Business Environment Question Bank
Q Define Business Environment.
Q What are the dimensions of Business Environment?
Q Explain the features of Business Environment.
Q How are various dimensions of Business Environment interrelated?
Q What is the importance of study of Business Environment?
Q What are the general forces affecting the Business Environment.
Q What do you mean by business opportunity?
Q What is business threat?
Q What are various specific forces that affect Business Environment?
Q What are the components of economic environment?
Q Give features of new trade policy.
Q Which are the major acts that are significant for the modern business?
Q What are the micro level factors affecting the Business Environment?
Q What are the macro level factors affecting the Business Environment?
Business Environment Question Bank
Q Which environment describes characteristics of the society in which the organization exists.
Q Which element / dimension of business environment involves improvement and innovations which provide new ways of producing goods and services and new methods and techniques of operating a business.
Q Which environment prohibits the advertisement of alcoholic beverages?
Q Banking sector reforms have led to easier credit terms and better services. This is an example of a key component of the “Business Environment “name this component?
Q ‘Demand for reservation in jobs for minorities refers to an example of key component of general environment of business. Name this component.
Q It is the process by which government control over the industry is being loosened. Give the term to which this statement is trying to indicate.
Q Which process aims at giving greater role to the private sector role to the public sector?
Business Environment Question Bank
Write the values positive or negative, involved the following cases. (Not in CBSE pattern now.)
Q In recent times the Govt. has increased the prices of diesel and LPG.
Q After the change in Government Policies, foreign companies like coca-cola has prohibited to work in India.
Q Mr. Jagat is working in a toy manufacturing company. He is working as General Manager – Finance in Accounts Payable department of the company. One of the vendors approaches him to release a disputed payment for which he promised to give 5% commission to Mr. Jagat. He refused to do this and also warned vendor does not do it again in future.
Q ABC Ltd. is a multinational company operating in most of the countries of the world. They have a subsidiary in India. They decided to distribute Diwali gifts to the employees of Indian subsidiary as that is part of Indian culture at the time of Diwali festival.
Q Decline in interest rates on housing loans declared by RBI. Name the component of business environment.
Q ‘Alcohol beverages are prohibited to be advertised on media’.
Q The government restricted the use of LPG cylinders to only nine per family per year
Q ‘Demand for reservation in jobs for minorities.
Q Male CEOs are most preferred for all type of organization.
Q Removal of mobile towers from residential area is being planned by the government to promote which value?
Q The policy of liberalisation, privatisation and globalisation of the government has made a significant impact on the working of enterprises in business and industry. The Indian corporate sector has come face-to-face with several challenges due to government policy changes.
Business Environment Question Bank
MCQs from CBSE Sample papers
Goodwill Enterprises is a large-scale automobile manufacturer, who fulfills the needs of both industrial users and consumers. The company is providing easy finance facilities at a low rate of interest, which has considerably increased the demand for the product. The company has installed a new branch management software to efficiently manage and coordinate activities across their multiple branches and locations. Identify the components of the business environment from the above case study.
- Political and economic environment
- Economic and social environment
- Technological and legal environment
- *Economic and technological environment
With the presence of women in the workforce, there has been a shift towards formal wear, increased demand of electronic gadgets and increase in demand of cosmetics.
The related dimension of business environment referred in the above lines is:
- Technological environment.
- *Social environment
- Political environment.
- Economic environment
Mr. Vivek is working as the General Manager of Oshin Hotels Ltd. Mr. Vivek observed that Government was taking a special interest in the Tourism industry as this sector is an important source of foreign exchange and employment promotion. On the basis of this news, the company decided to set up hotels at several tourist places. Oshin Hotels Ltd. established 50 hotels before other companies considered this issue. Very soon, this brand Oshin Hotels Ltd. became well known in the market. Identify the importance of business environment described here.
- *It enables the firm to identify opportunities and getting the first mover advantage.
- It helps the firm to identify threats and early warning signals.
- It helps in tapping useful resources.
- It helps in improving performance.
‘Pace.’ is a reputed Chartered Accountant firm which renders services to big MNC’s. The Chartered Accountants of the firm are required to travel to Delhi and NCR for which they use company’s cars. The firm decided to convert its Petrol cars to Electric cars in order to improve the quality of life of people. Identify the dimensions of business environment.
- Political and Legal environment
- Legal and Social environment
- Technological and Political environment
- *Social and Technological Environment
The aim of demonetisation was not to____________
- Curb corruption
- *Reduce the prices of real estate
- Withhold the accumulation of black money generated by undeclared income
- Counterfeit the use of high denomination notes for illegal activities
Which characteristic of the business environment is highlighted when changes are taking place too frequently and it becomes difficult to predict the future?
