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CBSE Questions for Class 12 Commerce Business Studies Business Environment Quiz 8 - MCQExams.com
CBSE
Class 12 Commerce Business Studies
Business Environment
Quiz 8
Scanning at unconscious level is ________.
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active
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passive
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directed
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relative
Explanation
Scanning at the unconscious level is passive. Passive scanning can be defined as a kind of spontaneous scanning at an unconscious level. In this type of scanning, no such effort is made to get the particular information.
Hence, option D is correct.
In which of the following ways proper understanding of various aspects of business environment helps the business?
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It enables the business to identify the areas for growth and expansion of their activities.
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It helps the firms to analyze the competitor's strategies and formulate their own strategies accordingly in order to cope with the rapidly increasing competition.
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Environmental understanding helps the business organizations in improving their image by showing their sensitivity to the environment within which they are working.
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All of above
Explanation
Business environment can be defined as the forces and institutions with which the businessman has to deal with to achieve its objectives. In general words, business environment is the surroundings in which the business exists. Following ways can help in proper understanding of various aspects of business environment which help in business:
a) It enables the business to identify the areas for growth and expansion of their activities.
b) It helps the firms to analyze the competitor's strategies and formulate their own strategies accordingly in order to cope with the rapidly increasing competition.
c) Environmental understanding helps the business organizations in improving their image by showing their sensitivity to the environment within which they are working.
Which of the following statement is TRUE?
(1)Environment refers to all forces, which have a bearing on the functioning of business.
(2)Success of every business depends on adapting itself to the environment within which it functions.
Select the correct answer from the options given below.
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(1) only
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(2) only
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Both (1) and (2)
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Neither (1) nor (2)
Explanation
The framework within which the organizations exist is known as business environment All the elements of the business environment affects the organization directly or indirectly. Following statements are true:
(1)Environment refers to all forces, which have a bearing on the functioning of business.
(2)Success of every business depends on adapting itself to the environment within which it functions.
Which of the following contains the owner of the business, the shareholders, the managing director,the non-managers, employees, the customers,the infrastructure of the business organization, and the culture of the organization?
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Internal environment
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External environment
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Outside environment
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All of above
Explanation
The internal environment contains the owner of the business, the shareholders, the managing director, the non-managers, employees, the customers, the infrastructure of the business organization, and the culture of the organization. The internal environment of an organization contains those elements which get affected by the organization.
Hence, option (A) is the correct answer.
Environmental factors may be
A. Internal
B. External
Select the correct answer from the options given below.
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Neither A nor B
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B only
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Both A and B
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A only
Explanation
Business environment can be defined as the forces and institutions with which the businessman has to deal with to achieve its objectives. In general words, business environment is the surroundings in which the business exists. Environmental factors may be both:
A. Internal
B. External.
Which e-commerce company launched its global startup program "Launch pad" in India?
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Flipkart
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Amazon
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Alibaba
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eBay
The internal factors that contribute to the business environment is/are:
1.Research and Development
2.Company Image
3.Brand Equity
4.Value System
Select the correct answer from the options given below.
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1, 2 & 3 only
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2, 3 & 4 only
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2 & 4 only
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4, 3 ,2 , 1
Explanation
The internal factors that contribute to the business environment are:
1.Research and Development
2.Company Image
3.Brand Equity
4.Value System
Internal factors affect the business organization directly. All the decisions regarding the internal factors are taken by the organization itself.
Which of the following is nature of the business environment?
(i) Multifaceted
(ii) Uncertain
(iii) Dynamic
Select the correct answer from the options given below.
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(i) & (ii)
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(ii) & (iii)
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(i) & (iii)
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(i), (ii) & (iii)
Explanation
Business environment can be defined as the forces and institutions with which the businessman has to deal with to achieve its objectives. In general words, business environment is the surroundings in which the business exists. Nature of the business environment are:
(i) Multifaceted
(ii) Uncertain
(iii) Dynamic.
Business environment is
(I) Dynamic in nature
(II) Largely uncertain
Select the correct answer from the options given below.
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Both (I) and (II)
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(I) only
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Neither (I) nor (II)
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(II) only
Explanation
Business environment can be defined as the forces and institutions with which the businessman has to deal with to achieve its objectives. In general words, business environment is the surroundings in which the business exists. Business environment is:
(I) Dynamic in nature
(II) Largely uncertain.
