Business Environment

1. Which of the following is not a feature of Business environment

(a) Interrelated Elements
(b) Dynamics
(c) Complexity
(d) Continuous
 
1. Identification of opportunities to get first more advantage is one of the
importance of business environment
(a) True
(b) False
(c) Cannot say
 
1. Which of the following does not explain the impact of government policy
changes on business & industry
(a) Increasing competition
(b) More demanding market customers
(c) Market orientations
(d) Change in agricultural prices
 
1. ________ refers to negative and unfavourable external factors that are likely
to create hurdles for a firm:
(a) Opportunities
(b) Warning
(c) Threats
(d) None of these
 
1. Which of the following are the dimensions of the business environment:
(a) Economic & Social
(b) Technological & Economic
(c) Legal & Social
(d) All of the above
 
1. Liberalisation means
(a) Policy of planned disinvestment
(b) Integrating among economies
(c) End of license & reduction of government control
(d) None of these
 
1. Globalization does not involve:
(a) Reduction of barrier
(b) Free flow of goods & services
(c) Global mechanism for settlement of economic disputes
(d) Free flow of capital
 
 1. Which of the following are the impact of govt. policy changes on business &
industry?
(a) Increased competition
(b) Need for change
(c) Demanding customers
(d) All of the above
 
1. By which act government checks restrictive trade?
2. Industrial Policy Act 1991
3. MRTP Act
4. FEMA act
5. None of these
 
1. Which of the following does not fall within the jurisdiction of MRTP
commission?
 Prevention of Monopolistic Trade practices
 Prevention of Restrictive trade practices
 Prohibition of Unfair Trade Practices
 Regulation of Combinations
 
11 When a company taken over another one and clearly becomes the new owner, the action is
called
 Merger
 Acquisition
 Strategic Alliance
 None of the above
 
1. Relaxing the restrictions and controls imposed on Business and industry
means
 Liberalisation
 Privatisation
 Globalisation
 None of the above
 
1. Which among these is not a method of privatisation?
 Denationalisation
 Franchising
 Sale of Business
 All of these
 
1. The pre-liberalisation era of Indian Economy was under the grip of
 Unemployment
 Under-employment
 Fiscal Deficit
 Unfavorable and alarming balance of payment
 
1. Which among these can be condition for the success of privatisation?
 Alternative institutional arrangements
 Barriers to enter the market
 Measurability of performance
 All of the above
 
1. Privatisation of ownership through sale of equity share is called
 Denationalisation
 Disinvestment
 Contracting
 None of these
 
1. Which among these is monopolistic trade practice?
 Unreasonably limiting competition
 Manufacturing only one product
 Limiting technical Development
 Selling only one product
 
1. The age of Discontinuity’ (1969) has been authored by
 John Drydon
 Cyril Debydeen
 Peter F. Drucker
 None of these
 
1. Laissez Faire policy is adopted in
 Socialist Economic system
 Capitalist Economic system
 Mixed Economic System
 Communist Economic System
 
1. Which of the following is the vital question in the economic system?
 What to produce
 How to produce
 For whom to produce
 All of the above
 
1. Which of the following is not the objective of Competition act 2002?
 Prohibition of abuse of dominant position
 Prohibition of restrictive Trade practives
 Prohibition of anti-competitive Agreement
 Regulation of combinations
 
1. Which among these is not a restrictive trade practice?
  Tie Up sales
 Price Discrimination
 Manipulation of Price
 All are restrictive trade practices
 
1. Globalisation means
 Setting of firms branches in other countries
 Adopting a global outlook
 Earning profit from Exports
 Attracting foreign investment
 
1. Which one is not an element of internal environment?
 Marketing capabilities
 Operational Capabilities
 Money and capital market
 Personal Capabilities
 
1. A possible obstacle to growth of privatisation is
 Profit earned by public enterprises
 Sale of least profitable enterprises
 Licensing
 All of these
 
