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WorksheetsBusiness Environment Quiz
Total questions: 152
Worksheet time: 2hrs 36mins
Sum total of all individuals, institutions and other forces that are outside the control of a business enterprise but that may affect its performance.
Exert a direct and immediate influence on the working of a business firm/owners, suppliers, creditors, employees, trade union, competitors.
(a)
Exert an indirect influence on the functioning of a business firm/economic, social, technological, political and legal components.
(a)
The economic system, level of economic development, availability of economic resources, the level of income of people, economic policies, rate of inflation, exchange rate balance of payment position, gross national product, per capita income, rate of savings and investment, changes in disposable income of people, stock market indices and the value of rupee, etc.
Size, growth rate, composition of population, life expectancy of people, level of literacy, values, beliefs, customs, traditions.
Scientific improvements and innovations which provide new ways of producing goods and services and new methods and techniques of operating a business.
General stability and peace in the country, organisation and philosophy of political parties, ideology of the government, the image of the country and its leaders, foreign policies pursued by the government in power, attitude of the government towards various types of business organisations.
Various legislations passed by the government, administrative orders issued by government authorities, court judgements as well as the decisions rendered by various commissions and agencies at every level of the government- centre, state or local.
Abolishing licensing and all unnecessary controls and restrictions.
(a)
Giving greater role to the private sector.
(a)
Integration of the various economies of the world.
(a)
Act of scrapping a currency unit of its status as legal tender.
(a)
A company more conscious about changes of ______ can take better advantage of opportunities instead of losing them to competitors.
(a) environment refers to all those forces that have economic impact on the business activities.
Understanding of (a) environment is important to determine products, services and standards of conduct that are acceptable to society.
(a) aims to restrict the role of public sector.
Different elements of business environment are closely (a) .
(a) refers to selling a part or the whole of shares of public sector undertakings.
LED Monitors in place of Analog Monitors is an example of (a) Environment.
(a) resulted in abolishing of licensing requirements in most of the industries.
Tobacco package must carry the statutory warning 'Chewing tobacco is injurious to health' is an example of (a) environment.
'All business firms are affected by policies and practices of the government' is an example of (a) environment.
______ means the totality of all individuals, institutions and other forces that are outside the control of a business enterprise, but that may affect its performance.
Business Environment includes both _____ and _____ forces.
Specific
General
'Online booking of Rail and Air tickets instead of going to Reservation Office' is an example of (a) environment.
(a) refer to the positive external trends or changes that will help a firm to improve its performance.
Celebration of Diwali is the example of (a) Environment.
Main components of New Economic Policy are Liberalisation, ______ and ______.
Privatisation
Globalisation
Increased awareness towards health has increased the demand for products like organic food, mineral water, gyms, etc. This is an example of (a) Environment.
Demonetization led to channelizing savings into the formal (a) system.
New Economic Policy was introduced in India in the Year (a) .
General Environment (a) influences the working of a business firm.
'Companies producing hazardous goods have to comply with the provisions of Bureau of Indian Standards Act, 1986' is an example of (a) environment.
The aim of (a) was to curb corruption, counterfeiting the use of high denomination notes for illegal activities and accumulation of black money.
After New Economic Policy, there is a shift from Production Orientated Approach to (a) Approach.
'Equal pay to male and female workers for equal work' is an example of (a) environment.
Demonetization is viewed as a (a) measure.
Foreign Investment Promotion board was set up to promote and channelize (a) in India.
(a) means integrating the various economies of the world leading towards the emergence of a cohesive global economy.
Liberalisation involves removal of entry and growth restrictions on private sector and end of licence, ____ and ______.
Permit
Quota
'The attitudes of government officials towards business may have either positive or negative impact upon business' is an example of (a) environment.
Understanding of business environment enables the firm to identify opportunities and getting the (a) advantage.
Fast and quick technological changes take place due to globalisation.
True
False
Business Environment is static in nature.
True
False
A terrorist attack in a shopping centre is likely to affect many businesses.
True
False
The computer making industry is significantly affected by technological changes.
True
False
Economic, social and political situations are part of the business environment.
