This quiz works best with JavaScript enabled. Home > Class 12 > Class 12 Business Studies Chapter 3 Business Environment – Quiz 71 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 12 Business Studies Chapter 3 Business Environment Quiz 71 (25 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Business environment is largely ..... as it is very difficult to predict future happenings, A) Uncertain. B) Certain. C) Rigid. D) None of the above. Show Answer Correct Answer: A) Uncertain. 2. The ..... environment consists of the larger societal factors that affect the working of a firm. A) Micro. B) Macro. C) Internal. D) None of the above. Show Answer Correct Answer: B) Macro. 3. Which of the following is NOT a step in the process of environmental analysis? A) Scanning the environment. B) Ignoring competitor activities. C) Monitoring environmental changes. D) Forecasting future trends. Show Answer Correct Answer: B) Ignoring competitor activities. 4. What is a significant impact of globalization on Indian businesses? A) Decreased foreign investment. B) Reduced competition. C) Increased market isolation. D) Expansion of trade relations. Show Answer Correct Answer: D) Expansion of trade relations. 5. Which of the following is not an element of social environment? A) Birth and death rate. B) Constitution of the country. C) Population ships. D) Life expectancy. Show Answer Correct Answer: B) Constitution of the country. 6. Negara X memutuskan membeli produk otomotif dari negara Y karena butuh biaya lebih besar bila harus memproduksi produk otomotif sendiri. Hal tersebut mengindikasikan adanya faktor pendorong perdagangan internasional, yaitu ..... A) Perbedaan teknologi. B) Perbedaan sumber daya alam. C) Efisiensi. D) Perbedaan sumber daya manusia. Show Answer Correct Answer: C) Efisiensi. 7. Businesses keep track of external changes as part of a process called A) Cultural intelligence. B) Globalization. C) Lobbying. D) Environmental scanning. Show Answer Correct Answer: D) Environmental scanning. 8. How do interest rates affect business operations? A) Interest rates have no impact on business operations. B) Higher interest rates always lead to increased profits for businesses. C) Interest rates only affect personal savings, not business activities. D) Interest rates affect business operations by influencing borrowing costs, consumer spending, and overall economic conditions. Show Answer Correct Answer: D) Interest rates affect business operations by influencing borrowing costs, consumer spending, and overall economic conditions. 9. Society is part of macro business environment. A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: B) False. 10. To prepare for effective decision-making that ensures the efficient delivery of products to the marketplace, one should study: A) A job outlooks. B) B. supply chains. C) C. economics. D) D. marketing. Show Answer Correct Answer: B) B. supply chains. 11. How does globalization affect local businesses? A) Globalization eliminates all local businesses. B) Globalization affects local businesses by increasing competition, providing access to larger markets, and pressuring them to innovate. C) Globalization has no impact on local markets. D) Globalization only benefits large corporations. Show Answer Correct Answer: B) Globalization affects local businesses by increasing competition, providing access to larger markets, and pressuring them to innovate. 12. What are the components of Business Environment? A) All of the above. B) Social and Cultural factors. C) Political and Legal factors. D) Technological factors. Show Answer Correct Answer: A) All of the above. 13. Business resource needs fall into these three categories: A) Natural, labour and finance. B) Natural, labour and capital. C) Natural, capital and finance. D) Labour, capital and finance. Show Answer Correct Answer: B) Natural, labour and capital. 14. How does globalization impact local businesses? A) Globalization only benefits large corporations, not local businesses. B) Globalization has no effect on local businesses. C) Globalization impacts local businesses by increasing competition, expanding market access, and necessitating innovation. D) Globalization reduces competition for local businesses. Show Answer Correct Answer: C) Globalization impacts local businesses by increasing competition, expanding market access, and necessitating innovation. 15. What is the threat of new entrants in barriers of entry? A) Legal and government created barriers. B) Corruption barriers. C) Free entry barriers. D) Illegal and fraud barriers. Show Answer Correct Answer: A) Legal and government created barriers. 16. PESTLE analysis is a framework used to analyze which aspect of the business environment? A) Microenvironment. B) Macroenvironment. C) Internal environment. D) Competitive Landscape. Show Answer Correct Answer: B) Macroenvironment. 17. Can a high availability of substitute products decrease the demand for a company's product? A) Yes. B) No. C) All the above. D) None of the above. Show Answer Correct Answer: A) Yes. 18. Disinvestment is an example of ..... in India. A) Privatisation. B) Liberalisation. C) Globalisation. D) None of the above. Show Answer Correct Answer: A) Privatisation. 19. The ..... Committee on the 'Disinvestment of shares in PSUs' (April 1993) emphasized the percentage of equity to be divested could be up to 49% for industries explicitly reserved for the public sector. A) Rangarajan. B) Tendulkar. C) Tarpore. D) All the above. Show Answer Correct Answer: A) Rangarajan. 20. Acquiring permits in establishing a business is a concern of what part of the PESTLE analysis? A) Legal. B) Political. C) Economic. D) None of the above. Show Answer Correct Answer: A) Legal. 21. WHICH OF THE FOLLOWING INDUSTRIES ARE RESERVED FOR THE PUBLIC SECTOR A) DEFENCE EQUIPMENTS. B) ATOMIC ENERGY GENERATION. C) CEMENT. D) BOTH 1 AND 2. Show Answer Correct Answer: D) BOTH 1 AND 2. 22. What is the importance of fiscal policy in economic planning? A) Fiscal policy is irrelevant to economic growth. B) Fiscal policy is important for stabilizing the economy, managing inflation, reducing unemployment, and promoting growth. C) Fiscal policy solely focuses on tax increases. D) Fiscal policy only increases government debt. Show Answer Correct Answer: B) Fiscal policy is important for stabilizing the economy, managing inflation, reducing unemployment, and promoting growth. 23. How does competition benefit customers in a highly competitive environment? A) By reducing the number of available products. B) By encouraging businesses to maintain high quality and provide better customer service. C) By increasing the prices of products. D) By limiting the entry of new businesses into the market. Show Answer Correct Answer: B) By encouraging businesses to maintain high quality and provide better customer service. 24. PESTEL is a tool used to analyze: A) Company profits. B) General environment. C) Employee salaries. D) Customer loyalty. Show Answer Correct Answer: B) General environment. 25. Specific factors that affect a business environment include: A) Clients, suppliers, and competitors. B) Political stability only. C) General economic policies only. D) Environmental movements only. Show Answer Correct Answer: A) Clients, suppliers, and competitors. ← 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