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Business environment

Total questions: 35

Worksheet time: 12mins

Name
Class
Date
1.

It means all the internal and external factors of that affect how the company functions including employees, customers, management, supply and demand, and business regulations.

a)

Business Environment

b)

Business Firm

c)

Local Environment

d)

International Firm

2.

Successful managers must recognize opportunities and threats in their firm’s _______________.

a)

internal environment

b)

external environment

c)

local environment

d)

international environment

3.

The internal business environment consists of...

a)

factors that directly impact the organisation

b)

factors that influence the operations of the business

c)

factors that influence the wider environment in which the business operates

4.
Liberalisation signifies:
a)
INTEGRATION AMONG VARIOUS ECONOMIES OF WORLD
b)
REDUCED  GOVERNMENT RESTRICTIONS & CONTROL
c)
POLICY OF PLANNNED DISINVESTMENT
d)
NONE OF THE ABOVE
5.
The importance of understanding of business environment is signified by :
a)
The importance of understanding of business environment is signified by :
b)
coping with rapid changes
c)
improvement in performance         
d)
all of the above
6.
Following is not the importance of business environment:
a)
Get first mover advantage
b)
complexity
c)
Tapping useful resources
d)
better performance
7.
Legal environment includes:
a)
government policies related to pricing
b)
the constitutional framework
c)
goverment policies related to import and export
d)
all of the above
8.
technological environment includes:
a)
advances in production technology
b)
advances in information technology
c)
popularity of e -banking
d)
all of the above
9.

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?

a)

Legal Environment

b)

Political environment

c)

Social Environment

d)

Economic Environment

10.

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

c)

Relativity

d)

Interrelatedness

11.

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

c)

Necessity for change

d)

Market orientation

12.

Which factor of the External Operating Environment is affected when a rival business makes changes to its product or pricing?

a)

Customers

b)

Competitors

c)

Suppliers

d)

Interest Groups

13.

Consistently monitoring similar businesses is an appropriate action to remain competitive. True or False?

a)

True

b)

False

14.
.Business environment does not have the following characteristics:
a)
uncertainty   
b)
employees 
c)
relativity 
d)
complexity
15.
 Following is not a specific force environment?
a)
customers
b)
suppliers
c)
creditors
d)
social
16.

What does S stand for in SWOT?

a)

small

b)

strong

c)

strengths

d)

slow

17.

Positive and controllable factors that contribute to the success of parks

a)

Strength

b)

Weaknesses

c)

Opportunities

d)

Threat

18.

Negative factors that are beyond the control of the Parks Management.

a)

Strength

b)

Weaknesses

c)

Opportunities

d)

Threat

19.

Positive factors that are not within the control of the business.

a)

Strength

b)

Weaknesses

c)

Opportunities

d)

Threat

20.

 

Internal resources such as skilled, knowledgeable staff.

a)

Strength

b)

Weakness

c)

Opportunity

d)

Threat

21.

Things your competitor does better than you.

a)

Strength

b)

Weakness

c)

Opportunity

d)

Threat

22.

Resource limitations.

a)

Strength

b)

Weakness

c)

Opportunity

d)

Threat

23.

Negative press/media coverage.

a)

Strength

b)

Weakness

c)

Opportunity

d)

Threat

24.

You conduct a SWOT analysis and find out that a new competitor is opening within 5 miles of your store. This would be considered a __________.

a)

Strength

b)

Weakness

c)

Opportunity

d)

Threat

25.

By identifying areas under the weaknesses section, how does this help you develop?

a)

So that you can avoid them.

b)

So that you can pretend they don't exist and ignore them

c)

Use them to identify areas for development and focus on them

d)

By allowing other people to see them and use them against you.

26.

PESTLE is not used in analyzing potential economic problems that may arise in small businesses that are about to established or are already established.

a)

TRUE

b)

FALSE

27.

P for the PESTLE mnemonic stands for

a)

Political

b)

Principal

c)

Phenomenon

d)

None of the above

28.

I am concerned with which where I am to establish my business. What Part of the PESTLE analysis am I to look at?

a)

Political

b)

Environmental

c)

Legal

d)

Technological

29.

Acquiring permits in establishing a business is a concern of what part of the PESTLE analysis?

a)

Legal

b)

Political

c)

Economic

d)

None of the above

30.

It is ideal to use the PESTLE analysis only during if you have encountered a problem in your own business.

a)

TRUE

b)

FALSE

31.

Location of business is not a significant factor in establishing one.

a)

TRUE

b)

FALSE

32.

In Porter's Five Forces, the 'threat of new entrants' relates to:

a)

Barriers to entry

b)

Substitutes

c)

Switching costs

d)

Buyer power

33.

Buyer power is high if:

a)

Differentiation is low

b)

Switching costs are low

c)

They have little information

d)

The buyer requires a high quality product for their own production

34.

Competitive rivalry will be high if:

a)

The industry is fragmented

b)

There are a few strong players in the industry

c)

There is a high degree of differentiation

d)

The industry is in its infancy

35.

A substitute product or service is:

a)

A competitor's product or service

b)

An alternative way of meeting the same need

c)

A new entrant into the industry

d)

A less attractive way of meeting the same need