MCQ Questions for Class 12 Business Studies: Ch 3 Business Environment
1. Changes in fashions and tastes of consumers will ______________
(a) Shift the market demand from existing product to new ones
(b) Increase the cost of production
(c) Increase the profit
(d) Increase the Sale
► (a) Shift the market demand from existing product to new ones
2. Giving freedom to Indian business and industries from all unnecessary government controls and restrictions is an example of ____________
(a) Privatisation
(b) Globalisation
(c) Liberalisation
(d) None of the above
► (c) Liberalisation
3. What creates fear in the minds of investors to invest in long term projects?
(a) Privatisation
(b) Political Uncertainty
(c) Liberalisation
(d) None of the above
► (b) Political Uncertainty
4. Facebook, Twitter and Whatsapp is the result of ________________
(a) Political Environment
(b) Social Environment
(c) Technologcal Environment
(d) None of the above
► (c) Technologcal Environment
5. Which of the following creates fear in the minds of investors?
(a) Political uncertainty
(b) New innovations
(c) None of these
(d) Technological improvements
► (a) Political uncertainty
6. Celebration of Diwali is the example of:
(a) Technological Environment
(b) Social Environment
(c) Political Environment
(d) Legal Environment
► (b) Social Environment
7. Export promotion is concerned with ______________
(a) Privatisation
(b) Globalisation
(c) Liberalisation
(d) None of the above
► (b) Globalisation
8. Through Environmental scanning a business firm can enjoy the ___________
(a) Competition
(b) First Mover Advantage
(c) Benefit of taxes
(d) Last Mover Advantage
► (b) First Mover Advantage
9. Advance understanding of business environment will help in __________
(a) Privatisation
(b) Planning and Policy Formulation
(c) Developing new principles of management
(d) None of the above
► (b) Planning and Policy Formulation
10. Technological improvements and innovations result in________
(a) Increase in tax
(b) Render existing products obsolete
(c) Reduction in profit margins
(d) None of the above
► (b) Render existing products obsolete
11. Reduction in the role of public sector is due to __________
(a) Political Environment
(b) Privatisation
(c) Globalisation
(d) Liberalisation
► (b) Privatisation
12. Increase or decrease in the value of Rupee is an example of _________
(a) Political Environment
(b) Economic Environment
(c) Social Environment
(d) None of the above
► (b) Economic Environment
13. When a company taken over another one and clearly becomes the new owner, the action is called
(a) Merger
(b) Acquisition
(c) Strategic Alliance
(d) None of the above
► (b) Acquisition
14. Which of he following does not characterise the business environment?
(a) Complexity
(b) Relativity
(c) Employees
(d) Uncertainty
► (c) Employees
15. Gross Domestic Product (GDP) is concerned with ____________
(a) Political Environment
(b) Legal Environment
(c) Economic Environment
(d) Social Environment
► (c) Economic Environment
16. Increased competition in the market will _____________
(a) Increase the tax
(b) Increase the profit
(c) Increase the cost of production
(d) Reduce the profit margin
► (d) Reduce the profit margin
17. Rise in GDP lead to rise in ___________________
(a) Increase in new taxes
(b) Cost of Production
(c) Disposable income of people
(d) None of the above
► (c) Disposable income of people
18. Booking of Railway tickets through internet from home or office is an example of _________
(a) Political Environment
(b) Technological Environment
(c) Economic Environment
(d) None of the above
► (b) Technological Environment
19. What will be the affect of increase in tax by the government?
(a) Increase in cost of production
(b) Creates fear in the minds of investors
(c) Increase in profit margin
(d) None of the above
► (a) Increase in cost of production
20. External environment trends and changes will provide ____________.
(a) Threats
(b) Goodwill
(c) Less Competition
(d) Profits
► (a) Threats
21. Liberalisation means
(a) Reduced government controls and restrictions
(b) Policy of planned disinvestments
(c) Integration among economies
(d) None of the above
► (a) Reduced government controls and restrictions
22. Relaxing the restrictions and controls imposed on Business and industry means
(a) Liberalisation
(b) Privatisation
(c) Globalisation
(d) None of the above
► (a) Liberalisation
23. Which of the following best indicates the importance of business environment?
(a) Coping with rapid changes
(b) Identification
(c) Improvement in performance
(d) All of the above
► (d) All of the above
24. Which of the following does not explain the impact of Government policy changes on business and industry?
(a) More demanding customers
(b) Change in agricultural prices
(c) Increasing competition
(d) Market orientation
► (b) Change in agricultural prices
25. Globalisation aims at _____________
(a) Export Promotion
(b) Foreign exchange reforms
(c) Import liberalisation
(d) All of the above
► (d) All of the above