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CBSE Questions for Class 12 Commerce Business Studies Business Environment Quiz 14 - MCQExams.com
CBSE
Class 12 Commerce Business Studies
Business Environment
Quiz 14
'Structural reform measures' was one of the two categories of measures announced by the Government to be taken under the process of economic reforms in India. These measures deal with-
redefining the role of state in the economy
attempting higher participation of private capital - Indian and foreign
Increasing aggregate supply in the economy.
Select the answer using the code given below.
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$$1$$ and $$2$$
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$$2$$ and $$3$$
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$$1$$ and $$3$$
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$$1, 2$$ and $$3$$
Which of the following is not an important characteristic of business environment?
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Image building
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Continuous learning
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Giving direction for shrinking
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Opportunities and threats
Explanation
Characteristics of business environment involve building goodwill of the firms by building a positive image of the firm, its ability to continuously learn about the dynamics of the business and realizing various opportunities and threats for the organization.
However, it does not involve giving directions for shrinking as expanding of businesses are one of the major motives.
Hence, C is the correct option.
Import procedure begins with
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Indent
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Mate's receipt
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Marine insurance
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Shipping bill
In order to comply with TRIPS agreement, India exacted the Geographical Indications of goods (Registration and protection Act 1999.) The difference/differences between a "Trade Mark" and a 'Geographical Indicate' is/are:
A trade mark is an individual or a company's right whereas a Geographical Indication is a community's right.
A trade Mark can be licensed whereas a Geographical Indication can't be licensed.
A Trade mark is assigned to the manufactured goods whereas the Geographical Indication is assigned to the agricultural goods/products and handicrafts only
Which of the statements given above is/are correct?
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1 only
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1 and 2 only
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2 and 3 only
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1, 2 and 3
As per the UN-Habitat's Global Report on Human Settlement $$2009$$, which one among the following regions has shown the fastest growth rate of urbanization in the last three decades?
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Asia
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Europe
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Latin America and Caribbean
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North America
A
BC company is aiming towards Joint venture and partnership with other firms to mange uncertainty. This is an example of following type of Organizational response to the environment ?
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Collective response
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Competitive response
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Micro environmental response
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Administrative response
Explanation
Many organizations cope with environmental dependence problems through strategic collective responses including methods like co-opting, bargaining, alliances, etc. This is called as collective organisational response to the environment.
In the above case, ABC Ltd. is aiming to merge with other firms to manage uncertainty. This points towards the collective response.
Hence, A is the correct option.
Which of the following is not an example of socio-cultural environment?
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Role of women in society
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Raising income
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Family structure
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Educational levels
Explanation
Raising income
is not an example of socio-cultural environment.
It is an example of economic environment.
Thus, B is the correct option.
Which among the following has the least possibility of globalization?
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selection of labour force
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location of capital works
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to manage resources for investment
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increase in infrastructure
As regards the use of international food safety standards as reference point for the dispute settlements, which one of the following does WTO collaborate with?
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International Organization for Standardization.
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International federation of Standards Users.
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Codex Alimentarius Commission
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World Standard Cooperation
Explanation
Collaboration between WTO and the Codex Alimentarius concerns the use of international food safety standard in the context of the SPS Agreement, World standard corporations : High level collaboration between the IEC, ISO and ITU.
International Federation of Standard users : Founded in 1974. It is an independent, non profit, international association of national organisation for the application & standards.
Which one of the following is the final session of the General Agreement on Tariff- and Trade (GATT)?
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Singapore session
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Geneva session
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Washington session
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Uruguay session
Explanation
Uruguay session is the final session of the General Agreement on Tariffs and Trade (GATT). The Uruguay Round lasted from 1986-94. It was the most ambitious round to date, hoping to expand the competence of the GATT to important new areas such as services, capital, intellectual property, textiles, and agriculture. One of the most significant changes in the Uruguay round was the creation of the World Trade Organization (WTO).
