P.P.

SAVANI CHAITANYA VIDYA SANKUL, CBSE

ABRAMA, SURAT
Ch.3 Business Environment
Worksheet
Class : 12th
1. Match the statements given in column I with the characteristic of business environment given in
column II
Column I Column II
a. Increased demand of Khakhra and Thepla in the region of Gujarat as i. Uncertainty
compared to Delhi region
b. Digital academic certificates are issued to students accessible in a ii. Dynamic
secured manner to eliminate undesirable practices like corruption and
manipulation of records under Digital India Initiative. Such
technological improvements are happening at a very fast pace.
c. Fashion market is facing both opportunities and challenges. Therefore iii. Relativity
it is difficult to predict the future of the fashion market.
d. A new government will result in changing government rules, fiscal iv. Interrelatedness
policies, market conditions etc

Choose the correct option from the following:

A. (a)-(iii), (b)-(ii), (c)-(i), (d)-(iv)
B. (a)-(ii), (b)-(i), (c)-(iii), (d)-(iv)
C. (a)-(iv), (b)-(ii), (c)-(i), (d)-(iii)
D. (a)-(iii), (b)-(i), (c)-(ii), (d)-(iv)
2. Match the various characteristics of Business environment given in Column I with their respective
explanations in Column II:
Column I Column II
A. Dynamic i. Environment is a phenomenon that is relatively easier to understand
in parts but difficult to grasp in its totality.
B. Complexity ii. Business environment differs from country to country and even region
to region.
C, Relativity iii. Business environment keeps on changing, whether in terms of
technological improvement or shifts in consumer preferences.

Choose the correct option from the following:

(a). A- (iii), B-(ii), C-(i)
(b). A-(ii,) B- (iii), C-(i)
(c). A-(iii,) B-(i), C-(ii)
(d). A-(i), B-(ii), C-(iii)
2. Plastic utensils are often used as a low cost, convenient option for business or personal use. These
utensils are lightweight, easy to transport and can be disposed off easily instead of cleaned and
reused. But plastic utensils are harmful from health point of view and create various
environmental issues. Nowadays health and fitness trend is becoming popular.
People are looking for different alternatives and have started opting for paper-made, steel or glass
utensils which has tremendously increased the demand of these products.
The above para discusses an important dimension of Business Environment which is:

1
 A. Economic Environment C. Technological Environment
B. Social Environment D. Political Environment
3. “Cartoony Planet’ is a well-known indoor playground for organising parties for children in Noida.
It has many playstations and it organises various activities for the kids to enjoy. Looking at the
increasing number of children visiting ‘Cartoony Planet’, a new indoor playground in the name of
‘Tiny-Tots House’ came up with advanced swings, play stations and entertainment activities near
‘Cartoony Planet’. To compete with the newly opened indoor playground, ‘Cartoony Planet’ also
added some advanced swings and entertainment activities to attract more children. The above
information highlights one of the features of business environment.
Identify the feature from the following:
A. Uncertainty C. Relativity
B. Dynamic Nature D. Interrelatedness
4. ‘Digilocker’ is a flagship initiative of ‘Ministry of Electronics and IT’, Government of India. It aims at
digital empowerment of the citizens by providing access to authentic digital documents such as
academic certificates issued by different Examination Boards, Driving Licenses, Vehicle
registrations etc. in a digital format.
The above para discusses a few dimensions of Business Environment. Identify the correct
dimensions from the following:
A. Economic Environment and Technological Environment
B. Social Environment and Economic Environment
C. Social Environment and Political Environment
D. Political Environment and Technological Environment
5. ‘Dolma’ and ‘Una’ were gardners with decades of hands-on experience. They were the first one to
recognise the need of indoor gardens specially for plant-lovers living in apartments. They took
advantage of this opportunity and decided to offer beautiful designing ideas for indoor gardening
through their innovative venture ‘My Space’. ‘My Space’ offered creative ideas like ‘Garden wall’,
‘Hanging Garden’, ‘Window Garden’, ‘Book-shelf garden and many more. Since there were no
competitors they soon became the market leaders in the field.
From the following points identify the importance of Business Environment highlighted above:
A. Business Environment helps the firm to identify threats and early warning signals.
B. Business Environment helps in tapping useful resources.
C. Business Environment enables the firm to identify opportunities and getting the first
mover advantage.
D. Business Environment helps in assisting in planning and policy formulation
6. Hitesh and Reena are entrepreneurs. They noticed that every year in the months of November
and December, Delhi, the capital city of India, witnesses poor air quality and rise in pollution
levels. They also observed that nowadays people are more concerned about quality of life. Sensing
the need, they were the first to bring into the market a new ‘Anti-Pollution W-98 Mask’ which was
not only helpful in combating the pollution but also in increasing the life expectancy of people.
Their venture saw a massive success as there was no competitor. From the following,
Identify the importance of Business Environment highlighted above:
A. Business Environment helps the firm to identify threats and early warning signals.
B. Business Environment helps in tapping useful resources.
C. Business Environment helps in improving performance.
D. Business Environment enables the firm to identify the opportunities and in getting the first
mover advantage.
7. With a revolution taking place in the manufacturing of mobile phones with super class cameras,
the business of cameras in the consumer market has taken a hit. Studies show that mobile phone
photography has devastated the camera industry.