1. First industrial policy resolution was issued in
 1947
 1948
 1951
 1954
 
1. Industrial policy resolution 1956 divided industries into ———– categories
 2
 3
 4
 5
 
1. Consumer protection in India is ensured by
 Consumer protection Act, 1946
 Consumer protection Act, 1986
 Consumer protection Act, 1990
 Consumer protection Act, 1968
 
1. Assertion (A). The new Industrial policy was announced on July 24, 1991.
Reason (R). The new industrial policy was announced by the V.P. Singh Government.
 Both (A) and (R) are true and (R) is the correct explanation of (A)
  Both (A) and (R) are true but (R) is not the correct explanation of (A)
 (A) is true but (R) is false.
 (A) is false but (R) is true.
 
1. Company images and brand equity is factor affecting business
 Externally
 Internally
 Government Policy
 None of these
 
1. Which among the following is not opened for private sector participation
 Power sector
 Telecommunication sector
 Education sector
 Railways
  
1. ________ is an economic system based on the principal of free enterprise.
 Capitalism
 Socialism
 Mixed Economy
 Marxism
 
1. What are the decisions taken by government of India pertaining to Industrial
Sector in the new industrial policy of 1991?
 VRS to shed the excess load of workers
 Disinvestment of public sector share holding
 Referring sick units to BIFR
 All of the above
 
1. A monopolistic trade practice is deemed to be prejudicial to public interest
except when
 Authorized by Central Government
 Authorized by State Government
 Authorized by Supreme Court
 None of the above
 
1. which among these is not a global force impacting the Indian Economy
 Dynamics of capital flow
 Integrating the role of Purchasing
 Integrating the role of Technology
 Need of Attitudinal Change
 
1. Globalisation is the term used to describe process of removal of restriction on
 Foreign Trade
  Investment
 Both (A) and (B)
 None of the above
 
1. For the purpose of inquiry under the MRTP Act, the commission has the
power equivalent to
 Civil court
 consumer court
 High court
 None of these
 
1. In India, Liberalisation & Privatisation began from
 1991
 1971
 1981
 1947
 
1. Which one is not the main objective of Fiscal Policy in India?
 To increase liquidity in economy
 To promote price stability
 To minimize the inequalities of income and wealth
 To promote employment opportunities
 
1. FEMA signifies
 Free Export management act
 Foreign Exchange management act
 Foreign Exchange monitoring act
 Free Export marketing act
 
1. Which among these is not an objective of planning?
 Economic growth
 Setting of heavy industries
 Modernisation
 None of these
 
1. Which among the following is not the instrument of monetary policy
 Deficit financing
 Statutory liquidity Ratio
 Cash reserve ratio
 Open market operation
 
1. Industrial (Development & Regulation) Act was passed by parliament in
 1947
 1949
  1951
 1956
 
1. If the amount claimed by consumer is Rs. 89 Lacs, the case under the
consumer protection act shall be filed with
 District Consumer Redressal forum
 State consumer Dispute Redressal Commission
 National consumer Dispute Redressal Commission
 Supreme court
 
1. The credit for inventing the word “Privatisation” goes to
 Elton Mayo
 F.W. Taylor
 L. Urwick
 Peter Drucker
 
1. Indian businesses encounter the following problem in the globalisation
 Infrastructural Bottleneck
 Lack of interest shown by MNC’s
 Both (A) and (B)
 None of these
 
1. The MRTP Act of 1969 was abolished in
 1991
 2002
 2006
 None of the above
 
1. India abolished quantitative restrictions on imports of 1429 items in 2000 and
2001 as per the commitment to which of the following
 SAFTA
 GATT
 WTO
 NAM
 
1. Micro factors of external business environment does not include
 Competitors
 Customers
 Government Policies
 None of these
 
1. Porters model represents the relationship between _____
 Organizational and environment
 society and environment
  organization and society
 society and industry
1. A company is affected by two broad set of factors are _________________
 Local and Regional
 Regional and National
 Internal and External
 Financial and Non-Financial
 
