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CBSE Questions for Class 12 Commerce Business Studies Business Environment Quiz 9 - MCQExams.com
CBSE
Class 12 Commerce Business Studies
Business Environment
Quiz 9
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 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 analyse threats and grab the opportunities at the earliest.
Which of the following technique can be used in environment scanning?
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SWOT Analysis
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PEST/PESTEL Analysis
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Industry Analysis
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All of 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.
Following technique can be used in environment scanning:
A) SWOT Analysis
B) PEST/PESTEL Analysis
C) Industry Analysis.
Environmental scanning begins with gathering information about the __________.
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internal environments
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external environments
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internal and external environments
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none of the above
Explanation
Environmental scanning begins with gathering information about the internal and external environments. It helps to improve the condition of the business organization. It also helps to identify threats and grabs the opportunities at the earliest.
As per Porter's Forces Analysis, _________ evaluates how easy it is for buyers to drive prices down.
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Buyer power
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Supplier power
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Threat of new entry
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Threat of substitution
Explanation
The Porter's five forces tool is a simple but powerful tool to evaluate the power of business.
Porter's Forces Analysis assumes that there are important forces that determine competitive power in a business situation. These are:
a) Supplier power,
b) Buyer power,
c) Competitive rivalry,
d) Threat of substitution,
e) Threat of new entry
As per Porter's Forces Analysis, supplier power assesses how easily suppliers may drive up prices.
As per Porter's Forces Analysis, buyer power evaluates how easy it is for buyers to drive prices down.
As per Porter's Forces Analysis,_______ assesses how easily suppliers may drive up prices.
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Buyer power
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Supplier power
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Threat of new entry
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Threat of substitution
Explanation
As per Porter's Forces Analysis, supplier power assesses how easily suppliers may drive up prices.
The Porter's five forces tool is a simple but powerful tool to evaluate the power of business.
Porter's Forces Analysis assumes that there are important forces that determine competitive power in a business situation. These are:
a) Supplier power,
b) Buyer power,
c) Competitive rivalry,
d) Threat of substitution,
e) Threat of new entry
The Porter's _____ is a simple but powerful tool to evaluate the power of business.
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four forces tool
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five forces tool
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six forces tool
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seven forces tool
Explanation
The Porter's five forces tool is a simple but powerful tool to evaluate the power of business.
Porter's Forces Analysis assumes that there are important forces that determine competitive power in a business situation. These are:
a) Supplier power,
b) Buyer power,
c) Competitive rivalry,
d) Threat of substitution,
e) Threat of new entry
As per Porter's Forces Analysis, supplier power assesses how easily suppliers may drive up prices.
As per Porter's Forces Analysis, buyer power evaluates how easy it is for buyers to drive prices down.
Porter's Forces Analysis assumes that there are important forces that determine competitive power in a business situation. These are:
I. Supplier power, Threat of new entry
II. Supplier power, Buyer power, Competitive rivalry
III. Supplier power, Competitive rivalry, Threat of new entry
IV. Supplier power, Buyer power, Competitive rivalry, Threat of substitution, Threat of new entry
Select the correct answer from the options given below-
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IV
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III
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II
0%
I
Explanation
The Porter's five forces tool is a simple but powerful tool to evaluate the power of business.
Porter's Forces Analysis assumes that there are important forces that determine competitive power in a business situation. These are:
a) Supplier power,
b) Buyer power,
c) Competitive rivalry,
d) Threat of substitution,
e) Threat of new entry
As per Porter's Forces Analysis, supplier power assesses how easily suppliers may drive up prices.
As per Porter's Forces Analysis, buyer power evaluates how easy it is for buyers to drive prices down.
In a social entrepreneurship organization uses methods in an innovative way to address _________.
X.Social problem
Y. Environmental problem
Select the correct answer from the option given below :-
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Y only
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Neither X nor Y
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X only
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Both X and Y
Explanation
Any organization that uses business methods to address a social or environmental problem in an innovative way is called social entrepreneurship. In a social entrepreneurship organization uses methods in an innovative way to address two types of problems:
a. Social problem- which is related to social life of human beings.
b. Environmental problem- which includes environmental concerns.
