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Contents
1 GLOBAL BUSINESS ENVIRONMENT . . . . . . . . . . . . . . . . . . . 2

1.1 GLOBAL BUSINESS ENVIRONMENT . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
1. GLOBAL BUSINESS
NARAYAN CHANGDER
ENVIRONMENT
1.1 GLOBAL BUSINESS ENVIRONMENT

1. If an economy experiences a dramatic rise B. False
in prices, which fiscal policy action could be
taken? 5. What do you call an individual who sets up
their own business?
A. Selling securities on the open market
B. Raising interest rates
C. Reducing government spending
D. Raising reserve requirements
2. Weather conditions can most directly af-

fect the supply of
A. human resources
B. capital goods A. An Enterprise
B. An Entrepreneur
C. natural resources
C. A Stakeholder
D. noneconomic resources
D. none of above
3. Strategy planners first observe the of
the organization. 6. 68) The production of goods by a French
company in Italy for sale in Italy is an ex-
A. Events and trends
ample of an Italian merchandise import.
B. Issues
A. True
C. Expectations
B. False
D. None of the above
7. What are the general macro environments
4. Generally speaking, the more socialist a and forces that affect organizations?
country is the higher the taxes will be. A. Values, beliefs, and behavior of the or-
A. True ganization
1. C 2. C 3. A 4. A 5. B 6. B 7. D
1.1 GLOBAL BUSINESS ENVIRONMENT 3
B. Tangible assets of the organization C. Command

C. Future position, business mission, and D. none of above

objectives
12. Liberalisation signifies:
D. Sociocultural, technological, economic,
government and political, natural disas- A. INTEGRATION AMONG VARIOUS
ters, and human-induced problems ECONOMIES OF WORLD
B. REDUCED GOVERNMENT RESTRIC-
8. Having well-planned buildings and provid-
TIONS & CONTROL
ing effective employee training are ways
that a business can business risks. C. POLICY OF PLANNED DISINVEST-
MENT
A. transfer
D. NONE OF THE ABOVE
B. insure against
C. retain 13. A businesses ability to be profitable for
this generation and the next, without dam-
D. prevent or control
aging natural resources is known as:
9. What does CEO mean? A. Sustainability
A. Central Executive Office B. Flexibility
B. Committee of Essential Operations C. Organisational design
C. Chief Executive Officer D. Hierarchy
D. Chief Education Officer
14. New Gear studied trends in the market-
10. In order to boost and double India’s export place to price their jerseys. There was
of goods and services to over USD 1, 000 an abundance of jerseys remaining after
billion by 2025, it is important to lower meeting the demand creating which mar-
effective corporate tax rate, bring down ket condition?
cost of capital and simplify regulatory and A. equilibrium
tax framework. Identify the related di-
mension of business environment. B. rationing
A. Social dimension and Legal dimension C. shortage

B. Technological dimension and Political D. surplus
dimension
15. It is the degree to which society is uncom-
C. Political dimension and Social dimen- fortable with risk, change, and situational
sion uncertainty.
D. Economic dimension and Legal dimen- A. Individualism-Collectivism
sion
B. Masculinity-Femininity
11. This type of economy exist when the gov- C. Time Orientation
ernment decision-makers determine what
D. Uncertainty Avoidance
goods and services are needed and how
and when they will be produced. 16. What are organizations commonly re-
A. Traditional ferred to as?
B. Market A. Tangible assets of the organization
8. D 9. C 10. D 11. C 12. B 13. A 14. D 15. D 16. B

B. Companies, firms, corporations, insti- C. Retail market

tutions, agencies, associations, groups, D. Stock market
consortiums, and conglomerates Explanation:Retail markets are those mar-
C. Values, beliefs, and behavior of the or- kets that allow us to buy most of our goods
ganization and services.
D. Future position, business mission, and 22. When the organisation provides proper
objectives medical facility to the staff members is re-
sponsibility towards
NARAYAN CHANGDER
17. Reduction in custom duties
A. shareholders
A. Liberalisation
B. government
B. Privatisation
C. employees
C. Globalisation
D. community
D. none of above
23. Face book, Twitter and WhatsApp is the
18. 5) Because many regional trading groups result of
prohibit companies from producing in more
than one member country, companies need A. Political environment
to understand how to evaluate interna- B. legal environment
tional geographic alternatives. C. Technological environment
A. True D. Social environment
B. False
24. In original, business is a system by which
19. Gasoline prices increased 30 cents per gal- it produces goods and services for the sat-
lon. Raylee continued to purchase gasoline isfaction of wants, by using several in-
because her demand and need to commute puts, such as, raw material, capital, labour
to work had not changed. This is an exam- etc. from the environment. This statement
ple of what type of demand? refers to which of the following nature of
business environment?
A. complementary
A. Social Responsibility Approach
B. discretionary
B. Instructive Approach
C. elastic
C. System Approach
D. inelastic
D. Creative Approach
20. Another name for Intermediaries is
25. Consumers are often prepared to pay more
A. Supplier for ‘Brand’ name goods, (especially Lux-
B. Consumer ury brands)
C. Middle Man
D. Regulator
21. Which market allows consumers to buy

goods and services?
A. Financial market
B. Labour market
17. C 18. B 19. D 20. C 21. C 22. C 23. C 24. C

A. because they perceive the quality to be 31. The largest trading market in the world is
superior to similar products the

B. wanting to portray a certain image A. international investment market.
C. they may be influenced by celebrity en- B. long-term capital market
dorsements and advertising. C. U.S. stock market
D. All of the above D. foreign exchange market
26. Using a stream to supply water for crops 32. It is a form of business organizations
is an example of using wherein two or more people share own-
ership of a single business.
A. natural resources
A. Partnership
B. human resources
B. Corporation
C. capital goods
C. C Corporation
D. nonrenewable resources
D. Sole Proprietorship
27. is the difference between the total ad- 33. What are running costs?
dressable demands for external credit com-
pared to the overall supply of finance from A. It is a type of service
the formal sources. B. Manufacturing of products
A. Finance gap C. Day to day costs incurred in operating
a firm or facility/business
B. Liabilities gap
D. none of above
C. Credit gap
D. Assets gap 34. WTO stands for
A. World Trade Organisation
28. profit maximization was aim of which con-
B. World Trading Organisation
cept of business
C. Worldly Trading Organisation
A. old concept
D. none of above
B. new concept
35. Strategy of a firm is shaped by
29. Under which environmental effects IBM A. Vission
and Coca-cola had to leave India? *
B. Mission
A. Political
C. Objectives
B. Technical
D. all of above
C. Social
36. What is an example of a noneconomic
D. Economic want?
30. A limit on the amount of a good that can A. A a haircut
be imported. B. B. sport ticket
A. import quota C. C. a concert ticket
B. export quota D. D. rain for the crops
25. D 26. A 27. C 28. A 29. A 30. A 31. D 32. A 33. C 34. A 35. D 36. D
37. A
37. Investing the business profits at a rate C. human resource

that grows faster than inflation is also D. capital good
known as:
42. Among the various economic system,
A. Hedging
economy is a dominant central-
B. Strategic Alliance Agreements ized authority-usually the government-
C. Persuasion of large investors that controlls a significant portion of the
economic structure.
D. Acquisitions
NARAYAN CHANGDER
A. Traditional economic system
38. Which of the following is not true with ref-
B. Command economic system
erence to planning?
C. Market economic system
A. Planning is a prerequisite for control-
ling D. Mixed economic system
B. Planning does not lead to rigidity 43. External environment includes micro and
C. Planning enables a manager to look factors
ahead and anticipate changes A. internal
D. Planning facilitates coordination B. macro
among departments and individuals in the C. narrow
organisation
D. wide
39. What is consideration?
44. The policy that deals with revenues and
A. usually a monetary value for providing expenditures of
goods or services
A. Monetary policy
B. An accepted offer
B. Fiscal policy
C. An invitation to treat which has gener-
C. Tax policy
ated an offer
D. Revenue policy
D. An offer waiting to be accepted
45. extent to which the members of a society
40. The opportunity cost of Australian house- feel threatened by uncertain and unknown
holds moving away from coal-powered en- situations.
ergy to solar-powered energy includes:(i)
the loss of jobs in the coal industry, (ii) a A. Power distance
cleaner environment, (iii) reduced coal pro- B. individualism/collectivism
duction. C. masculinity/femininity
A. (i), (ii) and (iii) D. uncertainty avoidance
B. (ii) and (iii) E. Confucian/dynamism
C. (iii) only
46. A set of guidelines for maintaining ethics
D. (i) and (iii) in the workplace.
41. When a stove is used in a restaurant A. Code of Ethics
kitchen, it is a B. Code of Conduct
A. noneconomic resource C. Integrity
B. natural resource D. Code of Honor
38. B 39. A 40. D 41. D 42. B 43. B 44. B 45. D 46. A 47. A
47. Any object designed to do a specific kind 52. A large retailer feels that it has a duty to
of work is called a tool contribute to the well-being of society, so
it donates a portion of its proceeds to a

A. True
charity that helps the environment. The
B. False retailer is demonstrating
48. Saree and Suits are the normal dresses A. social responsibility
for ladies in rural India whereas jeans and
trousers are more popular among ladies in B. wholesaling
metropolitan cities. This is an example of C. voluntary chains
which features of business environment.
D. Oh-too spiritual
53. Communist command economies are most

likely to experience which of the following
problems
A. shortage of capital investment
B. surplus of consumer goods
A. Complex C. poor quality products
B. Relative D. high income taxes
C. General Specific Forces
D. Universality 54. It means all the internal and external
factors of that affect how the company
49. What type of market structure is most functions including employees, customers,
commonly found in a private enterprise management, supply and demand, and
economy? business regulations.
A. perfect competition A. Business Environment
B. regulated monopoly
B. Business Firm
C. oligopoly
C. Local Environment
D. monopolistic competition
D. International Firm
50. Which of the following is biodegradable?
A. Plastic 55. is the total amount that a borrower
must pay annually to the lender and above
B. Paper
the total amount borrowed.
C. Glass
A. Inflation
D. None of them are biodegradable
B. Interest rates
51. Q 1. When was NITI Aayog established?
C. Changing of options
A. 1 January 2016
B. 1 January 2015 D. People’s spending habits
C. 1 July 2015 56. What are the benefits of a company being

D. 26 January 2016 known as ethical?
48. B 49. D 50. B 51. B 52. A 53. C 54. A 55. B

60. This type of economy exist when what is

produced and consumed is based on the
combination of the decisions made by in-
dividual consumers and businesses
A. Traditional
B. Market
A. Impact on competitiveness C. Command
NARAYAN CHANGDER
B. Enhances reputation D. none of above
C. Value added
D. All of these 61. 3) In terms of international business, it is
most accurate to say that
57. A stakeholder in the college could be
A. there is a universal “best way” to con-
A. Student duct business
B. Employees
B. global competition affects large com-
C. Suppliers panies but not small ones
D. All of them
C. most firms depend either on foreign
58. Political and legal influences, societal in- markets and supplies or compete against
fluences, economic conditions, technologi- companies that do
cal issues, and global issues are all part of
D. government regulation of interna-
which environment?
tional business has little effect on a com-
pany’s profits
62. A new product, system, or process that

has never existed before is known as a
(n)
A. Internal
B. External
C. Macro
D. Operating
59. What does QUEST stand for?
A. Quick environmental seasonal tech-
nique
B. Quick environmental scanning technol- A. Product
ogy
B. Innovation
C. Quick environmental scanning tech-
nique C. Invention
D. None of the above D. none of above
56. D 57. D 58. C 59. C 60. B 61. C 62. C 63. C

63. What is a sole trader C. factors of production

A. a company that has its shares bought D. functions of business

and sold on the stockexchange
68. What is the name for markets with only a
B. A business which is owned and con- few sellers, such as the markets for auto-
trolled by two or more person mobiles, pharmaceuticals, or oil?
C. A business which is owned and con- A. oligopolies
trolled by one person
B. monopolies
D. none of above
C. perfect competition
64. “Nowadays consumers are health-
D. monopolistic competition
conscious which is giving rise to increase
demand of Organic products.”Which fac- 69. India continues to be a lower-middle-
tor of business environment is highlight in income country along with 46 others,
above statement? while Sri Lanka has climbed to the upper-
A. Legal Environment middle-income group for the fiscal year
(FY) 2020, according to the World Bank’s
B. Social Environment
classification of countries by income levels,
C. Technological Environment released on July 1, 2019. Identify the re-
D. Economic Environment lated dimensions of business environment.
A. Social dimension
65. A exists when private enterprise re-
serves the right to own property and B. Technological dimension
monitor the production and distribution of C. Economic dimension
goods and services while the state sim-
D. Political dimension
ply supports competition and efficient prac-
tices: 70. Globalization is the term used to describe
A. Command Economy process of removal of restriction on
B. Market Economy A. Foreign Trade
C. Mixed Economy B. Investment
D. none of above C. Both (a) and (b)
66. Companies that operate at the interna- D. None of the above

tional level should be aware of political 71. The ultimate forms of quota is tariff.
factors that affect trade, such as civil un-
rest or: A. true
A. business cycles B. false
B. currency rates 72. Unique Ltd. is an electronic goods manufac-

C. competitors turing company situated in Uttar Pradesh.
It is earning low revenue in comparison
D. embargoes to another electronic company ‘Pace Ltd’.
67. Products are commonly known as situated in Delhi. Both the enterprise are
affected by the investors customers, com-
A. needs and wants petitors and suppliers in their respective
B. goods and services locations. At the same time both are also
64. B 65. B 66. D 67. B 68. A 69. C 70. C 71. B 72. C

affected by economic condition, change in 78. Which activities are likely to increase a
technology, etc. firm’s profit?
A. Relatively and complexb) A. Increasing sales and decreasing ex-
penses
B. Specific and general and dynamic
B. Increasing supplies and decreasing
C. Relatively and specific and general production
D. none of above C. Decreasing sales and increasing ex-
NARAYAN CHANGDER
penses
73. Attitude of customers towards innovation,
lifestyle, etc, is part of D. Decreasing supplies and increasing
production
A. Technological Environment
79. Internal resources such as skilled, knowl-
B. Political Environment edgeable staff.
C. Legal Environment A. Strength
D. Social Environment B. Weakness
C. Opportunity
74. the aim of is to integrate the indian
economy with the world economy. D. Threat
A. liberalisation 80. is an effort to reduce the geographical
B. globalisation and political barriers for the smooth func-
tioning of any business.
C. privatization
A. Nationalization
D. none of above B. Globalization
75. The Macro Environment is the wider en- C. Urbanization
vironment in which the business operates D. None of the above
and does therefore not have any control
over. 81. These are not parts of the macro environ-
ment:
A. True
A. Costumers
B. False
B. Competitors
76. There is significant product differentiation C. Economy, demography
in monopolistic competition. D. Vision
A. true
82. New technology is released that allows a
B. false person to move rapidly from one location
to another, how will this affect the airline
77. In business terms, income is the money industry?
A. produced A. Negative effect as customers will
choose this new faster method of travel
B. supplied
B. Positive effect as airlines will be able
C. spent
to replace their old planes with these new
D. received devices
73. D 74. B 75. A 76. A 77. D 78. A 79. A 80. B 81. C 82. A 82. B
C. Neutral effect, airlines will not be ef- C. engaged in prospecting

fected by the technology change D. engaged in price competition

D. none of above
88. Every society must develop a system for
83. Which of the following pieces of legislation deciding how it will use its resources so
prevents monopolies from forming and hin- that it can
ders price fixing A. minimize risk
A. Clayton Act B. meet people’s needs
B. Robinson-Patman Act C. prevent problems
C. Sherman Antitrust Act D. control production
D. Celler-Kefauver Antimerger Act
89. Which of the following does not explain
84. The is the gross fiscal deficit less net the impact of government policy changes
lending of the Central government. on business & industry
A. Capital Account Deficit A. Increasing competition
B. Current Account Deficit B. More demanding market customers
C. Gross Fiscal Deficit C. Market orientations

D. Change in agricultural prices
D. Net Fiscal Deficit
90. 79) Elway, a computer firm, has high for-
85. Which of the following shakes the confi-
eign sales in Asia and wants to expand
dence among the business people to invest
sales into Europe. Which of the following
in the long-term projects:
statements provides the most appropriate
A. New innovation advice for Elway executives?
B. Political instability A. Although countries’ market sizes dif-
C. Technological improvement fer, companies usually face about the
same number of competitors in each na-
D. Change in preference of customers tional market.
86. To increase product competitiveness, the B. In most industries, companies face the
Indonesian government sells shoes at same competitors in each country where
cheaper prices in America, this is the pol- they operate.
icy of C. It takes about the same amount of
A. Dumping resources to gain national distribution in
one country versus another.
B. Subsidy
D. Being a leader in one country does not
C. award
guarantee market leadership in another
D. Rates country.
87. If a consumer chooses to go to the movies 91. Land includes
rather than to a pizza parlor, then the A. The “gifts of nature” or natural re-
movie theater and the pizza parlor are sources not created by human effort.
A. direct competitors B. the tools, equipment, and factories
B. indirect competitors used in production of goods and services
83. C 84. D 85. B 86. A 87. B 88. B 89. D 90. D 91. A

C. people with all their efforts and abili- 96. A popular product is said to be
ties A. in demand
D. individuals who start a new business B. late
or bring a product to market.
C. out of style
92. How does the increase of global busi- D. available
ness operations affect technological inno-
vation? 97. What is a tertiary sector?
NARAYAN CHANGDER
A. businesses that extract resources and
A. It encourages businesses to invest in
rawmaterials from nature e.g. mining
new technologies.
company
B. It discourages businesses from invest-
B. businesses which turn the resource-
ing in new technologies.
sand raw materials into products e.g. fur-
C. It does not have a significant impact on niture manufacturer
technological innovation. C. businesses that provide a service toin-
D. All of the above dividuals and businesses
D. none of above
93. 62) Reebok pays a royalty to the German
Soccer League to use the team’s logo on 98. To reduce the financial burden on the Gov-
t-shirts that it sells. Reebok and the Ger- ernment release larger amount of public re-
man Soccer League most likely have a sources locked up in non-strategic PSU’s
trough
A. turnkey operation contract
A. Disinvestment
B. licensing agreement
B. Investment
C. portfolio investment
C. Production
D. joint venture
D. Nationalisation
94. In civil law who is the case brought by? 99. Establishing a strong customer base, gain-
A. The state ing loyalty, and building relationships are
all examples of which External Operating
B. The government factor?
C. The defendant A. Customers
D. The claimant B. Competitors
C. Suppliers
95. environment involves knowledge, be-
liefs, morals, customs, etc, which are ac- D. Interest Groups
quired by individuals and groups in a soci-
100. Loans received from foreign governments
ety.
are covered under
A. International A. Capital Budget
B. Socio-cultural B. Revenue Budget
C. Demographic C. Income from Exports
D. Natural D. Donations
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101. 1) Political, legal, economic, monetary, A. Seller

and institutional forces comprise the of B. Market
international business and influence man-

C. Social
agers actions.
D. Commercial
A. environment
B. competition 107. Which of the following cultures has a tra-
ditional economic system
C. culture
A. Amazon Rainforest communities
D. threat
B. Villages in the Rocky Mountains
102. Which state is number in human develop- C. Rural areas in Denmark
ment in India D. The Republic of Cuba
A. Kerala
108. Which of the following is a feature of
B. Maharashtra Business environment?
C. Andhra Pradesh A. Rigid
D. Telangana B. Dynamic
103. In business terms, what is profit? C. Relative
D. Uncertain
A. A good investment
B. A holiday bonus 109. In a market economy anyone can start
and operate a business if they have the
C. A monetary reward
resources and ability.
D. A risky venture A. True
104. The processing and storing of data is B. False
known as
110. The Brooks Company produces sneakers
A. VAT and studies trends in the marketplace to
B. Information management price their sneakers. The Brooks Company
supplied as many sneakers as consumers
C. Malware demanded to create which market condi-
D. Competition tion?
105. These factors are beyond the control of A. equilibrium

the management however, have a great B. rationing
impact on the performance, decision mak- C. shortage
ing, and strategy of the business.
D. surplus
A. External Environment
111. Business where economic transactions
B. Internal Environment conducted within the geographical bound-
C. Macro Environment aries of one country is called
D. Micro Environment A. International company
B. Domestic company
106. 5) After new economic policy, there is a
shift from Production oriented approach to C. Transactional company
approach. D. Multi-domestic company

112. Fundamental duties are given in 118. Culture is the accepted behaviors, cus-
A. Article 31 A toms and values of a society.
B. Article 41 A
C. Article 51 A
D. Article 21 A
113. This principle says that only those that
use the good or service should pay the tax
NARAYAN CHANGDER
A. True
A. Ability to Pay
B. False
B. Fiscal
C. Benefits 119. The way in which an exonomic system
D. Monetary answers the basic economic questions de-
pends upon the country’s
114. What does globalization refer to? A. supply
A. Tangible assets of the organization B. government
B. Future position, business mission, and C. demand
objectives
D. products
C. Development of an integrated global
economy 120. Resources that enable businesses to op-
D. Values, beliefs, and behavior of the or- erate are also known as
ganization A. revenues
115. All of the following are ethical implication B. inputs
of using technology EXCEPT: C. outputs
A. Security Issues D. sales
B. Privacy Issues
121. New competition in the market,
C. Human Impact Issues Price wars, Competitors oligopoly and
D. Maximizing Profits monopoly, Taxation policy of the govern-
ment etc will provide to the business.
116. Best method for reducing regional imbal-
A. Completion
ances
B. Challenges
A. Cluster development
C. opportunities
B. Concentrating at single place
C. Incentives for people D. Strength
D. Large scale industries 122. The way a Business divides, organises

and coordinates its activities is an example
117. The law of demand states that buyer will of which Internal Environmental factor?
purchase more of the product as its price
drops and less of the products as its price A. Owner/s/Management
increases. B. Employees
A. true C. Organisational Structure
B. false D. Organisational Culture

123. Which of the following does not explain 128. State the correct order of Environmental
the impact of Government policy changes Analysis?
on business and industry?

A. Assessment, Monitoring, Scanning
A. More demanding customers and forecasting
B. Increasing competition B. Monitoring, forecasting, scanning and
assessment
C. Change in agricultural prices
C. Scanning, monitoring, forecasting and
D. Market orientation assessment
124. The trade policy reforms aimed at D. None of the above
A. Dismantling of quantitative restric- 129. What determines whether an economic

tions on imports and Exports product is an industrial product or a con-
sumer product?
B. Reduction of tariff rates
A. the price of the product
C. Removal of licensing procedures pro-
cedures for imports B. who buys and uses the product
D. All of the above C. the origin of the product
D. who produces the product
125. Which of the following are major eco-
nomic problem in the Caribbean: 130. One way in which a business can show its
social responsibility is by its profits.
A. Unemployment
A. dividing
B. Migration
B. maximizing
C. Economic Dualism
C. reducing
D. Debt Burdens
D. controlling
E. All of the above
131. environment includes policies of the
126. A business can create a wholly owned government.
subsidiary by building a facility in a for- A. Demographic
eign market or by
B. Technological
A. buying an existing firm in the market.
C. Economic
B. finding a franchisee.
D. Social
C. exporting to the market.
132. EDII stands for
D. signing a licensing agreement.
A. Entrepreneurs Development India In-
127. Which factor might attract a multina- stitute
tional corporation to a country? B. Entrepreneurship Design Institute of
A. Good tourist attractions. India
C. Entrepreneurship Development Insti-
B. Cheap raw materials.
tute of India
C. High average monthly wage.
D. Entrepreneurship Development India
D. none of above Institution

133. R & R Real Estate company buys errors 138. What do service businesses sell
and omissions liability insurance. What A. retail merchandise
form of risk management is this?
B. raw goods
A. avoidance
C. wholesale merchandise
B. reduction
D. intangible activities
C. retention
139. 47) The process of shifting production to
D. transfer
NARAYAN CHANGDER
a foreign country is known as outsourcing.
134. Burger King and McDonald’s are exam- A. True
ples of
B. False
A. regulated monopolies
140. You are directed to study the actors close
B. unrelated businesses to the company that affect its ability to
C. dissimilar firms serve its customers-departments within
the company, suppliers, marketing inter-
D. direct competitors
mediaries, customer markets, competitors,
and publics. What are you studying?
135. is aimed at promoting entrepreneur-
ship and job creation at the grassroots A. the macroenvironment
level, especially keeping in mind the Sched- B. the microenvironment
uled Casts, Scheduled Tribes and women.
C. the marketing environment
A. The Make in India initiative
D. the demographic environment
B. The Innovative India imitative
141. What is a contract?
C. The Start Up India initiative
A. A legally binding offer
D. The Stand Up India initiative
B. Acceptance of an offer
136. A science that examines how goods and C. A legally binding agreement enforce-
services are produced, sold, and used. able in a court of law
A. economics D. An invitation to treat which has been
B. customer accepted
C. market 142. Which of the following does not charac-
D. scarcity. terise the business environment?
E. product A. Uncertainty
B. Employees
137. Which of the following is not the element
of political environment? C. Relativity
D. Complexity
A. Constitution of the country
B. prevailing political system 143. John only had $40 to spend and couldn’t
decide whether to buy a new pair of jeans
C. popularity of e-banking
or to go to an amusement park. He fi-
D. Level of political morality nally decided to spend his money on the

amusement park. What was the opportu- C. Traditional

nity cost?
D. Market

A. new pair of jeans
B. $40 148. What are the three basic economic ques-
tions?
C. trip to amusement park
A. When will products be produced, how
D. no opportunity cost was involved
will products be produced, and how will
144. Devon, an accounts manager at a large products be allocated
electronics firm, does not have any di- B. When will products be produced, what
rect international responsibilities; how- products will be produced, and how will
ever, Devon would most likely benefit products be allocated
from studying international business is-
sues so that he can C. What products will be produced, how
will products be produced, and how will
A. conduct better job interviews
products be allocated
B. better understand how foreign opera-
D. Where will products be produced,
tions affect the company’s competitive po-
when will products be produced, and what
sition
products will be produced
C. supervise and evaluate subordinates
who have global assignments 149. It is ideal to use the PESTLE analysis only
D. understand the legalities of importing during if you have encountered a problem
and exporting products overseas in your own business.
145. Explain the Public and Private Sectors A. TRUE
A. .Owned by the Government.Has collec- B. FALSE

tive goods
150. Capital refers to
B. Owned by private Entrepreneurs
A. The “gifts of nature” or natural re-
C. Aim is to satisfy customer’s needs and
sources not created by human effort.
wants
D. Owned By Cuba B. people with all their efforts and abili-
ties
146. The funds needed to create an operate
C. the tools, equipment, and factories
business enterprise can be referred as
used in production of goods and services
A. physical resources
D. individuals who start a new business
B. the money supply or bring a product to market.
C. capital
151. Business has control over the MAR-
D. information resources
KET Environment
147. Which of the following types of economic A. Complete
systems adopts the fewest new ideas or
improvements? B. Some Control/influence
A. Command C. No
B. Socialist Command D. none of above

152. Swachh Bharat Abhiyan started by BJP C. Medium

government is part of D. Small
A. Legal Environment Explanation:A small business is classified
B. Economic Environment as one with under 20 employees. This
example cannot be a global business, as
C. Political Environment they only operate from one office.
D. Social Environment
157. Value of country’s currency goes down
NARAYAN CHANGDER
153. Friedrich Engels A. appreciation
B. depreciation
158. What is it called when a product loses

value over time?
A. Depreciation
B. Inflation
C. Assets
D. Growth
159. What do physical resources of the orga-

nization refer to?
A. Capitalism A. Human resource
B. Communism B. Technical know-how of the organiza-
tion
154. Equality
C. Tangible assets of the organization
A. Communism
D. Values, beliefs, and behavior of the or-
B. Capitalism ganization
155. What are consequences? 160. What is the threat of new entrants in bar-
A. something that is possible but is not riers of entry?
yet real A. Legal and government created barri-
B. money charged to do something for a ers
service B. Corruption barriers
C. task that demands time and effort to C. Free entry barriers
complete
D. illegal and fraud barriers
D. the results (positive or negative) of an
action or decision 161. Which one of the following is not an eco-
nomic factor?
156. A business employs 15 people who all
work in one office in the city. What would A. GDP
this business be classified as? B. Disposable income
A. Global C. National income
B. Large D. Vission and mission

162. Which of the following is NOT one of the 167. What does A represent?
basic questions that all economic systems
must answer:

A. What to produce
B. How to produce
C. How much to produce
D. For whom to produce
163. Which one of the following groups of A. Demand Curve

words best describes wants? B. Supply Curve
A. limited, changing, and compensating C. Equilibrium point
B. unlimited, changing, and competing D. Equilibrium price
C. limited, unchanging, and competing E. Equilibrium quantity
D. unlimited, unchanging, and compen- 168. In a highly competitive market, what
sating strategies can businesses use to stay com-
petitive?
164. Which of the following determines
whether consumers can purchase goods A. Lower quality, increase advertising,
or services and reduce workforce
B. Increase prices, focus on marketing,
A. buying power
and expand their product range
B. labor costs
C. Reduce costs, develop their brand, and
C. competition identify unique selling points
D. production costs D. Increase costs, decrease advertising,
and rely on customer loyalty
165. It is the degree to which a society values
assertiveness and feelings of material suc- 169. Under the , irrespective of any rise or
cess versus concern for relationships. fall in price of a commodity, the quantity
demanded remains the same.
A. Uncertainty Avoidance
A. Relatively Elastic Demand
B. Masculinity-Femininity
B. Unitary Elastic Demand
C. Time Orientation
C. Perfectly Inelastic Demand
D. Power Distance
D. Perfectly Elastic Demand
166. For how many industries, licensing is still 170. Forms of international investment are:
necessary?
A. Investing in enterprises with 100% in-
A. 6 ternational capita
B. 4 B. International franchising
C. 8 C. International franchising
D. 9 D. Exporting goods

171. 87) A company with limited resources is C. government decides production activi-
more likely to achieve national distribution ties
within a small country than within a large D. government works for social welfare
country.
177. The elements like growth, employment,
A. True
inflation and interest rates would be cov-
B. False ered under which macroenvironment fac-
tor?
172. It uses “Fund Accounting” which deals
NARAYAN CHANGDER
with the administration or use of public A. Economic
community funds to bring about service to B. Social
the people. C. Technological
A. Cost Accounting D. Political
B. Financial Accounting
178. Which gas is mainly responsible for the
C. Government or Non-Profit Accounting green house effect?
D. none of above A. right
173. Regional disparities arise because of B. O2
A. Negligence of some areas C. Ill
B. Lack of planning D. Water Vapours
C. Lack of skill set 179. The importance of understanding of busi-

ness environment is signified by:
D. All of these
A. The importance of understanding of
174. If your proprietary know-how of “green” business environment is signified by:
processes is difficult to transfer to other B. coping with rapid changes
firm, the most effective strategy would be
C. improvement in performance
A. Foreign Direct Investment
D. all of the above
B. Licensing
180. What is Government departments and
C. Exporting
agencies
D. none of above
A. an organization that is set up to raise
175. Which of the following is not a character- funds and support other people or agood
istic of the Business Environment? cause
A. Simple B. A body that is owned by the people who
work for it
B. Complex
C. Operated by the government and
C. Multi-faceted staffed by civilservants
D. Dynamic D. none of above
176. What is the role of the government in cap- 181. Unemployment, interest rates, inflation,
italism? taxes, tariff falls under
A. government controls the prices A. Micro-economic environment
B. government has no role B. Macro-economic environment

182. economic reforms have the role of the B. market for labour
public sector. C. per capita income

A. increased D. customs of people
B. reduced
188. In some places, a company can have ex-
183. The lowering or elimination of protective clusive control of the supply of a good or
tariffs and other trade barriers between service such as the trash service. This is
two or more nations. an example of:
A. free trade A. A price competition.
B. protectionism B. B. price discrimination.
C. balance of trade C. C. nonprice competition.
D. none of above D. D. a regulated monopoly.
184. What does cascade mean? 189. Disinvestment is an example of

A. The process of making sure that things A. Capital expenditure
are done in the expected way B. Capital receipts
B. To pass information to a succession of C. Revenue receipts
others
D. USE
C. is the number of people that individu-
als are responsible for in an organization 190. 5) The principle that an individual has the
freedom to pursue his or her interests is
called
D. none of above
A. socialism
185. Management is essential for the organi-
B. totalitarianism
sations which are
C. individualism
A. Non-profit organisations
D. collectivism
B. Service organisations
C. Social organisations 191. 70) The Economic Freedom Index indi-
cates that economic freedom is positively
D. All of the above
correlated with all of the following EXCEPT
186. How can a business reduce the risk of fail-
ure? A. A) life expectancy
A. By selling less products B. By literacy
B. By keeping the cost of their products C. O) environmental sustainability
low
D. D) Diversity
C. By carrying out market research
192. Which of the following are the impact of
D. By staying open late. govt. policy changes on business & indus-
187. Which of the following you will not in- try? *
clude in economic environment A. Increased competition
A. economic policies of government B. More Demanding customers

C. Need for change C. how cultural homogeneity threatens

D. All of the above the cultural foundation of smaller nations
D. how global interests can conflict with
193. Normally industries prefer locations near a country’s local interests
to
A. Source of raw material 197. Monte works for a grocery store that
buys food from producers and then sells
B. Sea it to customers. The grocery store is an
example of a:
NARAYAN CHANGDER
C. Cities
D. Mountains A. builder.
B. trade industry.
194. 6) According to the A.T. Kearny/Foreign
Policy Globalization Index, countries C. service business.
A. tend to be ranked similarly on all four D. raw-goods producer.
dimensions
198. It involves the preparation of tax re-
B. are more globalized on the political di- turns, interpretations, and application of
mension than on personal contact tax rules in the determination of tax lia-
C. that are large in land mass and popu- bility, analyzing tax effect on a firm’s or
lation are less globalized than small coun- individual’s projects or plans.
tries A. Forensic Accounting
D. sometimes rank high on one dimension B. Cost Accounting
and low on another
C. Tax Accounting
195. Choose the odd one out: D. none of above
A. Liberalisation
199. Can an appeal be heard in the same court
B. Privatisation in which the case was first heard?
C. Digitalisation A. Sometimes if it’s a minor case
D. Globalisation B. No
196. 40) Limitation of logging in the Amazon C. Yes
region is generally viewed as environmen- D. This depends on the judge’s decision
tally beneficial for the planet as a whole;
however, unemployed Brazilian workers 200. As a result of major government initia-
have felt that job creation inside Brazil tives, more and more people are going
is more important than climate protection ‘green’. In order to keep in line with the
outside Brazil. This example best illus- trend, ‘Clapaway’ a carpet cleaning com-
trates which of the following? pany has advertised that they only use
natural cleaners that come from renew-
A. why smaller countries are concerned able resources and that all their service
that large international companies are vehicles are hybrid vehicles that use both
powerful enough to dictate operating gas and electricity. Identify one of the
terms points related to the importance of busi-
B. why globalization is needed to foster ness environment and its understanding by
uniform standards for combating environ- managers which is being highlighted in the
mental problems above case.