1. ________ is a statement which derives the role that an organization plays in a
society
 Goals
 Mission
 Objective
 Success
 
1. Economic Environment refers to all forces which have a _______impact on
business
 political
 natural
 economic
 social
 
1. The ________ of the government covers all those principles ,policies,rules and
procedures and control the industrial enterprise of the economy.
 Industrial
 Fiscal
 Monetary
 Macro
 
1. ________ environment is beyond the control of the business
 Internal
 External
 Micro
 Macro
 
1. Micro environment is also called as_______
 general environment
 operating environment
 economic environment
 political environment
 
1. ________________ environment can be defined as that part of the
environment that is concerned with the entire social system.
 general environment
 operating environment
  Social environment
 political environment
 
1. ____________ economy is not owned or managed by the government but
owned by private individuals.
 Social
 Capitalist
 Mixed
 Macro
 
1. __________ environment sets the basis for developmental activity of the
business system.
 Financial Environment
 Technology environment
 Global environment
 macro environment
 
1. _____________ audit implies a report on the social performance of business
unit.
 global
 Local
 natural
 social
 
1. External factors affecting a business environment also be referred to
____factors
 controllable
 Uncontrollable factors
 relevant
 global
 
1. Study of human population is called as _______ environment
 political
 social
 demographic
 economic
 
1. In which year the essential commodities act introduced____
 1954
 1955
 1956
 1957
 
1. Which is the one not included in national culture
  Language
 Internet
 Belief
 Attitude
 
1. Culture spreads from one place to another and such transmission is called
as____
 Difference
 reputation
 adoption
 heritage
 
1. An attitude composed of effect_______
2. flextime
3. Cognition
4. relationship
5. culture
 
1. What is the main occupation of kshatriyas
 engaged in cleaning
 engaged in trade
 engaged in army work
 none of the above
 
1. A systematic application of scientific knowledge to practical task is known as_
 technology
 culture
 demographic
 legal
 
1. A complete stock taking of all the social activities of the corporation is
undertaken in the ___________ approach
 Inventory
 Cost outlay
 Programme management
 Social benefit
 
1. What are the elements of business ethics
 Values rights and duties
 Attitudes pressure and environment
 Value environment and attitude
 Responsibilities
 
1. Corporate values are the _______ of the corporate sector
 shared values
  moral beliefs
 customer satisfaction
 goodwill
 
1. The economic system in which business units or factors of production are
privately owned and governed is called as _____
 capitalism
 socialism
 democratic
 republic
 
1. Under ____ economic system, all the economic activities of the country are
controlled and regulated by the Government in the interest of the public
 capitalism
 Socialism
 democratic
 republic
 
1. The economic system in which both public and private sectors co-exist is
known as ____ economy
 capitalism
 socialism
 democratic
 Mixed
 
1. One Reserve Bank of India introduced certificates of deposit in ______
 1964
 1989
 1986
 1990
 
1. Fiscal policy refers to the policy of government regarding taxation, public
expenditure and___
 public debt
 Budgets
 policies
 deposits
 
1. ________ is the process of analyzing the environment for the identification of
the factors which have implication for the business.
 Scanning
 assessment
 evaluation
 information
 
 1. Fiscal policy is called as ________policy
 monetary
 budgetary
 industrial
 economic
 
1. One concept of culture determines the ____________ of people
 experience
 ethos
 education
 wealth
 
1. Self fulfillment and immediate gratification are ____________ cultural values
 decreases
 Rises
 diminishes
 corporate
 
1. National stock exchange was set up as a joint stock company by all Indian
financial institution and banks on November 27 ______
 1991
 1992
 1993
 1994
 
1. _______ is a very important factor that provides competitive advantage
 Innovation
 modulation
 dimension
 variation
 
1. Which can be a method of privatization
 Denationalization
 Purchasing shares
 Takeover
 Merger
 
1. In India liberalization and privatization began from__
 1991
 1971
 1981
 1947
 
1. Industrial policy of 1948 aimed at ____
  Industrialization
 growth of agriculture
 development of infrastructure
 development of service sector
 
