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CBSE Questions for Class 12 Commerce Business Studies Business Environment Quiz 6 - MCQExams.com
CBSE
Class 12 Commerce Business Studies
Business Environment
Quiz 6
Consumer attitudes and beliefs about diet, health and nutrition are influenced by______.
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Economic environment
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Cultural environment
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Social environment
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Natural environment
Explanation
Consumer attitudes and beliefs about diet, health and nutrition are influenced by cultural environment. Cultural environment is responsible to shape the way every person develops. It also influence any individual's ideologies and personality.
Which of the following does not characterize the business environment?
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Uncertainty
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Employees
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Relativity
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Complexity
Explanation
Business environment refers to the external forces such as individuals, enterprises, situation, and other such forces that affect the performance of the organization. Employees are integral to an organization and does not characterize its environment.
Products of different countries are available in the markets of India, because of the process of _______.
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Globalization
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Industrialization
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Privatization
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Urbanization
Explanation
Globalization is this process of rapid integration or interconnection between countries. Due to globalization more and more goods and services, investments and technology are moving between countries.
Shweta Ltd. has retained earnings of Rs. 72 lakh and equity capital of Rs. 38 lakh. If the equity investors expect a rate of return of $$17\%$$ and the cost of issuing fresh equity is $$6\%$$, the cost of external equity is ___________.
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$$16.4\%$$
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$$17.4\%$$
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$$17.7\%$$
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$$18.1\%$$
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$$19.1\%$$
Explanation
Cost of external equity
K'e = K$$_e$$/1-f
Where K'e = Constant of external equity.
K$$_e$$ = Required rate of return
f = cost of issue
K'e = 0.17/1-0.06 = $$18.10\%$$.
Which of the following is an example of social environment?
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Money supply in the economy
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Consumer protection Act
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The Constitution of the country
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Composition of family
Explanation
Composition of family is an example of social environment. Social environment consists of the customs and traditions of the society in which business is existing. It includes the standard of living, taste, preference and education level of people living in the society where business exists.
Globalisation means _______.
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national Integration
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cultural Integration
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integration of the economy of a country with the world.
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self-reliance
The term Globalization means __________
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integration of the economy of a country with the world
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easing trade policies
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reduction in Corporate and non-corporate taxes
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all the three
The key word that can be used to describe the basic environment problem that all societies face is ________.
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selfishness
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greed
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inequality
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scarcity
Explanation
In today's scenario, environment protection has become a necessity. It is because the resources are getting exploited on a large scale. The resources are getting scarce and scarce day-by-day. Hence, the key word that can be used to describe the basic environmental problem that all societies face is scarcity.
General forces that affect business environment do not include _________.
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investor
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social conditions
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customers
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suppliers
Explanation
The general forces that affect the business environment are the internal and external factors that are the social conditions in which the business operates, the customers that the business targets and the suppliers that supply the resources for the business to function.
Out of the following, the main sets of forces mostly affecting organisations are ________.
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external stakeholders, management and staff
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existing and potential competitors, suppliers, customers and substitute products or service
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general environmental factors, competitive forces, factors internal to the organization and the interests of stakeholders
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government, competitors and consumers
Explanation
The main sets of forces that affects an organizations are general environmental factors, competitive forces factor internal to the organization and interests of stakeholders. They influence the organisation more than any other factors.
When we analyze the processes of change in the business environment we are conceptualizing it as _______.
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complex
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static
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dynamic
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diverse
If there is a transfer of assets from the public sector to the private sector it is referred as __________.
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privatization
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deregulation
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nationalization
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individualism
Globalisation leads to _________.
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greater employment opportunities
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growth in trade
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economic welfare
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all the three
Internal factors of business environment include __________.
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vision of the organization
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mission of the organization
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vision and mission of the organization
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vision and mission of the organization and other internal mechanism of the organization
Explanation
The internal environment consists of all the things that makes the business function within the organization. Some of the internal factors of business environment are vision and mission, employees, technology etc.
Appropriate technology ________.
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is technology that seeks to replace energy intensive and polluting technologies
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is technology that is best suited to the local internal and external environment in which a business operates
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will occur when "high-tech" solutions replace "low-tech" ones
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is when one business copies the technology that has been developed by another
Increase in the number of working women and the rise in no family households are examples of _______.
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The geographic shifts in population
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The changing family
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The changing age structure of the population
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A better-educated and more white-collar population
Explanation
The changing social environment has led to increasing in the number of working women and the rise in a number of the family households of changes in the family.
Hence, option (B) is the correct answer.
WTO helped in _______.
