difference between Micro and Macro environment? A) Micro environment deals with capital, while Macro environment deals with markets. B) Micro environment is close to the business, while Macro environment creates opportunities and threats. C) Micro environment includes suppliers, while Macro environment includes customers. D) Micro environment focuses on technology, while Macro environment focuses on manpower. Show Answer Correct Answer: B) Micro environment is close to the business, while Macro environment creates opportunities and threats. 21. India has adopted the ..... economy system which implies coexistence of public sector and private sector. A) Capitalist. B) Socialist. C) Mixed. D) None of the above. Show Answer Correct Answer: C) Mixed. 22. What is an example of a necessity that typically has inelastic demand? A) Smartphones. B) Luxury cars. C) Designer clothing. D) Drinking water. Show Answer Correct Answer: D) Drinking water. 23. What is the impact of political instability on business? A) Increased investment. B) Decreased competition. C) Uncertainty in business activities. D) Improved consumer trust. Show Answer Correct Answer: C) Uncertainty in business activities. 24. During a class discussion on globalization, Charlotte asked which technology has had the most influence on globalization. A) The Internet. B) Wireless connections. C) Inexpensive telephone service. D) Television. Show Answer Correct Answer: A) The Internet. 25. Banks of bank is A) RBI. B) SEBI. C) SBI. D) ICICI. Show Answer Correct Answer: A) RBI. ← 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