Chapter 3 assignment b.

Q1) Which characteristic of the business environment is highlighted when changes are taking place
too frequently and it becomes difficult to predict the future? [1]

(A) Uncertainty (B) Complexity (C) Inter-relatedness (D) Relativity

Q2)

Q3) The government of India made an announcement regarding Demonetization of the Indian
economy on November 8, 2016 with profound implications for it. The process which put restrictions
on convertibility of domestic money and bank deposits was meant to create a less-cash economy.
One argument against the cash-lite economy is that:

(A) Internet connectivity is a prerequisite

(B) More people will be introduced into the formal economy.

(C) Financial saving will increase

(D) Tax evasion will be reduced

Q4) Airlines will be able to offer the benefit of lower pricing to customers on sectors/routes due to
the decision of the civil aviation ministry to remove price caps from August 31, 2022. This can help
an airline to do better performance if they take early decisions regarding future courses of action
after understanding and doing analysis. Which importance of business environment and its
understanding by managers is not highlighted above?

(A) It helps in improving performance.

(B) It helps in assisting in planning and policy formulation.

(C) It helps in tapping useful resources.

(D) It enables a firm to identify opportunities and get first mover advantage.

Q5) “The increase in the demand for many Ayurvedic medicines, health products and services in the
past few months, is related to the need for building immunity and an increased awareness for health
care due to the spread of Coronavirus.” Identify the feature of business environment being described
above.

(A) Specific and general forces (B) Interrelatedness (C) Relativity (D) None of the above
 Chapter 3 assignment b.s

Q6)

Q7) Even though the political conditions vary from country to country, they impact the sentiment of
an investor in the business, if the instability of the political conditions cause uncertainty and make it
difficult for him to predict the future. Which feature of the business environment is being
highlighted in the above statement?

(A) Specific and general forces (B) Dynamic nature (C) Relativity (D) All the above
 Chapter 3 assignment b.s

Q8)

Q9) Explain any three features of business environment. (3)

Q10) Explain any three features of ‘demonetisation’. (3)

Q11) “It is very difficult to predict the changes of Business environment. As environment is changing
very fast for example in IT, fashion industry frequent and fast changes are taking place.”

Identify the feature of business environment being described above. [1]

(A) Complex (B) Inter-related (C) Relative (D) Uncertain

 Chapter 3 assignment b.s

Q12)

Q13) ‘Increased life expectancy of people and increased awareness for health care have increased
the demand for many health products and services like diet coke, fat-free cooking oil, and health
resorts. New health products and services have, in turn, changed people’s lifestyles.’ [1]

Identify the feature of business environment being described above.

(A) Inter-related (B) Relative (C) Specific and general forces (D) Universal

Q14) ‘During Prime Minister’s second address to the nation on the COVID-19 outbreak, on his
appeal, the entire country showed a sense of solidarity and respect towards the doctors, nurses and
other medical staff, sanitation and health workers, police force and all those who are tirelessly
working in this fight against corona. Also, millions of Indians turned off their lights. They lit up
balconies and doorsteps with lamps, candles and flashlights on Sunday, April 5, in response to Prime
Minister Narendra Modi’s appeal to “challenge the darkness” spread by the coronavirus crisis. Thus,
he has unified the country like never before.’ [1]

Identify the dimension of the business environment stated above:

(A) Social environment (B) Economic environment (C) Technological environment

(D) Legal environment

Q15) Hand-woven carpets are banned in some European countries as they think there can be
involvement of child labour in the manufacturing of these carpets. Products produced through the
involvement of child labour are banned in these countries. Identify the dimensions of business
environment stated above. [1]

(A) Legal environment (B) Political environment (C) Social environment

(D) Economic environment

Q16) Explain by giving any two reasons, why in the present day competitive market, it is essential for
a business to remain alert and aware of its environment? (4)

Q17) A company is a component of market. It utilises various raw materials, labour force, human
resources, power, water, other sources, etc. When all these resources are utilised, output is
 Chapter 3 assignment b.s

produced. But before output is produced the input has to go through various operations. These
operations convert the raw materials into final products which are then sold in the market. [1]

In the above paragraph, which importance of business environment is highlighted?

(A) Helpful in improving performance

(B) Helpful in assisting planning and policy formulation

(C) Helpful in tapping useful resources

(D) All of the above

Q18) As part of regulations to be followed by advertisers, the advertisement for a new brand of baby
food for infants provides important information for potential buyers that it is “Not recommended for
in fants under the age of four months”. Which dimension of the business environment is highlighted
in the above statement? [1]

(A) Social Environment (B) Legal Environment (C) Political Environment (D) Economic Environment

Q19) Kamra Ltd. decided to start its new venture in Delhi. For this, they needed to understand the
business environment of the area. It was realised by the company that the business environment of
Delhi was very hard to understand unless and until it was divided into different business dimensions
like legal, political, economic, social and technological conditions. After understanding the business
situations, the company started to study the close links between different elements of the business
environment. They gave a proper shape to their research and the business started with full force.
Later they realised that the products they were selling in Delhi were more fit for the European
culture and decided to start a new branch in Belgium where the demand of their products was very
high from the first day. The company came to be recognised and, in few years, became a global
brand. The reason for its success in different countries was the adaptability it showed in meeting the
changing environment. The company kept track of all happenings and did a periodic survey of the
choices of the customers. It recognised that there was no surety in the nature of market and it was
very unpredictable. Which features of business environment have been highlighted in the above
case? Identify the lines which highlight these features. (3)