12th Class Business Studies Business Environment Question Bank

done Case Based MCQs - Business Environment Total Questions - 30

• question_answer1)

  Direction (1-5): Read the following text and answer question numbers on the basis of the same.

  Mahinder Agro Ltd. started a new venture for distribution of harmful and chemical free fertilizers vegetables. They conducted a survey to find out customer preferences for such vegetables. They found that most of the customers were concerned about the harmful chemicals being used in growing the vegetables. They found out that 90% of the households were searching for alternatives. The company connected a group of agriculture experts to lay down the procedure for growing the vegetables by the farmers. They decided to train the farmers in new technology to grow chemical free vegetables according to new innovative methods. The experts also suggested soil management techniques through which farmers would be able to create an abundant and lasting harvest. Due to increased awareness for healthcare, demand for products of Maninder Agro Ltd. increased and thus the business flourished.

  "They found that most of the customers were concerned about the harmful chemicals being used in growing the vegetables. They found out that 90% of the households searching for alternatives." Identify the dimension of business environment highlighted above.
  A)
  Economic environment done clear
  B)
  Social environment done clear
  C)
  Technological environment done clear
  D)
  Political environment done clear
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• question_answer2)
  "They decided to train the farmers in new technology to grow chemical free vegetables according to new innovative methods." Identify the dimension of business environment highlighted above.
  A)
  Economic environment done clear
  B)
  Social environment done clear
  C)
  Technological environment done clear
  D)
  Political environment done clear
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• question_answer3)
  "Due to increased awareness for healthcare, demand for products of Mahinder Agro Ltd. increased and thus the business flourished." What feature/characteristic of business environment is highlighted above?
  A)
  Specific and general forces done clear
  B)
  Inter-relatedness done clear
  C)
  Dynamic nature done clear
  D)
  Relativity done clear
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• question_answer4)
  Which of the following is not a component of economic environment?
  A)
  Balance of payments and changes in foreign exchange reserves. done clear
  B)
  The nature of relationship of our country with foreign countries. done clear
  C)
  Expansion of transportation and communication facilities. done clear
  D)
  Volume of imports and exports of different items done clear
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• question_answer5)
  "The experts also suggested soil management techniques through which farmers would be able to create an abundant and lasting harvest." Which dimension of business environment is highlighted here?
  A)
  Technological done clear
  B)
  Legal done clear
  C)
  Political done clear
  D)
  Social done clear
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• question_answer6)

  Direction (6-10): Read the following text and answer question numbers on the basis of the same. The name and taste of Coca-Cola is known to almost each and every individual in India as well as throughout the world. This carbonated soft drink holds the most market share in the soft drink market and got itself a special seat in each and every gathering. The Coca-Cola Company has on occasion introduced other cola drinks under the Coke name. The most common of these are Diet Coke, along with others including Caffeine Free Coca-Cola, Diet Coke Caffeine free, Coca-Cola Zero Sugar, Coca-Cola Cherry, Coca-Cola Vanilla and the list goes on. It has capitalised on each and every opportunity to market itself effectively and place itself in the middle of every gathering. The main reason for such an outstanding placement of product goes to the way they have established the connection between every occasion and the need for Coke to be present there, product design and creative advertising.                                          (CBSE QB 2021)

  In the context of the above given case, identify one valid importance of Business Environment.
  A)
  Enables a firm to identify opportunities and getting first mover advantage done clear
  B)
  Uncertainty done clear
  C)
  Delay in action done clear
  D)
  Pervasive function done clear
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• question_answer7)
  Identify the feature of Business Environment which the Coca-Cola Company managed to get in their favour.
  A)
  Complex done clear
  B)
  Specific and general forces done clear
  C)
  Futuristic done clear
  D)
  Mental exercise done clear
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• question_answer8)
  Which business environment did Coca-Cola majorly tap into?
  A)
  Technological Environment done clear
  B)
  Social Environment done clear
  C)
  Political Environment done clear
  D)
  Economic environment done clear
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• question_answer9)
  Which of the following is not a product of Coca-Cola?
  A)
  Diet Coke Caffeine Free done clear
  B)
  Coca-Cola Zero Sugar done clear
  C)
  Coca-Cola Avocado done clear
  D)
  Coca-Cola Cherry done clear
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• question_answer10)
  "The Coca-Cola Company has on occasion introduced other cola drinks under the Coke name." Which importance of business environment highlighted here?
  A)
  Enables a firm to identify opportunities and getting first mover advantage. done clear
  B)
  Enables a firm to identify threat and early warning signals done clear
  C)
  Tapping useful resources done clear
  D)
  Help in policy formulation done clear
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• question_answer11)