A. It helps in assisting in planning and pol- 206. What is the main motive of an en-
icy formulation. trepreneur under capitalism?

B. It helps in coping with rapid changes. A. social welfare
C. It helps in improving performance B. government welfare
D. It enables the firm to identify opportu- C. maximum labourers
nities and getting the first mover advan-
tag D. maximum profit
201. A document that is signed off by all own- 207. It includes all internal and external fac-
ers when the company is formed is a: tors that affect the performance of the
A. Memorandum of association company.
B. Articles of association A. Environmental Analysis
202. Which of the following is a characteristic B. Environmental Scanning

of economic services C. Business Analysis
A. useful D. Business Environment
B. tangible
208. Markets are not always perfectly com-
C. nontransferable
petitive and some firms consistently out-
D. freely available to everyone perform industry averages. This suggests
that firm performance is also influenced
203. Forces and events outside a company
by the presence of bright, motivated man-
have the potential to influence or affect it.
agers and their keen sense of innovative
A. Internal Environment products or processes.
B. External Environment A. True
C. General Environment
B. False
D. Specific Environment
209. Which business environment does not af-
204. How does an increase in disposable in- fect the function of the business?
comes affect demand for a product?
A. forces of economic factors
A. It leads to a decrease in demand
B. It depends on the type of product B. forces of changing factors
C. It has no effect on demand C. forces of technological factors

D. It leads to an increase in demand D. forces of social factors
205. What is criminal law? E. forces of political factors
A. It is a form of private law relating to 210. Legal environment includes:

unacceptable conduct
A. government policies related to pricing
B. It settles disputes between individuals
B. the constitutional framework
C. It is a form of public law relating to un-
acceptable conduct C. goverment policies related to import
and export
D. It ensures damages are paid to an in-
jured part D. all of the above

211. Which best identify Internal factors influ- 216. The level of Management that makes
encing financial decisions? strategic decisions
A. Age A. Lower
B. Gender B. Middle
C. Occupation C. Top
D. Social Influences D. none of above
NARAYAN CHANGDER
E. Marketing 217. The difference between a business’s rev-
enues and its expenses is called “sales”
212. Disturbances in the environment may ei- A. true
ther bring threats or opportunities for the
firm? B. false
A. True 218. Why are entrepreneurs important in a pri-

vate enterprise system?
B. False
A. They get rid of competition
213. Stand-Up India scheme for financing SC / B. They use resources inefficiently
ST and / or Women Entrepreneurs is facil-
itated through C. They encourage the development of
new products
A. Industrial Finance Corporate of India
D. They are responsible for deceptive ad-
B. Rural Banks vertising
C. Small Industries Development Bank of
219. How many factors make up the Operat-
India
ing Environment?
D. Reserve Bank of India A. 3
214. ITC Hotels made a study of the business B. 4
environment and planned to open in In- C. 5
dia and abroad.
D. 6
A. Factories
220. What is Primary Research?
B. Hotels
A. Primary Research involves gathering
C. Shops new data that has not been collected be-
D. Offices fore. For example, surveys using ques-
tionnaires or interviews with groups of
215. Setting a limit on the quantity of a prod- people in a focus group.
uct that may be imported or exported B. Primary Research involves gathering
within a given period to regulate interna- existing data that has already been pro-
tional trade is called? duced. For example, researching newspa-
A. Tariff pers
B. Embargo C. Primary Research involves gathering
existing data that has already been pro-
C. Quota
duced. For example, researching the in-
D. Deal ternet

D. Primary Research involves gathering 225. What is the business environment?

existing data that has already been pro- A. All the happenings outside a business
duced. For example, researching com-

will affect its strategic plan
pany reports.
B. To pass information on to a succession
221. The importance of business environment of others
which helps to know in advance forthcom- C. sets out the core values of the organi-
ingconstraints and threats of business is zation and what it believes in.
A. Assist in planning and policy making D. none of above
B. Helpful in getting first mover advan-
226. This image represents which features of
tage
Business environment?
C. Early warning signals
D. All of the above
222. When does a company has greater power

to charge higher prices and set the terms
of deals to achieve higher sales and prof-
its.
A. When competitive rivalry is low.
A. Complex
B. When competiyiverivarly is high
B. Inter related
C. When competitive rivalry is medium
C. Relative
D. Dynamic
223. Identify the feature of business environ-
227. Backward areas require
ment from following statement.Business
environment have some forces which ef- A. Financial assistance
fect business firms directly but some fac- B. Entrepreneurial support
tors affect them indirectly.
C. Tax incentives
A. Complexity
D. All of these
B. Inter-relatedness
228. Which function does the follow-
C. Relativity
ing?Planning control and performance im-
D. Specific and general forces provement
224. extent to which long-termism or short- A. Marketing

termism appears to be the dominant ap- B. Human resource
proach; C. Operations
A. Power distance D. Information technology
B. individualism/collectivism
229. Which natural disaster uses the Richter
C. masculinity/femininity scale to measure strength?
D. uncertainty avoidance A. Earthquake
E. Confucian/dynamism B. Tornado

C. Tsunami C. Technical
D. Hurricane D. All of the Above
230. This characteristic of a Mixed Economy 234. What is Capitalism?
describes the natural rivalry created when A. A system where the government con-
two businesses offer the same, or similar, trols business
goods.
B. Capitalism is an economic system
A. Competition
where the means of production are pri-
NARAYAN CHANGDER
B. Freedom of Enterprise and Choice vately owned and operated for profit!
C. Private Property C. A economic system in which the people
D. Motive of Self-Interest have limited rights
D. An economic system in which most
231. A business concept that goes further
property and resources, such as facto-
than domestic business and is not just ex-
ries or farms, are publicly owned or con-
port marketing, but is further involved in
trolled.
the marketing environment in the country
where the company does business is 235. The Union Cabinet has given ‘in-principle’
A. international business nod to divest stakes in Air India-a wholly
government owned airline. This means the
B. transnational business
government is willing to shed a substan-
C. global business tial portion of its stake and hand over the
D. multinational business management of the ailing airline to the pri-
vate sector. Identify the concept being de-
232. A country is facing an economic slow- scribed in the above lines
down and a high unemployment rate. The
A. Globalization
country’s government decided to provide
subsidies to the export sector to increase B. Privatization
its competitiveness in the international C. Liberalization
market. What is the purpose of this sub-
D. Demonetization
sidy policy?
A. Increase imports of goods from trad- 236. Choose a correct statement
ing partner countries. A. Chinese languages:Mandarin or Can-
B. Encouraging growth and job creation tonese continue to remain the common
in the export sector. language of communication in Hong Kong
C. Strengthening the domestic currency. B. Hong Kong’s social and ethnic fabric is
D. Reducing the country’s trade deficit. a unique blend of cultures and people ren-
dering a cosmopolitan lifestyle
233. With the introduction of Photostat Ma- C. Singapore is considered an difficult
chines in the market, the carbon paper place to adapt to when relocating from
industry was adversely affected. Which elsewhere, because English is not widely
component of environment was responsi- spoken there
ble for it?
D. In Singapore, the salary tax may be as
A. Economic high as 45% for those earing over SGD
B. Political 320, 000

237. Emerging customer needs would be con- B. a foreign national company

sidered a C. an international corporation

A. Political Factor D. a virtual business.
B. Economic Factor
242. Consistently monitoring similar busi-
C. Social Factor nesses is an appropriate action to remain
D. Technological Factor competitive. True or False?
238. Change in taxes is part of A. True

A. Economic environment B. False
B. Political environment 243. Religion, customs and traditions found in
C. Legal environment a country may affect businesses operating
in that area. The above-mentioned factors
D. Legal environment are often referred to as
239. 78) The same automobile company pro- A. legal factors
duces Fiats and Ferraris. The company B. cultural factors
builds an engine plant in China with low
production costs for Fiats but not Ferraris. C. political factors
The probable reason is that D. ethical factors
A. Fiat competes mainly on a focus strat-
244. Global business environment refers to all
egy, whereas Ferrari competes mainly on
the conditions in different countries that
a mass-market strategy
can affect how a company makes decisions
B. Fiat competes mainly on a mass- about using its resources and skills.
market strategy, whereas Ferrari com-
A. True
petes mainly on a focus strategy
B. False
C. Ferrari faces global competitors in
China, whereas Fiat competes in China 245. Tangible goods that organizations use in
mainly against Chinese competitors conducting their business can be referred
D. although Ferrari did not build an en- as
gine plant, it will use the same Fiat en- A. physical resources
gines in its models
B. the money supply
240. If a new Government is elected, this C. capital
would be a ?
D. information resources
A. Political change
B. Economic change 246. Formal trade barriers are culture, tradi-
tions, and religion of a country.
C. Legal change
A. TRUE
D. Technological change
B. FALSE
241. A company that transcends national
boundaries and is not committed to a sin- 247. Globalization does not involve *
gle home country is A. Reduction of barrier
A. a global business B. Free flow of capital

C. Global mechanism for settlement of 252. is a market structure with a small

economic disputes number of firms, none of which can keep
D. Free flow of goods & services the others from having significant influ-
ence.
248. It is an advantage of a corporation where
company owners are only liable for the A. Duopoly
amount they invested. Creditors and B. Oligopoly
lenders have no claim to the owners’ per-
C. Monopoly
sonal assets for payments owed by the
NARAYAN CHANGDER
shareholders. D. Monopolistic Competition
A. Limited Liability
253. In today’s world, the flow of goods and
B. Source of Capital
services is not only cheap and fast, but re-
C. Competent Management liable and secure. You can order anything
D. Unlimited Life you wish from any part of the world. In-
ternet has been connecting people without
249. 17) Which of the following has NOT been any limitations or boundaries in the way of
a major force increasing globalization in re- doing business. Identify the concept being
cent decades? described in the above lines.
A. liberalization of cross-border trade
A. Liberalization
B. increase in and expansion of technol-
ogy B. Globalization
C. growing pressure from consumers C. Demonetization

D. decreasing prices of natural resources D. Privatization
250. Planning commission 254. An example of an internal environmental
A. Formulates the plans factor is
B. Approves the plans A. Legal issues eg consumer law
C. Apex body for plans
B. Suppliers
D. None of these
C. Employees
251. What is meant by innovation in business?
D. Competitors
255. What is a Public limited company:

A. A body that is owned by the people who
work for it
B. A company that is owned by sharehold-
A. paying employees more ers. They are usuallysmaller that public
B. changing an existing process or prod- limited companies and tend to be family
uct to make it better businesses
C. gaining a competitive advantage C. a company that has its shares bought

and sold on the stockexchange
D. behaving in a sustainable and ethical
manner D. none of above

256. There are 5 main macro factors that will 261. Planning is a
impact the success of a business. A. Managerial function

A. True B. Economic function
B. False C. Promotional function
257. The federal government’s overall ap- D. None of these
proach to spending and taxes is called
262. It is a form of business organization that
A. Physical Policy is considered by law to be a unique entity,
B. Fiscal Policy separate from those who own it.
C. exercise A. Partnership
D. Monetary Policy B. Corporation
258. Approval body for plans in India C. Non-Profit Corporation
A. National Development Council D. Sole Proprietroship
B. Planning Commission 263. The Reserve Bank of India reduces CRR

(Cash Reserve Ratio) by 0.5% to control
C. Prime Minister
recession.This is related to which dimen-
D. President of India sion of Business Environment.
259. Business has control over the MACRO A. Political Environment
Environment B. Social Environment
A. Complete C. Economic Environment
B. Some Control/influence D. Legal Environment
C. No
264. Great communication skills and analytical
D. none of above abilities is an example of a type of
260. You want to buy a new video game and A. Strength
a new pair of sneakers. You only have B. Weakness
enough money to buy one of them. If you
C. Opportunity
buy the video game, what is your trade-
off? D. Threat
265. Plans and Policies of the organisation

would be covered under which form of en-
vironment?
A. Social Environment
B. Political Environment
A. The money you spend on the video C. External Environment

game D. Internal Environment
B. The video game 266. Disinvestment of shares of public sector
C. The sneakers industrial enterprises.
D. none of above A. Liberalisation

B. Privatisation 271. What is Ethics to do with?

C. Globalisation A. Business
D. none of above B. The wider community
267. Which of the following types of informa- C. Right and wrong
tion and communication technology (ICT)
D. Nothing
can be considered a specialist application?
A. Microsoft Word 272. The global business environment can be
NARAYAN CHANGDER
B. Powerpoint classified into the external environment
and the internal environment.
C. Microsoft Excel
A. True
D. Accounting Quickbooks
B. False
268. Bond paper, envelopes, folders are exam-
ples of 273. 50) Assume that company executives at
A. Materials the firm would like to increase sales by
expanding into an international market.
B. equipment
Which of the following factors, if true,
C. technology best supports a decision to expand sales
D. tools globally?
A. It can offshore most of its production.
269. What is a cost?
B. It can obtain all of its resources for the
same price overseas.
C. Its costs of making additional sales
would not increase disproportionately.
D. The foreign market has higher real in-
terest rates.
274. Since every country has its own govern-

A. the item you receive after you pay
ment, policies, laws, cultures, languages,
B. giving up one thing for another currency, time zones, and inflation rate,
C. the amount of money paid for some- navigating the global business landscape
thing can be difficult.
D. none of above A. True
270. When the company organises sport meet B. False

for the general public for a particular local-
275. All of these are included in Hofstede’s cul-
ity
tural dimensions except
A. Responsibility towards employees
A. Power distance
B. Responsibility towards Community
B. Individualism
C. Responsibility towards government
C. Masculinity/femininity
D. Responsibility towards Sharehold-
ers/investors D. Certainty avoidance

276. Which of the following are elements of 281. Since more number of people have be-
the micro environment? come more beauty and health conscious,
our economy has witnessed an unprece-

A. Business functions
dented surge in the number of health and
B. Resources beauty spas and wellness clinics. Related
feature of business environment being de-
C. Business Policy
scribed in the above lines is-
D. Industry regulators
A. Totality of external forces
277. When there is not enough of a resource B. Interrelatedness(
available for everyone to have as much of C. Dynamic nature
it as desired, the resource is
D. Relativity
A. unlimited Explanation:Interrelatedness, as the dif-
B. limited ferent elements or parts of business en-
vironment are closely interrelated
C. natural
282. What is a benefit?
D. human
278. .Globalisation signifies:

A. integration among various economies
of the world
B. disintegration among various A. the item you receive after you pay for
economies of the world it
C. removal of economic licensing B. giving up one thing for another
D. none of the above C. the amount of money paid for some-
thing
279. To prepare for effective decision-making
D. none of above
that ensures the efficient delivery of prod-
ucts to the marketplace, one should study: 283. Which of the following is NOT a factor in
A. A job outlook. the international business environment?
B. B. supply chains. A. political and legal

B. sociological
C. C. economics.
C. cultural and social
D. D. marketing.
D. geographic
280. Anything that can be bought and sold.
284. the main types of trade protection have
A. economics been
B. customer A. voluntary export restraints, voluntary
cash flow remittances and retrocapital
C. market
flows
D. scarcity.
B. financial barriers that make imports of
E. product lower quality

C. financial barriers that increase the 289. Which of the following is examined when
cost of imports and lower production discussing a country’s quality of life?
costs of domestic rivals A. Level of Crime
D. embargoes quota and quarantine B. Availability of Healthcare
285. Businesses must be careful about increas- C. Availability of Fast Food

ing the prices of their goods to increase D. Life Expectancy
profits because the result may be that they
NARAYAN CHANGDER
290. Offering higher wages, employee-
A. have to find new suppliers assistance programs, and benefits are re-
B. lose sales to competitors sponses to limited
C. increase their operating expenses A. natural resources

B. capital goods
D. lose their stockholders
C. human resources
286. One of the differences between private D. noneconomic resources
enterprise and other types of economic
systems is that in other systems, workers 291. The Federal government is concerned that
economic growth is too high, that it is un-
A. may be prohibited from improving their
sustainable, and that inflation is resulting.
standard of living
Which of the following fiscal policies might
B. are able to make a wide variety of eco- be enacted to reduce inflation?
nomic choices A. Increasing taxation
C. are allowed to change jobs whenever B. Open market sales
they want to do so
C. decreasing taxation
D. can go to work for themselves if they
D. Increasing government spending
are dissatisfied
292. when people who are blacklisted/unable
287. 1) consists of specific learned norms to get credit at the bank, loan small
based on attitudes, values, and beliefs of amounts of money at large interest rates
a group of people. from someone willing to take a higher risk
A. Ethnology A. Microlending
B. Civilization B. Micro loan
C. Culture C. Demographics
D. Doctrine D. Gambling
293. The current or emerging trends in

288. limit placed on the quantities of a product
lifestyle and fashions refer to environ-
that can be imported
mental analysis.
A. tariff A. Political
B. quota B. technical
C. embargo C. demographic
D. none of above D. Social

294. An examination of the organization’s

Strengths, Weaknesses, Opportunity &
Threats

A. Business Plan of Action
B. SWOT Analysis
C. PEST Analysis
D. Mission Statement
295. When the price of Bluetooth speakers in-

creases, the quantity of Bluetooth speak-
ers offered for sale will increase. This is A.
an example of the law of
A. supply
B. cost of production
C. demand
D. standardization
296. The environment consists of the

larger societal factors that affect the
working of a firm.
B.
A. micro
B. macro
C. internal
D. none of above
297. The components of the business environ- 299. Media plays important role in public life
ment keeps on changing due to changes
A. Agree
in the various circumstances. That shows
business environment as B. Disagree
A. dynamic 300. Infrastructure is a significant factor that
B. complex affects the economic development of a
country.
C. uncertain
A. TRUE
D. relative B. FALSE
298. The following are all advantages of mon- 301. extent to which less powerful members
etary policy:a) Implemented quickly eas- of organizations within a country expect
ilyb) Central Banks are independent politi- and accept that power is distributed un-
cally neutral equally.

A. Power distance 306. an inherent capacity of an organization

B. individualism/collectivism which helps it gain a strategic advantage
over its’ competitors.
C. masculinity/femininity
A. Strength
D. uncertainty avoidance
B. Weakness
E. Confucian/dynamism
C. Opportunity
302. The study of population factors is called: D. Threat
NARAYAN CHANGDER
A. anthropology
307. the forces of business environment that
B. economics affect all business houses are known as
C. demographics A. general
D. sociology B. specific
303. 1) The widening set of interdependent re- C. particular

lationships among people from different D. influential
parts of the world is known as
308. The basic role of the United States gov-
A. globalization ernment is to
B. offshoring A. protect U.S. citizens
C. franchising B. maintain control of prices
D. outsourcing C. increase production
304. Competition Act 2002 enabled D. limit business startups
A. Repeal of MRTP Act 1969 309. When a rival’s product on the market
B. More stringent rules reduces sales of your company’s product,
your company is experiencing strategic
C. Tight control over mergers
risk caused by
D. None of these
A. regulatory and political issues
305. What does B represent? B. changing customer needs
C. obsolescence
D. competition
310. Trade between two contries is known as

A. Multi lateral trade
B. Bilateral trade
C. Unilateral trade
A. Demand Curve
D. none of above
B. Supply Curve
311. It involves the preparation and interpre-
C. Equilibrium point tation of financial statements primarily in-
D. Equilibrium price tended for external users.
E. Equilibrium quantity A. Bookkeeping

B. Financial Accounting 317. Which of the following is most likely a

true statement about the global economy
C. Management Accounting
since the 1980s?

D. none of above
A. Socialist governments are intervening
more in global exchanges.
312. Water and air are examples of re-
sources, while people are considered to be B. Wealthy countries are exercising total
resources control over emerging markets.
A. natural; human C. Developing countries are losing grow-
ing shares of their foreign-exchange re-
B. physical; mental serves.
C. capital; human D. Emerging economies are adopting the
D. mental; natural principles and practices of free markets.
318. Business development

313. deficit in balance of payments arises
when foreign payments for exceeds A. An art
foreign receipts from B. A science
A. import, export C. Both
B. export, import D. None
314. What is a depreciation? 319. Which of the following is not true about
using a Tribunal?
A. A cash outflow.
A. Quicker
B. Accounting expression for the act of B. Legal aid is available
selling an asset.
C. Cheaper
C. An income-decreasing expense that
does not affect cash-flows. D. Case heard by an expert
D. A side calculation done by auditors. 320. An example of Opportunities or Threats

from the external environment
315. Culture has strong influence in A. Competitors
A. Eastern countries B. GDP per capita
B. Western countries C. Sales
C. Developed countries D. Strengths
D. None of these 321. Considering the nationwide lockdown
amid COVID-19 pandemic, ICICI has
316. New competitors are entering the mar- launched mobile ATM facility to let peo-
ket, this is an example of a(n) ple stay safe at their homes. Which im-
A. Strength portance of business environment is high-
lighted here?
B. Weakness
A. Helps in getting first mover advantage
C. Opportunity
B. Helps in identifying early threat sig-
D. Threat nals

C. Helps in tapping resources B. Economical

D. Helps in adapting with the rapid C. Political
changes
D. Lawful
322. 4) Identify out of the LPG, which one is
highlighted:Easy movement of information
and technology with rest of the world. 327. Capital markets are used to finance short-
term debt of less than a year.
A. Liberalization
NARAYAN CHANGDER
B. Privatization A. True
C. Globalization B. False
D. None
328. What is the big picture of an organiza-
323. Which of the following terms is defined
tion’s external environment inclusive of?
as “conduct based on or authorized by law
which is established by society to main- A. Delegation of tasks, coordination, and
tain order and protect people and property supervision
from harm?”
B. Future position, business mission, and
A. Moral behavior
objectives
B. Legal behavior
C. Sociocultural, technological, eco-
C. Ethical behavior
nomic, and government forces
D. Mannerly behavior
324. is a purchase of an interest in a com- ganization
pany by a company or an investor located
outside its borders.
329. The market for clothing is best character-
A. Urbanization ized as monopolistic competition.
B. FDI
A. true
C. Importing
B. false
325. Value of second-best choice is opportu- 330. Customers cast economic votes every
nity cost of producing first product time they:
A. comparative advantage
A. buy a product.
B. competitive advantage
C. absolute advantage B. visit a business.
D. none of above C. give their opinion.
326. factors includes changes to legislation D. participate in a survey.

impacting employment access to materials-
quotas resources, imports / exports and 331. Consumers’ purchasing decisions can be
taxation. influenced by a company’s marketing or
A. Legal advertising methods.

336. A demographic market segment refers to:

A. a portion of the market that shares the
same age, gender, amount of income, eth-
nicity or religion.
A. True B. a portion of the market that shares the
same level of knowledge.
B. False
C. a portion of the market that comes
332. When parastatals are sold to individuals from the same region, state or nation.
because they are not profitable as state
owned businesses D. a portion of the market that shares the
same attitudes and opinions.
A. Nationalisation
B. Privatisation 337. The four factors contributing to the Exter-
nal (Operating) Business Environment in-
C. Spending power
clude:
D. Eskom
A. Owners/Management, Employees,
333. 8) One of the components of New Indus- Organisational Culture, Organisational
trial Policy has led to reduction in tax rates Structure
and lifting of unnecessary control and re- B. Customers, Clients, Suppliers, Distrib-
strictions over private sector? utors
A. Liberalization
C. Employees, Employers, Customers,
B. Privatization Clients
C. Globalization D. Customers, Competitors, Suppliers, In-
D. None terest Groups
334. Value of country’s currency goes up com- 338. The business environment is dynamic in
pared to another country’s nature
A. appreciation A. True
B. depreciation B. False
335. To use resources wisely, business owners
339. 4 Understanding trade theories helps
must reduce
companies know if they will need to com-
A. risk pete against goods and services produced
B. reward abroad.
C. waste A. True
D. wages B. False

340. Economic “votes” are cast by consumers 346. are comprised of those who work for
each time they another or for an employer in exchange of
A. make a purchase salaries/wages or other considerations.
B. visit a business A. Customers
C. respond to a survey B. Employees
D. participate in market research C. Stakeholders

D. Suppliers
NARAYAN CHANGDER
341. What is the full form of LPG:
347. All of the following are included in the
A. Liberalisation, Planning and Govern-
Human Development Index (HDI) EXCEPT:
ment
A. GDP Per Capita
B. Liability, Public and Gratification
B. Levels of Poverty
C. Liberalisation, Privatisation and Glob-
alisation C. Standard of Education
D. Liquid Petroleum Gas D. Life Expectancy
342. Successful organisations do not achieve 348. Which of the following best defines a
goals by chance but by following a deliber- multinational corporation?
ate process known as A. A company that exports to many coun-
A. Planning tries
B. Co-ordination B. A large company that imports from
many countries
C. Controlling
C. A company that operates in many dif-
D. Management
ferent countries
343. “The U.S. Federal Reserve is almost cer- D. A company that produces goods and
tain to hike interest rates Wednesday to services for a large market
the highest level in a decade:1.5 to 1.75
percent. “ 349. The key factors that affect a country’s
level of economic development include all
A. Fiscal policy
of these EXCEPT:
B. Monetary policy
A. Agricultural Dependency
344. Business and its environment is B. Literacy Level
A. independent C. Unemployment Rate
B. Interdependent D. Technology
C. not dependent
350. The organized exchange of the ownership
D. over dependent shares of public corporations is a
345. Location of business is not a significant A. financial market

factor in establishing one. B. stock market.
A. TRUE C. capital market
B. FALSE D. commodity market

351. 22) Because consumers want a greater 355. The two main divisions of the trade in-
variety of goods and services at lower dustry are:
prices, many governments have

A. producers and retailers.
A. reduced their restrictions on the inter- B. wholesalers and retailers.
national movement of goods and services
C. wholesalers and producers.
B. acted to tax most imports at a lower
D. manufacturers and wholesalers.
rate than domestic products
C. sought to eliminate reciprocal advan- 356. Technological conditions are not a compo-
tages negotiated through international or- nent of specific forces of business environ-
ganizations and treaties ment.
D. increased their participation in multi- A. True
national problem-solving efforts B. False
352. Which among the following is the 3rd 357. Mudra Under Pradhan Mantri Mudra Yo-
stage in Rowstows five stages of growth? jana Stands for:
A. Take-off stage A. Micro Units Development & Refinance
Agency Ltd.
B. Preparatory stage
B. Macro Units Development& Restruc-
C. Traditional society
turing Associate Ltd.B)
D. Drive to maturity
C. Micro Units Development & Restruc-
353. What is a business start up? turing Agency Ltd.
D. Macro Units Development & Refinance
Associate Ltd.
358. This simply means that the financial
statements should reflect all significant
events or facts, which might influence the
decisions to be made by any interested
party.
A. A new business operating in a market
for the very first time A. Going Concern Concept
B. Consistency
B. The time a shop opens
C. Full Disclosure
C. A business that has been operating in
a market for several years D. none of above
D. none of above 359. The Uttarakhand government has devel-
oped surveillance network using latest
354. 64) The principle that an individual has satellite technology. Under this system,
the freedom to pursue his or her interests the state’s mining department would be
is called in a position to check illegal mining activ-
A. A) socialism ities across the state. The state govern-
B. By totalitarianism ment is also considering the use of drones
in its proposed campaign against illegal
C. C) individualism mining. Identify the related dimensions of
D. D) collectivism business environment.

