This quiz works best with JavaScript enabled. Home > Class 12 > Class 12 Business Studies Chapter 3 Business Environment – Quiz 63 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 12 Business Studies Chapter 3 Business Environment Quiz 63 (25 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Which of the following is not a component of economic environment? A) Composition of Trade. B) Infrastructure. C) Economic Development. D) Legislation passed by government. Show Answer Correct Answer: D) Legislation passed by government. 2. According to Peter Drucker, how is business defined? A) A method of producing goods. B) A way to generate profits. C) An organization that creates and delivers customer value. D) A system of interrelated departments. Show Answer Correct Answer: C) An organization that creates and delivers customer value. 3. What does the term 'business environment' generally refer to? A) External factors only. B) Internal factors only. C) Both internal and external factors. D) Only government regulations. Show Answer Correct Answer: C) Both internal and external factors. 4. Which one of the following is not a feature of the business environment? A) Relativity. B) Uncertainity. C) Certainity. D) Dynamic. Show Answer Correct Answer: C) Certainity. 5. Reduction in number of industries reserved for public sector. A) Liberalisation. B) Privatisation. C) Globalisation. D) None of the above. Show Answer Correct Answer: B) Privatisation. 6. The agency responsible for monetary policy in India A) Finance Ministry. B) RBI. C) MOSPI. D) Parliament. Show Answer Correct Answer: B) RBI. 7. Which example fits the task environment best? A) Inflation affecting all businesses. B) Central Bank regulating commercial banks. C) Company culture among employees. D) Rainfall affecting crops. Show Answer Correct Answer: B) Central Bank regulating commercial banks. 8. Which of the following is not the component of internal business environment: A) Financial Resources. B) Market Intermediaries. C) Corporate Image. D) Technological Capabilities. Show Answer Correct Answer: B) Market Intermediaries. 9. Which of the following aspects of a business would be affected by legislation and government regulations? A) Taxation. B) The rights of employees. C) Permits and licenses. D) All of the above. Show Answer Correct Answer: D) All of the above. 10. Explain the concept of PESTEL analysis in the context of the external environment. A) PESTEL analysis is a framework used to analyze and monitor the macro-environmental factors that have an impact on an organization. B) PESTEL analysis is a type of pesticide used in agriculture. C) PESTEL analysis is a method for analyzing internal factors of an organization. D) PESTEL analysis is a tool for predicting stock market trends. Show Answer Correct Answer: A) PESTEL analysis is a framework used to analyze and monitor the macro-environmental factors that have an impact on an organization. 11. It is important to know what this group are doing and how successful they are for our own business longevity? A) Customers. B) Competitors. C) Suppliers. D) Interest Groups. Show Answer Correct Answer: B) Competitors. 12. Demonetization had direct impact on A) Social environment. B) Political environment. C) Economic environment. D) None of the above. Show Answer Correct Answer: C) Economic environment. 13. The technology that has had the most influence on globalization has been A) Television. B) The internet. C) Inexpensive phone service. D) Wireless connections. Show Answer Correct Answer: B) The internet. 14. LPG Policy has empowered the customers who has more choices and the result is fragmented market. Identify the impact of LPG policy. A) Increasing competition. B) More demanding customers. C) Rapidly changing technology. D) Market orientation. Show Answer Correct Answer: B) More demanding customers. 15. These factors are controllable by the management. A) Micro Environment. B) Macro Environment. C) Internal Environment. D) External Environment. Show Answer Correct Answer: C) Internal Environment. 16. This simply means that for the financial statements to be comparative, the application of the accounting methods, procedures, or principles must be consistent with the previous period. A) Objectivity. B) Consistency. C) Comparability. D) None of the above. Show Answer Correct Answer: B) Consistency. 17. What is the 'common market'? A) A situation where EU member states were encouraged to trade freely and to bring their economies closer together. B) A market which is supposed to be achieved through liquidating the single market. C) A market which uses the Euro currency as the legal tender. D) A market which uses the new European constitution. Show Answer Correct Answer: A) A situation where EU member states were encouraged to trade freely and to bring their economies closer together. 18. When an employee has a grievance and the grievance has not been resolved through internal procedures or trough having a middle man and an objective party needs to make the final decision A) Conciliation. B) Mediation. C) Arbitration. D) Strategic response. Show Answer Correct Answer: C) Arbitration. 19. Identify the dimension:National Digital Library of India is a pilot project initiated by the HRD ministry. It works towards developing a framework of virtual repository of learning resources with a researchers, life long learners and differently abled free of cost. A) Social. B) Economic. C) Technological. D) Technological and Social. Show Answer Correct Answer: D) Technological and Social. 20. Business environment is dynamic in that it keeps on A) Changing. B) Stagnant. C) Liberal. D) Rigid. Show Answer Correct Answer: A) Changing. 21. What company required many employees? A) WhatsApp. B) Instagram. C) Kodak. D) Youtube. Show Answer Correct Answer: C) Kodak. 22. Who owns the resources in a Capitalist economy? A) Government. B) Private Individuals. C) Both Government and Individuals. D) None of the above. Show Answer Correct Answer: B) Private Individuals. 23. Which of the following elements of a SWOT analysis are based on the business's internal environment? A) Strengths and Weaknesses. B) Opportunities and Threats. C) Profitability. D) All of the above. Show Answer Correct Answer: A) Strengths and Weaknesses. 24. Free exchange of ideas contributes to A) More instances of offshoring. B) Fewer choices for consumers. C) Decreased competition. D) Greater business innovation. Show Answer Correct Answer: D) Greater business innovation. 25. What does a business mainly do? A) Follow government rules. B) Provide goods and services to earn profit. C) Work for the environment. D) Train employees. Show Answer Correct Answer: B) Provide goods and services to earn profit. ← 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