  Direction (11-15): Read the following text and answer question numbers on the basis of the same. Naman and Govind after finishing their graduation under vocational stream decided to start their own travel agency which will book Rail Tickets and Air Tickets on commission basis. They also thought of providing tickets within 10 minutes through the use of internet. They discussed the idea with their professor Mr. Mehta who liked the idea and suggested them to first analyse the business environment which consist of investors, competitors and other forces like social, political, etc., that may affect their business directly or indirectly. He further told them about the technological improvements and shifts in customer preferences that were taking place and hence, they should be aware of the environmental trends and changes which may hinder their business performance. He emphasised on making plants keeping in mind the threat posed by the competitors, so that they can deal with the situation effectively. This alignment of business operations with the business environment will result in better performance.

  Identify the component of business environment highlighted in the above paragraph.
  A)
  Economic environment done clear
  B)
  Social environment done clear
  C)
  Technological environment done clear
  D)
  Political environment done clear
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• question_answer12)
  Identify the feature(s) of business environment as discussed by professor Mehta with Naman and Govind.
  A)
  Specific and general forces done clear
  B)
  Inter-relatedness done clear
  C)
  Dynamic nature done clear
  D)
  Uncertainty done clear
  View Solution play_arrow

• question_answer13)
  Identify the point(s) of importance of business environment as stated by Professor Mehta in the above situation.
  A)
  It enables the firm to identify opportunities and getting the first mover advantage. done clear
  B)
  It helps the firm to identify threats and early warning signals. done clear
  C)
  It helps in tapping useful resources. done clear
  D)
  It helps in assisting in planning and policy formulation. done clear
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• question_answer14)
  Which of the following is not an element of legal environment?
  A)
  Court judgements done clear
  B)
  The extent and nature of government intervention in business done clear
  C)
  Government regulations done clear
  D)
  Administrative orders issued by the government authorities. done clear
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• question_answer15)
  "Naman and Govind after finishing their graduation under vocational stream decided to start their own travel agency which will book Rail Tickets and Air Tickets on commission basis." Which dimension of business environment highlighted here?
  A)
  Economic done clear
  B)
  Political done clear
  C)
  Legal done clear
  D)
  Social done clear
  View Solution play_arrow

• question_answer16)

  Direction (16-20): Read the following text and answer question numbers on the basis of the same. Shreeja and Anusha, just finished their fashion designing course from National Institute of Fashion and Designing (NIFD). Looking at the post COVID scenario, they decided to open an online store of fashionable and designer clothes. They discussed their idea with Mrs. Monika Gosain, who herself is an entrepreneur. Mrs Gosain knew that new and innovative methods to produce and distribute goods and services are coming up and in such a scenario, opening an online store will prove as a successful venture. She suggested them to first analyse the business environment which consists of investors, competitors and other forces like social, political, etc. That may affect their business directly or indirectly. Through an analysis report of the business environment, Anusha and Shreeja realised that people are doing a lot of online shopping due to lockdown and in the coming years, shopping at a mall will no longer remain a culture for the buyers as purchases can be made online from anywhere and at anytime at the customer's convenience. Customers are becoming more demanding. Market conditions are turbulent, brand loyalty is decreasing, and there is a fragmentation of market. Government's effort for the export promotion, rationalisation of the tariff structure and reforms with respect to foreign exchange gave them the idea to think of export as well. Before they finalised their complete plan, they decided to study the latest trends in the market and produce goods accordingly.

  Which dimension of businesses environment is focused in the above paragraph?
  A)
  Political done clear
  B)
  Social done clear
  C)
  Technological done clear
  D)
  Legal done clear
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• question_answer17)
  Which feature of the business environment is highlighted in detail in the above paragraph?
  A)
  Relativity done clear
  B)
  Complexity done clear
  C)
  Inter-relatedness done clear
  D)
  Specific and general forces done clear
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• question_answer18)
  Which importance of business environment discussed in the last few lines of the case study?
  A)
  Getting first mover advantage done clear
  B)
  Identifying threats and early warning signals done clear
  C)
  Tapping useful resources done clear
  D)
  Helps in coping with rapid changes done clear
  View Solution play_arrow

• question_answer19)
  "Mrs Gosain knew that new and innovative methods to produce and distribute goods and services are coming up and in such a scenario, opening an online store will prove as a successful venture." Which dimension of business environment highlighted here?
  A)
  Economic done clear
  B)
  Political done clear
  C)
  Legal done clear
  D)
  Technological done clear
  View Solution play_arrow

• question_answer20)
  "Government's effort for the export promotion, rationalisation of the tariff structure and reforms with respect to foreign exchange gave them the idea to think of export as well". Which dimension of business environment highlighted here?
  A)
  Economic and political done clear
  B)
  Social and legal done clear
  C)
  Economic and technological done clear
  D)
  None of the above done clear
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• question_answer21)

