This quiz works best with JavaScript enabled. Home > Class 12 > Class 12 Business Studies Chapter 3 Business Environment – Quiz 68 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 12 Business Studies Chapter 3 Business Environment Quiz 68 (25 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. A local fire station and police-station are seen in this type of system A) Socialism. B) Capitalism. C) All the above. D) None of the above. Show Answer Correct Answer: A) Socialism. 2. Which of the following is a true statement about globalization and political barriers: A) The world is much more politically open than it used to be. B) Many countries are sealed off from the rest of the world due to communism. C) The United States has very few trading partnerships with other countries. D) In the future, there will be more political barriers between countries. Show Answer Correct Answer: A) The world is much more politically open than it used to be. 3. What is a demerit of LPG policies? A) Increase in agricultural growth. B) Urban concentration of growth. C) Reduction in foreign investment. D) Improvement in rural economy. Show Answer Correct Answer: B) Urban concentration of growth. 4. Best method for reducing regional imbalances A) Cluster development. B) Concentrating at single place. C) Incentives for people. D) Large scale industries. Show Answer Correct Answer: A) Cluster development. 5. During a recession, which of the following is likely to occur? A) An increase in real wages. B) An increase in production. C) And increase in the GDP growth rate. D) An increase in the unemployment rate. Show Answer Correct Answer: D) An increase in the unemployment rate. 6. Why is ethical behavior important in business? A) Ethical behavior is important in business because it builds trust, enhances reputation, ensures compliance, and contributes to long-term success. B) Ethical behavior is irrelevant to customer satisfaction. C) Ethical behavior can be ignored if profits are high. D) Ethical behavior is only important for large corporations. Show Answer Correct Answer: A) Ethical behavior is important in business because it builds trust, enhances reputation, ensures compliance, and contributes to long-term success. 7. Products that have low market share but operate in high-growth markets are called: A) Stars. B) Cash Cows. C) Question Marks. D) Dogs. Show Answer Correct Answer: C) Question Marks. 8. Integration of world economy by removing trade barriers is called: A) Liberalisation. B) Privatisation. C) Globalisation. D) All of the above. Show Answer Correct Answer: C) Globalisation. 9. What is a depreciation? A) A cash outflow. B) Accounting expression for the act of selling an asset. C) An income-decreasing expense that does not affect cash-flows. D) A side calculation done by auditors. Show Answer Correct Answer: C) An income-decreasing expense that does not affect cash-flows. 10. Tool to evaluate MARKET Environment A) SWOT. B) PESTLE. C) Porter's 5 Forces. D) None of the above. Show Answer Correct Answer: C) Porter's 5 Forces. 11. If the government increases corporation tax ..... A) Businesses have less profit to reinvest. B) Businesses have more profit to reinvest. C) All the above. D) None of the above. Show Answer Correct Answer: A) Businesses have less profit to reinvest. 12. How does competition influence the business environment? A) Competition eliminates the need for customer service. B) Competition influences to foster innovation. C) Competition leads to higher prices for consumers. D) Competition reduces the variety of products available. Show Answer Correct Answer: B) Competition influences to foster innovation. 13. ABC Corporation bought a new conveyor belt. What type of good is the conveyor belt? A) A capital good. B) B. natural good. C) C. public good. D) D. consumer good. Show Answer Correct Answer: A) A capital good. 14. If a student purchases a laptop to use for homework assignments, then the computer is considered what type of good? A) A capital. B) B. consumer. C) C. industrial. D) D. ultimate. Show Answer Correct Answer: B) B. consumer. 15. It is the degree to which a society accepts or rejects the unequal distribution of power among people in organizations and the institutions of society. A) Individualism-Collectivism. B) Masculinity-Femininity. C) Power Distance. D) Uncertainty Avoidance. Show Answer Correct Answer: C) Power Distance. 16. Cultural changes are in the ..... environment A) Micro. B) Market. C) Macro. D) None of the above. Show Answer Correct Answer: C) Macro. 17. Ali is studying the role of international organizations in developing countries. He wants to know what the World Bank focuses on in these regions. Can you help him? A) Military development. B) Infrastructure projects. C) Space exploration. D) Cultural exchange programs. Show Answer Correct Answer: B) Infrastructure projects. 18. What are the advantages of Public LTD company over a PVT LTD company in Pakistan? A) It has small number of share holders. B) It has unlimited liability. C) It can trade it's share on PSX. D) It has no minimum capital requirement. Show Answer Correct Answer: C) It can trade it's share on PSX. 19. An example of a business that frequently participates in strategic alliances is A) Krispy Kreme. B) Woolworths. C) Pick n pay. D) Starbucks. Show Answer Correct Answer: A) Krispy Kreme. 20. It is ideal to use the PESTLE analysis only during if you have encountered a problem in your own business. A) TRUE. B) FALSE. C) All the above. D) None of the above. Show Answer Correct Answer: B) FALSE. 21. What is the primary goal of corporate social responsibility (CSR)? A) Contributing to societal well-being. B) Maximizing shareholder profits. C) Increasing market share. D) Reducing operational costs. Show Answer Correct Answer: A) Contributing to societal well-being. 22. In order to stimulate the growth of the economy, the government, through its central bank, would: A) Increase interest rates, raise bank reserves and sell government securities. B) Decrease interest rates, reduce bank reserves and buy government securities. C) Increase the cash reserve ratios commercial banks have to keep on deposit. D) Decrease the discount rate offered to commercial banks. Show Answer Correct Answer: B) Decrease interest rates, reduce bank reserves and buy government securities. 23. All Care pays for all of its expenses this fiscal year. The amount left over after all expenses have been paid is called what? A) A capital. B) B. debt. C) C. loss. D) D. profit. Show Answer Correct Answer: D) D. profit. 24. Which of these is a component of macro environment? A) Suppliers. B) Customers. C) Economic environment. D) Employees. Show Answer Correct Answer: C) Economic environment. 25. What is the significance of understanding the business environment? A) It helps firms spot and seize market opportunities. B) It complicates business operations. C) It has no relevance to business success. D) It only benefits large corporations. Show Answer Correct Answer: A) It helps firms spot and seize market opportunities. ← 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