True
False
A retailer of gold jewellery is not affected by changes in the prices of gold.
True
False
Allowing Indian rupee to become convertible is a step towards globalisation.
True
False
Social factors include market situations, income level, income tax rate, etc.
True
False
Management that responds to environmental changes is likely to be more successful.
True
False
Liberalisation means reduced government controls and restrictions.
True
False
Disinvestment means making investment in different sectors.
True
False
Political factors do not play a major role in shaping the environment, in which business firms operate.
True
False
Different elements of business environment are closely inter-related.
True
False
After Introduction of New Economic Policy, companies became production oriented.
True
False
'Freedom in fixing the prices of goods and services' is an indication of Liberalised Economy.
True
False
Globalisation means integration of Indian Economy with the European Economy.
True
False
Liberalisation means giving greater role of the private sector in the nation building process and a reduced role to the public sector.
True
False
In order to survive and grow, an enterprise has to adapt itself as per business environment.
True
False
Changes in taste and preferences of consumers do not have impact on the demand in the market.
True
False
Early identification of opportunities enables an enterprise to take better advantage of opportunities instead of losing them to competitors.
True
False
Threats refers to internal environment trends and changes that will hinder a firm's performance.
True
False
Business Enterprises depend on the environment as a source of output and as an outlet for inputs.
True
False
Future of a business enterprise is closely related with what is happening in the environment.
True
False
Social Environment describe forces which have economic impact on business.
True
False
Analysis and understanding of trends fo the business environment helps the business to improve its performance.
True
False
Business Environment is uncertain as its is very difficult to predict future happenings.
True
False
Increased competition in the market gives lesser choice to customers in purchasing goods and services.
True
False
Scanning of the business environment helps to identify:
opportunities
threats
both (a) and (b)
none of these
Which one of the following is a part of Economic Environment?
customs and traditions
technological changes
easy finance schemes
rates of savings and investments
Statutory warning of 'Cigarette smoking is injurious to health' on the cigarette packet is an example of:
social environment
technological environment
political environment
legal environment
Which of the following shakes the confidence among the business people to invest in the long-term projects:
new innovations
political instability
technological improvement
change in preference of customers
Which of the following best indicates the importance of business environment?
identification
improvement in performance
coping with rapid changes
all of them
"Increasing trend towards E-Commerce" is an example of:
economic environment
technological environment
social environment
political environment
'Introduction of Mobile Phones have adversely affected the business of watches and cameras'. Which dimension of business environment is related with the given case?
political environment
social environment
technological environment
legal environment
"Indian Government has started to dilute its stake in public enterprises". Which concept is being highlighted?
globalisation
liberalisation
privatisation
none of the above
"The Trade Unions Act, 1926" is an example of:
legal environment
economic environment
social environment
political environment
When did economic reforms take place in India?
2001
1991
1981
1971
Booking of railway and air tickets through internet is an example of:
technological environment
economic environment
political environment
social environment
Which of the following is not a dimension of general force of business environment?
social
psychological
legal
political
Which of the following is an example of political environment?
Extent and nature of government intervention in business
Online booking of Rail and Air tickets instead of going to Reservation Office
Equal pay to male and female workers for equal work
Nature of relationship of our country with foreign countries
Which of the following is an example of social environment?
money supply in the economy
consumer protection act
the constitution of the country
composition of family
Giving freedom to Indian business and industries from all unnecessary government controls and restrictions is an example of:
privatisation
liberalisation
globalisation
demonetization
'Infosys decides to open schools for lesser privileged children' is an example of _______ Environment.
economic
political
legal
social
'Free flow of goods and services between different countries of the world' is an example of:
privatisation
globalisation
liberalisation
demonetization
Availability of e-books is an example of:
economic environment
technological environment
legal environment
social environment
Which of the following statement best describes the policy of Liberalisation?