A. Economic dimension and Legal dimen- C. C. economic want.

sion(b) (c) (d) D. D. economic service.
B. Technological dimension and Political
dimension 364. The Basic Conditions of Employment Act
is an example of
C. Political dimension and Economic di-
mension A. Contemporary legislation
D. Social dimension and Economic dimen- B. Globalisation
NARAYAN CHANGDER
sion C. Employee protection
360. A business that buys goods or services D. Employer insurance

and sells them to the ultimate consumer is 365. the new economic policy was announced
a: in the year
A. A manufacturer. A. 1990
B. B. producer. B. 1991
C. C. retailer. C. 1992
D. D. wholesaler. D. none of above
361. Even after opening of Indian Economy and 366. Financial decisions of businesses and con-
1991 foreign companies found it extreme sumers are influenced as much by the state
difficult to cut through the bureaucratic red of the economy as by any other factors.
tape to get permit for doing business in
A. True
India, which created negative impact on
the business. Identify the dimensions of B. False
the business environment which led to cre-
367. When supply is greater than demand, a
ation of negative impact on business
often develops.
A. social
A. shortage
B. technological
B. price ceiling
C. political
C. buyer’s market
D. legal
D. seller’s market
362. A company has a strong brand name, this
368. Forming a joint venture reduces risk by
would be a(n)
A. allowing costs to be shared.
A. Strength
B. ensuring business success.
B. Weakness
C. increasing technology.
C. Opportunity
D. cutting down on taxes.
D. Threat
369. Business environment is
363. Deciding to stay home and study, instead
of going to a basketball game, is an exam- A. Static
ple of a/an: B. Dynamic
A. A trade-off. C. simple
B. B. capital good. D. specific

370. Condition affecting business vary from C. the price will increase, and the supply
region to region will decrease

A. True D. the price will increase, and supply will
B. False increase
371. A business decides against opening a 376. 62) In societies where trust is high,
store in the next town because its research A. people tend to be more future-
shows the location will be unprofitable. oriented
What form of risk management is this?
B. business costs are typically lower
A. avoidance
B. reduction C. people tend to be more fatalistic
C. retention D. family businesses are dominant
D. transfer 377. Change in sensex and Nifty during elec-

tion is part of
372. 12) Most people’s basic values are ac-
quired during childhood and are not readily A. Legal Environment
changed later in life.
B. Economic Environment
A. True
C. Political Environment
B. False
D. Social Environment
373. Country imports more than it exports
378. 74) Managers who are knowledgeable
A. trade surplus
about are better able to identify the
B. the trade fails location, quantity, quality, and availability
C. balance of trade of the world’s natural resources.
D. none of above A. political factors
B. geographic factors
374. The two primary ways governments are
involved in the organization of businesses C. competitive factors
are in legal requirements and taxation.
D. cultural factors
A. True
B. False 379. 15% of 80
A. 15
375. Your business is selling more and more
large-screen TVs each month. Applying B. 12
the law of supply and demand, what do
you expect to happen to the price and 380. Installation of new computer software
supply of these TVs over the next few for your company is an example of a
months? A. Political Factor
A. the price will decrease, and supply will
B. Economic Factors
increase
C. Social Factor
B. the price will decrease, and supply will
decrease D. Technological Factor

381. Which of the following is not a compo- D. None of the listed options are correct
nent of specific forces of business environ- choices
ment?
386. What economy is based on public or gov-
A. Investors
ernmental ownership of the production
B. Customers and distribution of goods?
C. Technological conditions A. capitalist
D. Employees B. mixed
NARAYAN CHANGDER
Explanation:Technological conditions is a
component of general forces that affect C. socialist
the business environment of an enter- D. traditional
prise.
387. 38) Which of the following is the LEAST
382. .Globalisation signifies: likely reason that small countries worry
A. integration among various economies about overdependence caused by global-
of the world ization?
B. No integration among economies of A. A large country on which they depend
the world may pressure them on political matters.
C. removal of economic licensing B. A large international firm may dictate
D. none of the above its terms of operations in a small country.
383. An employee notices an unfilled customer C. A large company may exploit legal
need, this is an example of a(n) loopholes to avoid tax payments.
A. Strength D. A large country may substantially in-

crease its demand for the small country’s
B. Weakness production.
C. Opportunity
388. What do we call an approach which says
D. Threat
that both industry and society need to bal-
384. does not cause a shortage of supply ance environmental protection with eco-
nomic development?
A. Strikes
A. sustainable development
B. Climate conditions
C. Natural disasters B. ‘Top-down’ approach
D. A good supply network C. operational system

D. inputs and outputs
385. Which of the following equations best
represents demographic dividend? 389. Which of the following is not a problem
A. Working Population = Non-working solving technique?
Population A. Brainstorming
B. Working Population < Non-working
B. Indigenous knowledge
Population
C. Deep thinking and analysis
C. Working Population > Non-working
Population D. Force field

390. How does socialism differ from capital- 394. * Cultural aspects and perceptions *
ism? Health consciousness * Popular growth
rates The following factors falls under

A. In socialism, the goverment controls
the means of production; whereas, capi- which of the PESTLE analysis?
talism focuses on the private owner. A. Economic
B. In socialism, the goverment provides
B. Political
subsidies for small buisnesses; whereas,
capitalism only depends on the corpora- C. Social
tions to spark the economy.
D. Legal
C. In socialism, the goverment does not
provide any form on humanitarian aid;
395. Which is an example of a macro economic
whereas, capitalism funds small buisness
factor?
with tax relief.
D. In socialism, the government con- A. interest rates
trols what the consumer can purchase; B. research and development
whereas, capitalism controls what the
business can market. C. climate change
391. Suppliers, competitors, labour markets, D. none of above

financial institutions and customers are
found in the 396. Customers become more environmentally
conscious, what effect will this have on
A. operational environment
a business that sells compostable coffee
B. general environment pods?
C. contextual environment A. Negative effect as customers will stop
D. macroenvironmental environment buying their product
392. The so-called EPRG framework of man- B. Positive effect as more customers will
agement orientations is global marketing choose this business over their competi-
refers to: tors
A. Enthnocentrism, polycentrism, Region- C. Neutral effect, sales will not be
alism and Geocentrism changed either way
B. Enthnocentrism, polycentrism, Regio-
D. none of above
centrism and Geocentrism
C. Environmental, political, Regional and 397. Public Sector Enterprises are owned by?
Geographical
A. State Government
D. Environmental, political, Regiocen-
trism and Geological B. Central Government
393. 69) When a U.S. citizen flies Japan Air- C. Both of these
lines, the airline acts as a service exporter
D. None of these
for Japan.
A. True 398. The surrounding conditions in which the
B. False business operates are called

A. A equilibrium
B. B. rationing
C. C. shortage
D. D. surplus
403. Which is not an economic system?
NARAYAN CHANGDER
A. Environments
B. Business contacts
C. Business Environments
A. Capitalism
D. Business Conditions
B. Mutualism
399. In a socialist society, every person would C. Communism
be unequal, regardless of race, gender, re-
ligion, or nationality. D. Socialism
A. True 404. Political stability impacts the business

B. False A. Directly
B. Indirectly
400. External components of environment pro-
vides and threats C. No influence
D. None of these
A. Strength
B. weaknesses 405. Which two of the following are qualities
of an effective communication?
C. opportunities
A. It needs to be made as quickly as pos-
D. challenges sible
401. Which is the most valuable asset of the B. It must be made within an appropriate
organization? timescale
A. Tangible assets of the organization C. It needs to be made using language ap-
propriate to the situation
B. Delegation of tasks, coordination, and
supervision D. It needs to be made using formal and
complex business language
C. Human resource
406. 49) The process of shifting production
from a domestic to a foreign location is
ganization
best known as
402. New Gear studied trends in the market- A. offshoring
place to price their jerseys. There was B. outsourcing
an abundance of jerseys remaining after
meeting the demand creating which mar- C. licensing
ket condition? D. joint venturing

407. How much a consumer is willing to pay 413. Which of thes options best describes op-
for a product depends partly on the con- portunity cost?
sumer’s opinion of the product’s

A. The price of taking a chance
A. value B. The alternative you have to go without
B. production costs in a choice of two things
C. efficiency C. The cost of opportunity
D. target market D. The price you pay when you make a
choice
408. 11) The identity of a nation is typically
promoted through symbols, monuments, 414. The government has the primary influ-
and museums. ence on economic decisions in a command
economy.
A. True
A. True
B. False
B. False
409. environment includes study of popu-
415. Trade Unions fall under the Environ-
lation in terms of age, gender, income, oc-
ment
cupation, etc.
A. Micro
A. Political
B. Market
B. International
C. Macro
C. Demographic
D. none of above
D. Legal
416. With the introduction of Photostat Ma-
410. goods and services one country buys chines in the market, the carbon paper
from another country industry was adversely affected. Which
A. import component of environment was responsi-
ble for it?
B. export
A. Economic
411. 56) The terms multinational corporation B. Political
and multinational company are frequently
used synonyms for strategic alliances. C. Technological
A. True D. All of the Above
B. False 417. What is the primary purpose NAFTA?

A. To reduce trade barriers among the
412. Which elements are necessary to form a
US, Canada, and Mexico
valid contract?
B. To reduce trade barriers among Cen-
A. offeracceptancecapacitylegality
tral America and Mexico
B. offer acceptanceconsiderationcapac-
C. To reduce trade barriers among Brazil
itylegality
and Mexico
C. offer acceptanceconsideration
D. To encourage free trade between the
D. invitation to treatofferacceptance US, Europe, and Canada

418. Relaxing the restrictions and controls im- B. Robinson-Patman Act

posed on Business and industry means *
C. Sherman Antitrust Act
A. Globalisation
D. Celler-Kefauver Antimerger Act
B. Liberalisation
C. Privatisation 424. The difference between imports and ex-
ports is called
D. All of the above
A. Balance of Power
NARAYAN CHANGDER
419. Identify the point of importance of busi-
ness environment from following state- B. Balance of Trade
ment.ITC Hotels planned new hotels in In- C. Trade Failure
dia after observing boom in tourism sec-
D. Loss
tor.
A. It enables the firm to identify opportu- 425. All Care pays for all of its expenses this
nities and getting the first mover advan- fiscal year. The amount left over after all
tage. expenses have been paid is called what?
B. It helps in tapping useful resources A. capital
C. It helps in assisting in planning and B. debt
policy formulation
C. loss
D. none of above
D. profit
420. An example of a noneconomic want
would be the desire for 426. A business is more likely to succeed if it
A. police protection has a competitive advantage?
B. a college education
C. happiness
D. concert tickets
421. Inequality
A. Capitalism
B. Communism
A. True
422. Economic environment include B. False
A. Economic indices
427. Which of the following is not an impor-
B. Economic structure
tant objective of a business?
C. Economic Planning
A. survival
D. All of these
B. profitablity
423. In 1890, Congress passed a law that pre-
C. growth
vents monopolies from forming and hin-
ders price fixing. What law is this? D. social status
A. Clayton Act E. social responsibility

428. is a period of above normal general 433. Demonetization had direct impact on
price increases, as reflected in the con- A. Social environment
sumer and wholesale price index.

B. Political environment
A. Inflation C. Economic environment
B. Interest rates D. None of the above
C. Changing of options 434. Planning is a process
D. People’s spending habit A. Periodic
B. continuous
429. What is erosion?
C. casual
A. piles of dirt and rocks
D. annual
B. cracks in the Earth
435. The entry of the multinational companies
C. wearing away of rock and soil caused in large numbers in the Indian market has
by water, wind or ice. created
D. An area with high fires due to drought. A. Huge Demand
B. Huge Supply
430. Among the following approaches of Envi-
ronmental scanning, which approach may C. Tough Competition
conduct special surveys and studies to deal D. Huge Demand and Supply
with specific Environmental issues.
436. Parliament consists of?
A. Systematic approach
A. house of lords, house of commons, the
B. Ad-hoc approach monarch
C. Processed approach B. The King
D. None of the above C. MP’s only
D. house of commonshouse of lords
431. disinvestment is an example of in In-
dia. 437. Q 2. Who presented the Budget 2022 in
the Parliament?
A. privatisation
A.
B. liberalisation B.
C. globalisation C.
D. none of above D.
432. A business has a poor reputation among 438. Competition helps create a healthy soci-
customers, this would be considered to be ety by:
a(n) A. A creating new jobs.
A. Strength B. B. increasing the money supply.
B. Weakness C. C. making new government regula-

tions.
C. Opportunity
D. D. replacing small businesses with
D. Threat large businesses.

439. 54) A flag of convenience is 444. Business environment includes

A. the declaration that a product is made A. customers and Employees
in a country that has easier legal access B. Surroundings of Business
to a given foreign market
C. Forces, Factors, institutions which di-
B. a designation for products originating rectly or indirectly effect business
within a particular trading group
C. the registration of a ship by a ship-
445. Which of the following is a feature of de-
NARAYAN CHANGDER
ping company in a country that charges
low taxes monetisation?
D. the indication that a shipping organiza- A. Tax administration measure
tion can sail in international waters B. Channelising savings into the formal fi-
nancial system
440. Global expansion in a company is an ex-
C. Development of less-cash economy
ample of a(n)
D. All of the above
A. Strength
B. Weakness 446. This type of business structure involves
two or more individuals who agree to con-
C. Opportunity tribute resources to the business in return
D. Threat for a share of the profit
441. 45) Supporters of globalization as-

sert that the process helps countries
strengthen their sovereignty.
A. True
B. False
442. Influencing the supervisory body does

not include: A. corporation
A. Auditing B. Sole trader
B. Following regulations C. Partnership

D. company
C. Bribery
D. Lobbying 447. 46) A criticism of globalization is that as
economic growth increases, too many non-
443. Money that a business has left over after renewable resources are used.
all the expenses and costs of running the A. True
business are paid.
B. False
A. business
448. One way that competition helps build a
B. profit
prosperous society is by
C. capitalism
A. replacing small businesses with large
D. factors of production ones
E. service B. creating government legislation

C. creating new jobs 453. 39) Which of the following statements

D. increasing the money supply would most likely be made by a SUP-
PORTER of globalization?

449. An economic and political system in which
A. Globalization encourages the adoption
a country’s trade and industry are con-
of uniform and superior standards for
trolled by private owners for profit,
combating environmental problems.
B. Economic growth created by globaliza-
tion is largely in services, which involves
the use of few nonrenewable resources.
C. Global competition discourages
resource-saving technologies, which are
A. communism costly.
B. socialism D. Air pollution and toxic runoff problems
C. fascism increase with global economic growth.
D. capitalism 454. In a traditional economic system, the
450. ABC Corporation bought a new conveyor question of what to produce is answered
belt. What type of good is the conveyor by producing
belt? A. what the government chooses
A. A capital good B. what consumers need and want
B. B. natural good C. what supply dictates
C. C. public good D. what has always been produced
D. D. consumer good
455. 10) The recent global financial crisis has
451. How does the increase of global business led to which of the following?
operations affect employment?
A. governments seeking to impose more
A. It can lead to job creation in both de- constraints on capitalism
veloped and developing countries.
B. governments seeking to eliminate con-
B. It can lead to job losses in developed straints on capitalism
countries as businesses move to devel-
oping countries in search of lower labor C. governments seeking to increase
costs. the interdependence of developing
economies
C. It has no significant impact on employ-
ment. D. governments seeking to eliminate
the interdependence of developing
D. All of the above
economies
452. Components of Market Environment
456. In some places, a company can have ex-
A. Customers
clusive control of the supply of a good or
B. Regulators service such as the trash service. This is
C. Employees an example of:
D. Government A. price competition.
E. Competitors B. price discrimination.

C. nonprice competition. 462. Social responsibility must start at the top

D. a regulated monopoly. of the organization.
A. true
457. What is a want that can be satisfied by
B. false
spending money to consume a good, ser-
vice, or leisure activity? 463. Positive and controllable factors that con-
A. economic tribute to the success of parks
A. Strength
NARAYAN CHANGDER
B. limited
C. noneconomic B. Weaknesses
D. unlimited C. Opportunities
D. Threat
458. Business Environment helps in:
464. World’s largest common market
A. Image Building
A. GATT
B. On Job Training
B. NAFTA
C. Business Proposal
C. European Union
D. All of the above
D. none of above
459. The demographic environment is part of
the environment. 465. A(n) is an individual who accepts the
risks and opportunities entailed by creat-
A. internal ing and operating a new business.
B. micro A. director
C. Macro B. entrepreneur
D. extent C. proprietor
460. Prime Minister declared demonitization D. partner
of 1000|and 500|on 8 november 2016,
466. The management style target global
Which kind of Business environment is this
consumer who have similar tastes, to bor-
A. Social Environment row from every country whatever is best.
B. Legal Environment A. Geocentric
C. Political Environment B. Polycentric
D. Economic Environment C. Enthnocentric
Explanation:Political Environment D. Regiocentric
461. High economic growth means high human 467. Which of the following is a general bene-
development fit profit provides
A. Always correct A. more products
B. Always not correct B. better wages
C. Depends on the efforts C. higher prices
D. None of these D. better supplies

468. Globalization can be a disadvantage for B. guilt can be shown with a low level of
domestic workers when they lose their proof
jobs due to the practice of

C. guilt must be shown through the de-
A. nationalism. fendent’s behaviour
B. exporting. D. guilt must be shown beyond reason-
C. offshoring. able doubt
D. environmental degradation. 474. Country exports more than it imports
469. This characteristic of a mixed economy A. trade surplus
states that the vast majority of labor, re- B. the trade fails
sources, and capital goods are owned by
individuals rather than by the government. C. balance of trade
A. Private Property D. none of above
B. Freedom of enterprise and choice 475. :subcontracting or contracting out
C. Motive of Self-Interest of activities to endogenous organizations
D. Competition that had previously been performed by the
firm.?
470. A characteristic of an economic service is A. Offshoring
that it is:
B. Globalization
A. useful.
C. Outsourcing
B. tangible.
D. Internationalization
C. nontransferable.
D. free to everyone. 476. 33) Import restrictions are becoming less
important because consumers increasingly
471. When did economic reforms take place in want to buy goods and services produced
India? in their own countries.
A. 2001 A. True
B. 1991 B. False
C. 1981
477. The increase in demand for many
D. 1971
ayurvedic medicines, health products and
472. Inelastic demand is: health services in the past few months, is
related to the need for building immunity
A. variable.
and increase awareness for health care
B. fluctuating. due to the spread of corona virus. iden-
C. limited to luxury goods. tify the feature of the business highlighted
above.
D. unaffected by price changes.
A. specific and general forces
473. In a criminal case what is the standard of
B. interrelated
proof?
A. guilt must be shown on the balance of C. relativeity
probabilities D. none of the above

478. Trade restrictions have just been lifted, A. by offering consumers a worse quality
allowing your company to expand trade product
globally, B. by charging a higher price for a prod-
A. Political Factor uct
B. Economic Factor C. by doing what everyone else is doing
C. Social Factor in the market
D. Technological Factor D. by creating something entirely new for
NARAYAN CHANGDER
the market
479. Business works in isolation
483. As per the Ratings agency ICRA, what is
A. Yes the estimated real GDP Growth of India in
B. No FY 2022?
C. Can’t say A. 11.5%
D. None of these B. 12.5%
480. The two main divisions of the trade in- C. 9%

dustry are D. 11%
A. producers and retailers
484. 32) The recent expansion of technology
B. manufacturers and wholesalers has contributed to the growth in interna-
C. wholesalers and retailers tional business by creating new products
that are important in world trade.
D. wholesalers and producers
A. True
481. Customers, competitiors, suppliers and
B. False
special interest groups are all part of the
which environment? 485. PESTLE stands for
A. Internal A. Political, Economic, Social, Telecom-
B. Macro munication, Lawful and Environmental
C. External B. Political, Economic, Social, Telecom-
munication, Legal, Environmental
D. Operating
C. Political, Economic, Social, Technology,
482. What is one way a business can gain a Legal, Environmental
competitive advantage?
486. 76) In addition to understanding the laws

affecting business in countries where their
companies operate, it is most important
for managers to understand the
A. methods for appointing local judges
B. ethical rationale behind the laws
C. history of the local legal system
D. degree of law enforcement

487. Elastic demand is more likely when the 491. What is a Charitable trust?
good is: A. Operated by the government and

A. a luxury. staffed by civilservants
B. imported. B. an organization that is set up to raise
funds and support other people for a good
C. lower price. cause
D. inexpensive. C. A business which is owned and con-
trolled by one person
488. is moreover less te opposite of enth-
nocentric approach. D. none of above
A. Regiocentric 492. The term relates to patent, trade-

marks, copyrights and trade secrets.
B. Polycentric
A. Priority right
C. Enthnocentric
B. Intellectual property right
D. Geocentric
C. Tariff & Trade Act
489. Which economic system promotes compe- D. Madrid agreement
tition?
A. Communism 493. Which is not a breach of contract?
A. no performance of the contract on the
B. Capitalism
part of one party
C. Socialism
B. inadequate performance of the con-
D. none of above tract
C. one party declares that there will no
490. 2) International managers most likely
performance before the due date
need to understand how to evaluate inter-
national geographic alternatives because D. the contract is performed in full to the
required standard
A. they usually have a surplus of re- 494. Which of these are more representative
sources and need to take advantage of all of Price Elastic
opportunities
A. Fresh fruit and vegetables
B. many regional trading groups prohibit
B. Milk, Eggs and Bread
companies from outside of the trading
group from manufacturing in more than 495. Which of the following is NOT the charac-
one member country teristics of a perfect competition?
C. the commitment of resources to one A. Many firms in industry
locale may require forgoing projects in
other locales B. Very difficult for a firm to enter or
leave the market
D. decreased worldwide transportation
costs and increased trade liberalization C. Great similarity among products of-
now allow companies to serve worldwide fered by different firms
markets from a single production location D. firms are small

496. What is globalisation? C. sailing in international waters outside

A. The process by which the world is be- countries’ tax jurisdiction
coming increasingly interconnected. D. paying substantial port fees instead of
B. The process by which the world is be- taxes during stopovers
coming less interconnected. 501. Reforms related to revenue and expendi-
C. The process by which the world is be- ture of government is termed as
coming more divided. A. Industrial Reforms
NARAYAN CHANGDER
D. none of above B. Monetary Reforms
497. Five year planning is a C. Fiscal Reforms
A. Medium term activity D. Financial Reforms
B. Long term activity 502. Which area of sustainability is being re-
C. Short term activity ferred to?Use refillable ink cartridge’s in
the office printer
D. None of these
A. Social
498. The equilibrium price is the price where B. Environmental
the units produced are the units de-
manded. C. Economic
A. more than D. none of above
B. less than 503. Who answers the basic economic ques-

tions in a private enterprise economic sys-
C. equal to
tem?
D. different from
A. Government agencies
499. What can businesses do to mitigate the B. Influential citizens
challenges of global business operations?
C. Businesses and individuals
A. Carefully research the regulatory and
D. Entrepreneurs and producers
legal environments of the countries in
which they operate. 504. Money is defined from the traditional
B. Develop training programs to help em- point of view as follows-
ployees understand and adapt to cultural A. Note
differences.
B. Deposit notes and bank demands
C. Invest in measures to protect their in-
C. Notes and total deposits of banks
tellectual property rights.
D. none of these
D. All of the above
505. Which is an example of a noneconomic
500. 53) Carnival Cruise Lines lowers its taxes want?
by all of the following EXCEPT
A. a haircut
A. hiring host-country nationals who pay
no taxes B. sport ticket
B. taking advantage of taxation laws in C. a concert ticket

foreign countries D. rain for the crops

506. In a communist command economy, who C. macro environment

decides how the economic questions will
D. external environment
be answered?

A. Businesses 511. 13 Which of the following has the great-
B. Individuals est potential to transform an industry’s
structure?
C. Government
A. a change in a competitor’s manage-
D. A venture team ment
507. determines whether agriculture or B. a change in a competitor’s pricing
mining will be areas of focus. structure
C. the expansion of a distribution channel
D. the exit of a competitor from the indus-
try
512. High GDP with low population will result

into
A. Climate
A. Higher expenditure
B. Terrain
B. High per capita income
C. Economic conditions
C. High taxes
D. none of above
D. High levels of service
508. The means available to develop solutions
for unsatisfied wants and needs. 513. Last five year plan period is
A. money markets A. 12th 2012-2017
B. demand B. 13th 2017-2022
C. market economy
C. 11th 2007-2012
D. corporation
D. None of these
E. resources
514. Business and environment are insepara-
509. Which of the following are the impact of ble from each other.
govt. policy changes on business & indus-
try? A. true
A. Increased competition B. false
B. Need for change 515. One of the freedoms provided to individu-
C. Demanding customers als by the private enterprise system is the
D. All of the above freedom to choose
A. which taxes they will pay
510. Factors over which the business has little
control over is called the B. how much they will be paid
A. internal environment C. where they will work
B. operating environment D. which laws they will obey

516. Main characteristic of first stage in Ros- C. Employees, Employers, Customers,

tow’s theory Clients
A. Industrialized society D. Owners/Management, Employees,
Organisational Culture, Organisational
B. Agrarian society
Structure
C. Service economy
522. A firm should make efforts that it has
D. None of these
type of customers?
NARAYAN CHANGDER
517. War and unlawful activity are two exam- A. 1
ples of conditions that influence inter- B. 2
national business.
C. 3
A. economic
D. Many
B. cultural and social
523. The type of ownership structure that will
C. political and legal
have the greatest difficulty in obtaining fi-
D. geographic nancing is the corporation.
518. New Economic Policy was initiated in the A. True
year B. False
A. 1980 524. A company that transforms cotton into
B. 1988 wearable clothing is considered a
C. 1990 A. raw-goods producer
D. 1991 B. manufacturer
C. service business
519. An exchange rate is the value of one cur-
D. builder
rency in terms of another.
A. True 525. Society is part of macro business environ-
ment.
B. False
A. true
520. What are renewable energy sources? B. false
A. Energy sources that are newly found.
526. Globalisation has been of advantage to
B. Energy sources that are used over
A. all the people
again.
B. the poorer section of the society
C. Energy sources that are scarce.
C. the richer section of the society
D. Energy sources that are naturally re-
placed. D. none of the above.
527. Introduction of the 10p carrier bag charge
521. What are the four factors contributing to
would be a
the Internal Business Environment?
A. Technological change
A. Customers, Competitors, Suppliers, In-
terest Groups B. Environmental change
B. Customers, Clients, Suppliers, Distrib- C. Economic change
utors D. Political change

528. A lawyer believes his client is guilty, but 534. Liberalization implies:
remains professional and represents his A. Greater role of public sector
client. This is an example of which of the

following? B. Free economy with no control
C. reduction in government control over
A. Moral behavior
the private sector
B. Unlawful behavior
D. none of these
C. Ethical behavior
535. 75) Although the U.S. film industry de-
D. Mannerly behavior pends heavily on revenue in foreign coun-
529. It is the easiest and least expensive form tries, revenue from international markets
of business organizations. is usually low for a sports-themed film.
This is most likely due to factors.
A. Corporation
A. political
B. Incorporation
B. geographic
C. Sole Proprietorship
C. behavioral (cultural)
D. Partnership
D. legal
530. The external environment is made up of 536. Anywhere a business exchange takes
two layers True or False? place.
A. False A. economics
B. True B. customer
531. The ultimate goal of all economic activity C. market
is D. scarcity.
A. consumption E. product
B. production 537. Coldplay concert upcoming concert, Eric
C. exchange Chou concert which held in the month of
July 2023 refers to which business envi-
D. distribution
ronment
532. A bus fare is $2.00 in the morning rush A. Sociocultural environment
hour, but only $1.50 during the afternoon.
B. Global business environment
The morning fare can be explained by the
fact that the demand for morning bus rides C. Domestic business environment
is D. No answer
A. Price Elastic 538. Monte works for a grocery store that
B. Price Inelastic buys food from producers and then sells
it to customers. The grocery store is an
533. Globalization is encouraged by example of a:
A. Internet A. A builder.
B. Mobile phones B. B. trade industry.
C. Computer C. C. service business.
D. None of these D. D. raw-goods producer.

