This quiz works best with JavaScript enabled. Home > Class 12 > Class 12 Business Studies Chapter 3 Business Environment – Quiz 47 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 12 Business Studies Chapter 3 Business Environment Quiz 47 (25 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Countries rich in natural resources often: A) Focus on exporting raw goods. B) Suffer from high unemployment rates. C) Enjoy stable political environment. D) Have limited access to education. Show Answer Correct Answer: A) Focus on exporting raw goods. 2. What should employees do if they notice a safety hazard, such as a frayed electrical cord? A) Continue working and ignore the hazard. B) Attempt to fix the cord themselves. C) Report the hazard to the appropriate supervisor. D) Cover the cord with a rug to avoid detection. Show Answer Correct Answer: C) Report the hazard to the appropriate supervisor. 3. Economic conditions, government regulations, and demographic trends are examples of: A) Internal factors. B) Microenvironment factors. C) External factors. D) Market demand factors. Show Answer Correct Answer: C) External factors. 4. Who sells products and services to customers using an online store? A) Mangers. B) E-tailers. C) Retailers. D) Employees. Show Answer Correct Answer: B) E-tailers. 5. Coca-Cola is now being freely sold in the Indian market. A) Technological. B) Political. C) Natural. D) None of the above. Show Answer Correct Answer: B) Political. 6. In a highly competitive market, what strategies can businesses use to stay competitive? A) Lower quality, increase advertising, and reduce workforce. B) Increase prices, focus on marketing, and expand their product range. C) Reduce costs, develop their brand, and identify unique selling points. D) Increase costs, decrease advertising, and rely on customer loyalty. Show Answer Correct Answer: C) Reduce costs, develop their brand, and identify unique selling points. 7. Which of the following is an example of how the social environment influences businesses? A) Changes in taxation policies. B) Trends in health consciousness and fitness values. C) Adoption of new technologies. D) Political stability and government regulations. Show Answer Correct Answer: B) Trends in health consciousness and fitness values. 8. Privatization helps for global village. A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: B) False. 9. Normally industries prefer locations near to A) Source of raw material. B) Sea. C) Cities. D) Mountains. Show Answer Correct Answer: A) Source of raw material. 10. WTO came into existence on ..... A) 1st January 1990. B) 1st January 1995. C) 1st January 2000. D) 1st January 1999. Show Answer Correct Answer: B) 1st January 1995. 11. Which of the following is NOT an example of primary research? A) Surveys. B) Observations. C) Interviews. D) Commentary. Show Answer Correct Answer: D) Commentary. 12. The Union Cabinet has given 'in-principle' nod to divest stakes in Air India-a wholly government owned airline. This means the government is willing to shed a substantial portion of its stake and hand over the management of the ailing airline to the private sector. Identify the concept being described in the above lines A) Globalization. B) Privatization. C) Liberalization. D) Demonetization. Show Answer Correct Answer: B) Privatization. 13. What do we call the relation which subsists between persons carrying on a business in common with a view to profit and who are jointly and severally liable? A) A public limited company. B) A private limited company. C) A partnership. D) A limited company. Show Answer Correct Answer: C) A partnership. 14. Why is it important for a business to have updated goals? A) Goals should remain static to ensure consistency. B) Having too many goals can confuse employees. C) It is important for a business to have updated goals to remain relevant, focused, and adaptable to changes in the market and internal dynamics. D) Updated goals are only necessary for large corporations. Show Answer Correct Answer: C) It is important for a business to have updated goals to remain relevant, focused, and adaptable to changes in the market and internal dynamics. 15. It is a form of business organization that is considered by law to be a unique entity, separate from those who own it. A) Partnership. B) Corporation. C) Non-Profit Corporation. D) Sole Proprietroship. Show Answer Correct Answer: B) Corporation. 16. Behaviour, attitudes and beliefs such as accepting "halal" products represent the ..... in the Macro environment. A) Political factors. B) Economic factors. C) Socio cultural factor. D) Environmental factor. Show Answer Correct Answer: C) Socio cultural factor. 17. A stakeholder in the college could be A) Student. B) Employees. C) Suppliers. D) All of them. Show Answer Correct Answer: D) All of them. 18. During project execution, a significant change in the economic environment affects the project's financial projections. What should the project manager do? A) Ignore the changes and proceed as planned. B) Update the financial projections and communicate the changes to stakeholders. C) Halt the project until the economic environment stabilizes. D) Request additional funding from the project sponsor immediately. Show Answer Correct Answer: B) Update the financial projections and communicate the changes to stakeholders. 19. Which of the following is a specific force affecting business environment? A) Social trends. B) Economic conditions. C) Technological advancements. D) Competitors. Show Answer Correct Answer: D) Competitors. 20. What does IMF stand for A) I Miss Family. B) International Money Fund. C) International Monetary Fund. D) International Market Fund. Show Answer Correct Answer: C) International Monetary Fund. 21. Which environment should be the first step we must check before we do business? A) Internal Environment. B) External Environment. C) All the above. D) None of the above. Show Answer Correct Answer: B) External Environment. 22. Which type of environment includes suppliers and customers? A) External macro environment. B) External micro environment. C) Internal environment. D) Legal environment. Show Answer Correct Answer: B) External micro environment. 23. What role does infrastructure play in the tourism business environment? A) Infrastructure enhances accessibility, safety, and comfort for tourists, driving satisfaction and repeat visits. B) Infrastructure increases costs for tourists. C) Infrastructure has no impact on tourist satisfaction. D) Infrastructure is only important for local businesses. Show Answer Correct Answer: A) Infrastructure enhances accessibility, safety, and comfort for tourists, driving satisfaction and repeat visits. 24. How can political instability affect businesses? A) It can lead to increased profits. B) It can enhance consumer demand. C) It can harm operations and investments. D) It can simplify legal compliance. Show Answer Correct Answer: C) It can harm operations and investments. 25. What is the primary purpose of environmental analysis in business? A) To eliminate all business risks. B) To predict stock market trends. C) To identify external and internal factors that affect business performance. D) To create internal company rules. Show Answer Correct Answer: C) To identify external and internal factors that affect business performance. ← 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