BUSINESS ENVIRONMENT

Time Allowed: 30 minutes Maximum Marks: 30

General Instructions:

Read the questions carefully

Unfair means should not be used

Write your options neatly without any cutting

Section A
1. The trend of health and fitness has created a demand for products like gyms, bottled mineral [1]
water and food supplements etc., these are the example of

a) Political Environment b) Economic Environment

c) Social Environment d) Legal Environment

2. Booking of Railway tickets through internet from home or office is an example of [1]

a) Economic Environment b) Political Environment

c) Technological Environment d) None of these

3. Celebration of Diwali is the example of: [1]

a) Technological Environment b) Social Environment

c) Political Environment d) Legal Environment

4. What will be the affect of increase in tax by the government? [1]

a) Creates fear in the minds of b) Increase in cost of production

investors

c) None of these d) Increase in profit margin

5. Which of the following does not explain the impact of Government policy changes on business [1]
and industry?

a) Increasing competition b) More demanding customers

c) Market orientation d) Change in agricultural prices

6. Through Environmental scanning a business firm can enjoy the [1]

a) Benefit of taxes b) Last Mover Advantage

c) Competition d) First Mover Advantage

7. Changes in fashions and tastes of consumers will [1]

a) Shift the market demand from b) Increase the Sale

existing product to new ones

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 c) Increase the profit d) Increase the cost of production
8. Globalisation aims at [1]

a) Foreign exchange reforms b) Import liberalisation

c) All of these d) Export Promotion

9. The complete awareness and understanding of business environment is called [1]

a) Privatisation b) Environmental Scanning

c) Liberalisation d) Technological advancement

10. Increase or decrease in the value of Rupee is an example of [1]

a) Political Environment b) Social Environment

c) None of these d) Economic Environment

11. Advance understanding of business environment will help in [1]

a) Developing new principles of b) Nothing

management

c) Privatisation d) Planning and Policy Formulation

12. Export promotion is concerned with [1]

a) Privatisation b) Liberalisation

c) None of these d) Globalisation

13. Liberalisation means [1]

a) Integration among economies b) Reduced government controls and

restrictions

c) None of them d) Policy of planned disinvestments

14. Reduction in the role of public sector is due to - [1]

a) Privatisation b) Political Environment

c) Globalisation d) Liberalisation
15. External environment trends and changes will provide [1]

a) Less Competition b) Goodwill

c) Profits d) Threats
16. Match the following: [2]

(a) Competition is increasing day by day because of abolition of (i) More demanding
licensing requirements for most of the industries customers

(b) Nowadays products are produced keeping in the mind the

(ii) Globalisation
demands of the customer

(c) Many organisations have gone for rapid technological advances so

(iii) Increasing
that besides earning profits, quality product could be offered at
competition
reasonable prices

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 (d) Integration of world economy into a single market through (iv) Rapidly changing
removal of trade barriers. technological
environment

17. Match the following: [2]

(a) Condition in environment keep on changing (i) Complex

(ii) First mover

(b) It is difficult to scan environment
advantage

(c) Same condition has different impact on different business (iii) Dynamic

(d) Maximum benefits or profit by grabbing the opportunity at the

(iv) Relativity
earliest

18. Match the following: [2]

(a) It affect business enterprises directly and immediately in their day to (i) General
day working forces

(b) All the components of business environment are interdependent (ii) Uncertainty

(c) It affect all the business enterprises and effect individual firms only (iii) Specific
indirectly forces

(iv) Inter-
(d) No one can predict business environment 100% accurately
relation

19. Fill in the blanks: [1]

Celebration of Valentine Day has provided significant opportunities for greeting card
companies. It is an example of environment.
20. Fill in the blanks: [1]
is a process of removal or reduction of various controls and regulations governing
business and industry.
21. Fill in the blanks: [1]
Passing of Companies Act 2013 is a component of environment.
22. Fill in the blanks: [1]
means opening up of the economy to the world market.
23. State true or false: [1]
Changes in business environment are quite predictable.
24. State true or false: [1]
Simplifying import-export procedure is not covered under the process of liberalisation.
25. State true or false: [1]
People in various parts of India have become more careful and aware about the cleanliness
around their area. This statement is an example of political environment.
26. Prime Minister Mr. Narendra Modi launched a campaign of Swachchh Bharat. It is an example [1]
of political environment.
27. State true or false: [1]
As a result of economic reforms, budgetary support to public sector has increased.

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