1. The aim of the private sector is to maximize __________
 Loss
 Profit
 Import
 Export
 
1. Which can be possible restrictive trade practice
 Takeover
 Merger
 Price discrimination
 Monopoly
 
1. __________ means the proportion of a nation population living in urban areas.
 Privatization
 Globalization
 Urbanization
 liberalization
 
1. ________ change is a potent fame the reconfiguration of industrial boundaries
 Technological
 Economical
 Organizational
 Environmental
 
1. Obsolesce scene means _____________of products
 implementation
 Outdated
 assessment
 quality
 
1. Corporate contribution to political parties are now been ____________ in our
country
 legalized
 Customized
 introduced
 authorized
 
1. The authority coats to settle ___
 family disputes
  Legal disputes
 personal disputes
 business disputes
 
1. The _____________ is an introduction to the constitution and contains its
basic philosophy.
 Preamble
 society
 process
 service
 
1. The term fraternity implies the spirit of _________________
 brotherhood
 judiciary
 justice
 value
 
1. ________ signifies the absence of any arbitrary restraint on the freedom of
individual action and creations for the development of personality of the
individual
 Fraternity
 Liberty
 Secularism
 Socialism
 
1. Secularism is understood to mean according equal encouragement to all
________
 country
 ethics
 values
 Religion
 
1. _______ state can have an elected or hereditary head
 Democratic
 Autocratic
 Socialized
 Republic
 
1. ___________ is a systematic application of scientific or other organized
knowledge to practical task.
 Technology
 Society
 demography
 Responsibility
 
 1. The era of deregulation liberalization begin in _
 1950 – 51
 1980
 1991
 1960
 
1. Identification of companies technological assets that may provide
___________ in new businesses
 opportunities
 development
 failure
 authority
 
1. The _________ activities involved in bringing raw materials to the factory and
end products from there to the market constitute business
 complex
 single
 multitudinous
 varied
 
1. ___________ occupies the central place in business
 People
 Raw material
 Labor
 Finished goods
 
1. Businesses represent the organized efforts of enterprises to supply
_______with goods and services
 Producers
 consumers
 intermediaries
 suppliers
 
1. India is good example for ________economy
 socialist
 mixed
 capitalist
 communist
 
1. _______ are a primary mechanism for motivating business activities
 Social relationship
 Profit
 Customers
 Assets
 
 1. According to whom, business environment is defined as total of all things
external to firms and industries which effect their organization and operations.
 Arthur.m.welmer
 John wick
 Bayord.o.wheeler
 Mathew smith
 
1. Business includes ___
 non-economic activities


economic activities

 social activities
 production activities
 
1. Is business a vast and fascinating subject
 Technology
 profit making
 change
 people
 
1. What is the single word that can best describe todays business
 Technology
 Profit Making
 Change
 People
 
1. How many main characteristics the todays businesses have
 Six
 Four
 Ten
 Eight
 
1. Which of the following modern business is dynamic
 Mass production
 mass marketing
 mass sales
 mass purchase
 
1. Which of the following is not an economic activity
 A doctor practicing
 A lawyer practicing law
 A professional cricketer playing cricket
 A student playing cricket
 
1. A valid definition of a business purpose is to _____
 Create a customer
 maximize profits
 serve the society
 increase the wealth in the firm
 
1. Is todays business is not characterized by diversification
 Social relationship
 Profit
 Customers
 Assets
 
1. Does internationalization of business is a mean of sustaining a strong domestic
base in term of technology, product, market and capital over a longer period
 Six
 four
 ten
 eight
 
1. ____________ environment is very significantly influenced by the world trade
organization principles and agreements.
 Economic
 Global
 Legal
 Political
 
1. 1s ties interference of government in business was on the ascendancy
 Mission objectives
 Mission targets
 Mission objectives target
 Target
 
