MCQs - Business Environment - Chapter 3 - Business Studies

Q1. Which of the following is not a part of the business environment of business?

(a) Customers

(b) Suppliers

(d) None of the above

Q2. Which of the following is not a component of specific forces of business environment?

(a) Technological conditions

(b) Customers

(d) Investors

Q3. The growing awareness about healthcare has led to an increase in the demand for healthcare

products and services in the country. Identify the feature of business environment being

described in the above case.

(a) Dynamic nature

(b) Uncertainty

(d) Interrelatedness

Q4. Since more number of people have become more beauty and health-conscious, our economy

has witnessed an unprecedented surge in the number of health and beauty spas and wellness

clinics. Related feature of business environment being described in the above lines is —

(a) Totality of external forces

(b) Dynamic nature

(c) Interrelatedness

(d) Relativity

Q5. Twinkle Stars’ is a well-known resort for organising parties, especially for children. However, in

past 6 months its popularity has reduced considerably as a new resort with better ambience

and facilities has opened within its vicinity. Name the related feature of business environment which has inuenced the business of ‘Twinkle Stars’ adversely.

(a) Totality of external forces

(b) Dynamic nature

(d) Uncertainty

Q6. Any kind of external devices, like compact discs (CD’s) for computer, have become obsolete. Google, with its Google Drive service, Apple with its iCloud oering, enables the users store

documents, photos, music and movies on web-based servers. Identify the feature of business

environment being described in the above lines.

(a) Relativity

(b) Dynamic nature

(c) Uncertainty

(d) Interrelatedness

Q7. According to the United Nations Environmental Agency, the world produces around 300 million tons of plastic each year, half of which constitutes single-use items. Ford is recycling

over one billion plastic bottles every year to develop elements of the car’s interior, reducing

the amount of plastic ending up in a landll. The American car maker has revealed that their

Romanian-built EcoSport SUVs’ carpets are made using 470 recycled single-use plastic bottles.

The process for making Ford EcoSport carpets involves shredding bottles and their caps into

tiny akes and then heating them to 260° C. Identify the related dimension of business

environment.

(a) Economic dimension

(b) Social dimension

(c) Technological dimension

(d) Political dimension

Q8. Digi Locker is the country’s rst secured cloud-based platform for the storage, issuance and

verication of documents with the Driving Licence & Vehicle Registration System of the Road

Transport Ministry. The integration of a government department with Digi Locker since its

launch last year is one of the biggest of its kind. It will spare 1 people the trouble of carrying

licences & vehicle papers, which can be accessed on phones using the Digi Locker app. Identify

the related dimension of business environment.

(a) Economic dimension

(b) Technological dimension

(d) Political dimension

Q9. The Uttarakhand government has developed surveillance network using latest satellite

technology. Under this system, the state’s mining department would be in a position to check

illegal mining activities across the state. The state government is also considering the use of

drones in its proposed campaign against illegal mining. Identify the related dimensions of

business environment.

(a) Economic dimension and Legal dimension

(b) Social dimension and Economic dimension

(c) Technological dimension and Political dimension

(d) Political dimension and Economic dimension

Q10. In order to boost and double India’s export of goods and services to over USD 1,000 billion by

2025, it is important to lower eective corporate tax rate, bring down cost of capital and

simplify regulatory and tax framework. Identify the related dimension of business

environment.

(a) Social dimension and Legal dimension

(b) Technological dimension and Political dimension

(d) Economic dimension and Legal dimension

Q11.The Economic Survey, 2019 suggests that the psychological biases can be used in the realm of tax compliance. It is in favour of using religious norms such “dying in debt is a sin” to improve tax compliance. Identify the related dimensions of business environment.

(a) Legal dimension and Social dimension

(b) Social dimension and Economic dimension

(d) Political dimension and Economic dimension

Q12. Electric vehicles with zero tail pipe emission are emerging as a good alternative to ‘ problems like climate change, surging pollution leading to ill health, crude import bill and energy security. Identify the related dimensions of business environment.

(a) Economic dimension, Legal dimension and Social dimension

(b) Social dimension, Political dimension and Economic dimension

(c) Economic dimension, Technological dimension and Social dimension

(d) Social dimension, Political dimension and Legal dimension

Q13. ‘Yo Tummy’ began its business by offering the classic combo of hamburgers and fries. But over time, their customers wanted healthier foods, so ‘Yo Tummy’ responded and began offering healthy alternatives such as salads, fruits, wraps and oatmeal. If ‘Yo Tummy’ hadn’t responded, they may have lost customers that wanted to eat healthier foods. The above case highlights one of the points related to the importance of business environment and its understanding by managers. Identify it.

(a) It helps in coping with rapid changes.

(b) It helps in improving performance.

(d) It enables the firm to identify opportunities and getting the first mover advantage.

Q14. As a result of major government initiatives, more and more people are going ‘green’. In order to keep in line with the trend, ‘Clapaway’ a carpet cleaning company has advertised that they only use natural cleaners that come from renewable resources and that all their service vehicles are hybrid vehicles that use both gas and electricity. Identify one of the points related to the importance of business environment and its understanding by managers which is being highlighted in the above case.

(a) It helps in assisting in planning and policy formulation.

(b) It helps in coping with rapid changes.

(c) It helps in improving performance.

