STEP HBTI, Kanpur

SUBJECT- Business Environment & Legal Aspect Of Business

MBA-1st Year 2 Sem, 1st SESSIONAL EXAMS

(session 2020-21)

Max marks-15 Time-60 min

Note: Each question carry 0.5 mark.

1. ……………………. Consists of factor external to the industry

that may have a significant impact on firm.
a) External environment
b) Micro- environment
c) Macro- environment
d) Internal environment

2. …………………………. Of the country that decides the fortune

of businesses in country
a) Economic environment
b) Political environment
c) Demographic
d) Regulatory

3. ………………….. Refers of the environment which an

organization faces in its specific arena.
a) Economic environment
b) Global environment
c) Competitive environment
d) Macro- environment

4. The important determinant of supplier power is

……………………………
a) Switching cost
b) Storage cost
c) Extent of buyers
d) None of these
5. Which of the following factors are key drivers of globalization a) Strategic innovation
? b) Growth orientation
a) Government action , exchange rates c) Strategic planning
b) Market convergence, competition d) None of these
c) Cost advantages, government action
d) Market, cost and government policies 11. …………… the extent at any given time is defined by the
6. The term corporate strategy concerns strategy and strategic degree to which it is being applied at that time.
decisions ……………………. a) Technology adoption
a) In certain types of organizations b) Technology diffusion
b) At all levels in an organization c) Technological literacy
c) In private sector only d) None of these
d) None of these
7. Which of the following is one state of competition in an 12. …………… a basic technological innovation that establishes a
industry depends on basic force? new functionality.
a) Threat of new entrants a) Incremental innovation
b) Potential entrants b) Radical innovation
c) Internal entrants c) Next generation
d) None of these d) None of these

8. …………….. Organizations transfer the technology to the user 13. Transfer of complex technology often take place through
and get the product manufactured from the user for ………………….
themselves . a) Licensing agreement
a) Franchising b) Turnkey contracts
b) Joint venture c) Training
c) Competitive edge d) None of These
d) Contract manufacturing
14. The elements which influence culture are …………
9. ……………. The capability of the organization to be aware of a) Family
identity and take effective advantage of externally developed b) Religion
technology. c) Education
a) Adaptability d) All of the above are true
b) Receptivity 15. The social sector broadly refers to the services are …………..
c) Vigilance a) Labour
d) Futuristic b) Employment
c) Poverty
d) All of the above are true
16. The party entitled to claim compensation in proportion to
the work done by him can file suit for ___________.
10. ………………… Is the process of creating new industries
openings new markets and new categories.
 a) Damages b) Injunction c) Quantum meruit d) None of 24. Vindictive damages may not be awarded
these a) For breach of promise to marry
17. ‘A’ purchased a refrigerator fro ‘B’ by fraud. Before the b) For breach of promise to divorce
contract is put to an end, ‘A’ sells the same to ‘c’ who c) Wrongful dishonor by a banker of his customer’s cheque
buys in good faith without any notice of A’s defective d) None of the above
title here C will get ________________. 25. In which of the following cases contract is discharge by
a) Good Tile b) No title c) Defective Title d) Limited supervening impossibility?
Title a) Outbreak of war b) Change of Law c) Both a and b
18. A contract for the sale of unascertained goods is an d) Lapse of time
agreement to sell it becomes sale when the goods are 26. Doctrine of frustration will not discharge a contract in
____________________. which of the following cases.
a) Ascertained b) Appropriated c) a) Difficulty of performance b) default of a third party c)
Delivered only d) Both a and b Failure of one of the objects d) All of the above
19. What is the exception of Caveat Emptor? 27. When the contracting parties change then, It is a case of
a) Custom b) Fraud c) Merchantable quality d) ________________________.
All of these a) Remission b) Rescission c) Novation d) Alteration
20. When the price is to be fixed by the valuation of third 28. X agrees to give 50 kg of rice to Y and Y agrees to pay the
party and such party fails to make such valuation the price afterwards only the contracts.
agreement becomes _____________________. A) Contingent contract b) Quasi contract c) Conditional
a) Void b) Valid c) Voidable d) contract d) Non-gratuitous contract
Unenforceable 29. Which of the following elements do not affect the free
21. General Lien is available only for ________________ consent of the parties?
a) Banker b) Factors c) Wharfingers a) Coercion b) Fraud c) Incompetency d) Mistakes
d) All of these 30. The liability for necessaries of life supplied to person of
22. The bailment of goods as security for payment of debt or unsound mind is the same as for ______________ during
performance of promise is called ___________. the intervals of unsoundness.
a) Pledge b)Bailment c) Lien d) None of a) Drunken b) Minors c) Idiots d) Lunatics
these
23. Damages agreed upon by the parties in a contract, to be
paid I case of breach thereof is
a) Compensatory damages b) Moral Damages c)
Nominal Damages d) Liquidated Damages