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Tuesday, February 12, 2019

Business Studies Multiple Choice Questions - Business Environment


Unit – 3: Business Environment
VERY SHORT QUESTIONS (1 Mark)
1. What is business environment?                                         2010
Ans: It refers to the sum total of all individuals, institution & other forces that are outside the control of business enterprise but that may affect its performance.

2. Give one importance of business environment.
Ans. It enables the firm to identify opportunities & getting the first movers advantages.
3. Why it is said that “Business Environment is a Relative Concept”.
Ans: Business environment is a relative concept since it differs from country to country and even region to region.
4. Which sector of the Indian economy was given greater importance after independence?
Ans: Public Sector
5. Mention two element of political environment?
Ans: (a) Political ideology & practices of the ruling party. (b). Nature of relationship of our country with foreign countries.
6. What is the main objective of FEMA?
Ans: To facilitate external trade and payments
7. Mention any two elements of social environment?
Ans: (a) Birth & death rates. (b) Concern with quality of life.
8. Give two changes introduced in industrial policy of July 1991?
Ans: (a.) Abolition of industrial licensing. (b) Dereservation of industries for public sector.
9. Give two changes introduced in industrial policy of July 1991?
Ans. (a.) Abolition of industrial licensing. (b.) De-reservation of industries for public sector.
10. Give one impact of govt. policy changes on business industries?
Ans. Increasing competition from multinational.
11. It is the process by which govt. control over the industry is being loosened. Give the term to which the statement is trying to indicate.
Ans. Liberalization.
12. What is privatization?
Ans: Privatization may be defined as the transfer of ownership & control from the public sector to Private sector.
13. What is Globalisation?
Ans: Globalisation means integrating our economy with world economy.
14. Name two elements of technological environment?
Ans: 1.Recent technological. 2. Advances in computers & electronics.
15. Which environment prohibits the advertisement of alcoholic beverages?                     2014
Ans: legal Environment
16. Which economic policy of the Indian Government initiated globalisation?                    2011, 2012
Ans: Industrial Policy 1991.
17. What is Social Environment? Give an example of social environment.
And: Social environment describes characteristics of the society in which the organization exists. For example, reservation in jobs for minorities, Characteristics of the society.
18. Name the Act that protects the interest of consumers in India.
Ans: Consumer Protection Act, 1986
19. In which year the World Trade Organisation came into being?
Ans: 1-1-1995
20. The Information Technology Act. 2002 comes under what type of environment?
Ans: Legal Environment
21. Give two examples of marketing intermediaries.
Ans: Wholesalers and Retailers
22. What is the name of the economy where both public and private sectors co-exist?
Ans: Mixed Economy
23. Which act aims at controlling production, supply and distribution of essential commodities? 
Ans: Essential Commodities Act, 1955.
24. Under which environmental factor does fiscal policy fall?
Ans: Economic Environment
25. What does legal environment prescribe?
Ans: It prescribes rules or laws that all members of business community must follow.
26. Name two component of economic environment?
Ans:  1.Volume of imports & exports of different items. 2. Rates of saving & investment.
27. Which element / dimension of business environment involve improvement and innovations which provide new ways of producing goods and services and new methods and techniques of operating a business?
Ans.: Technological Environment
28. Banking sector reforms have led to easier credit terms and better services. This is an example of a key component of the “Business Environment “name this component?
Ans: Economic Environment
29. ‘Demand for reservation in jobs for minorities refers to an example of key component of general environment of business. Name this component.
Ans: Social Environment
30.  What is meant by environment scanning?
Ans: Environment scanning is a process by which organizations monitor their relevant environment so that they can consider the impact of different events, trends, issues, expectation on its strategic management process.

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