MCQ of Business Environment | Class 12 | Business Studies | Term 1 |

MCQ of Business Environment | Class 12 | Business Studies | Term 1 |

Q1. …… means the sum total of those factors which influence the business and over which the business has no control.
a. Business ethics
b. Business environment
c. Marketing management
d. None of these
Answer : Business Environment

Q2. …… refers to the negative changes that occurred in the business environment and hindered the performance of an organisation
a. Strength
b. Weakness
c. Opportunities
d. Threats
Answer : Threats

Q3. …… refers to the positive changes that occurred in the business environment and helped the organisation to improve its performance.
a. Strength
b. Weakness
c. Opportunities
d. Threats
Answer : Opportunities

Q4. Which is not the feature of business environment?
a. Totality of external forces
b. Well defined body of knowledge
c. Specific and general forces
d. Dynamic nature
Answer: Well Defined Body of Knowledge

Q5. Which of the following highlights the importance of business environment?
a. First mover advantage
b. Assisting in planning and policy formulation
c. Warning signal
d. All of these
Answer: All of these

Q6. Two components of business environment are :
a. Business and profession
b. Micro environment and macro environment
c. General environment and operating environment
d. Internal environment and external environment
Answer : Internal Environment and External Environment

Q7. …… refers to those factors which influence the business and are under control of the business.
a. Political environment
b. Social environment
c. Internal environment
d. External environment
Answer : Internal Environment

Q8. Internal factors includes 
a. Policies of business
b. Customers
c. Production capacity
d. Both a and c
Answer : Both a and c

Q9. …… refers to those factors which influence the business, exist outside the business and are out of control of the business.
a. Political environment
b. Social environment
c. Internal environment
d. External environment
Answer: External Environment

Q10. External environment can be divided into
a. Micro environment and mini environment
b. Micro environment and Macro environment
c. Economic environment and social environment
d. None of these
Answer : Micro environment and Macro environment

You may also read MCQ of Nature and Significance of Management, MCQ of Principles of Management, MCQ of Planning, MCQ of Organising , MCQ of Marketing Management for scoring higher in forthcoming examination.

Q11. What do you mean by micro environment?
a. It refers to negative changes that occurred in the business environment and hindered the performance of an organisation.
b. It refers to all those external factors which are closely related to business and influence each industrial unit differently
c. It refers to those factors which influence the business, exist outside the business and are out of control of the business
d. It refers to all those external factors which have a distant relation with business and influence all business units almost in the same way
Answer : It refers to all those external factors which are closely related to business and influence each industrial unit differently

Q12. What do you mean by macro environment ?
a. It refers to negative changes that occurred in the business environment and hindered the performance of an organisation
b. It refers to all those external factors which are closely related to business and influence each industrial unit differently
c. It refers to those factors which influence the business, exist outside the business and are out of control of the business
d. It refers to all those external factors which have a distant relation with business and influence all business units almost in the same way
Answer : It refers to all those external factors which have a distant relation with business and influence all business units almost in the same way

Q13. Micro environment is also called
a. Operating environment
b. Internal environment
c. General environment
d. Political environment
Answer : Operating Environment

Q14. Macro environment is also called
a. Operating environment
b. Internal environment
c. General environment
d. Political environment
Answer: General Environment

Q15. Micro environment consists of the following factors
a. Public
b. Export import policies
c. Competitors
d. Both a and c
Answer : Both a and c

Q16. …… refers to social practices that have lasted for decades, such as, Diwali, Id, Christmas etc.
a. Values
b. Social trends
c. Fashion
d. Traditions
Answer : Traditions

Q17. …… refers to moral principles prevailing in the society, such as freedom, equality etc.
a. Values
b. Social trends
c. Fashion
d. Traditions
Answer : Values

Q18. High inflation rate increases the cost of business, is an impact of …… environment.
a. Economic
b. Social
c. Political
d. Technological
Answer : Economic

Q19. Which one of the following is a major element of economic environment?
a. Traditions
b. Economic policies
c. Types of government
d. The judgement of courts
Answer : Economic Policies

Q20. …… refers to innovations related to various business activities
a. Technological environment
b. Political environment
c. Social environment
d. Internal environment
Answer : Technological Environment

Q21. The digital watches have almost eliminated the market of the traditional watches, is an impact of
a. Technological environment
b. Political environment
c. Social environment
d. Internal environment
Answer : Technological Environment

Q22. The decisions taken by various commissions and agencies ,falls under the major element of … environment.
a. Technological environment
b. Political environment
c. Social environment
d. Legal environment
Answer: Legal environment

Q23. Withdrawal of the status of ‘legal tender’ to the currency in circulation is called
a. Decentralization
b. Demonetization
c. Liberalisation
d. Privatisation
Answer: Demonetization

Q24. Tax administrative measure and creating less cash economy are the key features of…
a. Decentralization
b. Demonetization
c. Liberalisation
d. Privatisation
Answer: Demonetization

Q25. …… means integrating the economy with rest of the world.
a. Decentralization
b. Demonetization
c. Globalisation
d. Privatisation
Answer : Globalisation

Q26. Which of the following is the essential feature of liberalisation?
a. Increase in government treasury
b. Attracting foreign investment
c. Reduction in the tax rate
d. Discovering new ways of producing goods and services
Answer: Reduction in the Tax Rate

Q27. Which of the following is the essential feature of privatisation?
a. Encouraging private investment
b. Simplifying import export procedure
c. Increase in government treasury
d. Free flow of capital in all countries
Answer : Increase in Government Treasury

Q28. Which of the following is the essential feature of globalisation?
a. Encouraging private investment
b. Simplifying import export procedure
c. Increase in government treasury
d. Free flow of capital in all countries
Answer: Free flow of Capital in all Countries

Q29. Which of the following is the objective of economic reforms?
a. Increase in government treasury
b. Free flow of capital in all countries
c. Increasing foreign exchange reserves
d. None of these
Answer : Increasing Foreign Exchange Reserves

Q30. Under …… the industries have been freed to a large extent from the licences and other controls.
a. Fiscal reforms
b. New trade policy
c. New industrial policy
d. Monetary reforms
Answer : New Industrial Policy

Q31. … means that the country is spending more than it’s income
a. Fiscal reforms
b. New trade policy
c. New industrial policy
d. Fiscal deficit
Answer: Fiscal Deficit

Q32. The market in which securities are sold and bought is known as
a. Cash Market
b. Investment Market
c. Capital market
d. General Market
Answer: Capital Market

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