The relaxation of government restrictions in areas of social of economic policy is known as _______.
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Privatization
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Globalization
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Liberalization
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None of the above
Explanation
The relaxation of government restrictions in areas of social or economic policy is known as liberalization. It refers to the process of eliminating unnecessary controls and restrictions on the smooth functioning of a business enterprise.
Hence, option (C) is the correct answer.
______________ is a area of interest in macro environment.
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Socio-Cultural and Demographics
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Economy
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Ecology and Physical Environment
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All of the above
Explanation
Macro environment is also known as general environment and remote environment. Area of interest in macro environment are:
a) Socio-Cultural and Demographics
b) Economy
c) Ecology and Physical Environment
Which of the following are specific forces of business environment?
(I) Investors
(II) Social conditions
(III) Competitors
(IV) Technology
(V) Suppliers
(VI) Political conditions
Select the correct answer from the options given below -
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(I), (II), (III), (IV) & (V) only
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(II), (IV) & (VI) only
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(I), (III) & (V) only
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(II), (III) & (VI) only
Explanation
The business environment includes both specific and general forces. Specific forces affect business enterprises directly and immediately in their day to day working. These include suppliers, investors, Competitors.
Hence, option (C) is the correct answer.
___________ affects the competitiveness of a firm.
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Technology
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Management
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Sub-standard goods
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Advertisements
Explanation
Technology affects the competitiveness of a firm. It affects greatly since improved technology helps to yield greater profit and reduce the cost.
Business environment is the sum total of all things ___________ to business firms and, as such, is ___________ in nature.
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External; aggregative
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Internal; aggregative
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External; subjective
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Internal; optional
Explanation
The business environment is the sum total of all things external to business firms and, as such, is aggregative in nature. Any business works within the framework provided by the various elements of society, which is known as the business environment.
Hence, option (A) is the correct answer.
Which of the following tool considers external factors and helps to evaluate their impact on internal impact on internal business?
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SWOT
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PESTLE
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PORTERS five forces model
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Environmental scanning
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.
Ecology and Physical Environment play an important role in ______.
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Production and manufacturing
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Marketing
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Quality of goods
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Management
Explanation
Ecology and Physical Environment play an important role in production and manufacturing. Production and manufacturing- these two functions of the organization gets greatly affected. While taking decisions regarding the above mentioned two functions, factors like ecology and physical environment are to be taken into considerations.
____________ is an external factor of business.
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Management
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Changing laws by Government
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Changing company policies
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Worker qualification
Explanation
The environment in which an organisation exists can be described as the external environment apart from the strengths and weaknesses which are existing in the internal environment. Changing laws of government is an example of external factors of business.
Industrial policy is a _______.
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Trade policy
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Economic policy
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Import policy
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Business policy
Explanation
Industrial policy is an economic policy. Industrial policies refer to those policies which are taken to ensure smooth functioning and operations of the industrial activities. These policies help to generate more profit and hence it is an economic concern.
Hence, option (B) is the correct answer.
Liberalization 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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Freedom in fixing prices of goods and services
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All of the above
Explanation
The relaxation of government restrictions in areas of social of economic policy is known as liberalization. It refers to the process of eliminating unnecessary controls and restrictions on the smooth functioning of business enterprise.
Liberalization includes:
a) abolishing industrial licensing requirement in most of the industries
b) freedom in deciding the scale of business activities
c) freedom in fixing prices of goods and services
Financial factors consist of ___________.
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Financial policies
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Financial positions
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Capital structure
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All of the above
Explanation
Financial factors consist of financial policies, financial positions and capital structure. It is an important internal factor which has a substantial impact on business functioning and performance. Financial facilities are required to start and operate the organization.
Management Structure and Nature is a part of _______.
