Business Environment - Part 1

1) "One of the features of business environment states that something which is new today, may become outdated or obsolete after sometime." identify the feature.

• Interrelatedness

• Dynamic

• Complexity

• Relativity

2) 'Demand for Bhujia is high in India, whereas it is almost nil in Greenland.' Which feature of business environment is stated here?

• Dynamic

• Complexity

• Specific and general forces

• Relativity

________ forces affect individual enterprises directly and immediately in their day to day working. _______ affects all the firms indirectly

• specific, general

• general, specific

• technological, legal

• customers, investors

4) It is fascinating to know that the clothing items of the multinational apparel brands are customized to suit the preferences of the local people. Zara, apparel market leader changed its products to suit new market to accommodate their style. Company even reduced the product price by close to 10-20% to suit Indian pockets. Identify the feature of business Environment .

• Totality of external forces

• Dynamic

• Inter-related

• Relativity

5) Entry of foreign firms in India is an example of ___________.

• Opportunity

• Threat

• Specific force

• General force

6) Since environment is a source of both opportunities and threats for a business enterprise, its understanding and analysis can be the basis for deciding the future course of action.’ Which one of the following importance of business environment is discussed above?

• It helps in coping rapid changes

• It helps in improving performance

• It helps in assisting in planning and policy formulation

• It helps in tapping useful resources

7) People can purchase better quality of goods and services which will improve their quality because their incomes are rising. Which characteristic of Business environment?

• Totality of externa forces

• Specific and general forces

• Inter-relatedness

• Dynamic nature

8) _______ means the external environment trends and changes that will hinder a firm's performance.

• Opportunities

• Threats

• Weakness

• Strengths

9) ITC planned for new hotels in India after knowing that increase in India's share of world tourism. Identify the importance of Business environment.

• It helps in tapping useful resources

• It helps in coping rapid changes

• It helps in assisting in planning and policy formulation

• It helps in improving performance

10) HUL and several other FMCG companies launched small sachets of shampoo and other products according to the needs of the customers.

• enables firm to identify opportunities and first mover advantage

• Helps in tapping useful resources

• Helps in assisting in planning and policy formulation

• It helps in improving performance