539. Climate and terrain are two examples of 543. The private sector consists of the sec-
conditions that influence international tor and informal sector
business. A. business
A. geographic
B. quality
B. economic
C. pricing
D. formal
D. cultural and social
NARAYAN CHANGDER
544. Resource limitations.
540. Which factor of production would you
consider a lawn mower? A. Strength
B. Weakness
C. Opportunity
D. Threat
545. Sugar factories are set up only at those

places where sugarcane can be grown
A. Legal
B. Political
A. Land C. Natural
B. Labor D. Technological
C. Capital 546. As part of regulations to be followed by
D. Entrepreneur advertisers, the advertisement for a new
brand of baby food for infants provides
541. What is a secondary sector? important information for potential buyers
A. businesses that provide a service toin- that it is “Not recommended for infants un-
dividuals and businesses der the age of four months”. Which dimen-
B. businesses that extract resources and sion of the business environment is high-
rawmaterials from nature e.g. mining lighted in the above statement?
company A. Social
C. businesses which turn the resource- B. Legal
sand raw materials into products e.g. fur-
C. Political
niture manufacturer
D. Economic
D. none of above
542. What is a MAIN function of the World 547. When the manager allocates duties, au-
Trade Organization? thority and responsibilities to subordi-
nates (people below her), we call this
A. To settle trade disputes
A. Communication
B. To preserve the environment
B. control
C. To support the financial sector
D. To conduct research on petroleum- C. delegation
related issues D. discipline

548. 8) In August 1993, the Supreme court C. Floor Pricing

passed an order to close the iron foundries D. None of these
around the famous Taj Mahal to avoid an

adverse impact of air pollution caused by 553. It is a strategic tool to identify the exter-
them on the beauty of Taj Mahal. Which nal and internal environment.
dimension is discussed here?
A. Environmental Analysis
A. Social
B. Environmental Scanning
B. Economic
C. Business Analysis
C. Political
D. Business Environment
D. Legal
554. The market price for a product is deter-
549. Standard of living tends to decrease with mined at a point where
growth in economy
A. demand exceeds supply
A. true
B. supply exceeds demand
B. false
C. supply equals demand
550. Which importance does the image repre- D. there is both a shortage and surplus
sents?
555. Specialize in buying and selling financial
instruments for short time periods of a
year or less.
A. money markets
B. demand
C. market economy
D. corporation
A. Early Warning Signal E. financial risk
B. Business Strategy
556. Which of the following is never regulated
C. Public Image by the Incoterms rules?
D. none of above A. Who is obliged to insure the trans-
551. What type of economic system is used in ported goods
the United States B. Who is obliged to assemble and start
A. Market up the purchased goods (e.g. a machine
or production line) in the Buyer’s factory
B. Socialist Command
C. Who is obliged to pay the customs duty
C. Communist Command
D. Who is obliged to organise the trans-
D. Traditional portation from the Seller’s factory to the
552. is the practice of fixing price by the Buyer’s warehouse
Government 557. Which of the following is an example of
A. Minimum Support PrIce social environment?
B. Administerred pricing A. money supply in the economy

B. consumer protection act 562. 85) Geographical barriers typically affect

distribution channels within countries, but
C. The constitution of the country
they rarely affect distribution channels be-
D. composition of family tween countries.
558. An organisational structure outlines the A. True

roles and responsibilities of each member B. False
of a business. True or False?
563. An economic good or service that is scarce
NARAYAN CHANGDER
A. True
is one that is
B. False
A. in limited supply
559. Which of the following do economic sys- B. not made in America
tems organize for societies? (Check all C. readily available
that apply)
D. not test-marketed
A. Production of goods and services
B. Distribution of goods and services 564. Many large firms began international op-
erations as exporters.
C. Consumption of goods and services
A. true
D. Destruction of goods and services
B. false
560. The act of reducing or removing risks by
shifting the risk factor to another person 565. Free exchange of ideas contributes to
or business is referred to as risk. A. greater business innovation.
A. retaining B. more instances of outsourcing.
B. transferring C. fewer choices for consumers.
C. avoiding D. decreased competition.
D. controlling
566. Most businesses strive to supply goods
and services in direct proportion to
561. 84) Some observers feel that interna-
tional institutions and the people work- A. supply
ing in them cannot adequately handle the B. demand
complexities of an interconnected world.
Based on this, these observers believe C. cost of production
that D. standard of living
A. globalization will slow in the future
567. 1) Identify out of the LPG, which one is
B. globalization is nevertheless in- highlighted:Selling shares of public sector
evitable undertakings
C. international business will grow pri- A. Liberalization
marily on a regional basis
B. Privatization
D. private companies will replace interna-
C. Globalization
tional organizations in running the world’s
economy D. None

568. .Business environment does not have the 573. Macro and operating factors are part of
following characteristics: the external environment

A. uncertainty A. false
B. employees B. true
C. relativity 574. Which factor has aided the most in creat-

ing a global business environment?
D. complexity
A. Technology
569. 59) the term “ culture” describes a B. Government
country in which the norm is money-and-
things orientation and a belief that it is C. Cultural change
better to “live to work” than to “work D. Exchange rate
to live”.
575. Which importance does the image repre-
A. high masculinity sents?
B. physiological
C. none-fatalistic.
D. high femininity.
570. It refers to an individual’s ability to fa-

vorably receive and adjust to an unfamiliar
way of doing things.
A. Cultural Difference A. Early Warning Signal
B. Cultural Intelligence B. Business Strategy
C. Culture Different C. Competitive Advantage

D. none of above
D. Culture Intelligence
576. Natural disaster, pollution and weather
571. What is a cost-benefit analysis? conditions The following factors falls un-
A. The taxes that people pay when they der which of the PESTLE analysis?
buy something. A. Political
B. A process that allows businesses and B. Economical
individuals to analyze where to spend C. Environmental
money.
C. The amount of money required to have
or do something 577. By comparing with standards man-
ager can know whether the goals are
D. none of above
achieved or not:-
572. A local fire station and police-station are A. a) Risk
seen in this type of system B. (b) Ideas
A. socialism C. (c) Actual performance
B. capitalism D. (d) Costs

578. Which of the following statement best de- C. to move production to low-cost coun-
scribes the policy of Liberalisation? tries.
A. Abolition of licensing requirements in D. none of above
most of the indistries
583. Partnerships are run by directors and
B. Reduction in tax rates and lifting of un- owned by shareholders
necessary controls over the economy
A. True
C. Both (a) and (b)
B. False
NARAYAN CHANGDER
D. Setting up of Board of Industrial and
Financial Reconstruction 584. The surrounding conditions in which the
business operates are called
579. treaty between US, Mexico, and Canada
that eliminated trade barriers and invest- A. Environments
ment restrictions over a 15-year period B. Business contacts
starting in 1994. C. Business Environments
A. NAFTA D. Business Conditions
B. IMF
585. The three inter-related environments
C. GATT that impact a business include:
D. none of above A. Internal, Micro, and Legislation
580. Each day, a restaurant sends its used B. Internal, External, and Operations
linens to a laundry service to be cleaned C. Internal, External Operating, and
and pressed. In economic terms, the laun- Socio-cultural
dry service would be classified as a(n)
service. D. Internal, External Operating, and Ex-
ternal Macro
A. consumer
B. ultimate 586. Why might businesses choose to be envi-
ronmentally friendly?
C. tangible
A. To be socially responsible and reduce
D. industrial their impact on the environment
581. A small business is defined as a business B. To increase costs and attract more
employing fewer than howmany people? customers
A. 500 C. To increase their market power and
B. 750 force down selling prices
C. 1, 000 D. To import goods at a lower price
D. 1, 500 587. To prepare for effective decision-making

that ensures the efficient delivery of prod-
582. Internalization advantages refer ucts to the marketplace, one should study:
A. to justify the choice of investment loca- A. marketing.
tion
B. economics.
B. to the advantages that MNCs can gain
by directly controlling their value-creation C. job outlook.
activities D. supply chains.

588. Business environment includes 594. Formal Sector + Informal Sector=?

A. sorroundings of business A. A good Government

B. customers B. The Private Sector
C. forces factors and institutions which C. Legal person
directly or indirectly affect the business D. Business
D. none of above
595. Dis-investments of PSE’s implies
589. Govt. sector enjoys full autonomy A. Closing down operations
A. true B. Investing in new areas
B. false C. Sale of equity shares to private sec-
tor/public
590. Entrepreneurs take risks to start and
run D. Buying shares of PSE’s
A. economic resources 596. . Which is the right sequence of stages
B. opportunity costs of Internationalization
C. factors of production A. Domestic, Transnational, Global, Inter-
national, Multinational
D. businesses
B. Domestic, International, Multinational,
591. The establishment of a wholly new oper- Global, Transnational
ation in a foreign country is called:
C. Domestic, Multinational, International,
A. An acquisition Transnational, Global
B. A merger D. Domestic, International, Transna-
C. A greenfield investment tional, Multinational, Global
D. A multinational venture 597. Influences that come from within the busi-
ness are in the
592. The international organization that regu-
lates international trade is A. Macro Environment
A. United Nation B. External Environment
B. NATO C. Operating Environment
C. WTO D. Internal Environment
D. IMF 598. 57) Because consumers want a greater
variety of goods and services at lower
593. The way in which a business tries to bal- prices, many governments have
ance its commitments to groups and indi-
viduals in its social environment is called A. reduce desire restrictions on the inter-
national movement of goods and services
A. business ethics B. acted to text most imports at a lower
rate than domestic products
B. socialization
C. sought to eliminate reciprocal advan-
C. social responsibility tages negotiated through international or-
D. corporate responsibility ganizations and treatise.

D. increase their participation in multina- A. True

tional problem-solving efforts B. False
599. is considered a major element of the 604. One way a business can be international
political environment: is by producing goods in a different coun-
A. The extent and nature of government try but selling them domestically.
intervention in business A. True
B. Planned outlay in public and private B. False
NARAYAN CHANGDER
sectors
C. Expectations from the work force 605. promote international trade and to settle
international trade disputes
D. An administrative order issued by gov-
ernment authorities A. GATT
B. WTO
600. 66) Political systems based on the
paradigm, such as those of Japan and C. IMF
China, accept the principle that govern- D. none of above
ment may intervene to ensure that busi-
ness practices benefit society. 606. What is the contribution?
A. individualistic A. The costs of running the business,

such as rent and wages
B. collectivistic
B. The amount of money each unit of an
C. pluralistic item sold brings in towards paying off the
D. laissez-faire fixed cost of abusiness
601. Which of the following does not explain C. Costs that change with the level of out-
the impact of Government policy changes put or sales
on business and industry? D. none of above
A. More demanding customers 607. All business activities needed to create,
B. increasing competition ship, and sell goods and services across na-
C. Change in agricultural prices tional borders are considered to be
D. Market orientation A. domestic business

B. international business
602. In a command economy, economic deci-
sions are made by the C. global dependency
A. Consumers D. none of these
B. market 608. The Department for Promotion of Indus-

C. government try and Internal Trade was established in
1995 and has been reconstituted in the
D. producers year 2000 with the merger of the
603. increasing Interdependency Among Na- A. Department of Industrial Development
tions, Diminishing Effectiveness of Na- B. Division of Industrial Design
tional Borders and developing Countries
Attitude Toward FDI are examples of C. Department of Industry Data
Changes in Global Business Environment D. Division of Industrial Development

609. A country that currently has a communist B. It increases demand for goods and ser-
command economic system is vices that are produced in high-income
countries.

A. Japan
C. It increases demand for goods and
B. Denmark
services that are unique to different cul-
C. North Korea tures.
D. India D. All of the above
610. Which of the following is a part of the 614. If you drill for oil what sector do you
company’s vision? work in?
A. Tangible assets of the organization A. Primary
B. Technical know-how of the organiza- B. Secondary
tion C. Tertiary
C. Future position, business mission, and D. none of above
objectives
615. Offering high quality, large assortments,
D. Values, beliefs, and behavior of the or- and free shipping are examples of
ganization
A. rebates
611. The process of measuring or comparing B. non price competition
one’s own products, services, and prac-
C. price fixing
tices with those of the recognized indus-
try leaders in order to identify areas for D. price competition
improvement.
616. An organisation that sells shares on the
A. a. SWOT Analysis stock exchange is a what?
B. b. PESTEL Analysis A. Private Limited Company
C. c. Benchmarking B. Sole Trader
D. d Porter’s Analysis C. Partnership
D. Public Limited Company
612. Which is NOT included in the STEEPLE
Macro Environment? 617. This is the simplest form of business or-
A. Socio-Cultural Factors ganization and has a single owner.
B. Ethical Factors
C. Diversity Factors
D. Political Factors
613. How does the increase of global business

operations affect the demand for goods
and services?
A. It increases demand for goods and ser-
vices that are produced in low-cost coun-
tries. A. Limited Liability Corporation

B. Corporation 622. Globalization signifies

C. Sole Trader A. integration among various economies
of the word.
D. Partnership
B. disinvestment in public sector.
618. Which is not an Indian Multinational Com-
C. reduced government controls and re-
pany?
strictions.
A. Unilever D. nationalization of industries
NARAYAN CHANGDER
B. Asian Paints
623. What is the main disadvantage of a sole
C. Piramal proprietorship compared to a corporation?
D. Wipro A. Unlimted liability of the owner.
619. What makes up the largest area of gov- B. More costly to set up.
ernment spending? C. More difficult taxation rules.
D. More disclosure requirements to in-
form the public.
624. The trend of health and fitness has cre-

ated demand for gyms, bottled mineral
water and food suppliments. This is an
exapmle of which environment
A. economic
A. Food Stamps B. social
B. Medicare C. legal
C. Social Security D. technological
D. Interest payments 625. 69) An economic system is the set of
structures and processes that in a coun-
620. The government has some control over try.
the economy and provides basic services
like health care and housing. A. A) guides the allocation of resources
and shapes the conduct of business activ-
A. Capitalism ities
B. Socialism B. By directs the movement of specific
C. Communism products to specific consumers
D. none of above C. C) sets (ho standards of competitive
success for companies in the economy
621. 3) When divergent cultures come in con- D. D) stipulates the roles and responsibil-
tact, occurs. ities of consumers
A. power distance
626. Which organization releases the All-India
B. culture shock Consumer Price Index?
C. cultural collision A. National Statistical Office
D. group membership B. Ministry of Finance

C. Centre for Agriculture costs and prices A. equipment

D. policy commission B. tools

627. interconnected economies of nations of C. food items
world D. technology
A. global economy
632. 2 Good scanning helps managers avoid
B. international trade
the need to make a detailed analysis of
628. You conduct a SWOT analysis and find out countries when deciding where to operate.
that a new competitor is opening within 5 A. True
miles of your store. This would be consid-
ered a B. False
A. Strength 633. Introducing new employment regulations
B. Weakness protecting disabled workers would be a
C. Opportunity
D. Threat A. Political change
B. Environmental change
629. Shared beliefs, values, expectations, at-
titudes and behaviours are all examples of C. Legal change
which Internal Environmental factor? D. Economic change
A. Owner/s/Management
B. Employees 634. The economic resource where people
work to produce goods or services are:
C. Organisational Structure
A. capital goods.
D. Organisational Culture
B. human resources.
630. Retailing occurs wherever goods are:
C. natural resources.
A. researched and designed.
D. noneconomic goods.
B. created or manufactured.
C. traded or exchanged for other goods. 635. In socialist economy, the government
owns and operates selected major indus-
D. sold to consumers or the ultimate cus-
tries.
tomer.
A. true
631. The picture is showing
B. false
636. Which of the following is a disadvantage

of private enterprise
A. elimination of poverty
B. periods of unemployment
C. careful use of resources
D. equal distribution of income

637. Environmental degradation occurs be- C. informal goods

cause of D. teamwork
A. decreased competition.
643. Major theories of the firm’s international
B. nationalism. expansion
C. offshoring. A. 1.-International Trade Theory2.-FDI3.-
D. increased production. Product LifeCycle
638. What does S stand for in SWOT? B. 1.-Open economy2.-GDP3.-Productivity
NARAYAN CHANGDER
A. small
C. 1.-Economies of scale2.-MCS3.-
B. strong Standardized product
C. strengths D. none of above
D. slow
644. Technological environment is
639. What is the line of control?
A. Static
A. is the number of people that individu-
B. Dynamic
als are responsible for in an organization
C. Rigid
B. Where individuals are responsible to a
line manager or supervisor D. None of these
C. shows the main parts of the business 645. Alex owns a guitar, several books, and
and the relationship between thevarious a telescope. Alex’s possessions are exam-
parts ples of
D. none of above A. private property
640. current Indian business environment in- B. economic resources
cludes; C. capital goods
A. globalisation D. equal distribution
B. fast growth in service sector
646. During a recession, which of the follow-
C. increase in foreign trade ing is likely to occur?
D. all of the above A. an increase in real wages
641. Which of the following economic re- B. an increase in production
sources helps people to be more produc- C. and increase in the GDP growth rate
tive?
D. an increase in the unemployment rate
A. noneconomic resources
B. natural resources 647. Some energy companies offer free elec-
tricity at night and on weekends because
C. human resources during those times
D. capital goods A. supply and demand are equal
642. Collective goods are also known as B. supply is greater than demand
A. infrastructure C. demand is greater than supply
B. formal goods D. the substitution effect occurs

648. Committing resources to one country usu- B. South Asian Association for Regional
ally means forgoing or delaying projects in Cooperation (SAARC)
others.

C. World Bank
A. True D. Association of South East Asian Na-
B. False tions (ASEAN)
649. The fundamental set of assumptions, val- 654. Political environment is part
ues, and ways of doing things, that has of environment.
been accepted by most of a company’s A. macro
members is called its B. micro
A. Rules and Regulations C. internal
B. Culture D. none of above
C. Environment
655. A business culture that encourages inno-
D. Values vation would encourage:
650. An association of 12 member nations
of southeast Asia to promote economic
growth, free trade and economic collabo-
ration between member nations.
A. ASEAN
A. less staff and more automation.
B. EU
B. staff to work late.
C. NAFTA
C. staff to be creative.
D. none of above
D. none of above
651. A distinct legal entity formed by complet-
656. Employees, managers, location and legal
ing required legal documents in a specific
business structure are all part of which en-
state.
vironment?
A. money markets
B. demand
C. market economy
D. corporation
E. financial risk
652. Literacy is the most important part of A. Internal

environment B. External
A. Social C. Macro
B. Political D. Operating
653. Ease of Doing Business Report is pre- 657. The mission is part of the internal envi-
pared by which of the following organisa- ronment:
tion? A. True
A. United Nations Organisation (UNO) B. False

658. Consumers, producers, and owners of re- 663. An example of a business that frequently
sources use money to create a flow of participates in strategic alliances is
resources, goods, and services through A. Krispy Kreme
which economic activity?
B. Woolworths
A. consumption
C. Pick n pay
B. distribution
D. Starbucks
C. exchange
NARAYAN CHANGDER
664. Identify the feature of business environ-
D. marketing
ment.Demand for sarees may be high in In-
659. The business is treated, as having a dia but almost negligible in Europe.
separate personality from the owner/s A. Relativity
such the transactions of the business must
B. Inter-relatedness
be divorced from the transactions of the
owner/s. C. Complex
A. Business Entity Concept D. none of above
B. Objectivity 665. The form of financial ownership in which
C. Cost Principle profits can be taxed twice is
D. none of above A. sole proprietorship

B. partnership
660. The paid up capital held by government
in government company is not less than C. corporation
D. none of the above
A. 49%
B. 54% 666. It deals with the independent verification
and examination of accounting records for
C. 51%
the purpose of giving credibility to finan-
D. 50% cial statements.
661. Which of the following is not an impor- A. Cost Accounting

tant economic question related to scarcity B. Financial Accounting
that every nation must answer? C. Auditing
A. What should we produce? D. none of above
B. How should we produce it?
667. How many factors make up the Macro En-
C. For whom should we produce it? vironment
D. What are the factors of production? A. 3
662. Customers cast economic votes every B. 4
time they: C. 5
A. A buy a product. D. 6
B. B. participate in a survey.
668. When demand is greater than supply, a
C. C. visit a business. often develops.
D. D. give their opinion. A. buyer’s market

B. seller’s market environment being described in the above

C. surplus case.

D. price ceiling A. Dynamic nature
B. Uncertainty
669. Which of the factors are usually not ex-
amined in the PESTLE anlalysis? C. Relativity
A. legal factors D. Interrelatedness
B. political factors 675. What might businesses do if they expect
C. economic factors prices to increase substantially in the fu-
ture?
D. historical factors
A. ship more products to stores
670. In general, firms operate in their input
B. increase production now
market or output market, but not both.
C. keep products off the market
A. true
B. false D. encourage consumers to buy
671. refers to the basic systems and ser- 676. The following political factors can signifi-
vices that a country or organization needs cantly restrict international business
in order to function properly.
A. Communication
B. Infrastructure
C. Technology
672. The two main divisions of the trade in-

dustry are: A. Type, stability and business policies of
government
A. A producers and retailers.
B. Government interventions
B. B. wholesalers and retailers.
C. Government stability
C. C. wholesalers and producers.
D. Taxation policies and trade regulations
D. D. manufacturers and wholesalers.
677. An organization must behave as a good
673. The following are under specific business
citizen. This is an example of the respon-
environment except for
sibility towards:
A. Shareholders
A. Owners
B. Sociocultural
B. workers
C. Suppliers
C. Society
D. Stakeholders
D. Government
674. The growing awareness about healthcare
has led to an increase in the demand for 678. Following is not the dimension of the busi-
healthcare products and services in the ness
country. Identify the feature of business A. political environment

B. social environment 683. Most businesses put their greatest com-

C. privatization petitive efforts into competing
D. economic environment A. locally
B. nationally
679. What type of ownership is a market stall
holder in Wolverhampton? C. with direct competitors
A. Private Limited Company D. with indirect competitors
B. Charitable Trust
NARAYAN CHANGDER
684. A company that has been established and
C. Sole Trader successful for 10 years doesn’t need to
D. Government Department conduct a SWOT
680. Which Incoterms rule says that the seller A. True

delivers when he places the goods at B. False
the disposal of the buyer at the seller’s
premises or at another named place (i.e., 685. Globalization does not involve:-
works, factory, warehouse, etc.). A. Reduction of barrier
A. THAT
B. Free flow of goods & services
B. CIP
C. Global mechanism for settlement of
C. CPT economic disputes
D. I have D. Free flow of capital
681. What is the name for markets with only
686. What makes international trade via ship-
a few sellers, such as the markets for au-
ping possible?
tomobiles, pharmaceuticals, or oil?
A. A oligopolies
B. B. monopolies
C. C. perfect competition
D. D. monopolistic competition
682. Finding a new way to advertise a product
to young people online is an example of:
A. Climate
B. Access to water
C. Political situation
D. Terrain
687. Fiscal Policy is controlled by
A. ethical business. A. The Government

B. creating a new product. B. The Federal Reserve System
C. innovation in marketing. C. The states
D. innovation in business processes. D. The Department of Commerce

688. 29) What is the most likely reason that 692. What is the amount of money paid for
governments cooperate with each other raw materials and products sold?
through treaties, agreements, and consul-

A. net profit
tations?
B. gross profit
A. to gain an advantageous division of la-
bor C. cost of goods
B. to be in compliance with United Na- D. operating expense

tions’ requirements
693. Competitive rivalry will be high if:
C. to attack problems jointly that one A. The industry is fragmented
country acting alone cannot solve
B. There are a few strong players in the
D. to assure that all countries get an eq- industry
uitable share of taxes from multinational
enterprises C. There is a high degree of differentia-
tion
689. What is a trade-off? D. The industry is in its infancy
694. How does the increase of global business

operations affect the environment?
A. It can lead to increased pollution and
environmental degradation.
B. It can encourage businesses to adopt
more sustainable practices.
A. the item you receive after you pay C. It has no significant impact on the en-
B. giving up one thing for another vironment.
C. the amount of money paid for some- D. All of the above
thing
695. Fill in the gaps in the following para-
D. none of above graph.A new business that is set up in
your town is a l business. However,
690. As a rule, in perfect competition there one day it may open outlets in other emi-
will be very few sellers. rates in the UAE so that it becomes a
A. true business. One day it may even sell its
products overseas, becoming an busi-
B. false ness. Finally, it may produce goods and
develop selling outlets across the , at
691. Which sector contributes DIRECTLY to which time it will be a global business.
the Gross Domestic Profit (GDP) of South
Africa A. Global, International, National, Com-
munity
A. Formal
B. International, Secondary, Local,
B. Private Global
C. Public C. Local, National, International, Global
D. Informal D. none of above

696. “The Trade Unions Act, 1926” is an ex- 701. Public Corporations are fully owned by
ample of:
A. Legal Environment A. State
B. Economic Environment B. Government
C. Social Environment C. Public
D. Political Environment D. all of these
NARAYAN CHANGDER
697. People in the organisations carry out di- 702. Which of the following is not a feature of
verse tasks with the aim to achieve Business environment? *
A. Different objectives A. Interrelated Elements
B. Common objectives B. Complex
C. Both of the above C. Continuous
D. None of the above D. Dynamic
698. Primarily Devaluation of Currency is done 703. A PEST Analysis is used to examine the
to external indicators of the SWOT Analysis
A. to control inflation A. True
B. to make the Rupee cheaper B. False
C. to Boost the export 704. In which year was the system of E Way
D. to increase foreign reserves Bills was introduced in India?
A. 2015
699. The management style sees each host
country as unique and sees real differences B. 2018
in these countries to the domestic one. C. 2014
A. Ethanocentric D. 2017
B. Regiocentric 705. Cultural changes are in the environ-
C. Polycentric ment
D. Geocentric A. Micro
B. Market
700. Because of competition, people in our so-
ciety enjoy C. Macro
A. a narrower selection of goods or ser- D. none of above
vices
706. Coca-Cola is now being freely sold in the
B. fewer changes in existing goods or ser- Indian market.
vices
A. Technological
C. government control of our economic
system and businesses B. Political
D. higher standard of living than that of C. Natural

people in many other countries D. none of above

707. A tariff is a tax on imported products. 713. Most businesses operating in the U.S. to-
A. false day are largely unaffected by the global
environment.

B. true
A. True
708. What are taxes a country places on prod- B. False
ucts as they cross its borders?
714. The formula to calculate Net Domestic
A. Laws
Product is:
B. Tariffs
A. Gross National Product / Depreciation
C. Quotas
B. Gross Domestic Product-Depreciation
D. none of above
C. Gross Domestic Product + Deprecia-
709. Organisational culture is tion
A. The structure of the organisation- D. Government Expenditure + Deprecia-
break down of roles and responsibilities tion
B. The shared values, beliefs, expecta- 715. Which of the following is not a renewable
tions and attitudes of the people within source of energy?
the organisation (management and staff)
A. Sun energy
710. *Innovation*Rate of technology B. Nuclear Energy
changes*Automation*Research and devel-
C. Wind Energy
opment etc. are fall under environ-
ment. D. All are renewable sources
A. Economic 716. Which of the following is not a general
B. Political force in business environment?
C. Social A. political environment
D. Technical B. social environment
C. competitors environment
711. When the government raises taxes, what
does it take out of circulation? D. Economic environment
A. Money 717. How a country manages its resources is
B. Credit an example of its condition, which in-
fluences international business.
C. People
A. cultural and social
D. Jobs
B. geographic
712. Creating a website and selling online is C. economic
realted to
D. political and legal
A. Social Environment
B. Economic Environment 718. Which of the following terms is used
to describe the factors and forces out-
C. Political Environment side marketing that affect marketing man-
D. Technological agement’s ability to build and maintain

successful relationships with target cus- B. term

tomers? C. agreement
A. the marketing environment D. return
B. the cultural environment
724. Which one is an example of economic en-
C. strategic planning vironment?
D. the marketing mix A. Changes in technology
NARAYAN CHANGDER
719. is the tool to achieve privatization. B. Expectation of society
A. Abolishing licenses C. Change in exchange rate
B. Disinvestment D. change in government’s rule and regu-
lation
C. Free movement of goods and services
D. Globalisation 725. Which of these factors have influenced
globalisation?
720. People who go into business know that
A. High taxes and investment restric-
the business may not succeed. This possi-
tions.
bility is referred to as business
B. Communication systems and the inter-
A. risk
net.
B. retention
C. Poor standard of living and unemploy-
C. downsizing ment.
D. economizing D. none of above
721. A term for all the activities involved in 726. It is the degree to which a society ac-
developing and exchanging products. In- cepts or rejects the unequal distribution of
troduction to Business and Economics. power among people in organizations and
A. business the institutions of society.
B. profit A. Individualism-Collectivism
C. capitalism B. Masculinity-Femininity
D. factors of production C. Power Distance
E. service D. Uncertainty Avoidance
722. Elastic demand is more likely when the 727. Cutting of trees in a forest is callled
good is: A. Reforestation
A. A a luxury. B. Deforestation
B. B. imported. C. tree fall
C. C. a lower price. D. None of them
D. D. inexpensive. 728. Shift of Youth in India toward packed
723. The length of time invested money is con- foods, online buying is part of
trolled by others is known as the A. Political environment
A. conditions B. Social environment

C. Legal environment 732. 60) Visible exports and imports are

D. Technological environment A. merchandise imports and exports

729. Most companies begin the process of es- B. the sum total of goods and services
tablishing organizational ethics programs traded
by developing: C. international transactions paid for in
A. Ethics Training Programs money rather than barter
B. Codes Of Conduct D. typically a country’s least common in-

ternational economic transactions
C. Ethics Enforcement Mechanisms
D. Hidden Agendas 733. True or False? Developing the business
strategy forms part of the responsibilities
730. Which of the following are responsible of general management.
for making fiscal policy decision?
A. True
A. The President and Congress
B. False
B. The Federal Reserve System
C. The National Council of Economic Advi- 734. What is the role of international trade in
sors country’s economy?
D. The commerce Department
731. According to the United Nations Envi-

ronmental Agency, the world produces
around 300 million tons of plastic each
year, half of which constitutes single-use
items. Ford is recycling over one billion
plastic bottles every year to develop el-
ements of the car’s interior, reducing the
A. Allows to satisfy the needs of popu-
amount of plastic ending up in a landfill.
lation and stimulates development of the
The American car maker has revealed that
country
their Romanian-built EcoSport SUVs’ car-
pets are made using 470 recycled single- B. Helps get more products from abroad
use plastic bottles. The process for mak-
C. Helps broaden the range of available
ing Ford EcoSport carpets involves shred-
goods
ding bottles and their caps into tiny flakes
and then heating them to 260◦ C. Identify D. none of above
the related dimension of business environ-
ment. 735. Which of the following is not a compo-
nent of specific forces of business environ-
A. Social dimension ment?
B. Economic dimension
A. Technological conditions
C. Technological dimension(
B. Customers
D. Political dimension
C. Employees
Explanation:technology is facilitating recy-
cling process. D. Investors

736. 61) An example of a Japanese service ex- B. External Environment

port is a visit by a C. Internal Environment
A. Japanese citizen to Disneyland in the D. Operating Environment
United States
B. Japanese citizen to the Japan Pavilion 741. Which one of the following does not fall
at Epcot Center in the United States under Internal environment of business?
A. Value systems
C. U.S. citizen to the Japan Pavilion at Ep-
B. Mission and objectives
NARAYAN CHANGDER
cot Center in the United States
D. U.S. citizen to Tokyo Disneyland in C. Organizational structure
Japan D. Competitors
737. Making, buying, and selling goods and 742. 8) Under mercantilism, governments
services within a country is called sought to influence trade by
A. international business A. A) establishing bilateral trading agree-
B. global dependency ments with other countries
C. domestic business B. B) limiting exports
D. none of these C. c) limiting imports and subsidizing ex-

ports
738. The environment that is made up of broad D. D encouraging the development of
forces, trends and conditions in the econ- manufacturing in their colonies
omy and society that the business has not
control over is called the 743. Which factor of production would you
consider a cow?
A. Macro Environment
B. External Environment A. Land
C. Operating Environment B. Labor
D. Internal Environment C. Capital
D. Entrepreneur
739. Government control of industry.
A. Capitalism 744. In order for relationships in the business
to be functional (have a positive impact),
B. Socialism
740. The environment that is made up of broad A. Employees should be trained to be tol-
forces, trends and conditions in the econ- erant of differences.
omy and society that the business has not B. There should be a person who dom-
control over is called the inates discussions because they were a
A. Macro Environment top student in university.