2
 The dimension of business environment highlighted in the above case is:
A. Economic Environment C. Social Environment
B. Technological Environment D. Political Environment
8. In a recent ruling, the Supreme Court of India has ordered an immediate stop on commercial
activities in a 500-metre radius of the Taj Mahal and asked Agra Development Authority to ensure
compliance of its directive.
Which dimension of business environment is reflected here?
A. Social C. Legal
B. Technological D. Political
9. Which of the following is not a part of social environment of Business?
A. Life expectancy
B. Education system and literacy rates
C. Consumption habits
D. Money supply in the economy
10. These days consumers are making eco-friendly and healthy choices and are saying no to all things
made of plastic and replacing it with stainless steel and ceramic containers, thus forcing business
to change as well.
Identify the feature of business environment highlighted above:
A. Totality of external sources C. Inter-relatedness
B. Specific and general forces D. Dynamic nature
11. Government of India demonetised notes of Rs.500 and Rs.1000 on November 8, 2016.
Demonetisation means:
A. They ceased to be legal tender except for a few specified purposes.
B. These notes could not be banked but could be freely used otherwise.
C. These notes could be converted into gold coins from Reserve Bank of India.
D. These notes could be used for household purposes but not for business purposes.

12. With the presence of women in the workforce, there has been a shift towards formal wear,
increased demand of electronic gadgets and increase in demand of cosmetics. The related
dimension of business environment referred in the above lines is:
A. Technological environment. C. Political environment.
B. Social environment D. Economic environment
13. Mr. Vivek is working as the General Manager of Oshin Hotels Ltd. Mr. Vivek observed that
Government was taking a special interest in the Tourism industry as this sector is an important
source of foreign exchange and employment promotion. On the basis of this news, the company
decided to set up hotels at several tourist places. Oshin Hotels Ltd. established 50 hotels before
other companies considered this issue. Very soon, this brand Oshin Hotels Ltd. became well known
in the market.
Identify the importance of business environment described here.
A. It enables the firm to identify opportunities and getting the first mover advantage.
B. It helps the firm to identify threats and early warning signals.
C. It helps in tapping useful resources.
D. It helps in improving performance.
14. ‘Pace.’ is a reputed Chartered Accountant firm which renders services to big MNC’s. The Chartered
Accountants of the firm are required to travel to Delhi and NCR for which they use company’s cars.
The firm decided to convert its Petrol cars to Electric cars in order to improve the quality of life of
people.
Identify the dimensions of business environment.
A. Political and Legal environment

