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CBSE Questions for Class 12 Commerce Business Studies Business Environment Quiz 5 - MCQExams.com
CBSE
Class 12 Commerce Business Studies
Business Environment
Quiz 5
How much of the activities were being made available for the private sector as per the New Industrial Policy, 1991?
Report Question
0%
One-fourth
0%
Half
0%
Three-fourths
0%
One-sixth
Explanation
Three-fourths of the activities were being made available for the private sector as per the New Industrial Policy, 1991. New Industrial Policy was adopted by the Government of India in the year of 1991. It was adopted in order to create a more free and competitive economy. The main objective of any industrial policy is to augment industrial production and thereby enhance industrial growth.
Hence, option (C) is the correct answer.
According to the Industrial Policy Resolution of 1956, Schedule B has _________ Industries.
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0%
12
0%
15
0%
16
0%
17
Explanation
According to Industrial Policy resolution of 1956, Schedule B contains 12 industries. Industrial Policy Resolution of 1956 is a resolution adopted by the Indian Parliament in April 1956. The 1956 policy continued to constitute the basic economic policy for a long time.
Hence, option (A) is the correct answer.
According to the Industrial Policy resolution ofSchedule A contains __________.
Report Question
0%
15 major industries
0%
12 major industries
0%
17 major industries
0%
14 major industries
Explanation
According to Industrial Policy resolution of 1956, Schedule A contains 17 major industries. Industrial Policy Resolution of 1956 is a resolution adopted by the Indian Parliament in April 1956. The 1956 policy continued to constitute the basic economic policy for a long time.
Hence, option (C) is the correct answer.
The Priority areas of the Public Sector Industries, according to the New Industrial Policy, 1991 are _______.
Essential infrastructural goods and services
Exploration and exploitation of oil and mineral resources
Technology development and building up of manufacturing capacities in crucial areas
Manufacturing of product, based on strategic considerations
Which are correct?
Report Question
0%
1 and 3
0%
4 only
0%
2 and 3
0%
1, 2, 3 and 4
Explanation
New Industrial Policy was adopted by the Government of India in the year of 1991. It was adopted in order to create a more freer and competitive economy. The main objective of any industrial policy is to augment industrial production and thereby enhance industrial growth.
The Priority Areas of the Public Sector Industries, according to the New Industrial Policy, 1991 are:-
1. Essential infrastructural goods and services
2. Exploration and exploitation of oil and mineral resources
3. Technology development and building up of manufacturing capacities in crucial areas
4. Manufacturing of products, based on strategic considerations
Hence, option (D) is the correct answer.
Liberalisation has resulted in ____________ of foreign business organization.
Report Question
0%
easy exit
0%
easy entry
0%
difficult entry
0%
none of the above
Explanation
Liberalization has resulted in easy entry of foreign business organization. Liberalization refers to the process of eliminating unnecessary controls and restrictions on the smooth functioning of business enterprise.
As per NIP, 1991,
The public sector units were made more professional
The public sector units were given greater autonomy
The private sector units were made professional
The private sector units are given autonomy
Which are incorrect?
Report Question
0%
1 and 3
0%
2 and 4
0%
3 and 4
0%
1 and 2
Explanation
New Industrial Policy was adopted by the Government of India in the year of 1991. It was adopted in order to create a more freer and competitive economy. The main objective of any industrial policy is to augment industrial production and thereby enhance industrial growth.
As per NIP, 1991,
a) The private sector units were made professional.
b) The private sector units are given autonomy.
Hence, option (C) is the correct answer.
The MRTP Act and NIP, 1991 was made applicable to _______________.
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0%
All undertakings
0%
Financial institutions
0%
Trade unions and associations of workmen
0%
Both (A) and (B)
Explanation
The MRTP Act helped tor remove restrictions and controls which were put on the industrial sector before 1991. The MRTP Act and NIP, 1991 was made applicable to all undertakings including financial institutions. Government undertakings engaged in the production of the following would continue to be kept out of the purview of the MRTP Act. and New Industrial policy 1991.
