This quiz works best with JavaScript enabled. Home > Class 12 > Class 12 Business Studies Chapter 3 Business Environment – Quiz 59 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 12 Business Studies Chapter 3 Business Environment Quiz 59 (25 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Why do primary stakeholders often require more direct engagement from organizations? A) They are less important. B) They have less influence. C) Their interests have a direct impact. D) None of the above. Show Answer Correct Answer: C) Their interests have a direct impact. 2. Which of the following is a component of the external business environment? A) Economic factors. B) Company culture. C) Employee skills. D) Organization structure. Show Answer Correct Answer: A) Economic factors. 3. It is compulsory that advertisement on baby food must inform that mother's milk is thebest is related to A) Social Environment. B) Political Environment. C) Economic Environment. D) Legal Environment. Show Answer Correct Answer: D) Legal Environment. 4. Literacy level is an aspect of ..... Environment A) Legal. B) Social. C) Political. D) Stellar. Show Answer Correct Answer: B) Social. 5. How does government policy influence foreign investment in India? A) By imposing strict regulations. B) By providing tax incentives. C) By limiting market access. D) By discouraging foreign partnerships. Show Answer Correct Answer: B) By providing tax incentives. 6. Major theories of the firm's international expansion A) 1.-International Trade Theory2.-FDI3.-Product LifeCycle. B) 1.-Open economy2.-GDP3.-Productivity. C) 1.-Economies of scale2.-MCS3.-Standardized product. D) None of the above. Show Answer Correct Answer: A) 1.-International Trade Theory2.-FDI3.-Product LifeCycle. 7. Which ethical principle has been breached in this situation?The accounts manager allows a customers extra discount and it is found that the customer is the Accounts Manager's close friend A) Professional behaviour. B) Integrity. C) Transparency. D) Objectivity. Show Answer Correct Answer: D) Objectivity. 8. Business environment is said to be dynamic because: A) It is complex. B) It is ever-changing. C) It is legal. D) It is profitable. Show Answer Correct Answer: B) It is ever-changing. 9. What are the primary components of the business environment? A) Market trends and consumer behavior. B) Only the financial performance of the company. C) Legal regulations and compliance. D) All of the above. Show Answer Correct Answer: D) All of the above. 10. What role does government policy play in the business environment? A) Government policy is solely focused on international trade regulations. B) Government policy plays a crucial role in shaping the business environment by influencing regulations, economic stability, and market conditions. C) Government policy only affects large corporations, not small businesses. D) Government policy has no impact on business operations. Show Answer Correct Answer: B) Government policy plays a crucial role in shaping the business environment by influencing regulations, economic stability, and market conditions. 11. All of the following statements are true of external stakeholders except: A) Pressure groups focus on the general interests of all. B) Suppliers for the business are interested in keeping a steady relationship with the business. C) The media is interested in newsworthy stories reflecting the impact of a particular business. D) Customers are interested on how their wants and needs are met by different products. Show Answer Correct Answer: A) Pressure groups focus on the general interests of all. 12. Why do businesses focus on corporate social responsibility (CSR)? A) To increase government intervention. B) To appeal to socially conscious consumers. C) To reduce operational costs. D) To avoid legal issues. Show Answer Correct Answer: B) To appeal to socially conscious consumers. 13. Forces and events outside a company have the potential to influence or affect it. A) Internal Environment. B) External Environment. C) General Environment. D) Specific Environment. Show Answer Correct Answer: B) External Environment. 14. Firm buys a controlling or 100% interest in another firm called ..... A) Merger. B) Acquisition. C) All the above. D) None of the above. Show Answer Correct Answer: B) Acquisition. 15. Which factor is a barrier to small-business and entrepreneurial success? A) A poor management. B) B. no vision for expansion. C) C. having a clear strategic vision. D) D. having a surplus of employees. Show Answer Correct Answer: A) A poor management. 16. Business environment has tremendous impact on A) Business. B) Government. C) Society. D) Muje nahi pata. Show Answer Correct Answer: A) Business. 17. Where persons reciprocally promise, firstly to do certain things which are legal, and, secondly under specified circumstances, to do certain other things which are illegal: A) The first set of promise is a contract, but the second is a void agreement. B) The entire contract is void. C) The entire contract is valid. D) The entire contract is voidable. Show Answer Correct Answer: A) The first set of promise is a contract, but the second is a void agreement. 18. What is the significance of market trends in the business environment? A) Market trends are solely based on historical data and do not predict future changes. B) Market trends only affect consumer behavior, not business strategies. C) Market trends are irrelevant to business operations and have no impact. D) Market trends are significant as they guide businesses in decision-making, strategy development, and identifying opportunities for growth. Show Answer Correct Answer: D) Market trends are significant as they guide businesses in decision-making, strategy development, and identifying opportunities for growth. 19. Disadvantage of Central Planned Economy A) Social justice. B) Limited choice of product and services. C) Public goods. D) Profit. Show Answer Correct Answer: B) Limited choice of product and services. 20. It includes all internal and external factors that affect the performance of the company. A) Environmental Analysis. B) Environmental Scanning. C) Business Analysis. D) Business Environment. Show Answer Correct Answer: D) Business Environment. 21. Disinvestment of shares of public sector industrial enterprises. A) Liberalisation. B) Privatisation. C) Globalisation. D) None of the above. Show Answer Correct Answer: B) Privatisation. 22. What is the impact of an increase in interest rates on spending power? A) It has no effect on spending power. B) It increases spending power. C) It reduces spending power. D) It depends on the type of product. Show Answer Correct Answer: C) It reduces spending power. 23. What is the meaning of competitive rivalry companies in the industry? A) Is high when there are more business equally selling product or services. B) It is low in advertising and price wars. C) Where competitive rivalry is low. D) How intense the competition is in the marketplace. Show Answer Correct Answer: D) How intense the competition is in the marketplace. 24. Name the term or process which indicates the induction of private ownership in state owned undertakings. A) Privatisation. B) Public sector. C) Mixed economy. D) Globalisation. Show Answer Correct Answer: A) Privatisation. 25. In how many types environmental factors can be classified? A) Two. B) Three. C) Four. D) Five. Show Answer Correct Answer: A) Two. ← 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