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CBSE Questions for Class 12 Commerce Business Studies Business Environment Quiz 7 - MCQExams.com
CBSE
Class 12 Commerce Business Studies
Business Environment
Quiz 7
Which of the following is not an economic policy?
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Industrial policy
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Fiscal Policy
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Exim Policy
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Technological Policy
Explanation
The economic environment constitutes economic conditions, economic policies and the economic system that are important external factors of business. Economic policies are fiscal policies, Industrial policies, taxation policy, exchange rates, EXIM policy but not technological policy.
Which of the following factor is not included in micro-environment?
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Customers
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Employees
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Suppliers
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Technology
Explanation
Micro-environment means the internal environment of the organisation. It contains the elements such as customers, employees, suppliers , shareholders.etc.
Business environment consists of which element?
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Internal
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External
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Both (a) and (b)
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None of these
Explanation
The term 'business environment' means the sum total of all individuals, institutions, and other forces that are outside the control of a business enterprise but that may affect its performance.
A business environment consists of the internal environment within a company or an organization and the external environment, which are the external environmental factors affecting the business.
Hence, option (C) is the correct answer.
State whether the statement is true or false.
Macro-environment is concerned with major issues and upcoming changes in the environment.
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True
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False
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Partly True
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Partly False
Explanation
Macro-environment is concerned with major issues and upcoming changes in the environment as the macro-environment affects the functioning of the business much more than the micro-environment.
Hence, the following statement is true.
State whether the given statement is true or false-
The economic environment of business in India is changing at a fast rate mainly due to economic policies.
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True
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False
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Partly True
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Partly False
Explanation
The economic environment of business in India is changing at a fast rate mainly due to economic policies- this is a false statement. The economic environment of a business consists of various factors such as gross domestic product, income level, profit-earning rate, productivity, and employment rate, the monetary and fiscal policy of the government, etc. The economic environment factors have an immediate and direct impact on business organizations.
Hence, the following above statement is False.
Liberalization in India did not result in _______.
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a high growth rate
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a healthy and flourishing stock market
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easy availability of goods at competitive prices
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low foreign exchange reserves
Which one of the following is not a feature of business environment?
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Dynamic nature
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Image building
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Uncertainty
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Totality of external forces
Explanation
The business environment is the environment in which a business functions and the factors of the environment that affect the operations of a business. Image building is not a part of the business environment as it is a process to build the image and not an environmental factor.
Which of the following affects an individual enterprise?
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General forces
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Specific forces
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Both (a) and (b)
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None of these
Explanation
Specific forces affects an individual enterprise. Specific forces affect a particular business. Specific forces of business environment includes investors, customers, competitors and suppliers.
Who started the process of Liberalisation?
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Yashwant Singh
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Jashwant Singh
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Manmohan Singh
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Mahatma Gandhi
Explanation
Liberalization refers to the removal of the restrictions typically an economic or political system. Liberalization was started by Manmohan Singh in the year 1991.
The reform of liberalization so put forth, removed the Licence Raj, reduced tariffs and interest rates and ceased various public monopolies, allowing foreign direct investment to flow in, in many sectors of Indian economy.
Recruitment of public relations consultants are a part of _______.
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operating environment
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general environment
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macro-environment
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competitive environment
The importance of environmental scanning was first recognized by life insurance firms in the late _______.
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1670s
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1770s
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1870s
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1970s
Explanation
Environment Scanning is careful monitoring of an organization's internal and external environments for detecting early signs of opportunities and threats that may influence its current and future plans.
The importance of environmental scanning was recognized by life insurance firms in the late 1970s.
The term "threat of entrants" as per Porters approach to industry analysis is ___________.
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the possibility of an existing competitor capturing the entire market
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the possibility of an existing competitor withdrawing from the market
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the framework is a means of identifying the forces, which affect the level of competition in an industry or sector
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none of the above
Explanation
The term " threat of entrants" as per Porters approach to industry analysis is the framework is a means of identifying the forces, which affect the level of competition in an industry or sector. Porter classifies 5 competitive force in the business environment.
Porter's five forces can be defined as a simple but powerful tool which help to understand the competitiveness. It also helps to formulate business strategy.
The process of privatisation is where _______.
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services that were previously supplied internally are outsourced
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a company is transferred from public limited by closure of an enterprise
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a state-owned or nationalised corporation is sold to the private sector through sale of equity
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all of the above
Explanation
The process of privatization is where:
a) services that were previously supplied internally are outsourced
b) a company is transferred from public limited by closure of an enterprise
c) a state-owned or nationalized corporation is sold to the private sector through the sale of equity
Privatization can be defined as a process of transferring ownership or management of an enterprise from the public sector to the private sector. It helps to increase the size and dynamism of the private sector. It also helps to reduce administrative burdens on the public sector.
Hence, option D is correct.
Macro-environment is concerned with _____________.
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socio-cultural and demographers
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political and legal
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technological
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all of the above
Explanation
Macro-environment refers to the general environment that can affect all the working conditions of the business. The main elements involved in this environment are PESTLE i.e. political, economic, social, technological, legal and environmental. Hence, it is concerned with all of the mentioned elements.
The careful monitoring of an organisation's internal and external environments for detecting early signs of opportunities and threats that my influence its current and future plans means _________.
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Environment Scanning
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Market Analysis
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SWOT Analysis
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PESTLE Analysus
Explanation
Careful monitoring of an organization's internal and external environments for detecting early signs of opportunities and threats may influence its current and future plans.
'Age distribution' is a term related to _________.