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External environment
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Internal environment
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Both (A) & (B)
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None of the above
Explanation
Management Structure and Nature is a part of external environment. This structure of the organization influences the business decisions. These needs to be appropriately managed for smooth functioning and operations.
Demand for packaged food is a ________.
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political factor
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technological factor
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social factor
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economic factor
Explanation
Demand for packaged food is a social factor. It is one of the most important factors among other macro environmental factors. It leaves an impact directly or indirectly on the business environment.
Privatization can also be called _________.
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Nationalization
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Denationalization
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Growth of cottage industry
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Foreign investment
Explanation
Privatization can also be called denationalization.
Privatization refers to the process of transferring of ownership and management of an enterprise from public sector to the private sector. Another dimension of privatization is opening up of an industry that has been reserved for the public sector to the private sector.
Companies often set up overseas plants to reduce _______.
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High transportation costs
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Time of delivery of goods
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Management hassless
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None of the above
Explanation
Companies often set up overseas plants to reduce high transportation costs since it is quite reasonable to deliver goods at lower price when goods are to be transported in bulk.
The objective of privatization is _________.
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to increase the size of government investment
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getting investment from only select strata of the society
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to generate revenues for the state
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all of the above
Explanation
Privatization refers to the process of transferring of ownership and management of an enterprise from public sector to the private sector. Another dimension of privatization is opening up of an industry that has been reserved for the public sector to the private sector.
The objective of privatization is to generate revenues for the state.
___________ enables the government to concentrate more on the essential state.
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Privatization
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Political policies
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Increase in tax returns
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Fiscal policies
Explanation
Privatization enables the government to concentrate more on the essential state.
Privatization refers to the process of transferring of ownership and management of an enterprise from public sector to the private sector. Another dimension of privatization is opening up of an industry that has been reserved for the public sector to the private sector.
The objective of privatization is to generate revenues for the state.
"Foreign Collaboration" is an outcome of ________.
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Globalization
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Increase in skilled labour
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Reduction in export duty
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Privatization
Explanation
"Foreign Collaboration" is an outcome of privatization. It refers to the process of transferring of ownership and management of an enterprise from public sector to the private sector.
The important routes of privatization are _______.
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Privatization of management, using leases and management contracts
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Privatization of ownership, through the sales of equality
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Franchising-authorizing the delivery of certain services in designated geographical areas
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All of the above
Explanation
Privatization refers to the process of transferring of ownership and management of an enterprise from public sector to the private sector. Another dimension of privatization is opening up of an industry that has been reserved for the public sector to the private sector.
The important routes of privatization are:
a) privatization of management, using leases and management contracts
b) privatization of ownership, through the sales of equality
c) franchising-authorizing the delivery of certain services in designated geographical areas
In which type of environmental scanning, ad hoc decisions are made?
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Passive Scanning
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Active Scanning
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Directed Scanning
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None of the above
Explanation
Passive scanning helps to take the ad hoc decisions. Ad hoc decisions refer to those decisions which are taken in case of emergencies. Passive scanning is also known as ongoing scanning which takens place unconsciously in the organization.
Environment scanning involves monitoring of _______.
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Monitoring Govt. regulations
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Monitoring Competitors
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Monitoring supplier & client
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Monitoring internal & external environment
Explanation
Environment scanning involves monitoring of the internal and external environment.
The 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 means environment scanning.
Hence option (D) is the correct answer.
What is a financial and/or quantitative statement called which is prepared and approved prior to a defined period of time of the policy to be pursued during that period for the purpose of attaining a given objective?
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Statement of purpose
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Mission statement
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Operational allowance
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Budget
Explanation
Budget is a financial and/or quantitative statement called which is prepared and approved prior to a defined period of time of the policy to be pursued during that period for the purpose of attaining a given objective. It is a statement which states the record of receipts and payments which are to be encurred or paid for the future happenings.
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Practice Class 12 Commerce Business Studies Quiz Questions and Answers
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