C. Employees should be encouraged to B. demand

communicate in a constructive manner C. market economy
about their ideas and even differences

D. corporation
D. Time management skills are crucial-
especially where the output of one em- E. resources
ployee becomes the input of another em- 750. One of the biggest barriers that sepa-
ployee rates countries/regions is
745. Regional imbalances in India are largely A. language.
due to B. technology.
A. Concentration of raw material sources C. methods of travel.
B. Lack of education and knowledge at lo- D. brain drain.
cal level
C. Lack of local entrepreneurship 751. 7) The project of Nano car re-established
in Gujarat is indicated by which factor of
D. All of these environment?
746. Which is an example of an economic fac- A. Economic factor
tor that affects the business environment? B. Political factor
A. Business cycle C. Social factor
B. Employee morale D. Legal factor
C. Management style
752. The possibility that an expected profit
D. Long-term goals will not be achieved.
747. One of the factors that directly limits the A. resources
economic freedom of individuals in a pri- B. demand
vate enterprise system is government
C. market economy
A. indecision
D. corporation
B. production
E. financial risk
C. services
D. taxation 753. What are the four PATHS to establishing
an entrepreneurial venture?
748. Which of the following best indicates the A. Innovation, Growth potential, sound
importance of business environment? objectives, Management
A. Employing new workers B. Identifying an opportunity, Assessing
B. Result-oriented performance resources required, Developing a busi-
C. Coping with rapid changes ness plan, Managing an entrepreneurial
venture
D. Passing of new criminal law
C. Incubation, Start-up, Breakthrough,
749. The amount of a product or service that Maturity
individuals want to buy to satisfy their D. Starting a new business, Buying an
wants and needs. already established business, Franchise,
A. money markets Family Business

754. When the company produces good quality A. materials

products and sells it at reasonable price. B. tools
A. Responsibility towards Consumers C. equipment
B. Responsibility towards Government D. Technology
C. Responsibility towards Employees 760. 60) People generally prefer little con-
D. Responsibility towards Society sultation between superiors and subordi-
nates in cultures where is high.
NARAYAN CHANGDER
755. What are the two main factors that im-
pact a business in a competitive market? A. power distance
B. fatalism
A. Quality and marketing of their product
C. individualism
B. Size and number of firms in the market
D. self-actualization
C. Demand for their product and their
costs 761. *Economic growth rates * Interest rate
D. Disposable incomes and interest rates * Inflation * Unemployment The following
factors falls under which of the PESTLE
756. A characteristic of human wants is that analysis?
they are A. Technological
A. limited B. Legal
B. unchanging C. Economic
C. unlimited D. Social
D. consistent 762. With a financial perspective, one can say
that a firm is a pool of in order to
757. Availability of e-books is an example of:
A. personal wealth safe taxes
A. Economic Environment
B. resources invest
B. Technological Environment
C. contracts control employees
C. Legal Environment
D. people make the world a better
D. Social Environment place
758. Non-Human resources are physical item 763. What do producers typically do when
A. True prices increase?
B. False A. increase supply
B. decrease supply
759. The picture is showing
C. increase demand
D. decrease demand
764. Which one is not an invitation to treat?
A. Shop window display
B. Goods on shop shelves
C. Most adverts
D. Goods on warehouse shelves

765. is an online procurement platform for C. high prices and much competition
government ministries and departments,
D. low prices and little competition
and the most widely used channel for pub-

lic procurement in India. 771. why is Macro environment is referred to
A. Government e Manufacturing Plan decision-making environment?
B. Government e Model place A. is because of the mission statement
C. Government e Marketplace B. because it has complete control over
D. Government e Manufacturing place the business
766. A back up plan made in advance I saw C. because it is the 1st environment
known as D. none of above
A. An ad hoc plan
772. Business environment consists of internal
B. A contingency plan factors only?
C. A back up plan
A. True
D. A floor plan
B. False
767. An example of a contractionary fiscal pol-
icy would be if: 773. Demographics like population growth,
age distribution, and attitudes toward
A. taxes were cut
safety and health consciousness are cov-
B. the government bailed out GM ered under which macroenvironment fac-
C. the Fed decrease the fed funds rate tor?
D. taxes were increased A. Technological
768. 34) Many companies merge with or ac- B. Social

quire other companies to gain operating ef- C. Political
ficiencies that help them compete with or
D. Economic
become global leaders.
A. True 774. The Global Business Environment does
B. False not involve multiple sovereign nations out-
side of the organization’s home environ-
769. Vision and Mission are in the environment.
ment
A. True
A. Micro
B. False
B. Market
C. Macro 775. Net profit shows business owners the dif-
ference between what they’ve
D. none of above
A. spent and received
770. Which of the following are qualities of
monopolies B. paid and risked
A. high prices and low production C. received and billed
B. low production and much competition D. estimated and invoiced

776. ‘Beti Bachao Beti Padhao Yojana’ started 782. 6) Proponents of argue that individ-
by the government of India is a part of: ual interests are not as important as the
A. Legal Environment welfare of the group.
B. Economic Environment A. pluralism
C. Social Environment B. capitalism
D. Political Environment C. collectivism

D. individualism
NARAYAN CHANGDER
777. According to the Indian Constitution
A. All are equal before law 783. exchange of goods and services across in-
ternational boundaries
B. Equals are equal
A. domestic trade
C. first among equals
B. world trade
D. None of these
784. Presently who is responsible for fund al-
778. New Economic Policy was announced on location to implement plans in India
A. 24/07/1991 A. policy commission
B. 24/08/1991 B. Planning Commission
C. 23/07/1991 C. Ministery of Finance
D. 23/08/1991 D. RBI
779. Which of the following is not a part of 785. When fiscal deficit is financed by borrow-
the business environment of business? ing from , it is called deficit financing or
A. Suppliers money creation.
B. Competitors A. Reserve Bank of India
C. legal B. Regional Rural Banks
D. None C. Public Sector Banks
D. Private Sector Banks
780. Among the various economic system
economy is very basic and the most an- 786. Normally growth of a country is mea-
cient. sured in terms
A. Command economyic system A. Tax growth
B. Traditional economic system B. GDP growth
C. Market economic system C. Revenue growth
D. Mixed economic system D. None of these
781. The organization’s provide the com- 787. How can an entrepreneur maximise his
pany with the financial support it needs. profits?
A. Customers A. increasing prices
B. Employees B. cheating consumers
C. Investors or owners C. best quality product
D. Pressure groups D. lowering costs

788. It refers to a bad Filipino culture and of- D. planned saving.

ten practiced by some Filipino workers.
792. The most common medium of exchange in

A. Risk-taker
modern economic systems is
B. Long-term thinking skills
A. barter
C. Morning Habit
B. money
D. Strategic planning
C. credit
789. It is interesting to know that the menu
items of the multinational food chains are D. capital
customised to suit the general palates of
793. Following is not the features of business
the local people in the region. When Mc-
environment:
Donald’s started its business in India in
the year 1996, the company went through A. Totality of external forces
a complete localisation strategy. McDon- B. dynamic nature
ald’s changed its product menu to accom-
modate the vegetable burger given the C. industrial policy
large vegetarian population. It also al- D. uncertainty
tered its store design and even reduced
the product price by close to fifteen per 794. The major source of carbon dioxide emis-
cent. Also, the “McAloo Tikki burger” is sions by humans is
not available anywhere but in the Indian
A. respiration
outlets of McDonalds.Identify the relevant
feature of business environment being dis- B. burning fossil fuels
cussed above C. chopping down trees
A. Relativity
D. eating food
B. Interrelatedness
C. specific and general forces 795. Which one is not an equitable remedy?
D. totality of external forces A. specific performance (post-contractual
position)
790. It is the degree to which a society empha-
sizes short-term thinking versus greater B. money
concern for the future or long-term think- C. injunction
ing.
D. rescission (pre-contractual position)
A. Uncertainty Avoidance
B. Individualism-Collectivism 796. The following are all disadvantages of fis-
cal policy:a) Used to stimulate economic ac-
C. Time Orientation tivityb) Used to discourage negative exter-
D. Power Distance nalities
791. Privatization means
A. planned disinvestment.
B. planned investment.
C. reduced multinational companies’ con-
trol

C. equilibrium.
D. inelastic.
800. How has the ability to travel more freely

contributed to globalization?
A. A. It helps enable the spread of culture
and ideas.
B. It promotes a sense of nationalism.
NARAYAN CHANGDER
C. It escalates competition between busi-
nesses.
D. It breaks down political barriers be-
tween countries.
801. Acquiring permits in establishing a busi-

ness is a concern of what part of the PES-
TLE analysis?
B. A. Legal
B. Political
C. Economic
802. Prices are used in our economy to:

797. Buyer power is high if: A. offer excessive demand.
A. Differentiation is low B. cause no change demand.
B. Switching costs are low C. encourage excessive supply of prod-
ucts.
C. They have little information
D. determine what goods are to be pro-
D. The buyer requires a high quality prod- duced and in what quantities.
uct for their own production
803. Which of the following is not a tax re-
798. The environment that surrounding the form?
business is
A. Reduction in taxes
A. Micro environment
B. Reforms in Indirect taxes
B. Macro environment
C. Simplification of tax process
C. Near environment
D. Devaluation of Rupees
D. Bounded environment
804. Tecnological Advancement is an
799. A form of demand for products in which
changes in price correspond to changes in A. Internal factor
demand is: B. External Factor
A. consumer. C. Threat
B. elastic. D. Oppourtunity

805. Country X decides to buy automotive C. Internal

products from country Y because it would D. Special and General
cost more to produce its own automo-

tive products. This indicates that there 810. Following is the impact of government
are factors driving international trade, policy changes on business and industry:
namely A. technological upgradation
A. Technological differences B. Demanding customers
B. Differences in natural resources C. Increased competition
C. Efficiency D. All of the above
D. Differences in human resources 811. South Africa’s political environment is
806. Johor Bahru The Zone is open for busi- A. Stable
ness with duty free tax B. Unstable
A. Global business environment C. Relatable
B. Domestic business environment D. Responsive to citizens
C. No answer
812. 11) Gaining some understanding of inter-
D. Domestic business national business is important for any busi-
ness student because global events and
807. Private enterprise is based on the idea
competition affect almost all companies.
that everyone is better served when
A. True
A. businesses regularly increase their
prices B. False
B. individuals are free to set their own 813. 20) Which of the following is most likely
goals a true statement about companies’ acqui-
C. government determines where individ- sition of resources/assets abroad?
uals will work A. regardless of industry, cheap labor is
D. economic resources are controlled by the most sought after resource.
the government B. resource availability limits affirms pro-
duction location choices.
808. Consumers, producers, and owners of
C. Developing countries are losing grow-
resources use money to create a flow
ing shares of their foreign-exchange re-
ofresources, goods, and services through
serves.
which economic activity?
D. Emerging economies are adopting the
A. consumption
principles and practices of free markets.
B. distribution
814. What is an entrepreneur?
C. exchange
D. marketing
809. Business Environment is a group of

powers.
A. Special
B. General

A. Someone who is employed 819. Globalization can be an advantage for

B. Someone who doesn’t work businesses because it
A. can help them to cut costs for certain
C. Someone who has set up their own
resources.
business
B. increases direct competition.
D. Someone who works from home
C. can contribute to a phenomenon called
815. Workers can improve their lives by start- brain drain.
ing a violent revolution against the capital-
NARAYAN CHANGDER
D. inhibits the ideas of other businesses.
ist system
A. Communism 820. is a long-term security yielding a
fixed rate of interest, issued by a company
B. Capitalism and secured against assets.
816. buying products from overseas that have A. Debenture
already been produced rather than special B. Preference share
orders
C. Equity share
A. foreign outsourcing
D. Treasury Bills
B. foreign importing
821. The economic resources a nation uses to
C. foreign licensing
make goods and supply services for its
D. foreign franchising population.
817. What sector is this business? A. business
B. profit
C. capitalism
D. factors of production
E. service
822. Competition helps create a healthy soci-

ety by:
A. Public A. creating new jobs.
B. Private B. increasing the money supply.
C. Social Enterprise C. making new government regulations.
D. none of above D. replacing small businesses with large
businesses.
818. 11) In a practical sense, the term political
system is meant to signify the 823. Authority granted by a domestic firm to
a 4n firm for the rights to produce and
A. organization of military power in a
market its product or to use its trade-
country
mark/patent rights in a defined geograph-
B. working government in a country ical area.
C. philosophical orientations in a country A. foreign outsourcing
D. cultural values in a country B. foreign importing

C. foreign licensing A. Resource

D. foreign franchising B. technology

824. A summary of an economy’s transaction C. invention
with the rest of the world for a specified
D. skill
period of time.
A. Summary 829. What is the difference between a share-
B. Balance of Trade holder and a debtholder?
C. Statement A. Shareholders are the owners of a com-
D. Balance of Payments pany whereas debtholders own debt is-
sued by a company.
825. 14 The potential of new entrants is one
B. Shareholders are not different from
characteristic of industry structure.
debtholders as both hold stakes in a com-
A. True pany.
B. False C. Shareholders provide money when
starting a company whereas debtholders
826. Liberalization means
supply funds during its course of busi-
A. Integration among economies ness.
B. reduced government control and re- D. Shareholders have less rights than
striction debtholders who have the actual control
C. policy of planned disinvestments. over a company.
D. providing greater role to private sec-
tor. 830. How does the increase of global business
operations affect the competitive land-
827. 5) Which of the following is an indication scape?
of the increased globalization of business
A. It increases competition between busi-
since the end of World War II?
nesses from different countries.
A. Foreign trade has largely replaced for-
eign ownership as a means of conducting B. It increases competition between busi-
international business. nesses from the same country.
B. World trade has grown more rapidly C. It reduces competition between busi-
than world production. nesses from different countries.
C. Globally, consumers now depend on D. All of the above
foreign output for more than half their con-
sumption. 831. Tax policy, trade restrictions, tariffs, bu-
D. Countries have increased their import reaucracy The following factors falls under
restrictions to counter the rising tide of which of THE PESTLE analysis?
imports. A. Legal
828. is referred to as something that has B. Political
never been made before, or the process
C. Economic
of creating something that has never been
made before. D. None of the above

832. What do consumers, producers, and re- 836. The government makes all the economic
source owners need to have in order to decisions for its citizens in a economy.
make economic decisions? A. fixed
A. economic incentives B. voodoo
B. information about prices C. command
C. rationing skills D. mixed
D. limited liability 837. refers to favorable external factors
NARAYAN CHANGDER
that could give an organization a competi-
833. This simply means that for the finan-
tive advantage.
cial statements to be comparative, the ap-
plication of the accounting methods, pro- A. Strength
cedures, or principles must be consistent B. Threat
with the previous period.
C. Opportunity
A. Objectivity D. Weakness
B. Consistency
838. Carbon credits related to
C. Comparability
A. Business responding to climate
D. none of above change
834. These are all factors influencing cul- B. Crediting carbon in ledger
ture:The influence of a dominant leader- C. Carbon accumulation in a company
the vision, management style and person- D. None of these
ality of the founder or leader in a business
often has a significant influence on the val- 839. What are the main categories of market
ues that the business tries to promote; the segmentation?
history and tradition of the business-how A. Location, Demographics and Income
things have always been done (and why);
B. Where they go to school
the type of technology used by the busi-
ness and the types of goods and/or ser- 840. Business environment differs from coun-
vices it produces; which industry or sector try to country and even region to re-
the business is in, and how much and what gion.Which feature of business environ-
type of competition it faces; ment is discussed in the given sentence?
A. true A. Uncertainty
B. false B. Complexity
C. Relativity
835. Which one of the following is the best ex-
planation of the business environment? D. Inter-relatedness
A. External factors that affect a business 841. Which factor is a barrier to small-
business and entrepreneurial success?
B. Laws and regulations that affect a busi-
ness A. poor management
C. Internal factors that affect a business B. no vision for expansion
D. External and internal factors that af- C. having a clear strategic vision
fect a business D. having a surplus of employees

842. George has decided to purchase a dish- C. Policy of planned disinvestments

washer. He is checking the newspaper ads D. None of them
for the best place to get quality goods and

services at a reasonable price. What type 848. 14) Similarity among people is both a
of product is the dishwasher? cause and effect of national boundaries.
A. capital A. True
B. convenience B. False
C. shopping
849. 6) Now the paint companies use comput-
D. specialty ers to mix the colours to come out with
843. Development of the manufacturing sector consumers desired shades for whitewash
can solve economic problems by: purpose. Which dimension?
A. Creation of jobs A. Social dimension

B. Creation of linkage industries B. Technological dimension
C. Importing goods C. Economic dimension
D. Concentration of production in urban D. Legal dimension
regions
850. Main characteristic of Indian society
844. Which factor is a barrier to small- A. Unity
business and entrepreneurial success?
B. Social stratification
A. A poor management
C. Single identity
B. B. no vision for expansion
D. None of these
C. C. having a clear strategic vision
D. D. having a surplus of employees 851. Credit Guarantee Scheme is covered un-
der which factor of Enabling Environment
845. Business environment is dynamic in na- for MSME in India?
ture.
A. Infrastructure Support
A. false
B. Direct Government Support
B. true
C. Legal & Regulatory Framework
846. Analyzing the changes in business envi- D. Indirect Government Support
ronment explains which feature of busi-
ness environment? 852. When an imported item is subject to a tar-
A. complex iff, then
B. static A. The selling price of imported goods be-
comes cheap
C. dynamic
B. Imported goods can easily enter In-
D. diverse
donesia
847. 10) Liberalization means: C. Competition for foreign goods is in-
A. Integration among economies creasing
B. Reduced government controls and re- D. The price of domestic goods has be-
strictions come cheap

853. is Gross Domestic Product (GDP) plus 858. Which component of business environ-
net factor income from abroad ment resulted in the relaxation of ban im-
A. Net Domestic Product posed on the Foreign Direct Investment?
B. Gross National Product A. Economic Environment
C. Net National Product B. Political Environment
D. Gross Domestic Product C. Social Environment
854. Which importance does the image repre- D. Legal Environment
NARAYAN CHANGDER
sents?
859. What factors should be considered to
judge the impact of the external environ-
ment on a business?
A. Cost of borrowing, return on saving,
and interest rates
B. Nature of the product, customer type,
A. Early Warning Signal location, and potential changes
B. First Mover Advantage C. Size of the business, competition level,
C. Public Image and marketing strategies
D. none of above D. Distribution of population, changes in
target markets, and labor costs
855. Contracting with 4n suppliers to produce
products, at a fraction of the cost of do- 860. Reduction in number of industries re-
mestic production served for public sector.
A. Liberalisation
B. Privatisation
C. foreign licensing
C. Globalisation
D. foreign franchising
D. none of above
856. International cooperative of 188 mem-
ber countries, working together to reduce 861. production, purchase, and sale of goods
poverty in the developing world and services within a country
A. GATT
A. domestic trade
B. WTO
B. world trade
C. IMF
D. World Bank 862. Technique used by Enterpreneur to gener-
ate new ideas and forecasts by doing men-
857. Successful managers must recognize op- tal excercise
portunities and threats in their firm’s
A. Input-output Method
A. internal environment
B. external environment B. Survey Method
C. local environment C. Start ups
D. international environment D. Brain Storming

863. The best type of regulation is 868. The removal of entry and growth restric-
tions on business and industry is:
A. Self regulation

A. Liberalisation
B. Industry regulation
B. Globalization
C. Government regulation
C. Privatization
D. None of these
D. Disinvestment
864. Retailing occurs wherever goods are: 869. Michelle is trying to decide which goods
A. A researched and designed. and services to purchase so that she can
get maximum satisfaction. Michelle is
B. B. created or manufactured.
A. creating scarcity
C. c. traded or exchanged for other
B. economizing
goods.
C. a producer
D. D. sold to consumers or the ultimate
customer. D. increasing distribution
870. The heart of economics is

865. Which of these are external factors that
influence financial decisions? A. trade-offs
B. wants
A. Price
C. resources
B. Personal
D. decision making
C. Cultural
871. What is manufacturing?
D. Marketing
A. Making things in the primary sector
E. Finance
B. Making things in the secondary sector
866. Major source of revenue for Indian gov- C. Making things in the tertiary sector
ernment is D. none of above
A. Corporation Tax
872. What are the only two ways to finance a
B. Income Tax firm?
C. GST A. By the owner’s funds or funds from rel-
atives
D. All of these
B. By government grants or tax subsidies
867. Apply the order of operations and choose C. By selling assets or taking on a bank
the correct answer:30 + (16/2)In a blank loan
Excel sheet type =30+(16/2)Please Ex-
D. By raising equity or taking on debt
cuse My Dear Ant SallyPEMDAS
A. 38 873. .Globalisation signifies:
B. 23 A. integration among various economies

of the world
C. 44
B. Non integration among various
D. none of above economies of the world

C. removal of economic licensing 878. Which of the following is NOT a type of

interest group?
D. none of the above
A. Professional Association
874. 12) The distinguishing feature of politi-
B. Government
cal ideologies along the political spectrum
is , with some emphasizing its primacy C. Trade Union
and others opposing it. D. Public Interest Group
A. capitalism
NARAYAN CHANGDER
879. 71) The ownership of foreign bonds is an
B. socialism example of a portfolio investment.
C. freedom A. True
D. liberalism B. False
875. One of the results of freedom in the mar- 880. The importance of understanding of busi-
ketplace is that ness environment is signified by:
A. businesses use resources efficiently A. coping with rapid changes
B. people and businesses can own things B. improvement in performance
of value C. all of the above
C. people can buy anything they can af- D. none of above
ford that can legally be sold
D. government decides how to use an in- 881. 71) A(n) outlines a firm’s ultimate
dividual’s private property goal and its guiding values in broad terms.
A. A) mission
876. An example of expansionary fiscal policy
would be B. By strategy
C. O) imperative
A. cutting taxes.
D. D) vision
B. cutting government spending.
C. cutting production of consumer goods. 882. The management of the business has
the market environment
D. cutting prices of consumer goods.
A. Full control over
877. How can changes in the nature of target B. No control over
markets impact labor costs?
C. No control but can influence
A. Changes in specific skills may require
businesses to change their purchasing D. Little control
and operating policies
883. 21) Imported flowers are now a stronger
B. Changes in target markets have no im- competitor to U.S. grown flowers in the
pact on labor costs U.S. market. Which of the following is
C. Changes in target markets may lead to likely the MOST important factor for this
a decrease in labor costs increase in imports?
D. Changes in target markets may lead to A. more effective production techniques

an increase in labor costs B. advances in communication systems

C. advances in transportation and logis- 890. INDIA ASKED FOR A LOAN OF FROM
tics IMF IN 1991

D. cross-national cooperation A. $10 BILLION
884. Positive factors that are not within the B. $7 BILLION
control of the business. C. $200 MILLION
A. Strength D. NONE
B. Weaknesses
891. 43) A major criticism of offshoring is that
C. Opportunities it
D. Threat A. increases production costs
885. ban on the import or export of a product B. exchanges good jobs for bad jobs
A. tariff C. threatens the sovereignty of larger
B. quota countries
C. embargo D. allows companies to avoid payment of
any taxes
D. none of above
886. What is the object of criminal law? 892. What do service businesses sell?
A. To regulate society through threat of A. A raw goods and services

punishment B. B. retail goods and services
B. To provide financial compensation C. C. intangible goods and services
C. To provide damages D. D. wholesale goods and services
D. For the state to oversee cases be-
893. Negative press/media coverage.
tween individuals
A. Strength
887. 88) The view that regionalization, rather
B. Weakness
than globalization, will prevail in the fu-
ture is largely based on the use of common C. Opportunity
languages among countries in a region. D. Threat
A. True
894. In a criminal case the burden of proof is
B. False on who?
888. exchange of goods and services between A. The government
nations (globalization) B. The prosecution
A. global economy C. Parliament
B. international trade
D. The claimant
889. The money spent to run a business is
895. Organisational culture is
called
A. The structure of the organisation-
A. operating expense
break down of roles and responsibilities
B. cost of goods
B. The shared values, beliefs, expecta-
C. net profit tions and attitudes of the people within
D. gross profit the organisation (management and staff)

896. What is the impact of technological ad- 901. The public sector is the part of the econ-
vancements on a business? omy owned and controlled by
A. It increases efficiency and reduces A. Non for profit organisations
costs B. The state
B. It has no effect on the business
902. Special programs being run by the gov-
C. It increases costs and reduces effi- ernment for the
ciency A. Vulnerable sections of the society
NARAYAN CHANGDER
D. It depends on the type of business B. Those who are interested
897. A planned economy relies on a centralized C. All people
government to control all or most of the D. None of these
factors of production and to make all or
most production and allocation decision. 903. The government controls the economic
system & does not allow private owner-
A. true ship of the means of production and distri-
B. false bution in a economy.
A. traditional
898. Environmental factors are
B. market
A. static
C. socialist command
B. stable
D. communist command
C. dynamic
904. Who owns the resources in a Capitalist
D. isolated economy?
899. stops anorganization from perform- A. Government

ing at its optimum level. B. Private Individuals
A. Weakness C. Both Government and Individuals
B. Strength D. None of the above
C. Threat 905. What is profits?
D. Opportunity A. total money taken in by a corporation.
B. difference between revenues and ex-
900. 63) A foreign direct investment occurs
penses
when
C. increases in a corporation’s stock
A. a company owns at least 25% of a for- price
eign firm
D. increases in income from year to year.
B. a company has a controlling interest in
a foreign company 906. Which theory suggests that there is a
number of groups to which a business is an-
C. foreign ownership is in private rather
swerable when pursuing stated aims and
than government securities
objectives? (Traditionally it has been held
D. a foreign firm agrees to a licensing that these will be the shareholders, cus-
agreement with a large conglomerate tomers and employees of the business)

A. Stakeholder theory 911. Government owns the basic means of

production, but there is some private own-
B. Shareholder theory
ership of businesses under

C. Customer theory
A. communism
D. Social theory
B. capitalism
907. Fundamental right of education for 6 to C. socialism
14 year olds is D. entrepreneurship
A. Article 31 A
912. Components of MACRO Environment
B. Article 41 A
A. Intermediaries
C. Article 51 A
B. Political
D. Article 21 A
C. Demographics
908. 67) In a democracy, D. Competitors
A. citizens have the right to participate in E. Exchange Rate
the decision-making process
913. Automation involves replacing human re-
B. the opportunity to truly participate in sources with
the political process is restricted to a se-
lect few A. natural resources
B. raw materials
C. the court system is directly supervised
by the political system C. consumer goods
D. the rights of the individual are merged D. capital goods
with the state
914. The organic food market in India is grow
909. What is an offer? at 25-30 per cent which reflects a clear
shift in consumer tastes and preferences.
A. a promise to be bound by the offeree The current growth in the organic food
B. a definite promise to be bound on spe- market is driven by multiplicity of factors
cific terms made by the offeror to the of- like rising health consciousness, changing
feree lifestyles, increase in disposable income
and growing availability of organic food
C. a promise to be bound without terms
products in shopping malls, retail outlets
by the offeror
and online. Which dimension of business
D. a definite promise to be bound on spe- environment is highlighted here?
cific terms made by the offeree to the of- A. Economic Environment
feror
B. Social Environment
910. Identify the personality. C. Political Environment
A. The Finance Minister D. Technological Environment
B. The Foreign Minister
915. This helps to analyze the strategies of
C. RBI Governor competitors:
D. IB Chief A. Financial Statement of the Company

B. Business Environment 920. An advantage of E-Commerce is:

C. Management of the Company A. The loss of jobs resulting from the au-
D. None of the above tomation of tasks.
916. Which environment should be the first B. The cost of setting up and managing
step we must check before we do busi- websites and other technology.
ness? C. Digital products such as music and
A. Internal Environment books can be received instantly when pur-
NARAYAN CHANGDER
B. External Environment chased.
D. Customers have to wait a few days or
917. INdia continues to be a lower-middle-
weeks to receive the products purchased.
income country along with 46 others,
while Sri Lanka has climbed to the upper-
921. 20) Advanced communication systems
middle-income group for the fiscal year
have contributed to growth in interna-
(FY) 2020, according to the World Bank’s
tional business by
classification of countries by income levels,
released on July 1, 2019.Identify the re- A. enabling better oversight of global op-
lated dimensions of business environment. erations
A. Social B. reducing the effects of global competi-
B. Technological tion
C. Economic C. decreasing the cost of cargo trans-
D. Political portation
918. Which of the following would occur if D. reducing export regulations

there was an increase in supply?
922. In a economy, individuals free to
A. There would be an increase in price make their own economic decisions
and an increase in quantity
A. market
B. There would be an increase in price
and a decrease in quantity B. command
C. There would be a decrease in price C. centrally-planned
and an increase in quantity
D. traditional
D. There would be a decrease in price and
decrease in quantity 923. To be successful, business ethics training
Explanation:If there was an increase in programs need to:
supply, this would mean that there would
be an increase in the quantity of the good A. focus on personal opinions of employ-
or service and this may lead to a decrease ees
in price. B. be limited to upper executives
919. Because ethics are based on both individ- C. educate employees on formal ethical
ual beliefs and social concepts, they do not frameworks and models of ethical deci-
vary from person to person. sion making
A. true D. promote the use of emotions in making
B. false tough ethical decisions

924. If a country produces more of one good, 929. This type of economy exist when the ba-
it must produce less of another good, this sic needs of individuals and families are un-
is: changed for generations.

A. competitive advantage A. Traditional
B. opportunity cost B. Market
C. absolute advantage C. Command
D. none of above D. none of above
925. What is the latest investment limit in 930. Global warming will cause an increase of
small scale industries?
A. Hakhlakhas A. Heat Waves
B. 1CRORE B. Hurricanes
C. 25 Lakhs C. Floods
D. 60 Lakhs D. All of them are true
926. The agency responsible for monetary pol- 931. The Committee on the ‘Disinvestment
icy in India of shares in PSUs’ (April 1993) empha-
A. Finance Ministry sized the percentage of equity to be di-
B. RBI vested could be up to 49% for industries
explicitly reserved for the public sector.
C. MOSPI
A. Rangarajan
D. Parliament
B. Tendulkar
927. 6) An economic system is the set of struc-
C. Tarpore
tures and processes that in a country.
D. all the above
A. guides the allocation of resources and
shapes the conduct of business activities 932. What does hiring and unemployment,
B. directs the movement of specific prod- employee benefits, and factors affecting
ucts to specific consumers organizational operating costs, revenues,
and profits are affected by?
C. sets the standards of competitive suc-
cess for companies in the economy A. Future position, business mission, and
objectives
D. stipulates the roles and responsibili-
ties of consumers B. Values, beliefs, and behavior of the or-
ganization
928. What are economic environmental forces
C. Tangible assets of the organization
generally include?
A. Tangible assets of the organization D. Global, national, regional, and local
economies
B. Values, beliefs, and behavior of the or-
ganization 933. When a business keeps a risk because
C. Exchange rates, wages, employment management is unaware of it, the business
statistics, and inflation is the risk.
D. Future position, business mission, and A. avoiding

objectives B. preventing or controlling

C. retaining C. Business environment

D. transferring D. Diversification
934. Land, labor, capital, and entreprenuer- 940. Any factor that causes changes in supply
ship are the four traditional factors of pro- and demand will cause changes in
duction.
A. price
A. true
B. value
B. false
NARAYAN CHANGDER
C. utility
935. Which of the following is a part of the
business environment? D. usefulness
A. Customers 941. An example of a country that has a so-

B. Suppliers cialist command economy is
C. Competitors A. Japan
D. All of the above B. Sweden
936. Advertising is one of the factors of pro- C. China
duction in an advanced nation such as the D. North Korea
United States.
A. true 942. Chairperson of NITI Aayog
B. false A. Prime Minister
937. Things your competitor does better than B. President

you. C. Finance Minister
A. Strength D. None of these
B. Weakness
943. Definition of GLOBALISATION
C. Opportunity
D. Threat
938. What is the amount of money for which

an item sells in the competitive market-
place?
A. value
B. price
C. market A. Exploitation of local resources by the
D. utility multinationals
939. consists of all those factors (Internal B. Greater mobility of people
and External) that affect the working of a C. Development aid from states and
business. world organisations
A. Business D. Increase of trade around the world
B. Turnaround among different countries

944. Outsourcing is one of the important out- 949. CSO stands for
come of A. Central Sample Organisation

A. Globalisation B. Central Sample Office
B. Privatisation C. Central Statistical Organisation
C. Liberalisation D. Central Statistics Office
D. Liberalisation all of these 950. Who was the father of Communism?
945. How are prices determined in a capitalist

economy?
A. by the government
B. by the producers
C. by the forces of demand and supply
D. by the consumers
946. The notion that a corporation should be

held accountable for any of its actions that
affect people, their communities and their
environment is usually referred to as
A. Adolf Hitler
A. a political factor B. Karl Marx
B. a social factor C. Adam Smith
C. a moral obligation of the corporation D. Archduke Ferdinand
D. corporate social responsibility 951. A market structure that features no bar-
riers to entry and has anunlimited number
947. Let it happen of businesses selling the same products is
A. Capitalism a/an:
B. Communism A. oligopoly.
B. perfect competition.
948. 80) When companies face the same com-
petitors in almost all countries where they C. regulated monopoly.
operate, D. monopolistic competition.
A. what they learn about one another in 952. Which person will be counted as unem-
one country is useful in predicting the oth- ployed according to official statistics?
ers’ strategies and actions elsewhere A. Bill who worked only 35 hours last
B. the market leader is the same every- week.
where B. George who neither has a job nor is
C. there is less need to understand the looking for one.
physical and societal factors of each coun- C. Joan who is waiting for her new job to
try start.
D. they are less likely to enter joint ven- D. Harry, who has retired and is not look-
tures with other companies ing for work.