1. ____refers to the system of moral principles and rules of conduct applied to
business
 Business culture
 Business ethics
 Business
 Society
 
1. Competition is beneficial to the competing firms besides benefiting the ___
 producers
 intermediaries
 finances
 consumers
 
1. What are the main concepts concerning about business goals (or) objectives
 Mission objectives
 Mission targets
 Mission objectives target
 Target objectives
 
1. Mission is a statement which defines the role that ______ plays in a society
 people
 Organization
 labour
 market
 
1. Does the targets will have much longer time span
 People
 Organization
 Labor
 Market
 
1. Goals realization continuously will lead to ____
 mission fulfillment
 maximize customers
 high revenue
 maximize suppliers
 
1. _______is the primary motive for a business enterprise
 Profit
 Maximize customers
 Human objective
 Maximize suppliers
 
1. The following statement with respect to culture is false
 Culture is enduring
 Culture is changing
 Culture is evolved among the members of a society
 Culture is determined by national boundaries
 
1. ________is the business through which new ideas and innovations are given a
sharp and are converted into useful products and services
 Market Leadership
 Challenge
 Joy of Creation
 Growth
 
 1. ____________ pollution can be minimized by using low sulphur coal in
industries.
 Noise
 Air
 Water
 maco
 
1. Liberalization means
 Reducing number of reserved industries from 17 to 8
 Liberating the industry, trade and economy from unwanted restrictions
 Opening up of economy to the world by attaining international
competitiveness
 Free determination of interest rates
 
1. What are the elements of business environment
 Micro Environment
 Macro Environment
 Complex Environment
 STEEPLE factor
 
1. Macro environment is also known as ____
 direct environment
 indirect environment
 competitive environment
 social environment
 
1. Is micro environment is also known as direct environment
 Economic
 Political & Legal
 Competitors
 Suppliers
 
1. Macro environment consist of ___
 public
 Political & legal
 suppliers
 customers
 
1. The macro environment consists of ___
 Economic Political & Legal
 consumer competitors
 public
 middlemen
 
 1. What does micro environment consists of _____
 economic
 political &legal
 Consumers competitors
 demographic
 
1. The micro environment consists _____
 Technological Environment
 Political Environment
 Economic Environment
 Public middlemen consumers & competitors

1. Liberalization means
A. Free determination of interest rates
B. Liberating the industry, trade and economy from unwanted
restrictions
C. Opening up of economy to the world by attaining international
competitiveness
D. Reducing number of reserved industries from 17 to 8
Answer: B
2. When a company taken over another one and clearly becomes the
new owner, the action is called
A. Acquisition
B. Merger
C. Strategic Alliance
D. None of the above
Answer: A
3. By which act does the government check restrictive trade?
A. MRTP Act
B. FEMA act
C. Industrial Policy Act 1991
D. None of these
Answer: A
4. Which among the following is not opened for private sector
participation
A. Railways
B. Telecommunication sector
C. Education sector
D. Power sector
Answer: A
5. Which among these can be the condition for the success of
privatisation?
A. Measurability of performance
B. Alternative institutional arrangements
C. Barriers to enter the market
D. All of the above
Answer: C
6. Which among these is monopolistic trade practice?
A. Manufacturing only one product
B. Selling only one product
C. Limiting technical Development
D. Unreasonably limiting competition
Answer: A
7. The Industrial policy resolution was passed first in
A. 1947
B. 1956
C. 1931
D.1999
Answer: B
8. Globalisation is the term used to describe process of removal of
restriction on
A. Investment
B. Foreign Trade
C. Both (A) and (B)
D. None of the above
Answer: C
9. Laissez Faire policy is adopted in
A. Socialist Economic system
B. Capitalist Economic system
C. Communist Economic System
D. Mixed Economic System
Answer: B
10. Which one is not the main objective of Fiscal Policy in India?
A. To promote employment opportunities
B. To minimize the inequalities of income and wealth
C. To promote price stability
D. To increase liquidity in economy