This quiz works best with JavaScript enabled. Home > Class 12 > Class 12 Business Studies Chapter 3 Business Environment – Quiz 51 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 12 Business Studies Chapter 3 Business Environment Quiz 51 (25 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. ..... environment involves knowledge, beliefs, morals, customs, etc, which are acquired by individuals and groups in a society. A) International. B) Socio-cultural. C) Demographic. D) Natural. Show Answer Correct Answer: B) Socio-cultural. 2. Which of the following is a true statement about the external factor of competition: A) Globalization has made competition less intense. B) Competition is more influential than political factors. C) The goal of competition is to cause other businesses to fail. D) Businesses cannot control their competition. Show Answer Correct Answer: D) Businesses cannot control their competition. 3. Which of the following is a characteristic of the social environment? A) Technological innovations. B) Interest rates. C) Consumer preferences. D) Government regulations. Show Answer Correct Answer: C) Consumer preferences. 4. What does the 'R' stand for in SMART goals? A) Rich. B) Realistic. C) Rush. D) Rarely. Show Answer Correct Answer: B) Realistic. 5. What are the two main factors that impact a business in a competitive market? A) Quality and marketing of their product. B) Size and number of firms in the market. C) Demand for their product and their costs. D) Disposable incomes and interest rates. Show Answer Correct Answer: C) Demand for their product and their costs. 6. Which of the following is an example of a strategic alliance in the market environment? A) A clothing store buys fabric from a supplier. B) Two competing restaurants merge to form one business. C) A government agency imposes regulations on businesses. D) A mobile phone company partners with a software company to create a new app. Show Answer Correct Answer: D) A mobile phone company partners with a software company to create a new app. 7. What is corporate social responsibility (CSR)? A) A marketing tactic to improve brand image. B) Corporate social responsibility (CSR) is the commitment of businesses to contribute to sustainable economic development while improving the quality of life of the workforce, their families, the local community, and society at large. C) A government regulation for environmental protection. D) A strategy for maximizing profits at any cost. Show Answer Correct Answer: B) Corporate social responsibility (CSR) is the commitment of businesses to contribute to sustainable economic development while improving the quality of life of the workforce, their families, the local community, and society at large. 8. ..... is the tool to achieve privatization. A) Abolishing licenses. B) Disinvestment. C) Free movement of goods and services. D) Globalisation. Show Answer Correct Answer: B) Disinvestment. 9. The full form of PESTLE is: A) Political, Economic, Social, Technological, Legal, Environmental. B) Price, Economic, Structure, Trade, Law, Ethics. C) Policy, Employment, System, Trade, Labor, Economy. D) Political, Ethical, Social, Technical, Legal, Education. Show Answer Correct Answer: A) Political, Economic, Social, Technological, Legal, Environmental. 10. The external environment of business environment is made up of two layers. True or False? A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: A) True. 11. James, a factory worker, lost his job when the company decided to move its manufacturing operations to another country. This is an example of how globalization can be a disadvantage for domestic workers due to the practice of A) Nationalism. B) Exporting. C) Offshoring. D) Environmental degradation. Show Answer Correct Answer: C) Offshoring. 12. What are the major impacts of technological advancements on Indian industries? A) Increased productivity. B) Reduced competition. C) Language barriers. D) Trade restrictions. Show Answer Correct Answer: A) Increased productivity. 13. What does the business environment include A) Only competitors and customers. B) .Only internal factors. C) Internal and external factors influencing business operations. D) Only government policies. Show Answer Correct Answer: C) Internal and external factors influencing business operations. 14. What happens to the employment level with the advancement of technology A) Employment level increases. B) Unemployment level increases. C) Fall in the level of unemployment. D) No change to the unemployment level. Show Answer Correct Answer: B) Unemployment level increases. 15. Population change can be attributed to the following EXCEPT A) Birth rate. B) Death rate. C) Inward migration. D) Immigrant. Show Answer Correct Answer: D) Immigrant. 16. Managers and organisations who fail to continuously monitor their business environments: A) Will be unable to sustain their business operations in the long term. B) Will be able to win over new markets and customers. C) Will succeed as closed systems. D) Will develop strategies that overcome the demands of their external environment. Show Answer Correct Answer: A) Will be unable to sustain their business operations in the long term. 17. What is the primary purpose of ETOP analysis? A) To identify the internal strengths of an organization. B) To evaluate the environmental factors affecting a business. C) To analyze employee performance. D) To determine market segmentation. Show Answer Correct Answer: B) To evaluate the environmental factors affecting a business. 18. The judiciary is responsible for: A) Making laws for a country. B) The implementation of laws in a country. C) The interpretation and application of the laws in a country. D) Policy making for a country. Show Answer Correct Answer: C) The interpretation and application of the laws in a country. 19. Which economic system is followed in India? A) Communism. B) Mixed Economy. C) Socialism. D) Capitalism. Show Answer Correct Answer: B) Mixed Economy. 20. Which of the following shakes the confidence among the business people to invest in the long-term projects: A) New innovation. B) Political instability. C) Technological improvement. D) Change in preference of customers. Show Answer Correct Answer: B) Political instability. 21. What are the potential benefits of being socially responsible? A) Decreased market share. B) Lower employee satisfaction. C) Increased operational costs. D) Enhanced reputation. Show Answer Correct Answer: D) Enhanced reputation. 22. Does the TOWS matrix require considering both internal and external factors for strategic planning? A) Yes. B) No. C) All the above. D) None of the above. Show Answer Correct Answer: A) Yes. 23. In case of voidable contract ..... A) Undue influence is suspected. B) No agreement. C) A valid contract can be made. D) None of the above. Show Answer Correct Answer: A) Undue influence is suspected. 24. What does the macro environment include? A) Company culture. B) Political and legal factors. C) Customers and suppliers. D) Internal resources. Show Answer Correct Answer: B) Political and legal factors. 25. What is the main disadvantage of a sole proprietorship compared to a corporation? A) Unlimted liability of the owner. B) More costly to set up. C) More difficult taxation rules. D) More disclosure requirements to inform the public. Show Answer Correct Answer: A) Unlimted liability of the owner. ← 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