Liberalization does not includes______________.
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Abolishing industrial licensing requirement in most of the industries
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Freedom in deciding the scale of business activities
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Restriction in fixing prices of goods and services
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Simplifying the procedure for imports and exports
Explanation
Liberalization does not includes restrictions in fixing prices of goods and services.
Liberalization includes simplified policies to attract foreign capital and technology to India. Liberalization refers to the process of eliminating unnecessary controls and restrictions on the smooth functioning of business enterprise.
Match the following:
List I
List II
(P) Process of eliminating unnecessary controls for smooth functioning of business enterprises
Globalization
(Q) Transfer of ownership of an enterprise from the public sector to the private sector
Liberalization
(R) Cross border transactions in goods and services and international capital flows
Privatization
Demonetization
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(P)3 (Q)2 (R)1
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(P)1 (Q)2 (R)4
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(P)2 (Q)1 (R)3
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(P)2 (Q)3 (R)1
Explanation
Liberalization: Abolishing industrial licencing requirement. It is a process of eliminating unnecessary controls, for smooth functioning of business enterprises.
Privatization refers to the transfer of assets or service functions from public to private ownership or control. It means the withdrawal of the state from an industry or sector - partially or fully.
Globalization refers to integration of world into one huge market by removing the trade barriers among countries. It is a cross border transactions in goods and services and international capital flows.
The _____of an organization comprises of all entities that exists outside its boundaries, but have significant influence over its growth and survival.
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Internal environment
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Inner environment
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Economic environment
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External environment
Explanation
The external environment of an organization comprises of all the factors that exist outside an organisation which have significant influence on its growth and survival.
An organization has little or no control over its external environment and hence it needs to constantly monitor and adapt to these external changes, a proactive or reactive response leads to significantly change in outcome.
Which of the following can be classified as "internal forces"?
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Economic forces
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Changes in employee attitudes, feelings and aspirations
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Political foces
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All of the above
Explanation
Changes in employee attitudes, feelings and aspirations can be classified as "internal forces" since internal forces arise within the organization. Employees form a part of the internal forces of the business environment.
Organization is an open system and is influenced by change in its ________.
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Internal environment
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External environment
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Outside environment only
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Internal as well as external environment
Explanation
The organization is an open system and is influenced by the change in its internal as well as external environment. A business has absolute control in the internal environment, whereas, it has no control over the external environment. It is therefore required by businesses to modify their internal environment on the basis of pressures from external.
Hence, option (D) is the correct answer.
Which of the following is NOT included in liberalization?
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Reduction in tax matters
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Abolition of licensing
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Simplification of policies
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Imposition of tariff barriers
Explanation
Imposition of tariff barriers is not included in liberalization. Liberalization refers to the process of eliminating unnecessary controls and restrictions on the smooth functioning of business enterprise.
An organization has little or no control over its-
A.Internal environment
B.Inner environment
C.External environment
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A and B
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B and C
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A only
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C only
Explanation
An organization has little or no control over its- external environment. The external environment of the organization deals with the factors which belong outside the organization. The external environment cannot be controlled by the organization but it affects the organizational activities directly or indirectly.
Hence, option (D) is the correct answer.
Which of the following can be classified as "external forces"?
(I) Technological forces
(II) Social forces
(III) Political forces
Select the correct answer from the options given below:
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(I)
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(II)
0%
(III)
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All of the above
Explanation
External forces include all entities that exist outside its boundaries, but have significant influence over its growth and survival. An organization has little or no control over external forces but it needs to be constantly monitored to adapt to this external changed.
The following can be classified as "external forces":-
(I) Technological forces
(II) Social forces
(III) Political forces
Hence, option (D) is the correct answer.
_________ may be defined as a variation in the established way of life to which people are accustomed to in the organization.
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Change
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Resistance
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Decision
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Planning
Explanation
Change may be defined as a variation in the established way of life to which people are accustomed in the organization. The business environment keeps on changing whether in terms of technological improvement, shifts in consumer preferences, or entry of new competition in the market.
Hence, option (A) is the correct answer.
