BUSINESS ENVIRONMENT
MULTIPLE CHOICE QUESTIONS
1 Which of the following us not included in special forces of business environment.
(a) Technical situations
(b) customers
( c) Suppliers
(d) Investors
2 Which of the following is included in the Economic Environment?
(a) Economic system
(b) economic policies
( c) Economic conditions
(d) All of the above
3 Under which environmental effect, IBM and Coca-Cola had to leave India?
(a) Political
(b) Economic
( c) Social
(d) Technical
4 Which of the following is a factor of the social environment of business?
(a) Cutoms
(b) Level/standard of education
( c) Rate of interest
(d) All of the above
5 Which of the following deals with the process of simplification of Import-Export?
(a) Liberalization
(b) Privatization
(c ) Liberalization and Privatization
(d) Globalization
6 The Business Environment is not only one but a group of _______ forces
7 The social and political circumstances come under the ______forces of Business Environment.
8 If the managers are alert towards the Business Environment, they can identify well before time the _______ which is a prior warning.
9 Demonetization has resulted in the ______ in the prices of Real Estate.
10 State whether the following statements are true or false:
a) Opportunities refer to the negative changes likely to occur in the Business Environment which are a hurdle in the development of the organization.
b)The Business environment is the sum total of all those forces which exist outside the ambit of Business and on which the Business has no control.
c) The rate of interest, the rate of increase in the price, the value of rupee etc. are the important factors of Social environment.
11 What do you understand by business environment?
12 Just after the declaration of the results of the Lok Sabha Elections, 2009, the Bombay Stock Exchange’s price index (Sensex) rose by 2100 points in a day. Identify the environmental factor which led to this rise.
13 Explain the various dimensions of business environment.
14 With changes in consumption habits of people, Neelesh, who was running a sweet shop,shifted to the chocolate business. On the eve of Diwali, he offered chocolates in attractive packages at reasonable prices. He anticipated huge demand and created a website chocolate.com for taking orders online. He got a lot of orders online and earned huge profits by selling the chocolates.
Identify and explain the dimensions of business environment discussed in the above case.
15 Briefly explain the following:
(a) Liberalisation (b) Privatisation (c) Globlisation.
16 A recent rate cut in the interest on loans announced by the banks encouraged Amit, a science student of Progressive School, to take a loan from State Bank of India to experiment and develop cars to be powered by fuel produced from garbage. He developed such a car and exhibited in the Science Fair organised by the Directorate of Education. He was awarded the first prize for his invention.
Identify and explain the dimensions of business environment discussed in the above case.
17 The understanding of business environment helps the managers to identify ‘threats’. What is meant by ‘threats here?
18 ‘Accent Electronics Ltd.’ was operating its business in Malaysia. The company started exporting its products to India when the Prime Minister announced relaxation in import duties on electronic items. The company appointed retailers in India who had direct online links with the suppliers to replenish stocks when needed.
Identify and explain the dimensions of business environment discussed in the above case.
19 Why is it important for business enterprises to understand their environment? Explain briefly.
20 After completing her MBA, Beni took up a job with a multinational company named Fortio. The company paid good salaries and perks to its employees. The wages were within the paying capacity of the company that provided the employees with a reasonable standard of living. Beni was very happy in this organization but due to long working hours, she did not have time to cook her meals. She had to depend upon outside food which was deteriorating her health.
She observed that this problem was faced by many of her colleagues, not only in her company but also in many other companies. This was because of increase in the number of working women and non-availability of hygienic home-cooked food. She identified this as a great opportunity and decided to give up her job to supply packaged home-cooked food to office-goers at a reasonable price. At the end of the day, she also distributed the leftover food to the nearby night-shelters.
(a) State the dimensions of business environment being discussed above.
(b) State the principle of management being followed by Fortio.
(c) Identify any two values being communicated by the company to society in above case.
21 Why is it said that ‘Business Environment is a ‘Relative Concept’?
22 After completing his MBA from the USA, Mr. Ajay came to India to start a new business under the banner Ecom Creations Ltd. He launched a new product in e-learning for senior secondary school students in the commerce stream which already had an established market in the UK and the USA but not in India. As a result, more Indian companies entered into the market with other subjects also. Identify and quote the lines from the above paragraph which highlight the significance of understanding business environment.
23 How would you characterize business environment? Explain, with examples, the difference between general and specific environment.
24 As per the direction issued by the Supreme Court, the Government passed an order to ban the sale of tobacco products within the area of 200 meters of all educational institutions as:
(a) Its consumption is injurious to health.
(b) People are becoming more conscious about health and fitness. This indicates the Government’s attitude towards this business.
(c) Identify the business environment under three different dimensions by quoting from above paragraph.
25 The Government of India is seriously thinking of allowing the oil-marketing public sector undertaking to fix their own prices for petrol and diesel. Which economic reform is the reason for this change in the Government’s policy?
26 India’s retail sector has been undergoing structural changes for the last two decades. On one hand, the ‘mall culture’ has gradually become a way of life, especially in the metros and mini-metros. On the other hand, there is accelerated growth in e-business as customers also prefer to buy products and services via the Internet, telephone and television. However, operating in either of the segments is marked by the presence of strong competitors. Identify the components of specific forces and general forces being discussed in the above paragraph.
27 What economic changes were initiated by the Government under the Industrial Policy, 1991? What impact have these changes made on business and industry?
28 The organic food market in India is growing at 25-30 per cent which reflects a clear shift in consumer tastes and preferences. The current growth in the organic food market is driven by multiplicity of factors like rising health consciousness, changing lifestyles, increase in disposable income and growing availability of organic food products in shopping malls, retail outlets and online.
In context of the above case:
(a) Identify and explain the features of business environment being referred to here.
(b) By quoting phrases from the paragraph identify the various components of general forces which have led to a growth in the organic food market.
29 Lately many companies have planned for significant investment in organized retailing in India. Several factors have prompted their decisions in this regard. Customer income is rising. People have developed a taste for better quality products even though they may have to pay more. The aspiration levels have increased. The government has also liberalized its economic policies in this regard and permitted even cent percent foreign direct investment in some sectors of retailing.
Questions
1. Identify changes in business environment under different heads — economic, social, technological, political and legal that have facilitated the companies’ decisions to plan significant investments in organized retailing.
2. What has been the impact of these changes with regard to globalization and privatization?
30 (a) In recent times the Govt. has increased the prices of diesel and LPG. Which value is being overlooked here?
(b) After the change in Government Policies, foreign companies like coca-cola has prohibited to work in India. These steps of the government have boosted which values?
Please click on below link to download CBSE Class 12 Business Studies Business Environment Worksheet Set E