- *Uncertainty
- Complexity
- Inter-relatedness
- Relativity
The government of India made an announcement regarding Demonetization of the Indian economy on November 8, 2016 with profound implications for it. The process which put restrictions on convertibility of domestic money and bank deposits was meant to create a less-cash economy. One argument against the cash-lite economy is that:
- *Internet connectivity is a prerequisite
- More people will be introduced into the formal economy.
- Financial saving will increase
- Tax evasion will be reduced
Airlines will be able to offer the benefit of lower pricing to customers on sectors/routes due to the decision of the civil aviation ministry to remove price caps from August 31, 2022. This can help an airline to do better performance if they take early decisions regarding future courses of action after understanding and doing analysis. Which importance of business environment and its understanding by managers is not highlighted above:
- It helps in improving performance
- It helps in assisting in planning and policy formulation
- *It helps in tapping useful resources
- It enables a firm to identify opportunities and get first mover advantage.
Business Environment Question Bank
Case Based Question
Read the following text and answer the following questions on the basis of the same:
The name and taste of Coca-Cola is known to almost each and every individual in India as well as throughout the world. This carbonated soft drink holds the most market share in the soft drink market and got itself a special seat in each and every gathering. The Coca-Cola Company has on occasion introduced other cola drinks under the Coke name. The most common of these are Diet Coke, along with others including Caffeine free Coca-Cola, Diet Coke Caffeine free, Coca-Cola Zero Sugar, Coca-Cola Cherry, Coca-Cola Vanilla and the list goes on. It has capitalized on each and every opportunity to market itself effectively and place itself in the middle of every gathering. The main reason for such an outstanding placement of product goes to the way they have established the connection between every occasion and the need for Coke to be present there, product design and creative advertising.
Q.1 In the context of the above given case, identify one valid importance of Business Environment.
- *Enables a firm to identify opportunities and getting first mover advantage
- Uncertainty
- Delay in action
- Pervasive function
Q.2 Identify the feature of Business Environment which The Coca-Cola Company managed to get in their favour.
- Complex
- *Specific and general forces
- Futuristic
- Mental Exercise
Q.3 Which business environment did Coca-Cola majorly tap into?
- Technological Environment
- *Social Environment
- Political Environment
- Economic Environment
Q.4 Which of the following is not a product of COCA-COLA?
- Diet Coke Caffeine free
- Coca-Cola Zero Sugar
- *Coca-Cola Avocado
- Coca-Cola Cherry
Business Environment Question Bank
MCQs from CBSE Question Papers
Question:
Due to increasing presence of women in the workforce, ‘Kisan Mart' comes out every Friday with big discount offers on daily use items to attract office-going women to shop on weekends. Which dimension of business environment is being highlighted in the above case?
- *Social environment
- Legal environment
- Political environment
- Technological environment
Question:
Raunaq, while studying at the university, felt that there should be a food joint in the university campus to provide food to students round the clock After passing out of college, he set up 'Hunger Point', a food joint with a varied menu ranging from burgers, pizzas, street food and much more, in the university campus. For this, he obtained necessary permissions from the university administration. Since he was the first one to recognize the need for a food joint for all the students in an environment where students study day and night, it soon became a popular eating joint. Within six months, 'Hunger Point' started earning good profits. Identify the point of importance of business environment discussed in the above case:
- *It enables the firm to identify opportunities and get the first mover advantage.
- It helps the firm to identify threats and early warning signals.
- It helps in assisting in planning and policy formulation.
- It helps in improving performance.
Question:
Choose the incorrect statement with respect to demonetization:
- *The two largest denomination notes of ₹ 500 and ₹ 1000 were demonetized with immediate effect, ceasing to be legal tender except for buying properties.
- The aim of this step was to curb corruption and accumulation of black money.
- It led to the tax administration channelizing savings into the formal financial system.
- Restrictions were placed on the convertibility of domestic money and bank deposits.
Question:
Techpack Ltd. is a company in Hyderabad that produces and sells packaging material to various industries across the nation in a B2B e-business form. It is a dynamic company. Over the years, due to rising concerns for climate change and shift of preferences of Indian customers towards environment-friendly products, the company has shifted to the production of biodegradable packaging material. Moreover, due to its digital transformation, the company has tremendously benefited as its customers could place orders and make cashless payments in various online modes. The dimensions of business environment discussed in the above case are:
- Economic and social environments
- *Social and technological environments
- Technological and economic environments
- Social and political environments
MCQs to Revise Business Studies Class 12
Dimensions of Business Environment
Business Environment – Keywords and Brief Notes