Abolition of licensing requirement in most of the industries
Reduction in tax rates and lifting of unnecessary controls over the economy
Both (a) and (b)
Setting up of board of industrial and financial reconstruction
Correct example of political environment is:
change in preference
continuous innovation
rates of savings and investments
nature and profile of political leadership
Liberalisation means:
integration among economies
reduced government controls and restrictions
policy of planned disinvestments
none of them
Which of the following is an impact of the economic reforms on the business?
more demanding customers
stable technological environment
increasing competition
market orientation
'Equal pay to male and female workers for equal work' comes under _____ environment.
political
social
technological
economic
Most of the business firms are using social media (like Facebook, Twitter, Instagram, etc.) to promote their business. Which dimension of Business Environment is being highlighted?
economic environment
legal environment
technological environment
social environment
Which of the following is not a benefit of demonetization in India?
Control over corruption
Counterfeiting use of high denomination notes of denomination notes for illegal activities
Control on black money
More demanding customers
'Increased awareness towards health has increased the demand for products like organic food'. Which factor of business environment is being highlight?
political environment
social environment
economic environment
legal environment
Maruti Udyog became the leader in small car market because it was the first to recognise the need for small car. Which importance of business environment is highlight in above case?
Helps in tapping useful resources
Helps in coping with rapid changes
Helps in improving performance
Help to identify opportunities and getting first mover advantage
Changes in gross domestic product is a part of:
economic environment
legal environment
political environment
social environment
Reducing the role of government through disinvestment is:
globalisation
liberalisation
privatisation
none of these
'Increase in cost of production due to increase in minimum wage rates by government' is an example of:
legal environment
political environment
social environment
economic environment
Which of the following statement is correct?
Research and development activities comes under Technological Environment
Nature of relationship of our country with foreign countries is a part of Political Environment
Both (a) and (b)
Traditions like celebration of festivals is a part of Economic Environment
'Gross Income of urban people is increasing' highlights which dimension of business environments?
social environment
technological environment
economic environment
legal environment
____ is integration of national economy with the world economy.
privatisation
globalisation
liberalisation
none of these
Which of the following was not a feature of Demonetisation?
Channelizing savings into formal financial system
Tax Administration
Cash less economy
Promotion of Black Money
'Ooty, hill station in Tamil Nadu, banned the sale of single-use plastic items considering its negative impact on the environment'. _____ environment is highlighted in the given statement.
political
legal
technological
social
'All liquor bottles to carry a statutory warning that alcohol consumption is injurious to health'. It is related to:
social environment
economic environment
political environment
legal environment
Reduction in tax rates and lifting of unnecessary controls over the economy is a part of:
liberalisation
globalisation
privatisation
all of the above
Introduction of GST and its impact on business enterprises is a part of:
political environment
economic environment
legal environment
social environment
Which of the following is not an aspect of the Social environment?
rates of savings and investments
composition of family
educational system and literacy rates
life expectancy
Which of the following deals with the process of simplification of Imports and Exports?
liberalisation
privatisation
both (a) and (b)
globalisation
Giving greater role to private sector and reduced role to the public sector is known as:
globalisation
liberalisation
privatisation
none of the above
'Beti Bachao Beti Padhao Yojana' started by the government of India is a part of:
legal environment
economic environment
social environment
political environment
'The conditions in Business Environment keeps on changing'. Which characteristic fo business environment is being highlighted?
totality of external forces
complex
relativity
dynamic
Which component of business environment was directly affected by 'Demonetisation'?
social environment
economic environment
legal environment
political environment
Demonetisation led to:
decline in cash transactions
promotion of black money
more income declarations
all of the above
As a result of the Economic Reforms, the production oriented approach has been replaced by ________.
market oriented approach
seller oriented approach
both (a) and (b)
none of these
Which of the following does not characterise the business environment?
uncertainty
employee
Which of the following does not characterise the business environment?
uncertainty
employees
relativity
complexity
Which of the following best indicates the importance of business environment?
identification
improvement in performance
coping with rapid changes
all of them
Which of the following is an example of social environment?
money supply in the economy
consumer protection act
the constitution of the country
composition of family
Liberalisation means __________
integration among economies
reduced government controls and restrictions
policy of planned disinvestments
none of them
Which of the following does not explain impact of government policy changes on business and industry?
more demanding customers
increasing competition
change in agricultural prices
market orientation
Which of the following is an example of social environment?