953. Which of the following is NOT a benefit 958. Which do people compare in order to
of global business operations? make choices?
A. Increased access to new markets and
customers
B. Reduced costs due to economies of
scale
C. Improved access to new technologies
NARAYAN CHANGDER
and resources
D. Increased competition A. Costs Benefits
B. Supply Demand
954. ‘Ooty, hill station in Tamil Nadu, banned
the sale of single-use plastic items consid- C. Buying Selling
ering its negative impact on the environ- D. Apples Oranges
ment ‘ environment is highlighted here
A. Political 959. Gasoline prices increased 30 cents per
gallon. Raylee continued to purchase gaso-
B. Legal line because her demand and need to com-
C. Technological mute to work had not changed. This is an
example of what type of demand?
D. Social
A. A complementary
955. 10) The lack of cultural guidebooks and B. B. discretionary
research specifically for international man-
C. C. elastic
agers poses a significant problem for
global firms. D. D. inelastic
A. True 960. Which of the following are indicators of
B. False a country’s standard of living?
A. Level of consumption of goods and ser-
956. The major part of our rubbish is taken to vices
B. Level of pollution in the country
A. landfills
C. Average disposable income of the pop-
B. fuel lands ulation
C. wastelands D. Access to modern technology
D. rubbish fields 961. Apply the order of operations and choose
the correct answer:5 x (6+4) x 5Hint in
957. Software companies mainly located at Excel, any cell Type =5*(6+4)*5
some places because of
A. 250
A. Government incentives
B. 170
B. Abundant supply of man power
962. In the Union Budget presented on July 5,
C. Easy transport facilities
2019, for ease of access to credit for ,
D. All of these the Government has introduced providing

of loans upto Rs. 1 crore within 59 min- C. An economic system that combines as-
utes. pects of both capitalism and socialism.

A. Multinational Corporation D. Most modern economies such as
Canada and the US because they feature
B. Large Business Enterprises
a combination of two or more economic
C. Micro, Small and Medium Enterprises systems (Capitalism and Socialism).
D. Public Sector Undertakings E. All of the above are true of a market
economy.
963. What determines the price and quantity
produced of most goods? 967. . Which among the following is the
5th stage in Rowstows five stages of
A. Where supply and demand meet
growth?answer choices
B. How many substitutes are available
A. Drive to maturity
C. The quality of goods that are produced. B. Preparatory
D. If a consumer thinks it is a want or a C. Traditional society
need.
D. Stage of mass consumption
964. Liberalisation was introduced to put an
968. Changes in demographics results in shift-
end to
ing demand away from products, this is
A. Controls and restrictions And open var- classified as a
ious sectors A. Strength
B. Foreign exchange regulation B. Weakness
C. To empower private sector C. Opportunity
D. Public sector power D. Threat
965. Good reputation amongst the customer 969. Apex body of legislation in India
like Infosys, LAKEME, APPLE, GOOGLE, A. Parliament
LIC etc. have in market. So all of these
B. Assembly
will termed as of the company.
C. Lok Sabha
A. Opportunities
D. Assembly
B. strength
970. 10) Most countries’ imports account for
C. Weakness
more than half of their citizens’ consump-
D. Threat tion.
966. What best describes a mixed economy: A. True
A. An economic system that protects pri- B. False
vate property and allows a level of eco- 971. Which of the following is characteristic of
nomic freedom in the use of capital, but a seller’s market?
also allows for governments to interfere
A. Small demand
in economic activities in order to achieve
social aims such as old age pension plans. B. High prices
B. An economic system combining private C. Low profits
and public businesses. D. Large supply

972. 81) The view that globalization is in- 976. When the change in supply is relatively
evitable is most likely based on the belief less when compared to the change in price,
that we say that the commodity has a
A. international organizations will re- A. Relatively Greater-Elastic Supply
place nation-states
B. Relatively Less-Elastic Supply
B. protesters against globalization will be
persuaded to change their views C. Perfectly Inelastic Supply
D. Perfectly Elastic Supply
NARAYAN CHANGDER
C. people want more global homogeneity
of cultures
977. how many modes/ routes are there for
D. technical advances in transportation entry of foreign investment in India?
and communications are highly persistent
A. 1
973. Technology, education, inflation, ex-
B. 2
change rate, and infrastructure refer to
which factor of the international business C. 3
environment? D. 4
A. geographic
B. economic 978. The legitimate right to pursue profits dis-
tinguishes a business from organization
C. political and legal such as universities, hospitals, and govern-
D. cultural and social ment agencies.
974. A company’s location should be flexible A. true

enough to B. false
A. implement concentration strategies in-
stead of diversification strategies 979. A car manufacturer receives a shipment
of bolts that are going to be used in the
B. respond to new opportunities and with- production of automobiles. What type of
draw from less profitable ones industrial product would the bolts be?
C. import from anywhere in the world to A. Equipment
a single production location
B. Parts
D. export anywhere in the world from a
single production location C. Materials
975. What are the three principal demographic D. Supplies

factors that can affect demand for prod-
ucts or services? 980. environment consists of economic con-
ditions in the market, economic policies of
A. Employment level, economic activity, the Government and economic system of
and tax cuts the country.
B. Location, income, and education level A. Political
of population
B. Socio-cultural
C. Age, gender, and race of population
C. Economic
D. Size, makeup, and distribution of popu-
lation D. Legal

981. What is the correct term for an individual B. chicken, board, stove
who buys a product or service called? C. water, fruits, clothing

986. Which of the following are not true about

Singapore and Hongkong
A. Both places have very competetive
economies
A. Customer B. Both places are independent countries
B. Consumer C. Both places have free economies
C. Supplier D. Both places have rather low taxation
D. none of above 987. In order for Coca-Cola products to be

bought and sold around the world, a coun-
982. The difference between total revenue try must have rights to a
and total expenditure of the government
is termed as
A. Gross Deficit
B. Monetary Deficit
C. Fiscal Deficit
A. Franchise
D. Net Deficit
B. Business Ownership
983. How do we call the money brought by C. License
shareholders?
D. Other
A. Available funds
B. Equity 988. Monetary & Fiscal Policy are part of
which environment-
C. Cash
A. economic
D. Shareholder Liability
B. ecological
984. Based on the combination of the decisions C. legal
made by individual consumers and busi-
nesses. D. political
A. money markets 989. How can a business make consumers

B. demand more aware of their product?
C. market economy
D. corporation
E. financial risk
985. Which set below is showing resources

used in a business?
A. printer, papers, folder, computer A. by creating a more innovative product

B. by offering a lower price 993. What is important in the relationship that

C. through advertising a business develops with its suppliers?
D. by improving their social responsibility A. Reliability

B. Cost Effectiveness
990. This image represents which feature of
Business Environment? C. Positivity
D. All of the above
NARAYAN CHANGDER
994. is a process of gathering, analyzing
and dispensing information for tactical or
strategic purposes.
A. Environmental scanning
B. Environmental screening
C. Environmental controlling
A. Inter-related 995. Which one of the following four options

is the most important for communicating a
B. Relative message?
C. Uncertain A. The message must be clear and in writ-
D. Complex ing
991. 58) which of the following is the most B. The message must be clear and cor-
accurate statement about culture? rect
A. cultural variables can easily be iso- C. The message must be clear and on
lated from other factors such as economic time
and political conditions D. The message must be clear, correct
B. although most cultural variables are and on time
universal, the forms these variables take 996. SWOT analysis is an acronym for ,
differ from culture to culture , and Ans.
C. most cultural variables are superficial A. strong, weak, oppo, treat
and can easily be influenced by environ-
mental factors. B. Strengths, threats, weaknesses, op-
portunities,
D. within a culture, everyone responds
to particular cultural variables the same C. weaknesses, opportunities, Strengths,
way. threats
D. Strengths, weaknesses, opportunities,
992. Farms, mines, and lumber companies are threats
examples of
A. builders 997. Location, climate, terrain, waterways,
and natural resources refer to which fac-
B. manufacturers tor of the international business environ-
C. trade industries ment?
D. raw-goods producers A. geographic

B. economic 1003. falls into the micro-environment of

a business.

A. Market suppliers
B. Political and legal factors
998. which of the following is the feature of C. Socio-cultural factors
D. Demographic
A. it is a relative concept, as it differs
from country to country and even region 1004. The economic basis for the private en-
to region terprise economic system is
B. it enables the firm to identify the op- A. competition
portunities and get the first mover advan- B. the profit motive
tage
C. the marketplace
C. it helps in tapping the useful resources
D. supply and demand
D. all of the above
1005. What is an entrepreneur?
999. goods and services one country sells to A. Someone who takes a calculated risk
another country through starting a business
A. imports B. Someone who gives up when some-
B. exports thing goes wrong
C. Someone who doe not understand the
1000. 2) Identify out of the LPG, which one is business environment
highlighted:Lifting of unnecessary controls
over the firms. D. Someone who does not take time to
consider the risks
A. Liberlization
1006. Globalisation is the process wherby
B. Privatization
businesses operate on an international
C. Globalization scale
D. None
1001. A socially responsible business will at-

tempt to give customers
A. lower quality products at reduced
prices
B. high-quality products at high prices
C. the best products at the best prices
D. the best products no matter what they
cost A. True
B. False
1002. Public enterprises are owned by public
1007. In a private enterprise economic system,
A. True
consumers can choose from a variety of
B. False products as a result of

A. the collections of taxes 1012. WTO came into existence on

B. limited government control A. 1st January 1990
C. inflation B. 1st January 1995
D. competition C. 1st January 2000
1008. Which of the following is the role of the D. 1st January 1999
financial sector in the circular flow of in-
1013. some interested groups have demands
come?
NARAYAN CHANGDER
based on their concern for issues.
A. To act as an intermediary between
A. Events
savers and borrowers in an economy
B. Trends
B. To collect taxes from individuals and
businesses C. Issues
C. To produce goods and services for con- D. Expectations
sumers
1014. How has globalization affected con-
D. To export goods and services overseas sumers?
Explanation:The financial sector refers to
financial institutions such as banks that A. It has made them more closed-minded
act as intermediaries between the savers toward other cultures and ethnicities.
and borrowers in an economy. B. It has helped them to save on taxes.
1009. Which of the following is an example of C. It has increased competition among

inputs in a transformation system? them.
A. ready-made goods D. It has given them a bigger and better

variety of products to choose from.
B. raw materials
C. services 1015. All of the following are benefits of inter-
national business except
D. ideas
A. expanded business opportunities
1010. These days companies cannot avoid in-
B. increased sources of raw materials
vesting in
C. decreased competition
A. Research
D. improved political relationships
B. Development
C. Research and Development 1016. 26) When a company successfully re-
sponds to foreign production and market
D. Employees
opportunities,
1011. A business decides against opening a A. other companies will likely emulate its
store in the next town because its research successful practices
shows the location will be unprofitable.
What form of risk management is this? B. it likely has a long-term advantage
over competitors
A. A avoidance
C. it will downsize its domestic opera-
B. B. reduction tions
C. C. retention D. its home government likely raises
D. D. transfer taxes on the company

1017. The legal environment includes: C. Macro

A. government policies related to pricing D. none of above

B. the constitutional framework
1023. What does D represent?
C. goverment policies related to import
and export
D. all of the above
1018. The “Make in India” Initiative in

A. Sep-19
B. Sep-16
C. Sep-18
D. Sep-14 A. Demand Curve
1019. It is a form of business organizations B. Supply Curve

where owner/s are jointly and individ- C. Equilibrium point
ually liable for the actions of the other
owner/s. D. Equilibrium price
A. Corporation E. Equilibrium quantity

B. Incorporation 1024. Businesses have the most control over
C. Sole Proprietorship the environment
D. Partnership A. Micro
1020. ‘Sudden announcement of demonetisa- B. Market
tion by our Prime Minister” is an example
C. Macro
of this feature of business environment
A. Relativity D. none of above
B. Specific and general forces 1025. which of the following is not an element
C. Inter related of social environment?
D. Uncertain A. birth and death rate
1021. Following is not a general force environ- B. constitution of the country
ment: C. population ships
A. political environment
D. life expectancy
B. social environment
C. competitors environment 1026. A salesclerk working part-time at a
clothing store is an example of a(n)
D. Economic environment
A. natural resource
1022. A challenge related to a natural disaster
is a factor in the business environment. B. human resource
A. Micro C. capital good
B. Market D. unlimited resource

1027. Which is NOT a common characteristic of 1031. The term business environment means
an entrepreneur? the sum total of
A. all individuals
B. institutions
C. other forces that are outside
D. all of the above
NARAYAN CHANGDER
1032. Which of these is NOT a skill of an en-
trepreneur?
A. risk-taker
B. creative
C. organised
D. irresponsible
1028. What are the 4 p’s of marketing?

A. price, product, promotion, place
B. price, person, promotion, place A. Creativity
C. place, perspective, promotion, place B. Interpersonal Skills
D. none of above C. Organisation
D. Sleeping
1029. the environment scanning helps to iden-
tify 1033. 4) Which of the following ideas holds
A. opportunity that a government should NOT interfere in
business affairs?
B. threats
A. A) collectivism
C. both
B. B)laisser-faire
D. none
C. C the rule of man
1030. What does C represent?
D. D) pluralism
1034. are receipts of the government

which create liabilities or reduce financial
assets, e.g., market borrowing, recovery
of loan, etc.
A. Revenue Receipts
B. Capital Receipts
A. Demand Curve C. Donations to Government
B. Supply Curve D. Revenue from Exports
C. Equilibrium point 1035. Subsidies are part of which environ-
D. Equilibrium price ment?
E. Equilibrium quantity A. Political

B. Social
C. Economic

D. Legal
1036. is an external environment factor af-

fecting business.
A. Political environment
A. True
B. Vision
B. False
C. Employees
D. Customers 1041. Characteristics of the Informal Sector
A. Not registered
1037. Benefit country has in a given industry
when it can produce more of a product than B. Not in Fixed Locations
other nations using the same amount of re- C. Used to alleviate poverty
sources
D. Are Illegal
A. comparative advantage
B. competitive advantage 1042. When the organisation pays the taxes
in time.
C. absolute advantage
A. Responsibility towards the Society
D. none of above
B. Responsibility towards the Govern-
1038. How many dimensions are their in busi- ment
ness environment? C. Responsibility towards the Employees
A. 4 D. Responsibility towards the sharehold-
B. 5 ers or owners
C. 2 1043. The dimension of business environment

D. 3 which has led to incorporation of values as
part of business objectives
1039. An action or task that is performed, usu- A. legal
ally for a fee.
B. social
A. business
C. economic
B. profit
D. political
C. capitalism
D. factors of production 1044. When was the new economic policy es-
tablished
E. service
A. 1991
1040. Social responsibility of business implies B. 1992
the obligation of the management of a
C. 1994
businessenterprise to protect the interest
of the society. D. none of these

1045. Internal components of environment 1051. Theorists of free trade believe that free
provide and Strength world trade will create inequality and high
A. Weaknesses costs due to interconnectivity of economies
B. Opportunities A. True
C. threats B. False
D. challenges
1052. Business and its environment are
1046. What action do consumers take that de-
NARAYAN CHANGDER
termines what will be produced in a mar- A. separable
ket economy? B. inseparable
A. Apply for jobs C. unrelated
B. Cast economic votes
D. not related
C. Produce products
D. Comparison shop 1053. 65) In a country that emphasizes collec-
tivism,
1047. At the quantity of goods supplied is
equal to the quantity of goods A. the interests of the individual are more
important than the interests of the state
A. Economy price
B. Government price B. one person or political party exercises
absolute control over the political and eco-
C. Equilibrium price nomic systems
D. Premium price
C. the needs of society and the needs of
1048. The value of the next best option that individuals are treated as equally impor-
is not selected is tant
A. profit D. the nods of society take precedence
B. standard of living over individual freedoms
C. opportunity cost 1054. Macro Environment consists of
D. time utility
1049. 35) Governments primarily cooperate
B. Political Environment
through treaties to create a global division
of labor. C. Social Environment
A. True D. All of the above
B. False
1055. A business’ need to give back to the
1050. An overall reduction in consumer spend- community in which they operate
ing power is known as
A. Triple bottom line
A. Recession
B. Entrepreneurial factors B. Corporate social responsibility
C. Socio economic issues C. Strategic response

D. Legislation D. Globalisation

1056. What can governments do to support organization to choose among several ac-
businesses in the global economy? tions that must be evaluated as right or
wrong.

A. Invest in education and training to de-
velop a skilled workforce. A. Crisis
B. Create a supportive regulatory envi- B. Ethical Issue
ronment for businesses. C. Indictment
C. Promote trade and investment. D. Fraud
D. All of the above
1062. I am concerned with which where I am
1057. Which of the following best indicates to establish my business. What Part of
the importance of business environment? the PESTLE analysis am I to look at?
A. Identification A. Political
B. Improvement in performance B. Environmental

C. Legal
C. Coping with rapid changes
D. Technological
D. All of them
1063. What does E represent?
1058. The internal business environment con-
sists of
A. factors that directly impact the organi-
sation
B. factors that influence the operations of
the business
C. factors that influence the wider envi-
ronment in which the business operates
A. Demand Curve
D. none of above
B. Supply Curve
1059. Which one of the following is not a fea- C. Equilibrium point
ture of urbanization? D. Equilibrium price
A. Technology and infrastructure E. Equilibrium quantity
B. Transport and communication
1064. A business has to offer wider choice
C. Nations growth in purchasing enhanced quality of goods
D. Unstructured facilities and services in order to maintain an edge
over its competitors. The implementation
1060. As a rule, the products in perfect compe- of the new economic policy with liberali-
tition are very similar. sation, privatisation and globalisation has
posed various challenges for the corporate
A. true
sector. One of the important challenges is
B. false explained in the above lines. Identify it.
1061. A (n) is a problem, situation, or op- A. Increasing competition

portunity requiring an individual, group, or B. More demanding customers

C. Necessity for change 1069. The economic system that adopts the
D. Market orientation fewest new ideas or improvements is:
A. A communist.
1065. An entrepreneur has an
B. B. market.
C. C. socialist.
D. D. traditional.
1070. The biggest advantage of regular corpo-
NARAYAN CHANGDER
ration is unlimited liability.
A. true
A. I can’t be bothered attitude B. false
B. I can’t do attitude 1071. Innovations are part of which environ-
C. I can do attitude ment;
D. none of above A. technological
B. social
1066. Even though the political conditions vary
from country to country, they impact the C. legal
sentiment of the investor in the business.If D. political
there instability of political condition cause
uncertainity and make it difficult for him 1072. An organisation that has outlets in 20
to predict the future. which feature of the countries is classed as
business environment is highlighted in the A. National
above statement? B. Local
A. specific and general forces C. Global
B. dynamic nature D. International
C. relativelty
1073. is the process of transforming pri-
D. all of the above vate assets into public assets by bringing
them under the public ownership of a na-
1067. When less expensive substitutes for a
tional government.
product are readily available, then demand
for the product is likely to be more A. Globalization
A. elastic B. Nationalization
B. complementary C. Internationalization
C. urgent D. None of the above
D. inelastic 1074. It is the degree to which a society em-
phasizes individual accomplishments ver-
1068. PESTLE is not used in analyzing poten-
sus collective accomplishments.
tial economic problems that may arise in
small businesses that are about to estab- A. Individualism-Collectivism
lished or are already established. B. Masculinity-Femininity
A. TRUE C. Time Orientation
B. FALSE D. Power Distance

1075. When two businesses willingly combine 1080. All of the following are International Or-
to create a new business, this is known as: ganizations outside of the Caribbean EX-
CEPT:

A. A merger
B. A takeover A. Caribbean Single Market Economy
(CSME)
C. An alliance
B. WorldBank
D. An acquisition
C. International Monetary Fund (IMF)
1076. When the prices of iPhones increase, the D. World Trade Organization (WTO)
quantity of iPhones offered for sale will in-
crease. This is an example of the law of: 1081. What is the ripple effect?
A. equilibrium. A. The result of a recession e.g. produc-
B. production. ers cutting production, people lose jobs
C. shortage. B. When the value of the goods sold in an

economy falls for two quarters in a row
D. supply.
C. The process of increasing the quantity
1077. How can a business adapt to changes in of money in the economy
the external environment? D. none of above
A. By ignoring the changes and focusing
on internal factors 1082. In a civil case the burden of proof is on
who?
B. By adjusting their strategies and oper-
ations to accommodate the changes A. The state
C. By increasing their prices to cover any B. The prosecution

potential losses C. The claimant
D. By reducing their workforce to save on D. The defendant
costs
1083. Under which type of economy does the
1078. Removing barriers or restrictions set by government own the basic means of pro-
the government is called: duction, but with some private ownership
A. Investment of businesses?
B. Fovourable trade A. command
C. Liberalisation B. communism
D. Privatisation C. entrepreneurship
D. socialism
1079. The government’s policy to reduce the
value of the domestic currency (rupiah) 1084. Which of the following is a direct benefit
against foreign currency is called to consumers of the effects of competition
A. award A. higher product prices
B. Devaluation B. wider product selection
C. Subsidy C. wise use of resources
D. Dumping D. fewer new businesses in the market

1085. Which of the following are production 1090. 48) History suggests that if the eco-
tools used by ICT: nomic crisis worsens, we are likely to see
A. Computer Aided Design more people question the
B. Computer Aided Manufacturing A. fall of communism
C. Computerized Stock Control System B. legitimacy of capitalism
D. All of the above C. practicality of mixed market

economies
NARAYAN CHANGDER
1086. degree to which gender roles are dis- D. correlation between economic free-
tinct and adhered to within a society; dom and prosperity
A. Power distance
1091. An example of an interest group is
B. individualism/collectivism
A. Trade Union
C. masculinity/femininity
B. Competitors
D. uncertainty avoidance
C. Employees
E. Confucian/dynamism
D. none of above
1087. analysis helps in determining
1092. 42) Which of the following statements
threats and improves business without
would most likely NOT be supported by an
expenses.
advocate of offshoring?
A. SWOT
A. Offshoring increases the number of
B. Sensitivity analysis high-value jobs in the home countries of
C. Profitability analysis offshoring companies.
D. Noneof the above B. Offshoring is fundamentally better for
workers than the introduction of labor-
1088. Introduction of mobile phones have neg- saving technologies.
atively effected the business of cameras
C. Workers displaced due to offshoring
and watchesit is related to
are able to find new jobs as easily as
A. Technological Environment those displaced by technology.
B. Social Environment D. There are upper limits to offshoring be-
C. Economic Environment cause of the lack of skilled workers willing
to work permanently for low wages.
D. Political Environment
1093. What is meant by ‘adding value’?
1089. What does the structure of the organi-
zation determine? A. The money a company invests into a
new product
A. Tangible assets of the organization
B. the difference between the price of the
B. Values, beliefs, and behavior of the or- finished product/service and the cost of
ganization the inputs involved in making it.
C. Delegation of tasks, coordination, and
supervision 1094. Identify the personality.
D. Future position, business mission, and A. The Finance Minister

objectives B. The Foreign Minister

C. RBI Governor B. Infrastructure

D. NITI Aayog CEO C. Global mobility

D. Trade barriers
1095. 24) A company starting out with a
global focus, usually because of the in- 1100. What does endangered mean?
ternational experience of its founders, is A. gone forever
called a
B. very few of its kind left
A. multinational enterprise
C. find a new home
B. transnational company
D. break down of dead plants
C. strategically allied company
1101. Following is not the dimension of the
D. born-global company
business environment
1096. Which are the environment scanning A. political environment
techinques B. social environment
A. SWOT C. legal environment
B. SWAT D. nature
C. ETOP
1102. With the launch of make in India which
D. ETAP among the following was further liber-
alised
1097. The business environment has:
A. foreign direct investment
A. 1 level
B. Foreign institutional investment
B. 2 levels
C. Foreign exchange reserve
C. 5 levels
D. All of these
D. 3 levels
1103. By identifying areas under the weak-
1098. ‘Twinkle Stars’ is a well-known resort nesses section, how does this help you de-
for organising parties, especially for chil- velop?
dren. However, in past 6 months its pop- A. So that you can avoid them.
ularity has reduced considerably as a new
resort with better ambience and facilities B. So that you can pretend they don’t ex-
has opened within its vicinity. Name the ist and ignore them
related feature of business environment C. Use them to identify areas for develop-
which has inuenced the business of ‘Twin- ment and focus on them
kle Stars’ adversely D. By allowing other people to see them
A. Totality of external forces and use them against you.
B. Dynamic nature 1104. The Government increase the national
C. Inter relatedness minimum wage, how will this affect busi-
nesses?
D. Uncertainty
A. Negative effect due to employment
1099. refers to nation’s transpiration, cost increases
communication, and utility systems. B. Positive effect as staff will be more mo-
A. Intrastate commerce tivated

C. Neutral effect, it won’t make any dif- 1109. Identify the features in corporate cul-
ference ture.
D. none of above A. How the organization conducts its busi-
ness, treats its employees, customers,
1105. Hoping to duplicate the success achieved and wider the community.
by Japan, Korea, and other Asian nations,
B. How commited employees are to-
many developing countries are:
wards collective objectives.
A. subcontracting or contracting out ac-
NARAYAN CHANGDER
C. How power and information flow
tivities to endogenous organizations
through its hierarchy.
B. adopting an export-oriented strategy
D. The extent to which freedom is allowed
of economic growth.
in decision making, developing new ideas,
C. Increasing Demand for Capital and personal expression.
D. none of above E. All of the answers above
1106. Name some Characteristics of the For- 1110. 7) Globalization refers to all economic
mal Sector transactions among countries.
A. Legal Businesses pay tax and are in- A. True
cluded GDP of South Africa
B. False
B. Have Fixed Locations
1111. Protectionism is when the government
C. Are in Cambodia
has not control on 4n trade and does not
D. none of above protect business at home
1107. 9) There has been tremendous growth A. True

in BPO and KPO services. Identify the eco- B. False
nomic reform responsible for this trend?
1112. What are the processes of globalization
A. Liberalization
characterized by?
B. Privatization
A. Future position, business mission, and
C. Globalization objectives
D. None B. Free trade, capital flows, communica-
tions, and cheaper foreign labor markets
1108. The sale of gift items increases during
the time of Diwali and Christmas. Pop- C. Tangible assets of the organization
ular firms dealing in gift items in major D. Values, beliefs, and behavior of the or-
towns and cities make special plans of sale ganization
during this period.Which dimension of busi-
ness environment comes into picture here? 1113. NITI Aayog’s core concept is
A. Social A. Completion among states
B. Political B. Cooperative federalism
C. Economic C. Federal union
D. Legal D. States’ autonomy

1114. climatic/weather conditions are part A. An ethnic minority

of:- B. A person who’s a bit daft
A. social environment

C. Morally correct behavior
B. natural/ecological environment
D. Making lots of money out of customers,
C. demographic environment bleeding them dry!
D. technological environment
1119. Which of the following is not ethical
1115. The Government of India launched practice?
“Make in India” initiative in September, A. Prompt payment of taxes by business
2014 to increase foreign direct investment
(FDI) in 25 sectors. As of April, 2015, B. Sell products with correct measure-
FDI now in India increased by 48% since ment
the launch of “Make in India” initiative. C. Black marketing
Identify the concept being described in the
D. Providing fair wages to workers.
above lines, with regard to inflow of FDI.
A. Demonetization 1120. What do producers typically do when
B. Privatization prices increase?
C. Liberalization A. A increase supply
D. Globalization B. B. decrease supply
C. C. increase demand
1116. Utility describes the characteristics of a
product that satisfy D. D. decrease demand
A. scarcity
1121. Both internal and external factors can
B. needs and wants impact the global business environment.
C. opportunity costs A. True
D. supply and demand B. False
1117. The full form of ASPIRE is? 1122. All of the following are benefits of In-
A. A Scheme for Promoting Innovation & ternational trade EXCEPT:
Regional Excellence A. It increases competition in the domes-
B. A Scheme for Promoting Invention & tic market.
Rural Education
B. It increases domestic sales.
C. . A Scheme for Prospering Innovation
C. Is spreads the risk of the business.
& Regional Entrepreneurship
D. It increases sales in new markets.
D. A Scheme for Promoting Innovation &
Rural Entrepreneurship 1123. What is the external environment of a
1118. What’s ethics all about? business?
A. The elements that impact on the busi-
ness which are outside its direct control
B. The elements that impact on the busi-
ness which are within its direct control

C. The elements that impact on the busi- 1127. This simply means that the expenses of
ness which are both within and outside its the business are recognized or recorded
direct control when incurred whether paid or not the rev-
D. The elements that have no impact on enue is recognized when earned whether
the business collected or not.
A. Objectivity
1124. What is positioning?
B. Accrual Basis of Accounting
NARAYAN CHANGDER
C. Cost Principle
D. none of above
1128. What is a positive effect of interna-

tional migration to the Caribbean?
A. Labour shortages can occur in particu-
A. a business process that all companies
lar industries when the skilled, educated
should invest in
leave the country.
B. a marketing technique that makes
B. Remittances sent to family in
a product seem different to competitor
Caribbean countries mean the inflow of
products
currency into a Caribbean country and a
C. in case of an accident or disaster better quality of life for family members.
a marketing technique that groups con-
C. The loss of trained, skilled and experi-
sumers together based on their geo-
enced workers is known as a ‘brain drain’.
graphic location
D. a marketing technique that tells busi- D. Migrants may have to settle for less
nesses where they should sell their prod- than optimal jobs, especially in the initial
ucts settlement phase.
1125. 5) The view calls for compa- 1129. Deciding to stay home and study, in-
nies to develop low-cost, high-powered, stead of going to a basketball game, is an
resource-minimizing innovations that can example of a/an:
be marketed to the billions of people liv- A. trade-off.
ing on less than a few dollars a day.
B. capital good.
A. Base of the Pyramid
C. economic want.
B. Hierarchy of Needs
D. economic service.
C. Happy Planet Index
1130. What is control?
D. Gini coefficient
A. is the number of people that individu-
1126. Which is a responsibility of a business als are responsible for in an organization
A. Setting guidelines for the economy B. To pass information to a succession of
B. Earning money at the cost of others others
C. Utilising natural resources rapidly C. The process of making sure that things
D. Giving fair treatment to suppliers and are done in the expected way
consumers D. none of above

1131. Since more number of people have be- A. helps in getting first mover advantage
come more beauty and health conscious,
B. early warning signals
our economy has witnessed an unprece-

dented surge in the number of health and C. tapping useful resources
beauty spas and wellness clinics. Related D. none
feature of business environment being de-
scribed in the above lines is- 1136. A garden store customer tripped over a
A. Totality of external forces plant, fell, and sued the store for damages.
This is an example of a(n) risk.
B. Dynamic nature
C. Interrelatedness A. strategic
D. Relativity B. operational
C. hazard
1132. Which of the following form part of the
market environment? D. financial
A. Competitors
1137. What is a characteristic of Business En-
B. Suppliers vironment:
C. Non-government organisations A. Business environment is always con-
D. Political factors stant
B. Business environment is unpre-
1133. Which of the following is an example of
dictable
social environment?
A. Money supply in the economic C. Business environment factors in all in-
ternal aspects of a business
B. Consumer protection act
D. Business environment is the same in
C. The constitution of the country all areas of the world
D. Composition of family
1138. What is one factor of the external oper-
1134. 82) Critics of the view that regionaliza- ating environment of a business?
tion will prevail over globalization most
likely base their argument on the belief A. Customers
that B. Competitors
A. regionalization is a transition stage to- C. Suppliers
ward globalization
D. Interest Groups
B. neighboring countries are more apt to
disagree politically than distant countries E. All of the above
C. neighboring countries are too geo- 1139. 65) A multinational enterprise (MNE) is
graphically similar to benefit from trade best defined as a firm
D. business in non-territorial areas is not A. that is a member of the Fortune 500
regional
B. with foreign business partners
1135. the importance of business environment
C. involved in global franchising
which helps to know in advance forthcom-
ing threats of business D. with foreign direct investments

