This quiz works best with JavaScript enabled. Home > Class 12 > Class 12 Business Studies Chapter 3 Business Environment – Quiz 73 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 12 Business Studies Chapter 3 Business Environment Quiz 73 (25 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Which of the following is a component of the internal business environment? A) Economic conditions. B) Company culture. C) Technological advancements. D) Political stability. Show Answer Correct Answer: B) Company culture. 2. What is a characteristic of the micro environment? A) It is only about competition. B) It consists of direct business factors. C) It includes government policies. D) It is uncontrollable. Show Answer Correct Answer: B) It consists of direct business factors. 3. When did the government of India make an announcement regarding demonetisation of ₹ 500 and ₹ 1, 000 currency notes? A) November 7, 2016. B) November 5, 2016. C) November 9, 2016. D) November 8, 2016. Show Answer Correct Answer: D) November 8, 2016. 4. Which is the prominent Sector for Make In India? A) Automobiles. B) IT and BPM. C) Railways. D) All of the above. Show Answer Correct Answer: D) All of the above. 5. A small business is defined as a business employing fewer than howmany people? A) 500. B) 750. C) 1, 000. D) 1, 500. Show Answer Correct Answer: A) 500. 6. When two businesses willingly combine to create a new business, this is known as: A) A merger. B) A takeover. C) An alliance. D) An acquisition. Show Answer Correct Answer: A) A merger. 7. What are stakeholders in a business? A) Employees only. B) Customers only. C) Groups or organizations with a vested interest in a business. D) Government agencies only. Show Answer Correct Answer: C) Groups or organizations with a vested interest in a business. 8. What is the significance of the legal environment for businesses? A) The legal environment only affects large corporations. B) The legal environment is irrelevant to business success. C) Businesses can ignore legal regulations without consequences. D) The legal environment is significant for businesses as it dictates compliance, risk management, and operational guidelines. Show Answer Correct Answer: D) The legal environment is significant for businesses as it dictates compliance, risk management, and operational guidelines. 9. In ETOP analysis, an opportunity is best described as: A) A challenge the company cannot control. B) A favorable external condition that can be leveraged. C) A weakness within the company's structure. D) A potential threat from competitors. Show Answer Correct Answer: B) A favorable external condition that can be leveraged. 10. North korea comes under? A) Mixed economy. B) Planned economy. C) Market economy. D) None of the above. Show Answer Correct Answer: B) Planned economy. 11. Organizational structure means: A) How the business divides its departments and manages them. B) How the business organizes sales. C) How the business organizes its profit and work. D) None of the above. Show Answer Correct Answer: A) How the business divides its departments and manages them. 12. An organisation that sells shares on the stock exchange is a what? A) Private Limited Company. B) Sole Trader. C) Partnership. D) Public Limited Company. Show Answer Correct Answer: D) Public Limited Company. 13. Which of the following is an example of the external business environment? A) Company's mission statement. B) Employee motivation. C) Customer preferences. D) Organizational structure. Show Answer Correct Answer: C) Customer preferences. 14. A business decides against opening a store in the next town because its research shows the location will be unprofitable. What form of risk management is this? A) A avoidance. B) B. reduction. C) C. retention. D) D. transfer. Show Answer Correct Answer: A) A avoidance. 15. How does inflation impact businesses in the economic environment? A) Increases purchasing power. B) Decreases interest rates. C) Raises the cost of goods and services. D) Promotes economic stability. Show Answer Correct Answer: C) Raises the cost of goods and services. 16. Economic factors can affect a business's operations by A) Creating new legislation. B) Transforming family roles. C) Increasing or decreasing costs. D) Eliminating the competition. Show Answer Correct Answer: C) Increasing or decreasing costs. 17. Which of the following is not a component of demographic environment? A) Age. B) Gender. C) Economic policy. D) Occupation. Show Answer Correct Answer: C) Economic policy. 18. The level of Management that makes strategic decisions A) Lower. B) Middle. C) Top. D) None of the above. Show Answer Correct Answer: C) Top. 19. The Board of Directors is/are the: A) Individuals who have legal property rights and control of a business. B) Governing body elected by shareholders and are responsible for overseeing he general management of the company. C) Individuals who are employed by the company for their skills, knowledge and expertise. D) Organisations or individuals who pay money to acquire an organisation's products or services. Show Answer Correct Answer: B) Governing body elected by shareholders and are responsible for overseeing he general management of the company. 20. Which of the following statement best describes the policy of Liberalisation? A) Abolition of licensing requirements in most of the indistries. B) Reduction in tax rates and lifting of unnecessary controls over the economy. C) Both (a) and (b). D) Setting up of Board of Industrial and Financial Reconstruction. Show Answer Correct Answer: C) Both (a) and (b). 21. Every new business owner must pay attention to forces operating outside the company that affect its chances for success. These forces are referred to as A) The external environment. B) Competition. C) Cultural intelligence. D) Demographics. Show Answer Correct Answer: A) The external environment. 22. Which of the following makes up the external operating environment (micro)? A) Owners/managers, Employees, Organisational structure & Organisational culture. B) Customers, Competitors, Suppliers & Interest Groups. C) Socio-Cultural, Technological, Economic, Environmental, Political, Legal, Ethical. D) Operations, Finance, Marketing, Human Resources. Show Answer Correct Answer: B) Customers, Competitors, Suppliers & Interest Groups. 23. What type of ownership is a market stall holder in Wolverhampton? A) Private Limited Company. B) Charitable Trust. C) Sole Trader. D) Government Department. Show Answer Correct Answer: C) Sole Trader. 24. You pay Burger King for the right to set up a location in Barcelona under the guidance and regulation of the corporate headquarters. This is an example of A) Franchising. B) A joint venture. C) A wholly owned subsidiary. D) Exporting. Show Answer Correct Answer: A) Franchising. 25. Which question is NOT part of the assessment process? A) Are the current marketing methods appropriate?. B) What issues arise concerning price?. C) Who are the competitors?. D) What is the company's market share?. Show Answer Correct Answer: D) What is the company's market share?. ← 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