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T E S T S E R I E S N. Business And Commercial

Knowledge

Topic: Business environment

1. SWOT stands for :

a) Strength, weakness, Opportunity, Threats
b) Strong , weak , Opportunity , Threats
c) Strong, weak, occurring , Things
d) Strength, weak , Opportunity , Things
2. The two E’s in PESTLE stands for :
a) Economic and Environment
b) Endless and Economic
c) Entry and exit
d) End and exit
3. Which of the following is not a FMCG company:
a) Patanjali
b) Colgate
c) Bajaj
d) Amul
4. Demographic environment relates to :
a) Characteristics of population in an area , district , country or in
the world .
b) Controlling and changing people’s life.
c) Influence almost all enterprise in a similar manner
d) Positive and negative impact of significant international event .
5. Modern business is ______
a) Constant
b) Profitable
c) Dynamic
d) Stable Jio

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 6. Types of Business Environment includes the following :
a) Internal
b) External
c) Both a) and b)
d) None of the above
7. Micro factors are the factors that are in the company’s immediate
environment .
a) True
b) False
c) Partly true
d) None of the above
8. ______ factors affects the economy as a whole and are not particular
to any organisation.
a) Micro
b) Macro
c) Internal
d) None of the above
9. Fiscal policy, EXIM policy , Industrial policy etc. are types of ___
policies.
a) Private
b) Business
c) Government
d) Semi-Government
10. GDP , per capital income, foreign exchange are the example of
a) Economic policy
b) Economic system
c) Economic conditions
d) Both a) and b) .
11. When did Government of India introduced a change in economic
policy
a) 1892
b) 1991
c) 1895
d) 1781
12. Economic policies are framed by

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 a) Private
b) Business
c) Government
d) Semi government
13. Which of the following is not covered by the organisation’s Internal
Environment
a) Human Resource
b) R & D
c) Media
d) Management structure
14. The forces which are external but still have a direct bearing on the
operations of the firm are called.
a) Micro Environment
b) Macro environment
c) Internal Environment
d) All of the above
15. Customers, shareholders , competitions, etc. are the elements of
a) Micro Environment
b) Internal Environment
c) Macro Environment
d) None of the above
16. The size, density, distribution and growth rate of population is called
a) Ecology
b) Habitat
c) Demographics
d) None of the above
17. Which of the following is an element of political environment ?
a) Legislature
b) Judiciary
c) Executive
d) All of the above
18. The price sensitivity of the market is an important factor of which
element of micro environment:
a) Suppliers
b) Market

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 c) Intermediaries
d) Customer
19. ______ with their own bargaining power affect the cost structure of
the industry .
a) Intermediaries
b) Suppliers
c) Consumer
d) Government
20. Which of the following is not a factor of demographic environment ?
a) Ethnic mix
b) Legal
c) Population size
d) Geographic Distribution
21. What is the single word that can best describe today’s business ?
a) Technology
b) Persistence
c) Profit making
d) Change
22. Competition is beneficial to the competing firms besides benefiting
the ______?
a) Intermediaries
b) Customers
c) Producers
d) Financiers
23. Which of the following is not a part of the economic environment ?
a) Market and trade cycles
b) Consumer buying patterns
c) Strength of consumer spending
d) Interest and exchange rates.
24. What is the kind of response that business should make efforts to
exploit the opportunity and thought the threats :
a) Strategic Responses
b) Least resistance
c) Diversify
d) Simplify

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 25. Which of the following is not a characteristic least resistance strategic
response:
a) Simple goal maintaining
b) Passive approach
c) Dynamic
d) All of the above
26. Process of strategy formulation starts with :
a) Appraisal of external and internal environment of the of an
organisation
b) Performance analysis
c) Choice of strategy
d) None of the above
27. ______ response not merely recognise and ward off threats but also
convert threat into opportunities:
a) Aggressive
b) Dynamic
c) Static
d) Passive
28. The businesses should continuously _____ and _____ to the
environment if it is to service and prosper.
a) Identify , appraise
b) Monitor , adapt
c) Identify , monitor
d) Monitor , appraise
29.Relationship between organisation and environment can be described
through:
a) Exchange of information
b) Exchange of resources
c) Exchange of influence and power
d) All of the above
30. According to peter Drucker aim of the business is to _____ and ____
a) Create and retain customer
b) Retain customer and create profits
c) Create and retain consumer
d) Retain consumer and maximise wealth

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 31. The non-specific elements of the organisations surroundings that may
affect its activities are;
a) Customer , suppliers and employees
b) Suppliers, owners, employees
c) Owners , Board of directors and Employees
d) Customers, Intermediaries , suppliers.
32. The ______ environment refers to the nature and direction of the
economy in which a
a) Social- cultural
b) Internal
c) Micro
d) Economic
33. Analysing process of change in the business environment involves
conceptualising its as :
a) Complex
b) Static
c) Dynamic
d) Diverse
34. The performance of business in the private sector is measured by:
a) profitability
b) Customer satisfaction
c) Number of employees
d) The Salary of BOD
35. All are elements of micro environment except:
a) Consumer
b) Suppliers
c) Competitors
d) Society
36. All are elements of macro environment except :
a) Society
b) Government
c) Competitors
d) Technology
37. In response to the changes in the environment organizations in
general should :

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 a) Understand the impact of changes on the strategy and make
appropriate modifications
b) Make efforts that changes are reverted back so that
organizations can function smoothly
c) Ignore the changes
d) None of the above
38.Which environmental factors regulate the values and beliefs, traditions
and customs of society?
a) Political- legal factors
b) Technological factors
c) Economic factors
d) Social- cultural factors
39. The term PESTLE analysis is used to describe a framework for
analysing:
a) Macro Environment
b) Micro Environment
c) Both Macro and Micro Environment
d) None of the above
40. _____ tells the purpose of business existence
a) Vision
b) Mission
c) Both a) and b)
d) None of the above.

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