1140. DigiLocker is the country’s first secured B. is person or a group of persons that is
cloud-based platform for the storage, is- affected by, or has an interest in the activ-
suance and verification of documents with itiesof a business
the Driving Licence & Vehicle Registration
C. A value statement sets out the core
System of the Road Transport Ministry.
values of the organization and what it be-
The integration of a government depart-
lieves in.
ment with DigiLocker since its launch last
year is one of the biggest of its kind. It D. none of above
will spare 1 people the trouble of carrying
NARAYAN CHANGDER
licences & vehicle papers, which can be ac- 1144. What is the purpose of college?
cessed on phones using the DigiLocker app. A. To provide a product
Identify the related dimension of business
environment. B. To provide a service
A. Economic dimension 1145. Why do marketers classify goods and

B. Political dimension services?
C. Technological dimension A. to determine promotional budgets
D. Social dimension B. to determine prices to charge for

goods and services
1141. Which importance does the image repre- C. to aid in marketing planning
sents?
D. to decide whether to increase produc-
tion
1146. 6) Attractive rate of interest on home

loans have increased the demand for
homes and has given a boost to the busi-
ness to the business builders and property
dealers. Which dimension of business envi-
ronment is highlighted by the statement?
A. Customer Needs and Confidence A. Political environment
B. Business Strategy B. Social environment
C. Public Image C. Economic environment
D. none of above D. Legal environment
1142. After new economic policy customers be- 1147. The quantity of a good or service that
came more demanding producers are able and willing to offer for
A. True sale at a specified price in a given period
of time is
B. False
A. quantity demanded
1143. What is a stakeholder?
B. quantity sold
A. Planning for the whole organization,
C. demand
setting out its aims and the major re-
sources that will beused to achieve it D. supply

1148. 48) Critics of offshoring assert that the 1153. 44) Critics of offshoring claim all EX-
short-term cost savings derived from off- CEPT which of the following?
shoring hinder firms from developing more

A. Cost savings are seldom passed on to
efficient production methods. final consumers.
A. True B. Offshoring reduces the incomes of peo-
B. False ple in low-wage countries.
1149. Important stakeholders in micro envi- C. Incomes of workers in countries
ronment whose companies offshored production
have gone down as a percentage of na-
A. Customers
tional income.
B. Suppliers
D. Many workers who have been dis-
C. Employees placed by offshoring do not have the skills
D. All of these needed for higher-value jobs.
1150. means transfer of ownership, man- 1154. Which of the following is an example of
agement and control of public sector enter- a social environment?
prises to entrepreneurs in the private sec-
A. money supply in the economy
tor.
B. consumer protection act
A. liberalisation
B. privatisation C. The constitution of the country
C. globalisation D. composition of family

D. none of above 1155. which of the following dimensions of
business environment includes legislation
1151. What exists when producers produce
passed by the government administrative
more than buyers are willing and able to
orders issued by govt authorities
buy?
A. technological
A. excess supply
B. equilibrium price B. social
C. normal price C. legal

D. excess demand D. economic
1152. this image represents which feature of 1156. Which one is the internal environment
business environment? of a business?
A. Inter-related
B. Complex
C. Relative
D. Uncertain A. Market

B. Micro 1162. Which one of the following is a part of

Economic Environment?
C. Macro
A. Customs and Traditions
D. none of above
B. Technological changes
1157. tax placed on imports to increase their C. Easy finance schemes
price in the domestic market
D. Rates of savings and investments
A. tariff
NARAYAN CHANGDER
1163. 52) Which of the following BEST ex-
B. quota
plains how a firm reduces risk by operat-
C. embargo ing internationally?
D. none of above A. taking advantage of business-cycle dif-
ferences among countries
1158. P for the PESTLE mnemonic stands for B. buying competitive risk insurance un-
A. Political available domestically
B. Principal C. preventing competitors from operat-
ing in the countries it has entered
C. Phenomenon
D. operating in less competitive environ-
D. None of the above ments than those at home
1159. Which of the following describes inelas- 1164. 41) Although globalization may bring
tic demand? economic growth, critics nevertheless con-
tend that
A. limited to luxury goods
A. the growth is too fast
B. not affected by price change
B. the inequality of gains puts some peo-
C. fluctuating ple in a relatively worse economic situa-
D. variable tion
C. this growth is mainly for the future,
1160. Businesses that both sell All Gold thus ignoring present economic growth
Tomato sauce are an example of needs
A. Indirect competition D. the cultural foundations of sovereignty
B. Direct competition are supported by globalization
C. Suppliers 1165. Which of the following are the dimen-

sions of the business environment? *
D. A monopoly
1161. A rise in the level of unemployment B. Social Environment
would be a
C. Technological Enrionment
A. Legal change
D. All of the above
B. Environmental change
1166. An organisation’s obligation to act to
C. Political change
protect and improve society’s welfare as
D. Economic change well as its own interests is referred to as

A. Organisational Social Responsibility 1172. Government systems, political stability,

B. Organisational Social Responsiveness trade barriers, and business regulations
refer to which factor of the international

C. Corporate Obligation business environment?
D. Business Ethics A. geographic
1167. L stands for in PESTEL Analysis. B. economic

A. Loss
B. Length
C. Legal 1173. Just after the declaration of the results
of the Lok Sabha Elections, 2009, the Bom-
D. Liabilities bay Stock Exchange’s price index (Sensex)
rose by 2100 points in a day. Identify
1168. 67) The owner of a U.S. football team
the environmental factor which led to this
and the owner of a Canadian hockey team
rise?
purchase a British soccer team. This is an
example of a A. Legal Environment
A. royalty B. Political environment
B. portfolio investment C. Social Environment
C. turnkey operation D. Economic Environment
D. joint venture 1174. 8) International business includes all

commercial transactions between two or
1169. Jim maintains his family by using his pri- more countries.
vate vehicle for hire.
A. True
A. private
B. False
B. public
1175. In a socialist economy, what deter-
1170. Which of the following is not a feature mines how basic economic questions are
of planning? answered?
A. Planning is futuristic. A. A government
B. Planning is pervasive. B. B. products
C. Planning establishes standards for C. C. resources

controlling. D. D. retailers
D. Planning focuses on achieving objec- 1176. It includes all those activities and in-
tives. terventions that aim at smooth supply of
credit to the business and a boost to trade
1171. 55) By operating internationally, a com-
and industry
pany may take advantage of business-
cycle differences among countries and A. Fiscal policy
thereby reduce its financial risks. B. Monetary policy
A. True C. Both
B. False D. None

1177. Makes imported goods more expensive

A. Quota
B. Tariff
C. Embargo
D. none of above A.
1178. Any activity which slows or outright
blocks the free exchange of goods and ser-
NARAYAN CHANGDER
vices between nations.
A. Voluntary Trade
B. Specialization
C. Currency Exchange
D. Trade Barrier
1179. Capitalistic, communistic and Mixed are
the types of
A. Economic System B.
B. Social System
C. Cultural Attitudes
D. Political System
1180. Which of the following is not a function
of business?
A. Capitalism 1183. How many factors make up the Internal
B. Marketing Environment
C. Finance A. 6
D. Production
B. 5
1181. A good definition of a business is an or-
ganization that provides goods or services C. 4
in order to earn profits. D. 3
A. true
B. false 1184. It is a form of business organizations
usually owned by one person, usually, the
1182. The following are all advantages of fis-
individual who has day-to-day responsibil-
cal policy:a) Can create fiscal deficitsb)
ity for running the business.
Government spending or tax incentives
may be spent on imports A. Partnership
B. Corporation
C. Incorporation
D. Sole Proprietorship

1185. What do we call a station where an or- C. deal with areas of concern outside the
ganisation exhibits a proactive strategy, territory of any one country
actively seeking future social change, the

D. reduce national conflicts leading to vi-
policies of the organisation are followed olent political demonstrations
with a fervent zeal and the business seeks
to lead the field in terms of promoting a 1190. The management values are the part of
corporately responsible attitude? the environment.
A. Social obligation A. External
B. Social responsiveness B. internal
C. Social responsibility C. micro
D. Social irresponsibility D. Macro
1186. A shift in consumer taste, away from 1191. A public school is a tenant of which eco-
the firm’s product is considered a nomic system?
A. Political Factor A. Socialism
B. Economic Factor B. Capitalism
C. Social Factor 1192. Economic resources that help people be
D. Technological Factor more productive are:
A. A human resources.
1187. Things within a business that managers
can influence and control (as it relates to B. B. natural resources.
SWOT) C. C. capital goods resources.
A. Employee Performance D. D. nonrenewable resources.
B. Sales Revenue 1193. 77) Some key factors in a com-
C. External Factors pany’s international business external en-
D. Internal Factors vironment are its product strategy and ac-
cess to resources.
1188. If a student purchases a laptop to use A. geographic
for homework assignments, then the com-
puter is considered what type of good? B. political
A. capital C. competitive
B. consumer D. behavioral
C. industrial 1194. Which importance of business environ-

D. ultimate ment does this picture represents?
1189. 28) Governments have signed treaties

to protect foreign-owned property rights,
such as investments and patents. A pri-
mary reason for doing so is to
A. gain reciprocal advantages
B. reduce the domestic effects of other
countries’ economic policies A. Early Warning Signal

B. First Mover Advantage D. bye-laws

C. Business Strategy 1200. What is one way a business can gain a
D. none of above competitive advantage?
1195. Creative thinking is literal thinking A. by offering consumers a worse quality
product
A. True
B. by charging a higher price for a prod-
B. False
uct
NARAYAN CHANGDER
1196. What does corporate culture refer to? C. by doing what everyone else is doing
A. Values, beliefs, and behavior of the or- in the market
ganization D. by creating something entirely new for
B. Future position, business mission, and the market
objectives
1201. A gap between unlimited wants and lim-
C. Delegation of tasks, coordination, and ited resources creates
supervision
A. economics
D. Tangible assets of the organization
B. resources
1197. Name the 5 economic sectors
C. wants
A. Primary Sector Secondary sector Ter-
D. scarcity
tiary sector Quaternary sector Quinary
sector 1202. Which of the following companies oper-
B. Primary Sector Toy making sector ates internationally and has prospered in
Quinary sector Quaternary sector Sec- the global economy?
ondary sector A. Future position, business mission, and
C. Coffee Sector objectives
D. Primary Sector Tertiary sector Quinary B. Values, beliefs, and behavior of the or-
sector Quaternary sector Secondary sec- ganization
tor C. Amazon, selling low-end products
1198. Analysis of the changes in business en- through its brand AmazonBasics
vironment explains which feature of busi- D. Tangible assets of the organization
ness environment?
1203. 5) Rather than an inspirational state-
A. Complex
ment, a(n) statement is meant to mo-
B. Static tivate people to act and specify the objec-
C. Dynamic tives that the firm needs to attain.
D. Diverse A. mission
B. vision
1199. Which of the following is not an exam-
ple of delegated legislation: C. expectation
A. statutory instruments D. strategy
B. orders in council 1204. The business environment is static in na-
C. the reason for falling ture.

A. True 1209. Which function does the follow-

ing?Promoting the services offered by the
B. False
business

1205. is included in Economic Environment. A. Information technology
A. Economic System B. Marketing
B. Economic Policies C. Finance
C. Economic Conditions D. Operations and production
D. All of the above. 1210. What is a Primary sector?
A. businesses are businesses which turn
1206. Headquarters of WTO is at
the resourcesand raw materials into prod-
A. Auckland ucts e.g. furniture manufacturer
B. Switzerland B. businesses that provide a service toin-
C. UK dividuals and businesses
C. businesses that extract resources and
D. USA
rawmaterials from nature e.g. mining
1207. The technology that has had the most company
influence on globalization has been D. none of above
A. the Internet. 1211. This is an example of economic environ-
B. wireless connections. ment
C. inexpensive telephone service. A. changes in technology
D. television. B. expectations of society
C. change in exchange rate
1208. The formula for calculating Private Final
D. change in government’s rules and reg-
Consumption Expenditure (PFCE) is:
ulations
A. Household Final Consumption Expendi-
ture / Private Non-Profit Institutions Serv- 1212. India has adopted the economy sys-
ing Households Final Consumption Expen- tem which implies coexistence of public
diture sector and private sector.
B. Household Final Consumption Expendi- A. Capitalist
ture X Private Non-Profit Institutions Serv- B. Socialist
ing Households Final Consumption Expen-
C. Mixed
diture
D. none of above
C. Household Final Consumption Expen-
diture + Private Non-Profit Institutions 1213. The theory of survival of fittest is for-
Serving Households Final Consumption Ex- mulated by
penditure A. Charles Darwin
D. Household Final Consumption Expendi- B. Richard Dawkins
ture Private Non-Profit Institutions Serv-
ing Households Final Consumption Expen- C. Abraham Maslow
diture D. Henry Fayol

1214. How can technology be used to cut 1217. Which of the following does not charac-
costs? terize the business environment?
A. Uncertainty
B. Employees
C. Relativity
D. Complexity
1218. If a risk is small in terms of money, a
NARAYAN CHANGDER
business may decide to the risk.
A. transfer
B. avoid
C. control
D. retain
1219. Some of the accounting tools used in ICT
A. by increasing the amount of product are all of the following EXCEPT:
that is stolen A. Accounting Quickbooks
B. by increasing the number of customers B. Microsoft Excel
who want to interact with technology
C. Microsoft Access
C. by reducing the amount of product that
D. AutoCAD
goes to waste
D. by reducing the need to pay lots of em- 1220. Following is not a specific force environ-
ployees/workers ment?
A. customers
1215. Which of the following is correct
B. suppliers
A. Growth is better than development
C. creditors
B. Development is the end and growth is
D. social
means to
C. Growth is the end 1221. All of the following are Management In-
formation Systems EXCEPT:
D. None of these
A. Process Control System
1216. Sony partnering up with The Shanghai B. Sales and Marketing System
Oriental Pearl Group to help increase sales
C. Inventory Control System
of Playstation consoles is an example of a
D. Microsoft Word
E. Accounting and Finance System
1222. Freedom in fixing prices of goods and
services
A. Franchise A. Liberalisation
B. Joint Venture B. Privatisation
C. Multinational Company C. Globalisation
D. License D. none of above

1223. A substitute product or service is: 1228. What is the impact of an increase in in-
A. A competitor’s product or service terest rates on spending power?

B. An alternative way of meeting the A. It has no effect on spending power
same need B. It increases spending power
C. A new entrant into the industry C. It reduces spending power
D. A less attractive way of meeting the D. It depends on the type of product
same need
1229. Which one of the following is not a Pub-
1224. A black market is lic Sector Undertaking?
A. a market in which there are high barri-
ers to entry and homogeneous products. A.
B. a market with only one supplier and un-
limited demand.
C. a market where there are many buyers
B.
and sellers and few consumers.
D. a market in which sellers illegally sell
to buyers at higher than legal prices
1225. Which of the following is a business

comparing when it analyzes the cost of C.
buying wood desks versus the cost of buy-
ing metal desks?
A. incentives
B. excess demand D.
C. inflated price
D. relative price 1230. What category of business risk includes
production problems and incompetent em-
1226. 3) Identify out of the LPG, which one ployees?
is highlighted:NDPL and BSES instead of
A. Operational
Delhi Vidyut Board
B. Hazard
A. Liberalization
C. Strategic
B. Privatization
D. Financial
C. Globalization
D. None 1231. 1) Nature of relationships of a country
with foreign countries influences the busi-
1227. Liberalization means ness.
A. Free trade A. Political environment
B. Easing restrictions on business B. Social environment
C. New rules and regulations C. Economic environment
D. None of these D. Legal environment

1232. Which of the following is not the ele- B. is recorded as a debit in the financial
ment of the political environment: account
A. Constitution of the country
C. increases foreign assets.
B. prevailing political system
D. is recorded as a debit in primary in-
C. popularity of e-banking
come
D. Level of political morality
NARAYAN CHANGDER
1233. The shift of demand from soft drink to 1237. Things outside a business that man-
juice is an opportunity for juice companies agers cannot control (as it relates to
and threat for soft drink companies. Iden- SWOT)
tify the feature of business environment
A. Internal Factors
A. relative
B. complex B. External Factors
C. dynamic C. Temperature
D. uncertain
D. Weather
1234. Which of the following tools doesn’t fall
under Monetary Policy?
1238. It is not always true that just because a
A. Repo Rate plan has worked before it will work again.
B. Bank Rate Identify the related limitation of planning.
C. Transfer Payments A. Planning leads to rigidity
D. Tax Rate
B. Planning reduces creativity
E. Marginal Standing Facility Rate
C. Planning may not work in a dynamic en-
1235. Electric vehicles with zero tail pipe emis-
vironment
sion are emerging as a good alternative to
‘ problems like climate change, surging pol- D. Planning does not guarantee success
lution leading to ill health, crude import bill
and energy security. Identify the related
dimensions of business environment. 1239. The following are all disadvantages of
A. Economic dimension, Legal dimension monetary policy:a) Time lag (delay) ef-
and Social dimension fects the economyb) Affects an entire pop-
ulation
B. Economic dimension, Technological di-
mension and Social dimension
C. Social dimension, Political dimension
and Economic dimension
D. Social dimension, Political dimension
and Legal dimension
1236. Repayment of a foreign loan

A. decreases foreign liabilities.

A. External
B. Internal

C. Macro
D. Operating
A.
1243. ” What works at home will work here”,
This statement falls into which of the
EPRG matrix?
A. Enthnocentric
B. Geocentric
C. Polycentric
D. Regiocentric
1244. Increase in demand for ppt kits affects

which environment
B. A. Economic
B. Social
C. Political
D. Technological
1245. inspires people and sets goals

A. Leader
1240. The main objective of the public sector
is B. Manager
A. to make a profit. C. Employer
B. to provide a service. D. none of above
C. to provide advice. 1246. is the total monetary or market

D. to pay dividends. value of all the finished goods and services
produced within a country’s borders in a
1241. Firm expands by offering businesses in specific time period.
other countries the right to produce and A. Gross Domestic Product
market its products according to specific
B. Net Domestic Product
operating requirements
C. Net National Product at Factor Cost
D. Net National Product at Market Price
C. foreign licensing 1247. A characteristic of a seller’s market is:
D. foreign franchising A. lower profits.
B. higher prices.
1242. Employees, managers, location and le-
gal business structure are all part of which C. larger supply.
environment? D. smaller demand.

1248. Which one of thefollowing is not a mode

of entry into foreign market?
A. Exporting
B. Franchising
C. International, joint venture
A. money
D. Internationalization B. responsibility
NARAYAN CHANGDER
1249. Macro environment is controlled by C. paperwork
A. Business D. all of the answers are correct
B. None 1253. With the introduction of mineral water

bottle in India, Bisleri was able to capture
C. Government
thebig market share in India. Which im-
D. International relations portance of Business Environment is high-
lighted here.
1250. Which importance does the image repre-
A. Helps in Policy Making
sents?
B. Identifiying threat and getting warning
signals
C. Helps in tapping resoures
D. Help to identify opportunitites and get-
ting first mover advantage.
1254. Which of the following is NOT a fossil

fuel
A. firewood
B. natural gas
A. Customer Needs and Confidence
C. petroleum oil
B. Business Strategy
D. coal
C. Competitive Advantage
1255. Political and legal influences, societal in-
D. none of above
fluences, economic conditions, technologi-
cal issues, CSR and global issues are all
1251. means removal of entry and growth
part of which environment?
restrictions on the private sector.
A. internal
A. liberalisation
B. external
B. privatisation
C. macro
C. globalisation
D. operating
D. none of above
1256. How does the increase of global busi-
1252. What challenges does an entrepreneur ness operations affect the role of govern-
face? ments?

A. It requires governments to adapt their 1260. Negative factors that are beyond the
policies and regulations to the global control of the Parks Management.
economy.

A. Strength
B. It reduces the power of governments B. Weaknesses
to regulate businesses.
C. Opportunities
C. It has no significant impact on the role
D. Threat
of governments.
D. All of the above 1261. Malinda owns a home, and instead of
living in it, she decides to rent it out to
1257. 68) Kyle an international manager for make more money. Which economic free-
Apex Industries, has been given the task dom does this illustrate?
of analyzing the economies of three differ- A. Freedom to own, use, buy, and sell pri-
ent emerging countries for the firm’s po- vate property
tential expansion. Which of the following
B. Freedom to compete for jobs
questions is LEAST relevant to Kyle’s as-
signment? C. Freedom to choose which laws to obey
A. Al How much freedom will Apex have D. Freedom to control all the money you
to run its foreign operations? earn
B. B) What are the current economic poli- 1262. Negative events which an organization
cies related to development? or company has no control over are:
C. C) What is the likelihood that Apex can A. A debits.
Gill manufacturing positions with locals? B. B. credits.
D. D) What factors in the country drive or C. C. speculative risks.
hinder economic change? D. D. pure business risks.
1258. Labor refers to 1263. value of the digit 3 in 27, 305, 664
A. people with all their efforts and abili- A. millions
ties B. hundred thousands
B. individuals who start a new business
or bring a product to market. 1264. What does globalization continue to af-
fect?
C. the tools, equipment, and factories
A. Tangible assets of the organization
used in production of goods and services.
B. Future position, business mission, and
D. The “gifts of nature” or natural re- objectives
sources not created by human effort.
C. Values, beliefs, and behavior of the or-
1259. Components of Micro Environment ganization
A. Customers D. Industries and companies in ways that
benefit some and not others
B. Quality control
1265. It includes government policy in respect
C. Business Functions
of public expenditure, taxation and public
D. Economy debt.

A. Monetary policy 1270. Which of the following is not a dimen-

B. Fiscal policy sion of business environment?
A. internal
C. Foreign investment policy
B. social
D. Don’t know
C. political
1266. 13) A(n) ideology is the system of D. economical
ideas that expresses the goals, theories,
and aims of how society should work. 1271. Established to encourage worldwide
NARAYAN CHANGDER
trade, established 1948 by 23 nations
A. technological
A. GATT
B. economic
B. WTO
C. legal
C. IMF
D. political
D. none of above
1267. Consumerism is the characteristic of
1272. Language, family, religion, customs, tra-
which stage
ditions, and food refer to which factor of
A. Fifth the international business environment?
B. Third A. geographic
C. Fourth B. economic
D. None of these C. political and legal
1268. 10) Identify the following in order:i. On
account of increase in export duty made by 1273. Business environment includes
the government, the foreign demand has A. Surroundings of Business
gone down. ii. The government permitted
B. Forces, Factors, institutions which di-
cent percent foreign Direct Investment in
rectly or indirectly effect business
some sectors of retailing.
C. Customers and employees
A. Political, Economic
B. Economic, Political
C. Economic, Economic 1274. The two “tools” of Fiscal Policy are:
A. the power to tax
D. Political, Political
B. the power to spend
1269. What does the internal environment of C. the power to borrow money
a firm consist of?
D. the power to print money
A. Members, vision, structure, and physi-
cal resources 1275. Major factors influencing international
business
B. Sociocultural, technological, economic,
and government forces
C. Culture, members, events, and factors
within the organization
D. Exchange rates, wages, employment
statistics, and inflation

A. Geographic, social, economic, political B. Developing premises

B. Financial, linguistic, climate C. Evaluate alternative

C. Cultural, historical D. None of the above
D. Economic, political 1280. Demographic dividend is
1276. No country is capable enough to pro- A. High population of working age
duce all the goods and services itself re- B. Low population
quired for its use. Almost all the countries
have certain goods and services in surplus C. High level of skills in youth
and in certain others, deficiency. In this D. High level of experience in youth
way all of them feel the necessity for ex-
porting the goods and services in surplus 1281. Which of the following is not a dimen-
and those of deficiency, to import. In or- sion of business environment?
der to solve this problem several countries A. Internal
have zeroed in the complexities of import
B. Social
export business. Consequently, balance
is getting established in the demand and C. Political
supply of goods and services.Identify the D. Economical
concept of business environment discussed
here. * 1282. 16) Most of the world’s goods and ser-
A. Globalisation vices are sold
B. Privatisation A. in international markets
C. Liberalisation B. in the countries where they are pro-

duced
D. All of the above
C. through exports to small countries
1277. Which of the following is NOT a benefit D. through exports to large countries
of economic growth?
A. Higher incomes 1283. 30) All of the following are areas in
which commercial activities take place out-
B. Unemployment side the territory of any nation EXCEPT
C. Lower government borrowing
D. Improved public service A. noncoastal areas of the oceans
1278. 66) The term used by the United Na- B. the Panama and Suez Canals
tions as a synonym for multinational en- C. outer space
terprise is D. Antarctica
A. multinational corporation
1284. A PEST Analysis examines which two
B. transnational company external SWOT components
C. international firm A. Strengths & Threats
D. born-global B. Opportunity & Weakness
1279. First step in planning process is C. Opportunity & Threats
A. Setting objectives D. Strengths & Weakness

1285. Name the 6 forces of macro environ- in technology, consistent application of

ment technology, and the effect of technology
on markets.
A. True
A.
B. False
1290. What type of business is Uber an exam-
ple of?
NARAYAN CHANGDER
B. A. Small-scale business
B. On-demand business
C. Government business
C. D. Not-for-profit business
Explanation:Uber is an example of an on-
demand business as it uses digital tech-
D. none of above nology to fulfil consumer demand via im-
mediate access to goods and/or services.
1286. What is strategic planning?
A. sets out the core values of the organi- 1291. 21) The ability to compare production
zation and what it believes in. costs among countries in an effort to de-
termine where to locate production is sig-
B. Planning for the whole organization, nificantly hampered by all of the following
setting out its aims and the major re- EXCEPT
sources that will beused to achieve it
A. A) the number of ways the same prod-
C. A statement that sets out the key pur- uct can be made
pose of the organization to all stakehold-
B. B) restrictions on the international
ers
flow of data
D. none of above
C. C the ways that laws may be enforced
1287. In a socialist economic system, who D. D) future costs from exchange rate
tends to answer the question of how prod- changes
ucts will be produced?
1292. Which factor is not included in Internal
A. Government and businesses Environment?
B. Government and individuals A. Objectives
C. Businesses and individuals B. Policies
D. Tradition and government C. Public
1288. 31) Globalization of business has been D. Production-Method

stimulated by institutional developments 1293. The Candy Store is selling more and
that aid foreign trade and investment. more chocolate each quarter. Applying the
A. True law of supply and demand, what is most
likely to happen over the next few quar-
B. False
ters?
1289. The technological environment influ- A. A The price will increase, and the sup-
ences the business in terms of investment ply will increase.

B. B. The price will decrease, and the sup- 1297. Management decides to hold its annual
ply will increase. meeting in one U.S. city rather than an-
other because of crime in that city. This

C. C. The price will increase, and the sup-
ply will decrease. is an example of the risk.
D. D. The price will decrease, and the sup- A. retaining
ply will decrease. B. preventing or controlling
1294. 19) When examining economic and de- C. avoiding
mographic variables to compare countries’ D. transferring
sales potential for your product, which the
following should you NOT consider? 1298. The organised component of money mar-
ket in India consists of the following:
A. Countries may depend heavily on the
import of raw materials. A. Reserve Bank of India and Commercial
Banks
B. Consumers in some countries may
more conveniently substitute certain prod- B. Commercial Banks and Cooperative
ucts than consumers in some other coun- Banks
tries. C. Reserve Bank of India, Commercial
C. Consumers in developing countries Banks and Cooperative Banks
may leapfrog technologies by first pur- D. Only Reserve Bank of India
chasing the latest products.
D. Trading blocs may enhance sales po- 1299. .Globalisation signifies:
tential above what is indicated in individ- A. integration among various economies
ual country figures. of the world
1295. How would a business’s computers be B. integration among various economies
classified? of the world
A. parts C. removal of economic licensing
B. equipment D. none of the above
C. supplies 1300. International organization of 199 mem-
D. an installation ber nations that promotes international
economic cooperation and stable growth;
1296. In a Capitalist system the prices of a considered the lender of last resort
good are based on
A. GATT
B. WTO
C. IMF
D. World Bank
1301. interrelated growth of the world’s econ-

omy, culture and population, caused by
A. whatever the owner wants
cross-border trade between goods and ser-
B. whatever the people decide vices, technology, investment flows, peo-
C. supply and demand ple and information.
D. what is fair and just A. Opportunity

B. Retreats 1307. Brain drain occurs when

C. Long-term plan A. consumers spend too much time shop-
D. Globalization ping online.
E. trade B. people who speak different languages
try to communicate with one another.
1302. Tool to evaluate MACRO Environment
C. businesses outsource jobs to other
A. SWOT countries.
NARAYAN CHANGDER
B. PESTLE D. a country loses talented employees to
C. Porter’s 5 Forces better opportunities in other countries.
D. none of above
1308. Includes the political system, the gov-
1303. The sum total of all individuals, institu- ernment policies and attitude towards the
tions and other forces that are outside the business community and the unionism. The
control of a business enterprise but that environment being described here is social
may affect its performance is known as environment.
A. True
A. Business environment B. False
B. Social environment
1309. Which of the following is a challenge of
C. Political environment
global business operations?
D. Economic environment
A. Complying with different regulatory
1304. Globalisation, by connecting countries, and legal environments
shall result in B. Managing cultural differences
A. lesser competition among producers
C. Protecting intellectual property rights
B. greater competition among producers
D. All of the above
C. no change in competition among pro-
ducers 1310. For which of the following do workers
D. All of the above compete in a private enterprise system
A. skills
1305. Who created five force model ( Industry
Analysis) B. benefits
A. Philip kotler C. profits
B. Michael E porter D. jobs
C. Adam Smith 1311. What helps to create brand identity for
D. Auguste Comte a product, service or business?
1306. The driving force in choosing to start a
business is
A. supply and demand
B. market forces
C. competition
D. profit

A. Having multiple products 1316. Regulation of business is done by

B. An increase in profits A. Company itself

C. Creating a logo for the com- B. Government
pany/product C. Outsiders
D. none of above D. Directors
1312. Expand ETOP analysis. 1317. The environment Scanning helps to iden-
tify
A. Environmental technology and oppor-
A. Opportunities
tunities profits.
B. Threats
B. Environmental threat and opportunity
profits. C. Both (a) and (b)
C. Environmental threat and organization D. None of the above

profits. 1318. The last stage in Rostow’s theory
D. Environmental threat and opportunity A. Drive to maturity
politics.
B. Age of mass consumption
1313. Which of the following are benefits of C. Both
ICT: D. None of these
A. Improvements in speed and time sav-
1319. At what age can you become an en-
ings
trepreneur?
B. Reduced physical storage require-
ments and costs
C. Improved sharing of information
D. Reach more customers
E. All of the above
1314. Tool to evaluate MARKET Environment

A. 20
A. SWOT
B. 18
B. PESTLE C. 50+
C. Porter’s 5 Forces D. any age
D. none of above 1320. A stakeholder is
1315. is a modified version of a SWOT A. someone who has a stake in the busi-
analysis. ness
A. TWOS B. someone who has an interest in the
business and has different demands on
B. STOW the business
C. OLD C. someone who holds a steak
D. TOWS D. someone who owns the business

1321. Expenditure of creating infrastructure is 1327. What do producers often do when sup-
ply is greater than demand?
A. Revenue expenditure
B. Development expenditure A. increase prices
C. Capital expenditure B. increase quality
D. Government expenditure C. lower prices

D. lower quality
1322. Following is not the importance of busi-
NARAYAN CHANGDER
ness environment: 1328. 83) Which of the following is NOT a
A. Get first mover advantage common argument for the slowing of fu-
ture globalization?
B. complexity
A. Antiglobalization interests have been
C. Tapping useful resources successful in electing parties that oppose
D. better performance freer movement of trade or people.
B. Technological, transportation, and
1323. The events and trends inside an organi-
communication advances will decline in
zation that affects management, employ-
the near future.
ees, and organizational culture.
C. Major countries have either ignored
A. Internal Environment
certain international treaties or have re-
B. External Environment fused to sign them.
C. General Environment D. The growing split between those who
D. Specific Environment succeed in a global environment and
those who do not will foster greater
1324. 86) Managers need to understand not antiglobalization sentiments.
only the laws of countries where they op-
erate, but also how those laws are en- 1329. What is the span of control?
forced. A. Where individuals are responsible to a
A. True line manager or supervisor
B. False B. is the number of people that individu-

als are responsible for in an organization.
1325. All of the following are ‘costs’ of eco- C. shows the main parts of the business
nomic growth EXCEPT: and the relationship between the various
A. Increased Cost parts
B. Improved Investment D. none of above
C. Harmful effects to the environment 1330. The price of product is determined by the
D. Inequality law of
A. debt and excessive amounts
1326. 70) A joint venture is an example of a
portfolio investment. B. supply and demand
A. True C. onions and garlic
B. False D. pretzels and soda-pop

1331. 12) Escalation of commitment is best de- 1335. A factor of production is a nation’s sys-
scribed as the tem for allocating resources among its cit-
izens.