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culture factors
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rsources factors
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structure factors
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social factors
Explanation
Social factors of PESTLE Analysis
-culture of the society that an organization operates within
-dempgraphic
- age distribution
- population growth rates
- level of education
- distribution of wealth
- social classes, living conditions and lifestyle
Analyzing processes of change in the business environment involves conceptualizing it as __________.
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complex
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static
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dynamic
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diverse
Explanation
Dynamic conceptualizing is the analysis of the dynamic nature of the business environment and the trend in the environment to which a business can act on and gain business profits.
In a business environment, which one of the following is not a political factor?
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Tax policy
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Employment laws
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Environment regulations
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Exchange rate
Explanation
Political Factors-
(a) political factors refer to the stability of the political environment and the attitudes of political parties or movements.
(b) government influence on tax policies, or government involvement in trading agreements
(c) freedom of press
(d) environmental and consumer protection legislation
(e) trade restrictions
(f) employment laws
The exchange rate is not a political factor because it is an economic factor.
Push factors for locating a business includes _________.
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availability of skilled labour
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rising competition in an area
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government support
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technological advancement
Explanation
Push factors include rising competition in an area, rising costs, poor communication systems, falling demand. There are a number of push and pull factors drawing firms toward certain locations and away from others. Factors drawing away business from a certain location is called as push factor. Hence, push factors for locating a business include rising competition in an area.
Opening up of an industry that has been reserved for the public sector to the private sector is an example of ______.
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Modernisation
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Liberalisation
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Globalisation
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Privatisation
Explanation
Privatization can refer to the act of transferring ownership of specified property or business operations from a government organization to a privately owned
entity, as well as the transition of ownership from a publicly traded, or owned, company to a privately owned company.
Hence, option (D) is the correct answer.
In the acronym PESTLE 'L' stands for _________.
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legal
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logical
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losses
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language
Explanation
PESTEL stands for
P- Political
E- Economic
S- Social
T- Technological
E- Environmental
L- Legal
Research which is pro-actively carried out for a specific purpose is called ________.
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primary research
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secondary research
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active scanning
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creative destructions
Explanation
Research that is pro-actively carried out for a specific purpose is called primary research. It helps to acquire data to serve a specific purpose. Primary research generally obtains information from direct sources,
Hence, option A is correct.
Environmental scanning includes _______.
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internal
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external
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both (a) and (b)
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none of the above
Explanation
Environmental scanning includes both internal and external. The complete awareness and understanding of the business environment are known as environmental scanning. Environment scanning is conducted to find out the influence of different factors and persons on business transactions. It is done to identify opportunities and threats affecting the business organization.
Hence, option C is correct.
What is most appropriate externally imposed strategy?
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Imposition of strategy by individual shareholder.
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Imposition of strategy by managers
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Reacting to threats and opportunities in the environment
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The imposition of strategy by Government in companies where it has extensive regulation.
Explanation
The imposition of strategy by the Government in companies where it has extensive regulation is the most appropriate externally imposed strategy since externally imposed strategy can be defined as a strategy which is deliberately imposed on the organization from the elements of the external business environment upon which the organization has no or little control.
Hence, option (D) is the correct answer.
PESTLE stands for __________________.
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Political, Environmental, Sociological, Technological, Long, and Environmental
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Political, Economic, Sociological, Theoretical, Legal, and Environmental
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Political, Economic, Sociological, Technological, Legal, and Environmental
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Political, European, Sociological, Technological, Legal, and Environmental
Explanation
PESTLE analysis is a useful tool for understanding the big picture of the environment in which an entrepreneur is planning to operate.
PESTLE stands for Political, Economic, Sociological, Technological, Legal, and Environmental.
Cartel is :
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Fraudulent behaviour of company
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Fraudulent behaviours of bidden
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Fraudulent collusion between bidders
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All of the above
Explanation
A cartel is an organization created from a formal agreement between a group of producers of a good or service to regulate supply in an effort to regulate or manipulate prices. In other words, a cartel is a collection of otherwise independent businesses or countries that act together as if they were a single producer and thus are able to fix prices for the goods they produce and the services they render without competition.
A cartel is a group of apparently independent producers whose goal is to increase their collective profits by means of price fixing, limiting supply, or other restrictive practices. Cartels typically control selling prices, but some are organized to control the prices of purchased inputs. Antitrust laws attempt to deter or forbid cartels. A single entity that holds a monopoly by this definition cannot be a cartel, though it may be guilty of abusing said monopoly in other ways. Cartels usually occur in oligopolies, where there are a small number of sellers and usually involve homogeneous products.
Which of the following is a way that employers perceive or use resumes?
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Employers use resumes to disqualify unsuitable applicants from the job.
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Employers assume that a resume is too short to be indicative of what the applicants work is like.
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Employers read every word in resumes to be through.
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Employers place very little emphasis on resumes when evaluating candidates for a job.
What is the watershed year in the history of e-mail marketing
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1976
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1974
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1972
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1970
Explanation
1976 was a watershed year in the history of e-mail marketing. By 1976 email had really taken off, and commercial packages began to appear. Within a couple of years, 75% of all ARPANET traffic was email.
External environmental scanning includes scanning of _______.
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technical strength of organisation
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legal Environment
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manpower
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resources
Explanation
External environmental scanning includes scanning of legal environment since legal environment does not depend on the internal activities of the business organization. Legal environment deals with the laws which the government make for the business organizations functioning in an economy.
The Global Competitiveness Report (GCR) $$2016-2017$$ was released in September $$2016$$. Consider the following statements in context to the project
I.The report assessed the competitiveness landscape of $$140$$ economies
II. It was released by World Bank
III. Switzwerland topped the list
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Only III
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Only I and II
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Only I and III
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Only I, II and III
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