This quiz works best with JavaScript enabled. Home > Class 12 > Class 12 Business Studies Chapter 3 Business Environment – Quiz 58 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 12 Business Studies Chapter 3 Business Environment Quiz 58 (25 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Hoping to duplicate the success achieved by Japan, Korea, and other Asian nations, many developing countries are: A) Subcontracting or contracting out activities to endogenous organizations. B) Adopting an export-oriented strategy of economic growth. C) Increasing Demand for Capital. D) None of the above. Show Answer Correct Answer: B) Adopting an export-oriented strategy of economic growth. 2. In SWOT analysis, which quadrant represents positive, external factors? A) Strengths. B) Weaknessess. C) Opportunities. D) Threats. Show Answer Correct Answer: C) Opportunities. 3. Tecnological Advancement is an ..... A) Internal factor. B) External Factor. C) Threat. D) Oppourtunity. Show Answer Correct Answer: B) External Factor. 4. Environmental analysis is a process used by organizations to monitor their external and internal environments. A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: B) False. 5. Where do we find documents such as the Memorandum of Association and Articles of Association? A) In the European Parliament. B) In the European Commission. C) In limited companies. D) In sole traders. Show Answer Correct Answer: C) In limited companies. 6. What is a potential challenge for businesses operating in politically unstable regions? A) Consistent regulatory framework. B) Enhanced business opportunities. C) Increased government support. D) Unpredictable changes in policies. Show Answer Correct Answer: D) Unpredictable changes in policies. 7. What is one of the purposes of analyzing market trends? A) To reduce company expenses. B) To ensure companies stay ahead of the competition. C) To eliminate cultural differences. D) To decrease product variety. Show Answer Correct Answer: B) To ensure companies stay ahead of the competition. 8. What does the term 'sustainable practices' refer to in modern business? A) Adopting eco-friendly initiatives. B) Ignoring consumer preferences. C) Maximizing profits at any cost. D) Focusing solely on local markets. Show Answer Correct Answer: A) Adopting eco-friendly initiatives. 9. How does an increase in disposable incomes affect demand for a product? A) It leads to a decrease in demand. B) It depends on the type of product. C) It has no effect on demand. D) It leads to an increase in demand. Show Answer Correct Answer: D) It leads to an increase in demand. 10. ..... consists of all those factors (Internal and External) that affect the working of a business. A) Business. B) Turnaround. C) Business environment. D) Diversification. Show Answer Correct Answer: C) Business environment. 11. Includes the political system, the government policies and attitude towards the business community and the unionism. The environment being described here is social environment. A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: B) False. 12. A sudden change in taxation policy by the government is an example of which type of environmental factor? A) Social environment. B) Technological environment. C) Political-legal environment. D) Natural environment. Show Answer Correct Answer: C) Political-legal environment. 13. The announcement of 21 days nationwide lockdown and its extension subsequently by the Hon'ble Prime Minister of India in times of COVID-19 pandemic comes under which component of business environment? A) Social. B) Economical. C) Political. D) Legal. Show Answer Correct Answer: D) Legal. 14. ..... is not an ingredient of political environment. A) Political System. B) Political institutions. C) Political Pholosophies. D) Monetary Policy. Show Answer Correct Answer: D) Monetary Policy. 15. Of the following methods of entering a foreign market, which is the least risky? A) Licensing. B) Creating wholly owned subsidiaries. C) Exporting. D) Establishing multinational corporations. Show Answer Correct Answer: C) Exporting. 16. ..... is not a feature og business environment. A) Relativity. B) Complexity. C) Uncertainty. D) Employability. Show Answer Correct Answer: D) Employability. 17. Unlimited choice of customers, suppliers & competitors belongs to which environment? A) Macro. B) Micro. C) Internal. D) None. Show Answer Correct Answer: B) Micro. 18. There is no benefit of globalization to Indian economy. A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: B) False. 19. When young people prefer online shopping instead of visiting malls, it shows a change in: A) Political factors. B) Legal factors. C) Social factors. D) Environmental factors. Show Answer Correct Answer: C) Social factors. 20. Can a small number of powerful suppliers force companies to pay higher prices for raw materials? A) Yes. B) No. C) All the above. D) None of the above. Show Answer Correct Answer: A) Yes. 21. The technological environment influences the business in terms of investment in technology, consistent application of technology, and the effect of technology on markets. A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: A) True. 22. What capability does technology provide regarding data? A) Reduces data storage. B) Ability to process large amounts of data. C) Decreases data accuracy. D) Limits data access. Show Answer Correct Answer: B) Ability to process large amounts of data. 23. Which of the following is considered an external factor in the business environment? A) Company policies. B) Employee skills. C) Consumer preferences. D) Production processes. Show Answer Correct Answer: C) Consumer preferences. 24. How does the business environment influence the performance of a business? A) By ensuring stable prices. B) By limiting market access. C) By creating opportunities and threats. D) By providing a fixed set of rules. Show Answer Correct Answer: C) By creating opportunities and threats. 25. Who has full control over the micro-environment? A) The suppliers. B) The consumers. C) The business owners or directors. D) The government. Show Answer Correct Answer: C) The business owners or directors. ← 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