Chapter 3: Business Environment — Online MCQ Test
BUSINESS STUDIES · CLASS 12 SECOND PUC · Karnataka State Board
Practice Chapter 3: Business Environment with a free chapter-wise online MCQ test.
This chapter covers: Focusing on business dynamics this chapter covers business environment concept importance dimensions economic social technological political legal factors and economic reforms sinc....
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Chapter 3: Business Environment — Important Questions & Answers
What is meant by business environment?
- A. The internal policies of a firm only
- B. The sum of external factors and forces affecting business decisions
- C. Only the economic conditions of a country
- D. The physical location of a business unit
Answer: B. The sum of external factors and forces affecting business decisions
Business environment refers to all external forces and conditions that influence business decisions and performance. It includes economic, social, political, legal, and technological factors.
Business environment refers to all external forces and conditions that influence business decisions and performance. It includes economic, social, political, legal, and technological factors.
Which of the following is NOT a dimension of business environment?
- A. Economic environment
- B. Technological environment
- C. Internal environment
- D. Political environment
Answer: C. Internal environment
The chapter deals with external dimensions such as economic, social, technological, political, and legal environments. Internal environment is not included as a dimension in this context.
The chapter deals with external dimensions such as economic, social, technological, political, and legal environments. Internal environment is not included as a dimension in this context.
Business environment is important because it helps a firm to:
- A. Avoid all competition
- B. Identify opportunities and threats
- C. Fix prices without market influence
- D. Control government policies
Answer: B. Identify opportunities and threats
Studying the business environment helps managers spot opportunities and threats in time. This improves decision-making and planning.
Studying the business environment helps managers spot opportunities and threats in time. This improves decision-making and planning.
A change in food safety regulations mainly belongs to which environment?
- A. Legal environment
- B. Technological environment
- C. Social environment
- D. Economic environment
Answer: A. Legal environment
Rules and regulations made by the government and enforced by law are part of the legal environment. Food safety regulations are legal requirements for business.
Rules and regulations made by the government and enforced by law are part of the legal environment. Food safety regulations are legal requirements for business.
Which of the following combinations correctly matches the reform with its meaning?
- A. Privatisation — reducing private sector role in the economy
- B. Globalisation — increasing isolation from foreign markets
- C. Liberalisation — removing restrictions on trade and industry
- D. Nationalisation — transferring private ownership to foreign companies
Answer: C. Liberalisation — removing restrictions on trade and industry
Liberalisation means removing restrictions and controls on business activities. The other options give incorrect definitions of the reforms.
Liberalisation means removing restrictions and controls on business activities. The other options give incorrect definitions of the reforms.