(d) It enables the firm to identify opportunities and getting the first mover advantage.

Q15. According to the World Health Organization, 39% of adults are overweight. Over the last 40 years, the prevalence of obesity has tripled around the world. With over half of consumers drinking at least one sugary drink on a given day, regulations towards the beverage sector are likely to become increasingly onerous. In the U.K., for example, a sugar tax was introduced in 2018 on beverages containing more than 5% sugar. Identify the related dimensions of business environment.

(a) Legal dimension and Social dimension

(b) Social dimension and Technological dimension

(d) Political dimension and Technological dimension

Q16. India’s population is expected to grow under 0.5 per cent during 2031-41 due to decline in fertility rate and increase in life expectancy. These changes in India’s demography will also have implications such as the proportion of elementary school-going children will witness significant declines, lack of hospital beds and increase in retirement age. The related feature of business environment being described in the above lines is

(a) Totality of external forces

(b) Dynamic nature

(c) Interrelatedness

(d) Relativity

Q17. India continues to be a lower-middle-income country along with 46 others, while Sri Lanka has climbed to the upper-middle-income group for the fiscal year (FY) 2020, according to the World Bank’s classification of countries by income levels, released on July 1, 2019.

Identify the related dimensions of business environment.

(a) Social dimension

(b) Technological dimension

(c) Economic dimension

(d) Political dimension

Q18. According to a report by the India Staffing Federation (ISF), India has emerged as the

fifth largest market worldwide in flexi-staffing in 2018 and the country would have 6.1 million flexi-workforce by 2021. It showed that Haryana, Gujarat, Karnataka, Madhya Pradesh and Telangana are the states with high growth potential for flexi- staffing but Andhra Pradesh tops the list of states with favourable business environment. Identify the feature of business environment being discussed above,

(a) Relativity

(b) Dynamic nature

(d) Interrelatedness

Q19. The Union Cabinet has given ‘in-principle’ nod to divest stakes in Air India — a wholly government owned airline. This means the government is willing to shed a substantial portion of its stake and hand over the management of the ailing airline to the private sector. Identify the concept being described in the above lines.

(a) Liberalisation

(b) Privatisation

(d) Demonetisation

Q20. The Government of India launched “Make in India” initiative in September, 2014 to increase foreign direct investment (FDI) in 25 sectors. As of April, 2015, FDI inflow in India increased by 48% since the launch of “Make in India” initiative.

Identify the concept being described in the above lines, with regard to inflow of FDI.

(a) Demonetisation

(b) Privatisation

(c) Liberalisation

(d) Globalisation

Q21. In today’s world, the flow of goods and services is not only cheap and fast, but reliable and secure. You can order anything you wish from any part of the world. Internet has been connecting people without any limitations or boundaries in the way of doing business. Identify the concept being described in the above lines.

(a) Liberalisation

(b) Globalisation

(d) Privatisation

Q22. On 8th November 2016, with the announcement from Government of India, all the ₹500 and ₹1,000 banknotes of the Mahatma Gandhi series have ceased to be a legal tender. The givemment also announced the issuance of new ₹500 and ₹2,000 banknotes in exchange for the demonetised banknotes. Identify the concept being described in the above lines.

(a) Globalisation

(b) Liberalisation

(c) Demonetisation

(d) Privatisation

Q23. Which of the following is a feature of demonetisation?

(a) Tax administration measure

(b) Channelising savings into the formal financial system

(d) All of the above

Q24. A business has to offer wider choice in purchasing enhanced quality of goods and services in order to maintain an edge over its competitors. The implementation of the new economic policy with liberalisation, privatisation and globalisation has posed various challenges for the corporate sector. One of the important challenges is explained in the above lines. Identify it.

(a) Increasing competition

(b) More demanding customers

(d) Market orientation

Q25. Which of the following is not a part of the business environment of business?

(a) Customers

(b) Suppliers

(d) None of the above

Q26. Which of the following is not a component of specific forces of business environment?

(a) Technological conditions

(b) Customers

(d) Investors

Q27. The growing awareness about healthcare has led to an increase in the demand for healthcare products and services in the country. Identify the feature of business environment being described in the above case.

(a) Dynamic nature

(b) Uncertainty

(d) Interrelatedness

Q28. Since more number of people have become more beauty and health conscious, our economy has witnessed an unprecedented surge in the number of health and beauty spas and wellness clinics. Related feature of business environment being described in the above lines is —

(a) Totality of external forces

(b) Dynamic nature

(c) Interrelatedness

(d) Relativity

Q29. ‘Twinkle Stars’ is a well-known resort for organising parties, especially for children. However, in past 6 months its popularity has reduced considerably as a new resort with better ambience and facilities has opened within its vicinity. Name the related feature of business environment which has influenced the business of ‘Twinkle Stars’ adversely.

(a) Totality of external forces

(b) Dynamic nature

(d) Uncertainty

Q30. Any kind of external devices, like compact discs (CD’s) for computer, have become obsolete. Google, with its Google Drive service, Apple with its iCloud offering, enables the users store documents, photos, music and movies on web-based servers. Identify the feature of business environment being described in the above lines.

(a) Relativity

(b) Dynamic nature

(c) Uncertainty

(d) Interrelatedness

MCQs - Business Environment - Chapter 3 - Business Studies

MCQs - Business Environment - Chapter 3 - Business Studies

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