Competitor analysis involves:
(1)Identifying the actual competitors
(2)Assessing competitor's objectives, strategies, strengths & weaknesses, and reaction patterns
(3)Selecting the strategies to deal with competitors
Select the correct answer from the options 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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All of the above
Explanation
Competitor analysis helps an organization to grab the opportunities earlier than the competitors. It also helps to improve the business strategy. Competitor analysis involves:
(1)Identifying the actual competitors
(2)Assessing competitor's objectives, strategies, strengths & weaknesses, and reaction patterns
(3)Selecting the strategies to deal with competitors.
The importance of environmental scanning was recognized by ________ in the late 1970s.
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banking firms
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life insurance firms
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trading firms
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all of the above
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.
Environment scanning applies to -
1.External scanning processes
Motivational scanning processes
Internal scanning processes
Lead scanning processes
Select the correct answer from the options given below -
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None of the given
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Except 4 all other
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Both 1 and 3
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1 only
Explanation
Environment scanning applies to-
a) External scanning process- It includes scanning of the environment which does not affect the business directly.
b) Internal scanning process- It includes scanning of the environment which does affect the business directly.
Hence, option (C) is the correct answer.
Scholars belonging to ______ are of the opinion that if planning, decision-making, organizing, etc., confirm to logical processes then the same can easily and suitable be presented in mathematical symbols.
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Group behaviour approach
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Mathematical
approach
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Interpersonal behaviour
approach
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Empirical
approach
Explanation
Scholars belonging to mathematical approach are of the opinion that if planning, decision-making, organizing, etc., confirm to logical processes then the same can easily and suitable be presented in mathematical symbols. Under mathematical approach, various mathematical methods are used to perform the functions of management. It also helps to simplify decision-making process.
___________ 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.
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Early scanning
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Economic scanning
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Environment scanning
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Customer scanning
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. It helps to improve the business organization's condition in the market. It helps to analyze threats and grab the opportunities at the earliest.
Hence, option (C) is the correct answer.
What is the full form of LDC?
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Less Developed Countries
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Low Development Countries
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Less Development Countries
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Low Division Countries
Explanation
The full form of LDC is Less Developed Countries. These countries possess least Human Development Index. LDC also exhibits lower index in socio-economic factors.
Threat to go on strike is ________ of resistance to change.
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An implicit expression
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An overt expression
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Deferred expression
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All of the above
Explanation
The threat to go on strike is an overt expression of resistance to change. It is considered as an overt expression of resistance to change as it is directly observable. Threat to go to strike is not hidden expression.
Hence, option (B) is the correct answer.
In India, which sector provides more job opportunities than any other sector?
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Agriculture sector
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Public sector undertakings
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Medium level
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Large scale
Explanation
In India, the agricultural sector provides more job opportunities than any other sector. It employs 50% of the workforce of the country. It also accounts for 18% of the total GDP of India.
Hence, option (A) is the correct answer.
Which of the following can be classified as "external forces"?
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Political forces
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Educational and cultural forces
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Technological forces
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All of the above
Explanation
External forces includes all entities that exist outside its boundaries, but have significant influence over its growth and survival. An organization has little or no control over external forces but it needs to be constantly monitored to adapt to this external changed.
The following can be classified as "external forces":
(I) Political forces
(II) Educational and cultural forces
(III) Technological forces
Hence, option (D) is the correct answer.
The advantages of competition rivalry are___________________.
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Identifying the actual competitors
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Assessing competitors' objectives, strategies, strengths & weakness, and reaction patterns
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To root out the companies
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All the above
Explanation
Competition rivalry proved to be beneficial. Competitor analysis is a critical aspect of analyzing the internal business environment. The advantages of competition rivalry are:
a) Identifying the actual competitors
b) Assessing competitors' objectives, strategies, strengths & weakness, and reaction patterns
c) To root out the companies
In the PESTEL framework for environmental analysis what does the letter S stand for?
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Superior
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Surroundings
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Society
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Sociological
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.
External environmental scanning accounts the _________.
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Social environment (general forces)
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Task environment (industry analysis)
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Both (A) and (B)
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Neither (A) nor (B)
Explanation
The external scanning process includes scanning of the environment which does not affect the business directly.
External environmental scanning accounts for both the social environment (general forces) and task environment (industry analysis).
Hence, option (C) is the correct answer.
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