Hence, option (D) is the correct answer.
The use of advanced technology in industrial production causes ______.
Report Question
0%
Fall in the unit cost of production and prices
0%
Increase in the demand for goods
0%
Increase in the demand for labour
0%
All the above
Explanation
Use of advanced technology helps to fasten industrial productivity which in turn helps to uplift the economy. The use of advanced technology in industrial production causes:
a) Fall in the unit cost of production and prices
b) Increase in the demand for goods
c) Increase in the demand for labour.
Hence, option (D) is the correct answer.
In the New Industrial Policy, 1991 Industrial licensing will be compulsory for ______________________.
Report Question
0%
10 industries
0%
15 industries
0%
18 industries
0%
20 industries
Explanation
In the New Industrial Policy, 1991 Industrial licensing will be compulsory for 18 industries. New Industrial Policy was adopted by the Government of India in the year of 1991. It was adopted in order to create a more freer and competitive economy. The main objective of any industrial policy is to augment industrial production and thereby enhance industrial growth.
Hence, option (C) is the correct answer.
In the New Industrial Policy 1991, direct foreign investment in high priority industries will be allowed upto __________.
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0%
40%
0%
45%
0%
50%
0%
51%
Explanation
In the New Industrial Policy 1991, direct foreign investment in high-priority industries will be allowed up to 51%. New Industrial Policy was adopted by the Government of India in the year of 1991. It was adopted in order to create a more free and competitive economy. The main objective of any industrial policy is to augment industrial production and thereby enhance industrial growth.
Hence, option (D) is the correct answer.
In the New Industrial Policy 1991, the asset limit of MRTP Companies is _____.
Report Question
0%
Rs. 25 Crores
0%
Rs. 80 Crores
0%
Rs. 100 Crores
0%
No limit
Explanation
In the New Industrial Policy, 1991, the asset limit of MRTP Companies is no limit. New Industrial Policy, 1991 can be referred to as a reform in Indian economy. It caused several changes in the industrial sector. It helped to create a more free economy and competitive business environment.
Hence, option (D) is the correct answer.
In the New Industrial Policy, 1991 industrial licensing had been abolished for the following Industries _______.
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0%
Coal and lignite
0%
Paper and News print
0%
Drugs and Pharmaceutical
0%
None of the above
Explanation
In the New Industrial Policy, 1991 industrial licensing had not been abolished from the following industries- coal and lignite, paper and Newsprint, and drugs and pharmaceutical. New Industrial Policy was adopted by the Government of India in the year of 1991. It was adopted in order to create a more freer and competitive economy. The main objective of any industrial policy is to augment industrial production and thereby enhance industrial growth.
Hence, option (D) is the correct answer.
Which of the following are the criticism points of New Industrial Policy, 1991?
Total departure from Nehruvian concept of socialism
Tilting towards capitalism and open invitation to multinationals
Opening India's market to Multi-nationals does not guarantee more export of Indian goods
Labour unions oppose the New Industrial Policy
Choose the correct?
Report Question
0%
1, 2 and 4
0%
2, 3 and 4
0%
1 and 3
0%
All the above
Explanation
New Industrial Policy was adopted by the Government of India in the year of 1991. It was adopted in order to create a more free and competitive economy. The main objective of any industrial policy is to augment industrial production and thereby enhance industrial growth. Following are the criticism points of New Industrial Policy, 1991.
1. Total departure from Nehruvian concept of socialism.
2. Tilting towards capitalism and an open invitation to multinationals.
3. Opening India's market to Multinationals does not guarantee more export of Indian goods.
4. Labour unions oppose the New Industrial Policy.
Hence, option (D) is the correct answer.
The Present Industrial Policy in India was introduced on ____________.
