PR Government College (A)

Kakinada
B Com – I Year – Semester II
Business Environment
Objective Questions
Module – I

1. Business works in isolation

a. Yes
b. No
c. Can’t say
d. None of these

2. The theory of survival of fittest is formulated by

a. Charles Darwin
b. Richard Dawkin
c. Abraham Maslow
d. Henry Fayol

3. The environment that surrounding the business is

a. Micro environment
b. Macro environment
c. Near environment
d. Bounded environment

4. Macro environment is controlled by

a. Business
b. None
c. Government
d. International relations

5. Important stakeholders in micro environment

a. Customers
b. Suppliers
c. Employees
d. All of these

6. High GDP with low population will result into

a. Higher expenditure
b. High per capita income
c. High taxes
d. High levels of service

7. Technological environment is
a. Static
b. Dynamic
c. Rigid
d. None of these
 8. Demographic dividend is
a. High population of working age
b. Low population
c. High level of skills in youth
d. High level of experience in youth

9. Carbon credits related to

a. Business responding to climate change
b. Crediting carbon in ledger
c. Carbon accumulation in a company
d. None of these

10. Culture has strong influence in

a. Eastern countries
b. Western countries
c. Developed countries
d. None of these

Module – II

11. Which of the following is correct

a. Growth is better than development
b. Development is the end and growth is means to it
c. Growth is the end
d. None of these

12. Regional disparities arise because of

a. Negligence of some areas
b. Lack of planning
c. Lack of skill set
d. All of these

13. Normally industries prefer locations near to

a. Source of raw material
b. Sea
c. Cities
d. Mountains

14. Software companies mainly located at some places because of

a. Government incentives
b. Abundant supply of man power
c. Easy transport facilities
d. All of these

15. Best method for reducing regional imbalances

a. Cluster development
b. Concentrating at single place
c. Incentives for people
d. Large scale industries
 16. Normally growth of a country is measured in terms of
a. Tax growth
b. GDP growth
c. Revenue growth
d. None of these

17. Regional imbalances in India are largely due to

a. Concentration of raw material sources
b. Lack of education and knowledge at local level
c. Lack of local entrepreneurship
d. All of these

18. Which state is number in human development in India

a. Kerala
b. Maharashtra
c. Andhra Pradesh
d. Telangana

19. Backward areas require

a. Financial assistance
b. Entrepreneurial support
c. Tax incentives
d. All of these

20. High economic growth means high human development

a. Always correct
b. Always not correct
c. Depends on the efforts
d. None of these

Module – III

21. Main characteristic of first stage in Rostow’s theory

a. Industrialized society
b. Agrarian society
c. Service economy
d. None of these

22. The last stage in Rostow’s theory

a. Drive to maturity
b. Age of mass consumption
c. Both
d. None of these

23. Consumerism is the characteristic of which stage

a. Fifth
b. Third
c. Fourth
d. None of these
 24. Planning commission
a. Formulates the plans
b. Approves the plans
c. Apex body for plans
d. None of these

25. Approval body for plans in India

a. National Development Council
b. Planning Commission
c. Prime Minister
d. President of India

26. Chairperson of NITI Aayog

a. Prime Minister
b. President
c. Finance Minister
d. None of these

27. NITI Aayog’s core concept is

a. Completion among states
b. Cooperative federalism
c. Federal union
d. States’ autonomy

28. Five year planning is a

a. Medium term activity
b. Long term activity
c. Short term activity
d. None of these

29. Last five year plan period is

a. 12th 2012-2017
b. 13th 2017-2022
c. 11th 2007-2012
d. None of these

30. Planning is a
a. Managerial function
b. Economic function
c. Promotional function
d. None of these

Module – IV

31. New Economic Policy was announced on

a. 24.07.1991
b. 24.07.1990
c. 23.07.1991
d. 23.07.1990
32. Liberalization means
a. Free trade
b. Easing restrictions on business
c. New rules and regulations
d. None of these

33. Expand EODB

a. Ease of Doing Business
b. Ease of Doing Banking
c. Easy Office Database
d. None of these

34. Competition Act 2002 enabled

a. Repeal of MRTP Act 1969
b. More stringent rules
c. Tight control over mergers
d. None of these

35. The policy that deals with revenues and expenditures of the government is
a. Monetary policy
b. Fiscal policy
c. Tax policy
d. Revenue policy

36. The agency responsible for monetary policy in India

a. Finance Ministry
b. RBI
c. MOSPI
d. Parliament

37. Major source of revenue for Indian government is

a. Corporation Tax
b. Income Tax
c. GST
d. All of these

38. Expenditure of creating infrastructure is

a. Revenue expenditure
b. Development expenditure
c. Capital expenditure
d. Government expenditure

39. Privatization was done by

a. Selling stakes in loss making PSUs
b. Sale of partial interest in other PSUs
c. Strategic sale of PSUs
d. All of these
 40. Globalization is encouraged by
a. Internet
b. Mobile phones
c. Computer
d. None of these

Module – V

41. Main characteristic of Indian society

a. Unity
b. Social stratification
c. Single identity
d. None of these

42. According to the Indian Constitution

a. All are equal before law
b. Equals are equal
c. first among equals
d. None of these

43. Special programs being run by the government for the benefit of
a. Vulnerable sections of the society
b. Those who are interested
c. All people
d. None of these

44. Fundamental duties are given in

a. Article 31 A
b. Article 41 A
c. Article 51 A
d. Article 21 A

45. Fundamental right of education for 6-14 year olds is given in

e. Article 31 A
f. Article 41 A
g. Article 51 A
h. Article 21 A

46. Apex body of legislation in India

a. Parliament
b. Assembly
c. Lok Sabha
d. Vidhan Sabha

47. Political stability impacts the business

a. Directly
b. Indirectly
c. No influence
d. None of these
48. Regulation of business is done by
a. Company itself
b. Government
c. Outsiders
d. Directors

49. Too much regulation of business will cause

a. Loss of investments
b. Loss of employment
c. Regional imbalances
d. All of these

50. The best type of regulation is

a. Self regulation
b. Industry regulation
c. Government regulation
d. None of these