CBSE Class 12 Business Studies HOTs Business Environment

Very Short Answer type Chapter Business Environment Class 12 Business Studies

Question: Which environment describes characteristics of the society in which the organization exists. 
Answer: Social Environment  

Question: Which element / dimension of business environment involves improvement and innovations which provide new ways of producing goods and services and new methods and techniques of operating a business.
Answer: Technological Environment  

Question: Which environment prohibits the advertisement of alcoholic beverages? 
Answer: legal Environment  

Question: Sudden announcement of demonetisation by our prime minister is an example of which feature of environment?
Answer:  Environment is uncertain.

Question: RBI declared lower interest rates on housing loans. State the values depicted here.
Answer:  To bring equality in wealth distribution, to improve standard of living.

Question: Just after the declaration of Lok Sabha election results in 2014, stock exchanges rose by 1000 points. Identify dimension of environment mentioned here.
Answer:  Political

Question: Why is understanding the business environment so important?
Answer:  1) It helps to identify opportunities 2) It helps to identify threats 3) It helps to tap useful resources 4) It helps to cope with changes 5) It helps to improve performance

Question: Mention any two components of economic environment.
Answer:  Monetary policy and fiscal policy

Question: The project of Nano car re-established in Gujarat is indicated by which factor of environment?
Answer:  Political environment

Question: Parents are focussing on girl education, number of working women has increased in all fields. State the dimension of business environment with which it is related.
Answer:  Social

Question: Banking sector reforms have led to easier credit terms and better services. This is an example of a key component of the “Business Environment “ name this component?  
Answer:  Economic Environment  

Question: ‘Demand for reservation in jobs for minorities refers to an example of key component of general environment  of business. Name this component. 
Answer: Social Environment  

Question: It is the process by which government control over the industry is being loosened. Give the term to which this statement is trying to indicate. 
Answer: Liberalization  

Question: Which process aims at giving greater role to the private sector role to the public sector? 
Answer:  Privatization  

Question: State the characteristics of business environment. 
Answer: 1. Totality of external forces.  2. Specific and general forces 3. Inter-relatedness. 4. Dynamics 5. Complexity. 6. Relatively 

Question: State the economics reforms since 1991 or new Economics policy.
Answer: a. Liberalization
b. Privatization
c. Globalization  

Question: State the factors of Micro Environment.
Answer: a. Customers
b. Suppliers
c. Competitors
d. Public
e. Marketing intermediaries 

Question: State the factors of Macro Environment.
Answer: a. Economical Environment
b. Political Environment
c. Social Environment
d. Legal Regulatory Environment
e. Technological Environment  

Question: State the difference between general and specific environment with example. 
Answer: Examples of Specific Environment of Business. 

Question: Explain any five positive effects of liberalization and globalization on business and industry. 
Answer: The positive effects of liberalization and globalization on business and industry are
1. All round competition
2. Export became matter of survival.
3. World class technology.
4. Buyer’s market increase in production capacity.  

Question: Explain any five negative effects of liberalization and globalization on business and industry in India. 
Answer: The negative effects of liberalization and globalization on business and industry inIndia are
a) Destabilization of protected environment.
b) Threat from MNC’s
c) Corporate vulnerability
d) Past failure fail to guide
e) Acquisitions and mergers 

Question: Write the impact of changes in government policy on business and industries. 
Answer: Impact of changes in govt. policy on business are:
a. Increasing competition
b. More demanding
c. Rapidly changing technology environment
d. Necessity for change
e. Need for developing human resources.
f. market orientation
g. Loss of budgetary support to the public sector. 

Question: State the component of business Environment. 
Answer: Components of Business Environment
1. Internal Environment
2. External Environment
3. Micro Environment
4. Macro Environment  

Question: State the importance of business. 
Answer:  Importance of business Environment are:
1. First mover advantage
2. Warning signal
3. Taping useful resources
4. Coping with rapid changes
5. Assisting in planning and policy
6. Improving in performance.