Report Question
0%
6th April, 1985
0%
6th June, 1990
0%
24th July, 1991
0%
24 May, 1995
Explanation
The Present Industrial Policy in India was introduced on July 24, 1991. New Industrial Policy was adopted by the Government of India in the year of 1991. It was adopted in order to create a more freer and competitive economy. The main objective of any industrial policy is to augment industrial production and thereby enhance industrial growth.
Hence, option (C) is the correct answer.
Industrial investment in backward areas can be induced under delicensing system by
Report Question
0%
Providing infrastructural facilities
0%
The use of tax-subsidy mechanism
0%
Both (A) and (B)
0%
None of these
In the New Industrial Policy 1991, the number of industries reserved for public sector is ___________.
Report Question
0%
5
0%
8
0%
10
0%
15
Explanation
In the New Industrial Policy 1991, the number of industries reserved for public sector is 8. New Industrial Policy was adopted by the Government of India in the year 1991. It was adopted in order to create a more free and competitive economy. The main objective of any industrial policy is to augment the industrial production and thereby enhance industrial growth.
Hence, option (B) is the correct answer.
Which Statement had given the preference to Indianisation of ownership of Industry?
Report Question
0%
1948 Policy Statement
0%
1956 Policy Statement
0%
1970 Policy Statement
0%
1980 Policy Statement
Explanation
1948 Policy Statement had given the preference to Indianisation of ownership of Industry. This policy statement helps to harmonize industrial relations. In 1948 policy, Government of India identified the high priority industries where investment from large industrial sector was needed.
Hence, option (A) is the correct answer.
Which one is not an element of internal environment?
Report Question
0%
Marketing capability
0%
Operational capability
0%
Money and Capital market
0%
Personal capability
Explanation
Forces or conditions or surroundings within the boundary of the organization are the elements of the internal environment of the organization. The internal environment consists mainly of the organization’s owners, the board of directors, employees and culture.
Marketing capability, operational capability, and personal capability are part of internal environment. Money and capital market are part of external environment.
Important feature of 1991 Industrial policy is __________.
Report Question
0%
Industrial licensing
0%
Liberalisation in licensing
0%
Compulsory licensing
0%
Reducing the investment limit of small scale units
Explanation
Important feature of the 1991 Industrial policy is liberalization in licensing. New Industrial Policy was adopted by the Government of India in the year of 1991. It was adopted in order to create a more free and competitive economy. The main objective of any industrial policy is to augment the industrial production and thereby enhance industrial growth.
Hence, option (B) is the correct answer.
The first New Small Scale Industrial Policy was announced on ________.
Report Question
0%
August 6, 1989
0%
May 5, 1990
0%
August 6, 1991
0%
December, 1996
Explanation
The first New Small Scale Industrial Policy was announced on August 6, 1991. Small Scale Industrial Policy has helped in the overall development of industrial sector of the economy. It was well realized that small-scale industries are particularly suited for the utilization of local resources and for the creation of employment opportunities.
Hence, option (C) is the correct answer.
List 1
List 2
1.
Dutt Committee
a)
Industrial sickness
2.
Abid Hussain Committee
b)
Small scale industries
3.
Omkar Goswami Committee
c)
Industrial licensing
4.
Rangarajan Committee
d)
Public Sector units disinvestment
Report Question
0%
1-a, 2,-c, 3-d, 4-b
0%
1-c, 2,-b, 3-a, 4-d
0%
1-c, 2,-a, 3-b, 4-d
0%
1-a, 2,-b, 3-d, 4-c
Explanation
List 1
List 2
Dutt Committee
Industrial licensing
Abid Hussain Committee
Small scale industries
Omkar Goswami Committee
Industrial sickness
Rangarajan Committee
Public Sector units disinvestment
Hence, option (B) is the correct answer.
Relaxing the restrictions and control imposed on business and industry means ______.
Report Question
0%
liberalization
0%
privatisation
0%
globalisation
0%
none of these
Explanation
Liberalization refers to relaxation of government restrictions usually in areas of social and economic policies. It refers to the process of eliminating unnecessary controls and restrictions on the smooth functioning of business enterprises.
