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Business Environment Question Bank

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Business Environment Question Bank

MCQs from CBSE Sample papers

Question

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.

  1. Political and economic environment
  2. Economic and social environment
  3. Technological and legal environment
  4. *Economic and technological environment

Question

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:

  1. Technological environment.
  2. *Social environment
  3. Political environment.
  4. Economic environment

Question

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.

  1. *It enables the firm to identify opportunities and getting the first mover advantage.
  2. It helps the firm to identify threats and early warning signals.
  3. It helps in tapping useful resources.
  4. It helps in improving performance.

Question

‘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.

  1. Political and Legal environment
  2. Legal and Social environment
  3. Technological and Political environment
  4. *Social and Technological Environment

Question

The aim of demonetisation was not to____________

  1. Curb corruption
  2. *Reduce the prices of real estate
  3. Withhold the accumulation of black money generated by undeclared income
  4. Counterfeit the use of high denomination notes for illegal activities

Question

Which characteristic of the business environment is highlighted when changes are taking place too frequently and it becomes difficult to predict the future?

  1. *Uncertainty
  2. Complexity
  3. Inter-relatedness
  4. Relativity

Question

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:

  1. *Internet connectivity is a prerequisite
  2. More people will be introduced into the formal economy.
  3. Financial saving will increase
  4. Tax evasion will be reduced

Question

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:

  1. It helps in improving performance
  2. It helps in assisting in planning and policy formulation
  3. *It helps in tapping useful resources
  4. It enables a firm to identify opportunities and get first mover advantage.

Question

The top management of a smartphone manufacturing company recently observed that the government has ordered new safety standards for batteries used in smartphones to prevent overheating. It also noticed that the government announced a reduction in import duties on components used in mobile phones. The dimensions of business environment highlighted in the above case are :

  1. Technological and legal environments
  2. Political and technological environments
  3. Legal and social environments
  4. *Political and legal environments

Question

Read the following statements: Assertion (A) and Reason (R)

Assertion (A): General forces such as social, political, legal and technological conditions affect an individual firm only indirectly.

Reason (R): General forces have an impact on all business enterprises, in contrast to, specific forces that affect individual firms directly and immediately in their day-to-day working.

Choose the correct alternative from the following:

  1. *Both Assertion (A) and Reason (R) are correct and Reason (R) is the correct explanation of Assertion (A).
  2. Both Assertion (A) and Reason (R) are correct, but Reason (R) is not the correct explanation of Assertion (A).
  3. Both Assertion (A) and Reason (R) are incorrect.
  4. Assertion (A) is correct, but Reason (R) is incorrect.

Question

'Since business environment consists of numerous interrelated and dynamic conditions or forces which arise from different sources, it becomes difficult to comprehend at once what exactly constitutes a given environment.' The feature of business environment highlighted above is:

  1. Relativity
  2. Uncertainty
  3. *Complexity
  4. Dynamic Nature

Question

Green-Eats is a start-up offering plant based meal kits. It gained popularity as more young consumers were becoming health conscious and awareness about environmental issues was increasing day-by-day. To promote sustainable eating, they collaborated with schools and colleges and organized workshops for them. Identify the element of business environment highlighted in the above case:

  1. Economic Environment
  2. *Social Environment
  3. Political Environment
  4. Technological Environment

Question

It is very difficult to predict future happenings, especially when environment changes are taking place too frequently.’ The feature of business environment highlighted above is:

  1. Relativity
  2. *Uncertainty
  3. Complexity
  4. Dynamic Nature

Question

‘Business environment keeps on changing whether in terms of technological improvement, shifts in consumer preferences or entry of new competitors in the market.’ The feature of business environment highlighted in the above statement is:

  1. Totality of external forces
  2. Complexity
  3. *Dynamic nature
  4. Relativity
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