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Business Environment Quiz

Total questions: 30

Worksheet time: 15mins

Name
Class
Date
1.

Rishabh joined an entertainment company Avtaar, as a creative head. As a manager looking after the creative unit of the company, one of the functions he has to perform is the process of organizing. Which step of the process will he need to perform after identifying and dividing the work that has to be done in accordance with previously determined plans?

a)

Identification and division of work

b)

Departmentalisation

c)

Assignment of Duties

d)

Establishing Reporting Relationships

2.

Which characteristic of the business environment is highlighted when changes are taking place too frequently and it becomes difficult to predict the future?

a)

Uncertainty

b)

Complexity

c)

Inter-relatedness

d)

Relativity

3.

Aarohan Ltd. is a company manufacturing automobiles where division of work into key areas includes production, purchase, marketing, accounts and personnel. Which of the following is a disadvantage of the organization structure of Aarohan Ltd.?

a)

It may lead to increase in cost

b)

Managers may gain power and assert independence and ignore organization interests.

c)

It ensures that different functions get due attention.

d)

Heads do not get training for top management positions.

4.

Identify the dimensions of the business environment illustrated by the picture given above in which Sapna who has joined the workforce recently is working on an accounting software.

a)

Technological and social.

b)

Technological and political

c)

Political and economic

d)

Social and legal

5.

The government of India made an announcement regarding Demonetization of the Indian economy on November 8, 2016 with profound implications for it. The process which put restrictions on convertibility of domestic money and bank deposits was meant to create a less-cash economy. One argument against the cash-lite economy is that:

a)

Internet connectivity is a prerequisite

b)

More people will be introduced into the formal economy.

c)

Financial saving will increase

d)

Tax evasion will be reduced

6.

Which importance of business environment and its understanding by managers is not highlighted in the text?

a)

It helps in improving performance

b)

It helps in assisting in planning and policy formulation

c)

It helps in tapping useful resources

d)

It enables a firm to identify opportunities and get first mover advantage

7.

A mobility platform is laying off 400-500 employees to drive cost efficiency. Which objective of management will the firm not be able to achieve by carrying out this process?

a)

Efficiency

b)

Social

c)

Profit

d)

Survival

8.

Radha started a home-cooked food delivery service. An important characteristic of the function of management being discussed is:

a)

It is the first function of management

b)

It is the last function of management

c)

It is both forward looking and backward looking

d)

It is required only in business organizations

9.

Raman and Vasudev were caught embezzling by a software program that logged their keystrokes. Identify the function of management being discussed.

a)

Staffing

b)

Coordination

c)

Controlling

d)

Organizing

10.

Statement-I: Transportation helps in creating time utility and warehousing helps in creating place utility. Statement-II: The process of classification of products into different groups on the basis of their important characteristics is known as standardization. Choose the correct option from the options given below:

a)

Statement I is true and II is false

b)

Statement II is true and I is false

c)

Both the statements are true

d)

Both the statements are false

11.

________ is a number assigned to each transaction by the stock exchange and is printed on the contract note.

a)

Client code number

b)

Unique order code

c)

Permanent account number

d)

Depository participant number

12.

One of the important decision areas under the marketing function of __________ is managing inventory.

a)

Branding

b)

Pricing

c)

Promotion

d)

Physical distribution

13.

Which of the following statements is incorrect?

a)

Providing liquidity to securities is one of the functions of stock exchange

b)

Process of holding shares in electronic form is known as Dematerialization

c)

Securities Exchange Board of India performs the regulatory function of controlling insider trading and imposing penalties for such practices.

d)

Capital market consists of Commercial banks, Development banks and stock exchanges.

14.

One of the following is considered to be an extension of the marketing concept, which apart from customer satisfaction pays attention to ethical and ecological aspects of marketing. Identify the concept.

a)

Selling concept

b)

Product concept

c)

Production concept

d)

Societal Marketing concept

15.

While the product costs set the lower limits of the price for a product, the upper limit of price which a buyer would be prepared to pay is decided by:

a)

Utility and demand of the product

b)

The marketing manager of the firm

c)

The Government

d)

The competitors of the firm

16.

Which of the following statements about Advertising is incorrect?

a)

It is a personal form of communication

b)

It is a paid form of communication

c)

It is a mass selling technique.

d)

It is inflexible as the message can’t be adjusted to the needs of the buyer.

17.

Explain "Critical point control" with respect to Analyzing deviations, a step in the process of controlling. Give a suitable example.

a)

It involves setting benchmarks for performance and comparing actual results.

b)

It focuses on areas where deviations from standards are most likely to occur.

c)

It is a method of controlling costs by reducing waste.

d)

It involves the use of technology to monitor performance.

18.

Which of the following is a benefit of increasing the aptitudes, skills, and abilities of employees to perform specific jobs?

a)

Increased job satisfaction and productivity.

b)

Reduced need for employee training.

c)

Lower wages for skilled employees.

d)

Decreased employee turnover.

19.

Which of the following are barriers to communication that are concerned with problems and obstructions in the process of encoding and decoding the message into words or impressions?

a)

Language differences, cultural barriers, noise, and emotional barriers.

b)

Lack of internet access, outdated technology, poor lighting, and uncomfortable seating.

c)

High employee turnover, lack of training, insufficient resources, and poor management.

d)

Excessive workload, lack of motivation, inadequate compensation, and poor working conditions.

20.

Which of the following is NOT a technique of Scientific Management given by F.W. Taylor?

a)

Method study

b)

Functional foremanship

c)

Standardization

d)

Unity of command

21.

Which principle of management by Henry Fayol emphasizes that each employee should receive orders from only one superior?

a)

Unity of command

b)

Equity

c)

Remuneration

d)

Initiative

22.

What is the main advantage of Jojo and Jojo's decision-making structure?

a)

Centralized decision-making

b)

Faster response time

c)

Increased bureaucracy

d)

Higher costs

23.

What is the main strategy Choco Ltd. uses to market its chocolate products?

a)

Selling products under a single brand name

b)

Offering products at high prices

c)

Using different brand names for different customer segments

d)

Limiting sales to departmental stores only

24.

What was the purpose of Choco Ltd.'s massive promotional campaign during the festive season?

a)

To reduce production costs

b)

To increase revenue and achieve communication objectives

c)

To introduce new chocolate flavors

d)

To close down less profitable stores

25.

Which of the following is a key advantage of digital marketing over traditional marketing?

a)

More time-consuming

b)

Less competition

c)

Lower costs for production

d)

Higher reach and engagement

26.

What is the primary focus of the 'Human Relations' approach in management?

a)

Implementing rigid organizational structures

b)

Enhancing employee satisfaction and motivation

c)

Reducing costs through automation

d)

Maximizing productivity through strict supervision

27.

Which of the following is a disadvantage of a decentralized organizational structure?

a)

Increased flexibility in decision-making

b)

Potential for inconsistent decisions across departments

c)

Faster response to local market changes

d)

Greater employee empowerment

28.

Which factor in the business environment is characterized by the interconnectedness of various elements that can influence each other?

a)

Inter-relatedness

b)

Complexity

c)

Uncertainty

d)

Dynamic nature

29.

As a marketing manager, Priya needs to ensure that the promotional strategies align with the overall business objectives. What is the first step she should take in this process?

a)

Setting marketing goals

b)

Analyzing market trends

c)

Budgeting for promotions

d)

Identifying target audience

30.

Which of the following is a key principle of effective communication in a business setting?

a)

Clarity and conciseness

b)

Lengthy explanations

c)

Formal tone only

d)

Use of jargon