Match the following components of Business Environment.
a) Economic Environment
i) Exim Policy
b) Social Environment
ii) Customs
c) Political Environment
iii) Social Values
d) Legal Environment
iv) Business Law and Banking Act
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0%
(a)-(i), (b)-(ii), (c)-(iii), (d)-(iv)
0%
(a)-(iii), (b)-(iv), (c)-(ii), (d)-(i)
0%
(a)-(iii), (b)-(i), (c)-(ii), (d)-(iv)
0%
(a)-(i), (b)-(ii), (c)-(iv), (d)-(iii)
Explanation
EXIM policy is a part of external environment of a business which involves in Export and Import.
Socio-cultural environment: A set of beliefs, customs, practices and behavior that exists within a population.
Political Environment analyzes the social values and justification of business, defining its rights, obligations and purposes.
Legal Environment deals with the legal formalities which a business have to follow and includes various Laws and Acts.
Which one is not an element of legal environment?
Report Question
0%
Act of Parliamentarians in Lok Sabha
0%
Indian Contract Act, 1872
0%
Indian Partnership Act, 1932
0%
Negotiable instruments Act, 1881
Explanation
Act of Parliamentarians in Lok Sabha is not an element of legal environment since legal environment constitutes the laws and various legislations passed in the parliament. Legal environment cannot be overlooked as the businessman has to perform the business transactions within the framework of legal environment.
Which of the following is not a part of the economic environment of business?
Report Question
0%
Competitive Environment
0%
Economic System
0%
Changes in Patent Laws
0%
None of these
Explanation
Dimensions of, or the factors constituting the business environment include economic, social, technological, political and legal conditions which are considered relevant for decision-making and improving the performance of an enterprise.
Economic Environment includes interest rates, inflation rates, changes in disposable income of people, stock market indices and the value of rupee are some of the economic factors that can affect management practices in a business enterprise. Short and long term interest rates significantly affect the demand for product and services.
Which among the following have not been opened for private sector participation?
Report Question
0%
Power Sector
0%
Telecommunication Sector
0%
Education Sector
0%
Railways
Explanation
Railways has not been opened for private sector participation. Railway sector is owned and managed by the Government of India. It is a public sector undertaking. Railways is still referred as a Government monopoly.
Hence, option (D) is the correct answer.
Which one of the following is not an element of internal environment?
Report Question
0%
Mission/ Objectives
0%
Human Resources
0%
Customers
0%
Shareholders' values
Explanation
Environment of a business can be classified as internal and external. External environment consists of factors or forces that are influencing the business from outside. They include customers.
Internal elements include the factors that are internal to the business. The mission, objectives, policies, human resources and shareholders' value are examples of internal environment of a business.
The benefit(s) of globalization is/are __________.
Report Question
0%
Efficient allocation of capital
0%
Better working financial system
0%
Smoother consumption patterns enjoyed by countries
0%
All of the above
0%
Both (A) and (B) above
Explanation
Globalization involves the various markets getting integrated across geographical boundaries. All the given alternatives are benefits associated with globalization.
Which of the following best indicates the importance of business environment?
Report Question
0%
Identification
0%
Improvement in performance
0%
Coping with rapid changes
0%
All of the above
Explanation
Identification, Improvement In performance, coping with rapid changes all are the indicators of importance of business environment.
Liberalization means ________.
Report Question
0%
Integrating among Economies
0%
Reduced Government Controls and Restrictions
0%
Policy of Planned Disinvestments
0%
None of the Above
Explanation
Liberalization refers to reduction of government controls and restrictions for international trade. It helps in globalization of markets. India was liberalized is 1991.
Liberalization (or
liberalisation
) is any process whereby a state lifts restrictions on some private individual activities. Liberalization occurs when something which used to be banned is no longer banned, or when government regulations are relaxed.
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