MCQ Chapter 3 Business Environment Class 12 Business Studies

Please refer to MCQ Questions Chapter 3 Business Environment Class 12 Business Studies with answers provided below. These multiple-choice questions have been developed based on the latest NCERT book for class 12 Business Studies issued for the current academic year. We have provided MCQ Questions for Class 12 Business Studies for all chapters on our website. Students should learn the objective based questions for Chapter 3 Business Environment in Class 12 Business Studies provided below to get more marks in exams.

Chapter 3 Business Environment MCQ Questions

Please refer to the following Chapter 3 Business Environment MCQ Questions Class 12 Business Studies with solutions for all important topics in the chapter.

Question. Which factor is not included in Micro Environment?
(a) Customer
(b) Public
(c) Supplier
(d) Production Capacity

Question. Which of the following does not explain the impact of Government policy changes on business and industry?
(a) More demanding customers
(b) Increasing competition
(c) Change in agricultural prices
(d) Market orientation

Question. The entry of the multinational companies in large numbers in the Indian market has created ________ .
(a) Huge Demand
(b) Huge Supply
(c) Tough Competition
(d) Huge Demand and Supply

Question. Which factor is not included in Macro Environment?
(a) Economic Environment
(b) Competitors
(c) Social Environment
(d) Political Environment

Question. Which of the following does not characterise the business environment?
(a) Uncertainty
(b) Employees
(c) Relativity
(d) Complexity

Question. Which component of business environment resulted in the relaxation of ban imposed on the Foreign Direct Investment?
(a) Economic Environment
(b) Political Environment
(c) Social Environment
(d) Legal Regulatory Environment

Question. Which factor is not included in Internal Environment?
(a) Objective
(b) Policies
(c) Public
(d) Production-Method

Question. Which of the following has got the First Mover Advantage?
(a) Asian Paints
(b) Goodlass Nerolac
(c) Kansai Paints
(d) Maruti Udyog

Question. With the introduction of Photostat Machines in the market, the carbon paper industry was adversely affected. Which component of environment was responsible for it? 
(a) Economic
(b) Political
(c) Technical
(d) All the above

Question. Which of the following deals with the process of simplification of Import- Export?
(a) Liberalisation
(b) Privatisation
(c) Liberalisation and Privatisation
(d) Globalisation

Question. Price control means that the companies will sell goods on the ________ price.
(a) Government
(b) Market
(c) Printed
(d) Voluntary

Question. Liberalisation means
(a) Integration among economies
(b) Reduced government controls and restrictions
(c) Policy of planned disinvestments
(d) None of them

Question. The study of environment makes available ________ resources.
(a) Costly
(b) Cheap
(c) Inferior
(d) Useful

Question. Which of the following is not a part of the internal environment?
(a) Customers
(b) Objectives
(c) Policies
(d) Organisation Structure

Question. Under which environmental effect, IBM and Coca-Cola had to leave India?
(a) Political
(b) Social
(c) Economic
(d) Technical

Question. With which of the following the Indian Companies have to compete?
(a) New and Old Indian Companies
(b) Multinational Companies
(c) Imports
(d) All the above.

Question. Which of the following is undergoing quick changes?
(a) Competition
(b) Fashion
(c) Technique
(d) All the above

Question. Which of the following is included in the Micro Environment (Operating Environment)?
(a) Suppliers
(b) Competitor
(c) Suppliers and Competitor
(d) Economic Environment

Question. Which of the following is included under the Macro Environment (or General Environment)?
(a) Economic Environment
(b) Political Environment
(c) Social and Legal Environment
(d) All the above

Question. A firm should make efforts that it has ________ type of customers?
(a) One
(b) Two
(c) Three
(d) Many

Question. Which of the following is not included in special powers of the business environment.
(a) Technical Situations
(b) Customers
(c) Suppliers
(d) Investors

Question. Determination of the economic policies is for the purpose of regulating ________ .
(a) Political Environment
(b) Social Environment
(c) Legal Regulatory Environment
(d) Economic Activities

Question. ITC Hotels made a study of the business environment and planned to open ________ in India and abroad.
(a) Factories
(b) Hotels
(c) Shops
(d) Offices

Question. These days companies cannot avoid investing in ________ .
(a) Research
(b) Development
(c) Research and Development
(d) Employees

Question. Which of the following is available in time with the help of the study of environment?
(a) Government Help
(b) Foreign Aid
(c) Warning Signal
(d) Material

Question. Business environment is a group of ________ powers.
(a) Special
(b) General
(c) Internal
(d) Special and General