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privatization
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reducing the barriers to trade
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helped in providing political stability for companies who are doing international business
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all of the above
Explanation
WTO is an intergovernmental organization that regulates international trade. It helps in the removal of trade barriers between member nations. Hence, WTO helped in cross burden trade.
Liberalization does not include ________.
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reduction in taxes
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simplifying exports
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reducing administrative burden on state
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abolishing industrial licensing requirement for most of the industries
Explanation
Liberalization means the removal or loosening of restrictions on an economic or political system. It includes:
Reduction in taxes.
Simplifying exports.
Abolishing industrial licensing requirement for most of the business.
First mover advantage refers to ______.
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early identification of business opportunities
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early identification of uncertainty
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early identification of business rivals
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early identification of uncertainty in business
Business environment is multifaceted as _______.
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it is an opportunity for some but a threat for others
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it has multiple work to do
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there are $$40$$ many different businesses.
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none of the above
Explanation
Multifaceted means having many facets or aspects. Business environment which is adopted efficiently by a person brings him as opportunity and on the other hand if it is not adopted well it becomes threat too. Hence, it is an opportunity for some but a threat for others.
The exercising of political authority at a higher level is often referred as _____.
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economic policies
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economic conditions
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technology
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globalization
Explanation
The political authorities on a higher level exercise the economic policies as they are much aware about the business environment and how the economic policies play role in the business environment.
Business environment is dynamic in nature means ________.
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early identification of opportunities
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changes are always taking place in the business environment
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identification of threats
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giving directions for growth
Explanation
The word dynamic means continuous change that takes place in the business. Hence, business environment is dynamic in nature means changes are always taking place in the business environment.
Select out the one that is not a part of the macro-environment _________.
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demographic forces
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competition forces
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political forces
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natural forces
Explanation
Macro environment is the environment which is external to the business. It deals with the PESTLE effect. These are Political, Economical, Social, Technological, Legal and Environmental. Hence, competitive forces are not a part of macro environment.
Which of the following is a part of liberalization process?
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Making industrial licensing requirement mandatory in most of the industry
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Regulating the scale of business activities
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Fixing of prices of goods and services
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Simplifying the procedures for imports and exports
Explanation
Liberalization can be termed as removal of controls. It is actually elimination of unnecessary controls and restrictions on the business organization. Features of Liberalization are as follows:
- Abolishing industrial licensing
- Reduction of tax rates
- Freedom in fixing of price of goods and services
-Simplifying the procedure of export and import
- Simple policies to enhance the investment from foreign companies
- Development of stiff competition
- Low inflation rate
Research has shown that the most important demographic feature of India regarding, oversell attraction?
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Easy availability of skilled labour
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Easy availability of working population
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Easy availability of mobile people
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Easy availability of intermediary people
Explanation
The easy availability of skilled labour has been the most important demographic feature of India regarding oversell attraction. Many foreign companies have set up their offices in India for the availability of skilled labour.
Hence, option (A) is the correct answer.
Macro factors of business environment are generally _______.
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As controllable as micro factors
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Less controllable than micro factors
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More controllable than micro factors
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None of the above
Explanation
The macro-environment includes those things that may impact businesses but which are outside of their control. It is the larger, external environment within which businesses operate from industry or economic standpoint. It is also known as a General or Remote environment. Macro factors include inflation, government budget, etc.
Hence, option (B) is the correct answer.
Which of the following is not an example of social environment?
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Composition of family
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Literacy rate
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Money supply in the economy
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Technology
Explanation
The social environment includes composition of family, number of households, literacy rate of a certain population, money supply in the economy and per capita income of a family.
What does the acronym STEEP mean?
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Sociological, Technological, Economical, Environmental and Political
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Suppliers, Technology conditions, Ecology and physical environment, Political and legal
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Employees and Political legal
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Shareholders
Explanation
STEEP is an acronym that means
STEEP is an acronym for Social, Technological, Economic, Environmental, and Political.
Marketers and analysts use a STEEP analysis to identify outside factors that can significantly impact an organization. Often, business decisions are made too quickly.
The STEEP analysis looks at external factors that influence trends, allowing you to analyze the past and predict the future.
Hence, option (A) is the correct answer.
A society's basic values, lifestyles, culture, preferences are all parts of its _____ environment.
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cultural-economic
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physical environment
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natural
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socio-cultural
Explanation
A society's basic values, lifestyles, culture, preferences are all parts of its socio-cultural environment.
When a state owned enterprise is given in private hands, it is known as _____.
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Liberalisation
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Globalisation
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Privatisation
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Transformation
Explanation
The transfer of ownership, property or business from the Government to the private sector is termed as privatization. The government ceases to be the owner of the entity. Privatisation is considered to bring more efficiency and objectivity to the company.
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