demand for new garments increases during festival season
mobile phones have outdated telephones
Chinese products are being freely sold in the Indian market
the Government of India has amended companies act
Which of the following statement indicates globalisation aspect of economic reforms in India?
disinvestment of shares of public sector enterprises
reduction in GST rates
reduction in custom duties
reduction in number of industries reserved for public sector
Which of the following is not included in the technological environment?
use of robots in production process
culture of the people
use of computer controlled machines
computerised information technology
Which of the following is not an example of legal environment affecting a business enterprise?
passing of companies act 2013
the Government of India has banned the advertisement of alcoholic products
statutory warning on the packets of cigarettes, 'Cigarette smoking is injurious to health'
demonetization
The Government of Indian has recently come up with an amendment to Companies Act 2013 regarding corporate social responsibility. It is a dimension of _____ environment.
economic
political
legal
social
Using e-payment options is a milestone in the direction to cashless economy. It is a dimension of _____ environment.
technological
social
political
legal
Which of the following is an example of social environment?
money supply in the economy
constitution of the country
consumer protection act
composition of family
According to a recent survey, 90% students have shifted to 4G and 5G phones from 2G and 3G phones. It is an example of ______ environment.
technological
economic
social
political
When was economic reforms programme introduced in the Indian Economy?
1990
1991
1992
1993
Which of the following is related to legal environment?
banks reducing interest on housing loans
increase in number of working women
booking of air tickets through internet
ban on advertisement relating to alcohol beverages to be shown on television
What is the main constituent of economic reforms?
liberalisation
privatisation
globalisation
all of the above
Name the concept which is related to integrating the economy with economies of other countries through free trade and free movement of capital.
liberalisation
globalisation
privatisation
none of the above
Name the concept which is related to relaxation of government restrictions and control which are in force in the economy.
globalisation
liberalisation
privatisation
disinvestment
Name the concept which is related to opening a larger part of the economy for private sector and infusing competition.
globalisation
liberalisation
privatisation
disinvestment
Which of the following is not a part of economic reforms?
privatisation
globalisation
liberalisation
self-reliance
Which concept is related to disposal of equity of public sector units in the market for covering the fiscal deficit of the central government?
privatisation
denationalization
disinvestment
liberalisation
Which concept is related to the total sale of an existing public sector undertaking to the private sector?
globalisation
denationalisation
disinvestment
liberalisation
Which of the following is not a feature of liberalisation?
tax reforms
deregulation of industrial sector
financial sector reforms
disinvestment
Which of the following is not a feature of privatisation?
denationalisation
disinvestment
import liberalisation
restrictions on expansion of public sector
Which of the following is not a feature of globalisation?
disinvestment
liberalisation of import licensing
rationalization of tariff structure
reforms in foreign exchange management
Liberalisation means _______
reducing number of reserved industries from 17 to 8
removing unwanted restrictions from industry, trade and economy
opening up economy to the world
free determination of interest rates
Relaxing the restriction and controls imposed on business and industry means _____
liberalisation
privatisation
globalisation
none of the above
Which among the following is not opened for private sector participation in India?
power sector
education sector
telecommunication
railways
Which among these is not a method of privation?
denationalisation
sale of business
franchising
disinvestment
Globalisation is the term used to describe process of removal of restrictions on ____
foreign trade
foreign investment
both (a) and (b)
none of the above
Globalisation means ______
setting of company's branches in other countries
attracting foreign investment
promoting exports
adopting a global outlook
MRTP Act of 1969 was abolished in ________
1991
2002
2005
2006
____ is concerned with the withdrawal of state from an industry or sector, partially or fully.
liberalisation
modernisation
privatisation
globalisation
Which of the following does not facilitate globalisation?
improvements in communication
barriers to trade and investment
immigration control
removal of control on foreign investment
Globalisation is beneficial for firms because _______
it protects them against foreign competition
it increases the risk and uncertainty of operating in global market
it opens up economy to the world by attaining international competitiveness
none of the above
Which of the following is not a part of globalisation?
minimizing import licensing
rationalization of tariff on foreign trade
foreign exchange reforms
disinvestment