Question. Trade Policy brings under control the ________ .
(a) Import Trade
(b) Export Trade
(c) Foreign Trade
(d) Local Trade

Question. The income and expenditure policy of the government is called ________ .
(a) Fiscal Policy
(b) Industrial Policy
(c) Trade Policy
(d) Monetary Reforms

Question. Which of the following best indicates the importance of business environment?
(a) Identification
(b) Improvement in performance
(c) Coping with rapid changes
(d) All of them

Question. Reducing the role of Public Sector and increasing the role of Private Sector falls under ________ .
(a) Liberalisation
(b) Privatisation
(c) Liberalisation and Privatisation
(d) Globalisation

Question. Under ________ the Reserve Bank keeps control on the money supply in order to achieve the objectives of the general economic policy.
(a) Fiscal Policy
(b) Monetary Policy
(c) Trade Policy
(d) Industrial Policy

Question. Which of the following is an example of social environment?
(a) Money supply in the economy
(b) Consumer Protection Act
(c) The Constitution of the country
(d) Composition of family

Question. ________ is included in Economic Environment.
(a) Economic System
(b) Economic Policies
(c) Economic Conditions
(d) All of the above

Question. Under Industrial Policy the role of ________ has been decided.
(a) Public Sector
(b) Private Sector
(c) Public Sector and Private Sector
(d) Government

Question. As a result of the Economic Reforms the Seller Market has been replaced by ________ .
(a) Buyer Market
(b) Foreign Market
(c) Whole-sale Market
(d) Retail Market

Question. Which of the following is included in the Economic Environment?
(a) Economic System
(b) Economic Policies
(c) Economic Conditions
(d) All the above

Question. In all the countries there is a free-flow of goods and services under which of the following does it come?
(a) Liberalisation
(b) Privatisation
(c) Liberalisation and Privatisation
(d) Globalisation

Question. Which of the following is a factor of the social environment of business?
(a) Customs
(b) Level /Standard of Education
(c) Rate of Interest
(d) All the above

Question. With the help of the study of business environment an organization can improve its ________ .
(a) Present
(b) Future
(c) Present and Future
(d) Past

Fill In The Blanks:

Question. N.E.P was introduce in India in the Year ___________ .

Question. Celebration of Diwali is the example of ___________ .

Question. Main components of New Economic policy are Liberalization, globalization and ___________ . 

Question. Consumer get benefited by___________ competition after introduction of N.E.P. 

Question. The trend of health and fitness has created a demand for products like gyms, bottled mineral water and food supplement etc. these are the examples of ___________ Environment. 

Question. Different elements of parts of a business environment are closely ___________ . 

Question. After N.E.P there is a shift in market from Producers orientation to ___________ .

Question. Privatization of ownership through sale of equity shares is called ___________ . 

Question. Business environment includes ___________ and ___________ forces. 

Question. All the factors of business environment are ___________ .

True/ False:

Question. Liberalization means reduced government controls and restrictions.

Question. Threats refer to the internal environment trends and changes that will hinder a firm’s performance.

Question. Changes in fashion and taste of consumers may not have impact on the demand in the market.

Question. After Introduction of N.E.P companies become market oriented

Question. Business environment is uncertain as it is very difficult to predict future.

Question. Globalization means integration of Indian Economy with the Economy of America

Question. The future of an enterprise is closely bound up with what is happening in the environment.

Question. Early identification of opportunities helps an enterprise to be the first to exploit them instead of losing them to competitors.

Question. When two or more companies join together to share their resources and carry out an economic activity it is known as merger

Question. Liberalization was introduced to free Indian Economy from unnecessary control and restrictions

Match the following:

Question. Match on the basis of significance of environment

a. Grab the opportunities before the competitors	i. Help in tapping useful
b. IT act as a basis for deciding future course of action for decision making	ii. First mover advantage
	iii. Helps in policy making

Question. Match appropriate example with the dimension

a. Computerise information kiosks in bank	i. Social environment
b. Government pass legislation	ii. Legal environment
	iii. Technological environment

Question. Match with the impact

a. Ban on 1k rupees currency	i. impact of any NEP
b. More demanding costumer	ii. Impact of demonetization
	iii. impact of change of government

Question. Match the importance with

a. Market orientation	i. Social Factor
b. Digital Transaction	ii. NEP
	iii. Demonitization

Question. Match with factor

a. High literacy rate	i. Political environment
b. e-mitra centre	ii. Social environment
	iii. Technological environment

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