3
 B. Legal and Social environment
C. Technological and Political environment
D. Social and Technological Environment
15. Which characteristic of the business environment is highlighted when changes are taking place too
frequently and it becomes difficult to predict the future?
A. Uncertainty C. Inter-relatedness
B. Complexity D. Relativity
16. Airlines will be able to offer the benefit of lower pricing to customers on sectors/routes due to the
decision of the civil aviation ministry to remove price caps from August 31, 2022. This can help an
airline to do better performance if they take early decisions regarding future courses of action after
understanding and doing analysis.
Which importance of business environment and its understanding by managers is not highlighted
above:
A. It helps in improving performance
B. It helps in assisting in planning and policy formulation
C. It helps in tapping useful resources
D. It enables a firm to identify opportunities and get first mover advantage
17. Mr Vivek Vaswani, a foodpreneur combined his passion for food with his entrepreneurial skills and
started his innovative fast food outlet OH CHILLI! in 2021. He had started his career as a food
blogger and had noticed that numerous Indian consumers were looking for reasonable and pure
vegetarian fast food options for dining out. The high end restaurants were not opted by many as
they were exorbitantly priced. Though many global fast food chains were running across the
country, yet not many outlets offered reasonable and healthy pure vegetarian fast food options to
consumers. OH CHILLI! became a pioneer in offering a healthy and delicious variety of food. What
came as a surprise for consumers was that even without using onion or garlic in the pasta sauce,
marinade and ketchup ,the food could actually taste great. The company witnessed an increase in
net profit of 26% in its second financial year and became a market leader.
i. State the concept of business environment.
ii. Identify and explain in what way, a good understanding of business environment enabled Mr.
Vivek Vaswani to improve the performance of the enterprise.

Ans:
(I) Business Environment means the sum total of all individuals, institutions and other forces
that are outside the control of a business enterprise but that may affect its performance.
(II) It enables the firm to identify opportunities and getting the first mover advantage:
Opportunities refer to the positive external trends or changes that will help a firm to
improve its performance. Environment provides numerous opportunities for business
success. Early identification of opportunities helps an enterprise to be the first to exploit
them instead of losing them to competitor.

4
18. Identify the dimension of Business environment:

1. The health-and-fitness trend has become popular among large number of urban SOCIAL
dwellers. This has created a demand for products like organic food, diet soft
drinks, gyms, bottled (mineral) water and food supplements.
2. . The celebration of Diwali, Id, Christmas, and Guru Purnima in India provides SOCIAL
significant financial opportunities for greetings card companies, sweets or
confectionery manufacturers, tailoring outlets and much other related business
3. The advertisement of alcoholic beverages is prohibited. LEGAL
4. Money supply in the economy ECONOMIC
5. Advertisements, including packets of cigarettes carry the statutory warning LEGAL
‘Cigarette smoking is injurious to health’.
6. The Constitution of the country POLITICAL
7. Advertisements of baby food must necessarily inform the potential buyer that LEGAL
mother’s milk is the best. All these regulations are required to be followed by
advertisers.
8. Government provides subsidy in the production of cotton garments POLITICAL/
ECONOMIC
9. Equal pay to men and women for equal work performed. SOCIAL
10. High inflation rates generally result in constraints on business enterprises as they ECONOMIC
increase the various costs of business such as the purchase of raw materials or
machinery and payment of wages and salaries
11. Ruling govt. Developed good trading relation with Dubai. POLITICAL
12. Stock market rising ECONOMIC
13. AI-powered tools are used in customer service, fraud detection, cyber security, TECHNOLOGICAL
and supply chain management.
14. 5G technology is enabling faster data transfer speeds and lower latency, which is TECHNOLOGICAL
crucial for applications like IoT, autonomous vehicles, and remote monitoring.
15. Renewable energy technologies, sustainable manufacturing processes, and TECHNOLOGICAL
carbon capture technologies.
16. Banking sector reforms have led to easier credit terms and better services. ECONOMIC
17. Demand to reserve jobs for minorities and women. SOCIAL
18. A rise in the disposable income of people due to increase in the gross domestic product ECONOMIC
of a country creates increasing demand for products.
19. This health-and-fitness trend has harmed business in other industries like dairy SOCIAL
processing, tobacco and liquor
20. In case of construction companies and automobile manufacturers, low longer-term rates ECONOMIC
are beneficial because they result in increased spending by consumers for buying homes
and cars on borrowed money.