Demonetization became highly discussed among the citizens of our country for quite some time since its declaration on 08th NovemberOld currency notes of Rs 500 and Rs 1000 denominations got demonetized and New Rs 500 and Rs 2000 Currency Notes came into circulation. The process of demonetization had its own story mixed with both positive and negative but later people got settled with the changing dimensions.
Which type of business environment covers the process of demonetization of India?
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Economic
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Social
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Demographic
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Political
Explanation
Economic environment refers to all the economic factors that affect commercial and consumer behavior. The economic environment consists of all the external factors in the immediate factors marketplace and border economy. They may serve either opportunities or threats to business enterprises. In the above mention scenario, Old currency notes of Rs 500 and Rs 1000 denominations got demonetized and New Rs 500 and Rs 2000 Currency Notes came into circulation as part of the economic environment of business enterprises.
Hence, option (A) is the correct answer.
The reserve bank of India reduces CRR (Cash Reserve Ratio) by 0.5% to control recession. This is related to which dimension of the business environment?
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Political environment
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Economic environment
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Social environment
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Legal environment
Explanation
The term "economic environment" refers to all of the variables and forces that have a direct impact on your country's economy. The economic environment is influenced by high inflation rates that act as restraints by raising the cost of production. The Reserve Bank of India cuts the CRR (Cash Reserve Ratio) by 0.5 percent to fight the recession. The money supply is a factor in the economic environment.
Hence, option (B) is the correct answer.
The Reserve Bank of India (RBI) increased the Cash Reserve Ratio (CRR) by 0.25 Basis Points to overcome the inflationary trends in the economy. Identify the dimension of the business environment highlighted by this statement.
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Economic environment
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Social environment
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Political environment
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Legal environment
Explanation
Economic environment refers to all the forces and factors which directly influence the economy of your country. The aspect of the economic environment is:- The Reserve Bank of India (RBI) increased the Cash Reserve Ratio (CRR) by 0.25 Basis Points to overcome the inflationary trends in the economy.
Hence, option (A) is the correct answer.
India continues to be a lower middle income country along with 46 others, while Sri Lanka has climbed to the upper middle income group for the fiscal year 2020, according to the World Bank's classification of countries by income levels released on July 1, 2019.
Identify the dimension of the business environment.
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Social
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Technological
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Economic
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Political
Explanation
The term "economic environment" refers to all of the variables and forces that have a direct impact on your country's economy. The economic environment consists of an increase in GDP, which results in an increase in people's disposable income and a subsequent increase in product demand. According to the World Bank's classification of nations by income levels issued on July 1, 2019, India remains a lower-middle-income country, along with 46 others, for the fiscal year 2020. All of these considerations involve the economic environment of the country.
Hence, option (C) is the correct answer.
Which dimension of an organization's environment refers to the degree to which it can support growth?
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Capacity
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Technology
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Structure
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Volatility
Explanation
The capacity of an organisation defines whether the organisation is able to initiate growth or not. This capacity is build over the years by increasing the retained earnings from the business and using them as growth generating agents later on.
Globalisation does NOT involve which one of the following?
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Rapid integration between countries
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More goods and services moving between countries
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Increased taxes on imports
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Movement of people between countries for jobs, education etc
Explanation
Tax on imports is an example of trade barrier. Once barriers are removed goods can be imported and exported easily and also foreign companies could set up factories and offices here. Removing barriers or restrictions set by the governments is what is known as liberalisation.
Changes in which of the following areas did you identify as the main causes of strategic change?
(i) Environment
(ii) Business relationships
(iii) Technology
(iv) People
Select the correct answer from the options given below-
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(i), (ii) and (v)
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(i),(ii),(iii)
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(ii), (iii) and (iv)
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All of the above
Explanation
Strategic change refers to any changes in the organisation that is regarded as a very important organizational change as it leads to changes in the organisational policies for all the levels of management. It includes changes in business relationships. Technology and people that affect the business which can be consumers , investors etc.