A. strategy of first entering a country on
a small scale A. true
B. process of entering a country because B. false
“everyone else is going there”
1336. 18) Which of the following has MOST
C. expectation of a higher return in more influenced consumers to demand access to
politically risky environments foreign-made products?
D. increased likelihood of investing in a A. Declining global affluence has caused
country because of having spent consider- consumers to seek out lower-priced prod-
able time and money in examining it ucts from abroad.
1332. A country that wishes to enhance in- B. Consumers have become more effi-
ternational trade activities would be most cient in using media and technologies to
likely use: compare prices worldwide.
A. a tariff C. Fearing that their governments will en-
B. a common market act restrictive policies on imports, con-
sumers are stocking up on foreign prod-
C. an embargo
ucts before restrictions are put in place.
D. a quota
D. Expectations of rising prices of foreign
1333. Competition is encouraged in which sys- products have caused consumers to seek
tem? foreign products before their prices be-
come prohibitive.
1337. It is an example of general forces of
A. Investors
B. Suppliers
C. Government
A. Communism D. Competitors
B. Capitalism
1338. Country’s overall level of economic de-
C. Socialism velopment reflects its economic condition,
D. none of above which has an impact on the international
business environment.
1334. Damages are a common law remedy-
what is the purpose of damages?
A. to make sure that both parties are
happy
B. to compensate the injured party for
losses
C. to ensure that one party is punished
D. to make sure that the injured party cov- A. True
ers their own costs B. False

1339. Which of the following is not a feature C. Wholesale Market

of business environment?
D. Retail Market
A. Relativity
B. Continous 1345. 63) In a country with a high masculin-
ity score, people have a tendency to feel
C. Interrelatedness sympathy towards individuals who are un-
D. Specific & General Forces employed or homeless,
1340. Which of the following is a potential A. True
NARAYAN CHANGDER
problem in market economies B. False
A. No competition
1346. Change in Gross Domestic Product is a
B. Total government control part of:
C. Financial loss
D. Production quotas for businesses
B. Legal Environment
1341. Subsidiaries consider the regional envi- C. Political Environment
ronment for policy / Strategy formulation
is known as D. Social Environment
A. Polycentric Approach 1347. Into what two categories can wants be
B. Regiocentric Approach divided?
C. Ethnocentric Approach A. unlimited and limited
D. Geocentric Approach B. unlimited and economic
1342. What must consideration be? C. economic and noneconomic
A. Realistic D. unlimited and noneconomic
B. of adequate value in relation to the
goods/services 1348. What usually happens to the demand
for a good or service when the price in-
C. sufficient creases?
D. only money A. it increases
1343. Arc Electric Company holds regular B. it decreases
safety training meetings for its employees.
What form of risk management is this? C. it varies
A. capital D. it stays the same

B. reduction 1349. When demand for a product becomes
C. retention greater than available supply, a(n) de-
velops.
D. transfer
A. surplus
1344. As a result of the Economic Reforms the
Seller Market has been replaced by B. shortage
A. Buyer Market C. equilibrium
B. Foreign Market D. competition

1350. All businesses should be socially respon- grow with the addition of new talent and
sible to whom? money.

A. endorsers A. true
B. producers B. false
C. providers
1355. Which of the following statements is
D. users FALSE in relation to the business cycle?
1351. Which among the following is not a rea- A. During a recession, wages rates will
son for economic reforms generally fall
A. Poor performance of public sector B. During a boom period, production lev-
els increase
B. Deficit in balance of payment account
C. During a boom period, the level of un-
C. Inefficient management
employment rises
D. Political instability
D. During a recession, there is a de-
1352. Businesses can control the effect of crease in consumer spending
trade unions through Explanation:During a boom period, more
people will be employed and thus there
A. Collective bargaining will be fewer people that are unemployed.
B. stretch marks
1356. In India, Liberalization & privatization
C. Destruction of property began from
D. Management control
A. 1991
1353. 23) Which of the following best ex- B. 1950
plains recent governmental relaxation of
C. 1981
restrictions on cross-border trade and re-
source movements? D. 1971
A. Most countries face shortages of work-
1357. What is an organizational chart?
ers, so they seek immigrants who can help
them produce more. A. Where individuals are responsible to a
line manager or supervisor
B. Governments believe that this will de-
crease the need to make their own com- B. Shows the main parts of the business
panies more innovative. and the relationship between thevarious
parts
C. Consumers increasingly want to buy
goods and services produced in their own C. Is the number of people that individu-
countries, making restrictions less neces- als are responsible for in anorganization
sary.
D. Governments believe that domestic D. none of above
producers will become more efficient as
a result of foreign competition. 1358. There are many sellers in an oligopoly.
A. true
1354. The most striking advantage of a gen-
eral partnership is its their ability to B. false

1359. These are principles (including concepts C. Anything that is used to provide goods
and assumptions), which have gained in- only
ternational acceptance in the business D. Technologies only
world and accountancy profession.
A. POPE 1364. Tax imposed on imports & exports of
goods when they are transported across
B. Snake international borders is known as
C. GAAP A. Goods & Services Tax
NARAYAN CHANGDER
D. none of above B. Value Added Tax
1360. 2) Which of the following best defines C. Custom Duty
international business? D. Consumption Tax
A. It includes all economic flows between
two or more countries. 1365. Following are the elements of the social
environment:
B. It includes all private economic flows
between two or more countries. A. Educational system and literacy rates
C. It includes all business transactions in- B. family structure

volving two or more countries. C. caste and occupational structure
D. It includes all business transactions in D. all of the above
countries other than your home country.
1366. Germany sends a shipment of cars to
1361. A customer sends your business a the United States. This is an example of
rude email containing inappropriate words, what type of business?
complaining about poor customer service.
What should you do?
A. Ignore the email completely because
the customer is so rude
B. Reply using similar language A. Domestic
C. Reply politely with apologies B. International
D. Reply politely and tell the customer C. Multinational
that is unacceptable to use bad language D. Franchising
1362. Macro Environment focuses on political- 1367. Demonstration led to:
legal, financial, technological, and eco-
nomic. A. Decline in cash Transactions
A. True B. Promotion of Black Money
B. False C. More Income Declarations

D. All of the above
1363. What is a resource?
A. Anything that is used to provide goods 1368. Some of the potential benefits of eco-
and service nomic growth are:
B. Anything that is used to provide goods A. Higher incomes

only B. Higher tax revenues

C. Greater production D. Government allows flexibiilty of labour

D. Improved quality of life laws

E. All of the above 1373. The Law of Demand governs the rela-
tionship between the and the
1369. 27) Which of the following is NOT one
of the three main reasons affecting inter- A. Desire and Price.
national business for governments to co- B. Desire and Ability
operate with each other?
C. Quantity demanded and Desire.
A. to attack problems jointly that one
country acting alone cannot solve D. Quantity demanded and Price.
B. to deal with issues that lie outside the 1374. Scarcity means deciding which wants
territory of any nation and needs will be satisfied and which will
C. to gain reciprocal advantages go unsatisfied
D. to establish a common language A. True
B. False
1370. Psychographics are:
A. The physical attributes of the target 1375. The court passed an order that all
market schools must have water purifiers for the
school children as:1. Society in general is
B. The wants and needs of the consumers
more concerned about the quality of life. 2.
C. The beliefs and values of the con- Innovative techniques are being developed
sumers to manufacture water purifiers at compet-
D. The education level of the consumers itive rates.3. Incomes are rising and chil-
dren and children at home are also drinking
1371. 15) The shifting of national borders has purified water.4. The government is also
most likely created which of the following showing positive attitude towards the wa-
situations for international business? ter purifier business. Identify the correct
A. It has left rural residents more iso- order of Business Dimensions from point 1
lated from technology. to point 4
B. It has complicated the understanding A. Political, Economic, Technological, So-
of behavioral factors affecting business. cial, Legal
C. It has increased physical barriers to B. Legal, Political, Economic, Technologi-
exporting. cal, Social
D. It has slowed communications be- C. Social, Technological, Economic, Politi-
tween a company’s headquarters and for- cal
eign operations. D. Legal, social, technological, Economic
1372. Which one of the following is not char-
1376. Three major fossil fuels are coal, oil, and
acteristic of‘ Special Economic Zone’?
A. wood
A. They do not have to pay taxes at all
B. natural gas
B. Government has allowed flexibility in
labour laws. C. uranium
C. They have world class facilities. D. electricity

1377. Who proposed QUEST Analysis? environment. The retailer is demonstrat-

A. B. I don’t know ing:
B. Michael porter A. AE-Tailing.

B. B. wholesaling.
C. Immanuel wallerstein
C. C. social responsibility.
D. D. voluntary merchandise.
1378. Which one among the following does
1383. Organizational stakeholders can best be
NARAYAN CHANGDER
not fall under porters five force model?
defines as
A. Rivalry among industries
A. individual and business that own stock
B. Power of suppliers in a company
C. Potential of new entrants into an indus- B. individual and groups that are directly
try affected by the practices of an organiza-
D. Threat of complementary goods tion
C. the officers and key employees of an
1379. Demonetization was launched on 1st
organization
November 2016
D. government regulators who oversee
A. True
an industry
B. False
1384. An economic system where the eco-
1380. Important cultural and social factors in- nomic resources are privately owned by in-
fluencing international business dividuals rather than the government.
A. business
B. profit
C. capitalism
D. factors of production
E. service
A. Religious beliefs and traditions 1385. What is the economic basis for the pri-
B. Wealth, health and economic situation vate enterprise economic system?
C. Language, religion, education, values, A. competition
traditions B. the marketplace
D. Language and traditions C. the motive of profit
1381. 13) The specific learned norms based on D. manufacturer supply chain
attitudes, values, and beliefs of a group of 1386. 9) Which of the following undesirable
people are known as ethnology. results will most likely occur for a country
A. True running a favorable balance of trade?
B. False A. higher unemployment
B. higher domestic interest rates
1382. A large retailer wants to contribute to
the well-being of society. It donates 10% C. fewer funds to invest abroad
of its proceeds to a charity that helps the D. granting credit that may be risky

1387. Which of the following is an example of C. land

social environment? D. labor

A. money supply in the economy
1392. Business units from America, Canada,
B. consumer protection act Australia, Germany, UK, are coming to In-
C. the constitution of the country dia due to easy availability of skilled man-
D. composition of family power
A. Technological environment
1388. Nowadays the market is flooded with
better quality of home appliances of for- B. Legal environment
eign origin. The result in fall in the revenue C. Demographic environment
of local companies as their products are D. Natural environment
much inferior and are also costlier so they
are in less demand in the market.Which di- 1393. How long is a strategic plan usually for?
mension of business environment can be
A. 5 years or longer
seen here affecting the local companies’
revenue? B. 10 years or longer
A. Economic C. 20 years or longer
B. Political D. none of above
C. Social 1394. Business Functions include:
D. Technological A. Marketing
1389. A producer is someone who B. HR
A. sells products C. Supply
B. is very creative D. Purchasing
C. makes things E. Public Relations
D. employs others 1395. It is compulsory that advertisement on

baby food must inform that mother’s milk
1390. One way in which many businesses is thebest is related to
demonstrate their social responsibility to-
ward employees is by providing them with A. Social Environment
A. free meals B. Political Environment
B. a safe, secure working environment C. Economic Environment
C. regular entertainment D. Legal Environment
D. a stress-free atmosphere 1396. As a result of Economic Reforms, the

production-oriented approach has been re-
1391. The following items (accountant’s com- placed by
puter, carpenter’s drill, and a tailor’s
sewing machine) are all examples of which A. Market Oriented Approach
factor of production? B. Seller Oriented Approach
A. capital C. Both (a) and (b)
B. entrepreneurship D. None of these

1397. Business has control over the MI- 1402. Trade restrictions, Tariffs and political
CRO Environment stability etc are the example of envi-
A. Complete ronment.
B. Some Control/influence A. Economic

C. No B. Political
D. none of above C. social
D. demographic
NARAYAN CHANGDER
1398. Over the next few years, members of
Generation X and Generation Y are ex-
pected to fill many job positions vacated 1403. Inflation
by retiring Baby Boomers. This is an ex- A. Does not affect the business
ample of a change in
B. Is the general increase in the price of
A. workforce demographics goods and services
B. nonrenewable resources C. Is an increase in the petrol price
C. automated processes
D. Is decided by parliament
D. new capital goods
1404. Business Environment means *
1399. Which factor of the External Operating
Environment is affected when a rival busi- A. Internal Environment of Business
ness makes changes to its product or pric- B. External Environment
ing?
C. Internal and External Environment
A. Customers
D. Economic Environment of country
B. Competitors
C. Suppliers 1405. refers to negative and unfavourable
D. Interest Groups external factors that are likely to create
hurdles for a firm.
1400. Prices are used in our economy to: A. Opportunities
A. A offer excessive demand.
B. Threats
B. B. cause no change demand.
C. Benefits
C. C. encourage excessive supply of prod-
ucts. D. Weakness
D. D. determine what goods are to be pro- 1406. Banking sector reforms have led to eas-
duced and in what quantities. ier credit terms and better services. This
is an example of a key component of the
1401. It is assumed that the business will con-
Business Environment. Name this compo-
tinue operations indefinitely unless there
nent.
is evidence to the contrary.
A. Going Concern Concept A. Economic Environment
B. Business Entity Concept B. Social Environment

C. Cost Principle C. Technological Environment
D. none of above D. Political Environment

1407. Stock markets, bond markets, commod- B. B) extensive vacation line

ity markets, and currency markets are all
C. C on-the-job challenges
examples of financial markets.

D. D) good health benefits
A. True
B. False 1413. value of the digit 2 in 27, 305, 664
1408. 19) Which of the following best ex- A. millions

plains why international business has B. ten millions
grown rapidly in the past few decades?
A. the end of the political division 1414. Privatization implies reduction in the
between the Communist and non- role of sector
Communist blocs A. Public
B. greater income equality in most coun- B. Private
tries
C. Foreign
C. growing concern about climate change
D. none of above
D. increased concerns about terrorism
1415. In Porter’s Five Forces, the ‘threat of
1409. The business environment is a sum or
new entrants’ relates to:
collection of all internal and external fac-
tors which affect the functions of a com- A. Barriers to entry
pany. B. Substitutes
A. True C. Switching costs
B. False
D. Buyer power
1410. In licensing agreement, firms choose for-
eign organizations to manufacture their 1416. Which of the following statements is
products in another country in return for true?
a fee plus royalties.
A. true
B. false
1411. Which of the following is a business

function?
A. Vision
A. Contractionary monetary policy would
B. Mission
increase government revenue slow down
C. Goals and objectives the economy.
D. Purchasing B. Contractionary fiscal policy would de-
crease the reserve requirement slow
1412. 61) Assume a firm has operations in
down the economy.
Tokyo, where there is a collectivist culture.
Which of the following would most likely C. Contractionary fiscal policy would lead
motivate the firm’s Japanese employees? to an increase in the national debt.
A. A)-employee-of-the-month” programs D. Contractionary monetary never works

1417. 25) Assume an enterprise is considering C. 1995

establishment of a foreign production facil- D. 1991
ity. Which of the following best supports
this decision? 1421. 64) Which term refers to two or more
A. Its foreign competitors have higher companies that share ownership of an
production costs than it has. FDI?
B. Its main competitor successfully A. turnkey operation
opened a foreign plant. B. transnational firm
NARAYAN CHANGDER
C. Its suppliers follow an agglomeration C. joint venture
strategy.
D. franchising
D. None of its competitors have foreign
production facilities. 1422. These factors are controllable by the
management.
1418. Under Non-Banking Finance Company a
/ an means any company which is a A. Micro Environment
financial institution carrying on as its prin- B. Macro Environment
cipal business the acquisition of securities C. Internal Environment
A. Investment Company D. External Environment
B. Asset Finance Company
1423. ‘Twinkle Stars’ is a well-known resort
C. Infrastructure Finance Company
for organising parties, especially for chil-
D. Loan Company dren. However, in past 6 months its pop-
ularity has reduced considerably as a new
1419. Any kind of external devices, like com-
resort with better ambience and facilities
pact discs (CD’s) for computer, have be-
has opened within its vicinity. Name the
come obsolete. Google, with its Google
related feature of business environment
Drive service, Apple with its iCloud offer-
which has influenced the business of ‘Twin-
ing, enables the users store documents,
kle Stars’ adversely.
photos, music and movies on web-based
servers. Identify the feature of business A. Totality of external forces
environment being described in the above B. Uncertainty
lines.
C. Interrelatedness
A. Relativity
D. Dynamic nature
B. Interrelatedness Explanation:Dynamic nature as business
C. Dynamic nature environment is dynamic in that it keeps on
changing
D. Uncertainty
Explanation:Uncertainty, as business envi- 1424. What are consequences?
ronment is largely uncertain as it is very
difficult to predict future events. A. something that is possible but is not
yet real
1420. Economic reform in India were initiated B. money charged to do something for a
in the year service
A. 1990 C. task that demands time and effort to
B. 1993 complete

D. the results (positive or negative) of an 1429. Privatization was done by

action or decision A. Selling stakes in loss making PSUs

1425. Julie’s window cleaner is what? B. Sale of partial interest in other PSUs
A. International C. Strategic sale of PSUs
B. National D. All of these
C. Global
1430. 59) An example of a U.S. merchandise
D. Local import is an automobile made in and
1426. Ethical behaviour is behavior that indi- sold
vidual beliefs and social norms, define as A. the United States by a Japanese com-
being wrong or bad. pany; in the United States
A. true B. the United States by a Japanese com-
B. false pany; outside the United States
C. Japan by a Japanese company; in the
1427. Which of the following statements best
United States
describes the way that the U.S. economic
system functions D. Japan by a U.S. company; outside the
A. individuals are the primary decision United States
makers, while businesses are the regula- 1431. What is retailing?
tors
A. Business selling big quantitities
B. individuals and businesses are the pri-
mary decision makers, and there is no reg- B. It is manufacturing
ulator C. Businesses selling things in small
C. the government is the primary deci- quantities
sion maker, and occasionally it becomes D. none of above
the regulator
D. individuals and businesses are the pri- 1432. When an employee has a grievance
mary decision makers, while the govern- and the grievance has not been resolved
ment is the regulator through internal procedures or trough hav-
ing a middle man and an objective party
1428. These are all characteristics of an en- needs to make the final decision
trepreneur, EXCEPT answer
A. Conciliation
B. Mediation
C. Arbitration
D. Strategic response
1433. technological environment includes:

A. Innovative A. advances in production technology
B. hard working B. advances in information technology
C. creative C. popularity of e-banking
D. Lazy D. all of the above

1434. A business enterprise exists and oper- 1439. Expand EODB

ates within an environment consisting of A. Ease of Doing Business
B. Ease of Doing Banking
A. Social
C. Easy Office Database
B. Economical
D. None of these
C. Cultural
D. Political 1440. Religion and language are two exam-
NARAYAN CHANGDER
ples of conditions that influence inter-
E. All of the above national business.
1435. The policy of imposing duties or quotas A. political and legal
on imports in order to protect home indus- B. cultural and social
tries from overseas competition.
C. geographic
A. free trade
D. economic
B. protectionism
C. balance of trade 1441. What do consumers, producers, and
owners of resources do with money pay-
D. none of above ments to create a flow of resources, goods,
1436. 51) Kevin, marketing manager of the services, and money payments?
North American Bowling League, has de- A. exchange
cided to televise major bowling compe- B. produce
titions to viewers in multiple countries
rather than only in Canada and the U.S. C. distribute
Which of the following goals would this D. consume
most likely help Kevin accomplish?
1442. Profitable businesses often help im-
A. acquiring new resources prove their local communities by
B. minimizing corporate risks A. investing in foreign companies
C. increasing sales and profits B. building facilities in other cities
D. obtaining competitive advantages C. contributing to charitable causes
1437. The interaction with environment leads D. increasing salaries of executives
to identifying growth opportunities?
1443. Which of the following best indicates
A. True the importance of business environment?
B. False A. Identification
1438. An individual or group who buys prod- B. Improvement in performance
ucts. C. Coping with rapid changes
A. economics D. None of them
B. customer
1444. Ability of a country or company to pro-
C. market duce a particular good more efficiently
D. scarcity. than another country or company.
E. product A. comparative advantage

B. absolute advantage 1449. Too much regulation of business will

C. competitive advantage cause

A. Loss of investments
D. none of above
B. Loss of employment
1445. In all the countries there is a free-flow
C. Regional imbalances
of goods and services under which of the
following does it come? D. All of these
A. Liberalisation 1450. people are expected to look after them-
B. Privatisation selves and their families OR people are
more concerned for others and the cul-
C. Liberalisation and Privatisation ture is based around more cohesive groups,
D. Globalisation such as the family, which offer protection
in exchange for loyalty.
1446. Tax on imports is an example of:
A. Power distance
A. Terms of Trade B. individualism/collectivism
B. Collateral C. masculinity/femininity
C. Trade Barriers D. uncertainty avoidance
D. Foreign Trade E. Confucian/dynamism
1447. determines what type of crops can 1451. A local neighborhood has many houses
be grown and whether or not tourism will for sale at a low price, but demand for the
thrive. houses is low. What kind of market most
likely exists in the neighborhood?
A. seller’s
B. buyer’s
C. inelastic
D. discretionary
1452. Energy efficient vehicles and appliances

A. Farming methods use
B. Climate A. less energy
C. Terrain B. more energy
D. Geology C. much energy
D. no energy
1448. It is a process of identifying the inter-
nal and external elements that affect the 1453. Strengths and Weaknesses in a business
organization’s performance. as referred to by SWOT analysis
A. Business Analysis A. External Factors
B. Business Environment B. Poor Planning
C. Environmental Analysis C. Internal Factors
D. Environmental Scanning D. Good Management

1454. value of the digit 3 in23904 A. Communism

A. thousand B. Fascism
B. hundredths C. Socialism
1455. How does a change in consumer prefer- D. Capitalism
ences affect the demand for a product?
1460. 72) The fact that a company is the mar-
A. It has no effect on demand ket leader in one country is no guarantee
B. It leads to an increase in demand that it will be the leader in another coun-
NARAYAN CHANGDER
try.
C. It leads to a decrease in demand
D. It depends on the type of product A. True
B. False
1456. Its or It’s? Study the four sentences be-
low and tick the two correct options 1461. 6) True or False:After Globalization
A. Its rubbish weather today means integration of Indian economy with
the European Economy.
B. It’s rubbish weather today
A. TRUE
C. I do not like this film; it’s not one of the
best Bond films B. FALSE
D. I do not like this film; its not one of the 1462. Influences that come from within the
best Bond films business are in the
1457. Lack of economic growth is a major prob- A. macro environment
lem for economic systems. B. external environment
A. traditional C. operating environment
B. communist command D. internal environment
C. market
1463. A large retailer wants to contribute to
D. socialist command
the well-being of society. It donates 10%
1458. refers to negative and unfavourable of its proceeds to a charity that helps the
external factors that are likely to create environment. The retailer is demonstrat-
hurdles for a firm * ing:
A. Opportunities A. Oh-too clever.
B. Threats B. wholesaling.
C. Benefits C. social responsibility.
D. None of the above D. voluntary merchandise.
1459. Which system has no social classes? 1464. WHICH IS NOT DIMENSION OF BUSI-
NESS ENVIRONMENT?
A. POLITICAL
B. ECONOMIC
C. SOCIAL
D. ALL OF THESE

1465. In order to broaden the frontiers of En- 1469. SWOT analysis is used to evaluate
trepreneurship Research, EDII has estab- A. Micro Environment
lished to investigate into a range of

issues surrounding small and medium en- B. Market Environment
terprise sector. C. Macro Environment
A. Centre for Research in Entrepreneur- D. none of above
ship Excellence and Development (CREED)
1470. What is meant by ‘the functional areas
B. Centre for Research in Entrepreneur- of a business’?
ship Education and Development (CREED)
A. The process of making sure that things
C. Centre for Revolution in Entrepreneur- are done in the expected way
ship Emergence and Development B. are the specialist areas of activity
(CREED) within an organization
D. Centre for Resurgence in En- C. To pass information to a succession of
trepreneurship Excellence and Develop- others
ment (CREED)
D. none of above
1466. The success of business depends on
1471. What is meant by a ‘competitive advan-
adapting itself to the environment within
tage’ in the marketplace?
which it functions?
A. True
B. False
1467. What form can acceptance take?

A. only in writing
B. orally or in writing
A. The ability to improve brand reputa-
C. in writing or by conduct (actions)
tion.
D. oral, in writing or by conduct
B. The ability to outperform competitors,
1468. he Economic Survey, 2019 suggests or other businesses that offer a similar
that the psychological biases can be used product or service.
in the realm of tax compliance. It is in C. The ability to be aware of customer
favour of using religious norms such “dy- needs.
ing in debt is a sin” to improve tax com- D. The ability to win all competitions or
pliance. Identify the related dimensions of disputes with customers.
business environment.
1472. When demand is higher than the avail-
A. Legal dimension and Social dimension
able resources.
B. Social dimension and Economic dimen-
A. economics
sion
B. customer
C. Technological dimension and Political
dimension C. market
D. Political dimension and Economic di- D. scarcity.
mension E. product

1473. Customers are part of environment. 1477. Credits in the financial account of the
A. micro BoP
A. increase a country’s foreign liabilities.
B. macro
B. increase a country’s foreign assets.
C. internal
C. are matched by equal credits in pri-
D. wide mary income.
1474. A war or political unrest are the signs D. are matched by equal debits in primary
NARAYAN CHANGDER
of income
1478. 6 Businesspeople seeking to understand
more about another culture in order to suc-
cessfully conduct business within that cul-
ture would be best advised to do which of
the following?
A. observe the behavior of people who
have gained respect within that cultural
A. Political stability which is positive for environment
international trade B. rely on stereotypes, which are based
B. Political instability which has negative on averages, to gain an understanding of
influence on international trade the culture
C. avoid cultural research studies be-
C. Economic challenges
cause they perpetuate unjustified stereo-
D. none of above types and behaviors
1475. What is a mission statement? D. memorize the cultural variations that

are typically encountered in a specific cul-
A. sets out the core values of the organi- tural environment
zation and what it believes in.
1479. 4) The finance minister reduced the repo
B. is person or a group of persons that is
rate to overcome recession. Which dimen-
affected by, or has an interest in the activ-
sion of business is highlighted here?
itiesof a business
A. Economic environment
C. that sets out the key purpose of the or-
ganization to all stakeholders B. Social environment
C. Political environment
D. none of above
D. Legal environment
1476. What is a Trade Union?
1480. 1) Comparing countries in international
A. a company that has its shares bought business is LEAST useful for determining
and sold on the stockexchange the
B. A body that is owned by the people who A. best location for sales and production
work for it
B. sequence of entering different coun-
C. An organization that represents the in- tries
terests of a group of employees C. amount of resources to allocate in
D. none of above each country

D. selection of which managers to send 1485. When a product is bought from the
to which countries global market, it is

A. a domestic purchase
1481. Why are resources considered limited?
B. a domestic transaction
A. Everyone has them, and they change
C. export
B. There are not enough available for ev-
eryone to have as much of them as de- D. import
sired
1486. 7) Which of the following statement
C. There are so many that people must best describes the policy of Liberalization?
decide which ones to choose at any one
A. Abolition of licensing requirement in
time
most of the industries
D. Entrepreneurs do not invest enough of B. Reduction in tax rates and lifting of un-
them necessary controls over the economy
1482. HEAD OFFICE OF WTO IS LOCATED IN C. Both a and b
A. GENEVA D. Setting up Board of Industrial and Fi-
nancial Reconstruction
B. BERLIN
C. NEW YORK 1487. Individuals and businesses own the
means of production and distribution with
D. DELHI limited government regulation in a
economy.
1483. One reason why the supply of certain
products has been eliminated is because of A. market
A. production methods B. traditional

C. socialist
B. buying power
D. communist
C. technology
D. elasticity 1488. Which of the following organisations
lays stress on liberalisation of foreign
1484. This image represents which feature of trade and foreign investment?
the Business Environment? A. International Labour Organisation
B. International Monetary Fund
C. World Health Organisation
D. World Trade Organisation
1489. Which sources of energy are NOT con-

sidered renewable
A. Complex A. geothermal (heat)
B. Inter-related B. hydroelectric (water)
C. Dynamic C. coal
D. Uncertain D. wind

1490. What are the three financial state- 1492. What is Free Enterprise (Capitalist)
ments? Economy?
A. Balance sheet, equity statement, and
revenue statement
B. Balance sheet, income statement, and
cash-flow statement
C. Asset statement, liability statement,
NARAYAN CHANGDER
and income statement
D. Cash-flow statement, accrual state-
ment, and depreciation statement A. Individuals and businesses are al-
lowed to compete for profit with a mini-
1491. If a business is looking to expand inter- mum of government interference
nationally and is researching a countries
B. The government controls the economy
literacy level, technology, and infrastruc-
ture the business is looking into a countries 1493. 9) It is difficult to compare globaliza-
tion of business over time because shifting
national borders have changed the nature
of transactions from domestic to interna-
tional and vice versa.
A. True
B. False
1494. Which of the following factors may in-

fluence supply?
A. Cultural Influences A. natural disasters
B. Geography B. standard of living
C. Legal Concerns C. product utility
D. Economic Development D. number of consumers

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