  Direction (16-20): Read the following text and answer question numbers 16-20 on the basis of the same. The governments all over the world are becoming more and more cautious towards the environment. To ensure the same, recently, many state governments passed an order to ban polythene bags since these are non-biodegradable. As a result, the government also decided to give a subsidy to jute industry (bags). The minister said in the statement that they believe it will be helpful as incomes of people are rising and people can afford jute bag. After this subsidy, Purab saw great potential in jute multi-pocket bags business which was it established yet in India but had been flourishing in UK where he studied during his graduation. He launched the product and his business started to boom. So, more companies entered into the market with other articles and improvisations.

  Which business dimension is highlighted in the line, "As a result, the government also decided to give a subsidy to jute industry (bags)"?
  A)
  Legal done clear
  B)
  Political done clear
  C)
  Economic done clear
  D)
  Social done clear
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• question_answer22)
  Which business dimension is highlighted in the line, "The Minister said in the statement that 'he believes it will be helpful as income of people are rising and people can afford jute bags"?
  A)
  Legal done clear
  B)
  Political done clear
  C)
  Economic done clear
  D)
  Social done clear
  View Solution play_arrow

• question_answer23)
  Which merit of business environment is highlighted in the lines, "After this subsidy, Purab saw great potential in jute multi-pocket bags business which was not established yet in India but had been flourishing in UK where he studied during his graduation"?
  A)
  Identify opportunities done clear
  B)
  Tapping useful resources done clear
  C)
  Coping with rapid changes done clear
  D)
  Assisting in planning done clear
  View Solution play_arrow

• question_answer24)
  Which merit of business environment is highlighted in the lines, "He launched the product and his business started to boom. So, more companies entered into the market with other articles and improvisations"?
  A)
  Identify opportunities done clear
  B)
  Identify threats done clear
  C)
  Assisting in planning done clear
  D)
  Coping with rapid changes done clear
  View Solution play_arrow

• question_answer25)
  Which dimension of business environment is highlighted in the given lines, "To ensure the same, many state governments passed an order to ban polythene bags since these are non-biodegradable"?
  A)
  Political done clear
  B)
  Legal done clear
  C)
  Technological done clear
  D)
  Economic done clear
  View Solution play_arrow

• question_answer26)

  Direction (21-25): Read the following paragraph and answer the questions numbers on the basis of the same. Pat Ltd. manufactured electronics. Its business was operating in Indonesia. Prime Minister of India announced relaxation in import duties on electronic items. Therefore, the company started to export products to India. The company decided to the tie up collaborations with only those retailers who had direct online links with the suppliers to replenish stock when needed. Ever after entering into the market of India, company did not get complacent. It kept on adding new features in its products, especially in mobile phones to remain ahead of charges made by other competing brands. Afterwards, the festive season was around the corner, so lot of E-commerce sites came up with sales. Company knew that demand would rise, so they arranged all the inputs such as finance, raw material, etc. Company's performance was improved significantly.

  Which element of business environment is highlighted in the lines, "Prime Minister of India announced relaxation in import duties on electronic items. Therefore, the company started to export products to India"?
  A)
  Economic done clear
  B)
  Legal done clear
  C)
  Political done clear
  D)
  Technological done clear
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• question_answer27)
  Which element of business environment is highlighted in the lines, "The company decided to the tie up collaborations with only those retailers who had direct online links with the suppliers to replinish stock when needed"?
  A)
  Economic done clear
  B)
  Legal done clear
  C)
  Political done clear
  D)
  Technological done clear
  View Solution play_arrow

• question_answer28)
  Which importance of business environment is highlighted in the line, "It kept on adding new features in its products, especially in mobile phones to remain ahead of charges made by other competing brands"?
  A)
  Identify opportunities done clear
  B)
  Tapping useful resources done clear
  C)
  Coping with rapid changes done clear
  D)
  Improving performance done clear
  View Solution play_arrow

• question_answer29)
  Which importance of business environment is highlighted in the line, "Company knew that demand would rise, so they arranged all the inputs such as finance, raw material, etc"?
  A)
  Identify opportunities done clear
  B)
  Tapping useful resources done clear
  C)
  Coping with rapid changes done clear
  D)
  Improving performance done clear
  View Solution play_arrow

• question_answer30)
  "The festive season was around the corner, so lot of E-commerce sites came up with sales." Which dimension of business environment highlighted here?
  A)
  Economic done clear
  B)
  Social done clear
  C)
  Legal done clear
  D)
  Technological done clear
  View Solution play_arrow