Which is not the aim of Liberalisation and Globalisation?
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More production at all levels
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Increase in the trade of goods and services
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Generating more employment opportunities
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Increase in the subsidies to the poor and deprived sections of society
Explanation
More production at all levels as raw materials can be obtained from any part of the world.
Globalisation means selling of goods in any part of the world. Many companies are opening their offices around the world because of which they ae earning more profits.
MNC's are generating more employment opportunities for people.
Sumit Agro Ltd. is a new venture for the distribution of chemicals fertilizers-free vegetables. They conducted a market survey to find out consumer preferences for such vegetables. They found that 90% of the households were concerned about the harmful chemicals being used in growing the vegetables and their impact upon health. The factor constituting the business environment being discussed above is:
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Economic
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Technological
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Social
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Political
Explanation
The social environment of a business is made up of the conventions and traditions of the society in which it operates. It encompasses the people's living standards, tastes, preferences, and educational levels in the society where the firm operates. Businessmen cannot ignore the social environment's components because, while they may not have an immediate influence on the firm, the social environment has a significant impact in the long term. In the above mention, Sumit Agro Ltd. is a new venture for the distribution of chemicals fertilizers-free vegetables because they properly analyze the social environment.
Hence, option (C) is the correct answer.
Environment scanning is careful monitoring of an organization's _______ environments for detecting early signs of opportunities and threats that may influence its current and future plans.
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internal
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external
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both (A) and (B)
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outside
Explanation
Environment scanning includes monitoring, evaluation, and dissemination of relevant information from the internal and external environments for decision making.
Such a careful monitoring of an organization's internal and external environments helps detecting early signs of opportunities and threats which might influence the firm's plans.
Factors like Trends, Events of different interest groups are needed to be considered in _________
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Environment analysis
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Environmental scanning
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Environmental inference
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Environmental response
Explanation
Factors like Trends, Events of different interest groups are needed to be considered in
environment scanning
.
Reason:-
Environment scanning refers to the study and interpretation of political , economic , social and technological events and trends which influence a business, an industry or even a total market.
Hence, B is correct option.
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Both Assertion and Reason are correct and Reason is the correct explanation for Assertion
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Both Assertion and Reason are correct but Reason is not the correct explanation for Assertion
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Assertion is correct but Reason is incorrect
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Assertion is incorrect but Reason is correct
Explanation
Economic environment refers to all the forces and factors which directly influence the economy of your country. The economic environment consists of Gross domestic product, the Income level at the National level and per capita level, profit-earning rate, productivity and employment rate, Industrial monetary and fiscal policy of the government, etc. While the social environment consists of customs and traditions of the society in which business is existing it includes the standard of living taste and preferences, education levels of people living in the society where the business exists.
Hence, D is the correct answer.
Internal environment of a business includes:
(i) Business ethics and moral standards
(ii) Business and managerial policies
(iii) Prospects of business development
(iv) Government rules and regulations
(v) Industrial relations.
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(i), (ii, (iv) and (v)
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(ii), (iii), (iv) and (v)
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(i), (ii), (iii) and (iv)
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(i), (ii), (iii) and (v)
Explanation
Internal environment of business consists of the factors that are internal to the business entity. Few examples are the ethics and moral standards, policies set by the entity, strategy of business, rules and regulations laid down by the Government which need to be followed by the business.
Analysing the business environment best assists in _______.
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identifying key competitive forces; identifying key opportunities and threats
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auditing macro-environmental influences, identifying key opportunities and threats
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auditing external and organizational factors,Identifying key competitive forces, Identifying competitive positions, identifying key opportunities and threats
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assessing historical trends; auditing environmental dangers; identifying strategic capabilities; Identifying competitive position
Explanation
The business environment has to be known and researched by the business to function, analyzing the business environment assists in auditing the macro-environmetal influences, identifying key opportunities and threats.
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