Chapter-wise MCQ Questions

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Question-1. DigiLocker is the country's first secured cloud-based platform for the storage, issuance and verification of documents with the Driving Licence & Vehicle Registration System of the Road Transport Ministry. The integration of a government department with DigiLocker since its launch last year is one of the biggest of its kind. It will spare 1 people the trouble of carrying licences & vehicle papers, which can be accessed on phones using the DigiLocker app. Identify the related dimension of business environment.

  1. Ecoriomic dimension
  2. Technological dimension
  3. Social dimension
  4. Political dimension
Answer-1

Question-2. Electric vehicles with zero tail pipe emission are emerging as a good alternative to' problems like climate change, surging pollution leading to ill health, crude import bill and energy security. Identify the related dimensions of business environment.

  1. Economic dimension, Legal dimension and Social dimension
  2. Social dimension, Political dimension and Economic dimension
  3. Economic dimension, Technological dimension and Social dimension
  4. Social dimension, Political dimension and Legal dimension
Answer-2

Question-3. Globalisation means

  1. reduced role of public sector
  2. integration of economies
  3. lowering interest rates
  4. control of inflation
Answer-3

Question-4. In order to boost and double India's export of goods and services to over USD 1,000 billion by 2025, it is important to lower effective corporate tax rate, bring down cost of capital and simplify regulatory and tax framework. Identify the related dimension of business environment.

  1. Social dimension and Legal dimension
  2. Technological dimension and Political dimension
  3. Political dimension and Social dimension
  4. Economic dimension and Legal dimension
Answer-4

Question-5. India's population is expected to grow under 0.5 per cent during 2031-41 due to decline in fertility rate and increase in life expectancy. These changes in India's demography will also have implications such as the proportion of elementary school-going children will witness significant declines, lack of hospital beds and increase in retirement age. The related feature of business environment being described in the above lines is

  1. Totality of external forces
  2. Dynamic nature
  3. Interrelatedness
  4. Relativity
Answer-5

Question-6. Legal rules and regulations relevant to business are included in ___ environment of business.

  1. Legal
  2. Political
  3. Economic
  4. Technological
Answer-6

Question-7. Proper understanding of business environment is not a prerequisite for

  1. tapping of useful resources.
  2. identification of opportunities and threats.
  3. formulation of strategies.
  4. better coordination of employee efforts.
Answer-7

Question-8. Since more number of people have become more beauty and health conscious, our economy has witnessed an unprecedented surge in the number of health and beauty spas and wellness clinics. Related feature of business environment being described in the above lines is —

  1. Totality of external forces
  2. Dynamic nature
  3. Interrelatedness
  4. Relativity
Answer-8

Question-9. The Government of India launched Make in India initiative in September, 2014 to increase foreign direct investment (FDI) in 25 sectors. As of April, 2015, FDI inflow in India increased by 48% since the launch of “Make in India” initiative.Identify the concept being described in the above lines, with regard to inflow of FDI.

  1. Demonetisation
  2. Privatisation
  3. Liberalisation
  4. Globalisation
Answer-9

Question-10. Which one of the following is a part of economic environment?

  1. Public debt
  2. Lifestyle of people
  3. Technological changes
  4. Level of education
Answer-10

Question-11. Which one of the following is not a feature of business environment?

  1. Uncertainty
  2. Interdependence
  3. Complexity
  4. Stability
Answer-11

Question-12. Which one of the following is the impact of Government policy changes on business and industry?

  1. Increase in agricultural productivity
  2. Increase in product prices
  3. Increase in competition
  4. Increase in urbanisation
Answer-12

Question-13. "Environment provides both constraints and opportunities". What is your opinion?

  1. Yes, it provides both constraints and opportunities
  2. It neither provides constraints nor provides opportunities
  3. It provides opportunities but not constraints
  4. None of these
Answer-13

Question-14. "The celebration of Diwali, Eid, Christmas and Guru Parv in India provides significant financial opportunities for greeting cards companies, sweets or confectionery manufacturers, tailoring outlets and many other related business. Name the dimension of the business environment highlighted by this statement.

  1. Technological environment
  2. Legal environment
  3. Political environment
  4. Social environment
Answer-14

Question-15. ___________The new set of economic reforms that aim at giving greater role to the private sector in the nation building process and a reduced role to the public sector.

  1. Privatisation
  2. Liberalisation
  3. Globalisation
  4. None of the options
Answer-15

Question-16. ________reduces the control of government and encourages private participation

  1. Liberalization
  2. Privatization
  3. Globalization
  4. All the options
Answer-16

Question-17. A possible obstacle to growth of privatisation is

  1. Sale of least profitable enterprises
  2. Profit earned by public enterprises
  3. Licensing
  4. All the options
Answer-17

Question-18. Advance understanding of business environment will help in

  1. Planning and Policy Formulation
  2. Privatisation
  3. Developing new principles of management
  4. Liberalisation
Answer-18

Question-19. Advertisement of alcoholic beverages is prohibited. This is an example of __________

  1. Legal Environment
  2. Economic Environment
  3. Political Environment
  4. All the options
Answer-19

Question-20. Booking of Railway tickets through internet from home or office is an example of _________

  1. Technological Environment
  2. Political Environment
  3. Economic Environment
  4. All the options
Answer-20

Question-21. Business environment is a group of powers.

  1. Special
  2. General
  3. Internal
  4. Special and General
Answer-21

Question-22. By which act government checks restrictive trade?

  1. MRTP Act
  2. Industrial Policy Act 1991
  3. FEMA act
  4. None of the options
Answer-22

Question-23. Company images and brand equity is factor affecting business

  1. Externally
  2. Internally
  3. Government Policy
  4. None of the options
Answer-23

Question-24. Demand for reservation in jobs for minorities refers to an example of key component of general environment of business. Name this component

  1. Social Environment
  2. Legal Environment
  3. Technological Environment
  4. Political Environment
Answer-24

Question-25. For the protection of a consumers right, there is

  1. Consumer Protection Act, 1986
  2. Consumer protection Act 1984
  3. Consumer Protection Act, 1932
  4. Consumer Protection Act, 1956
Answer-25

Question-26. Giving freedom to Indian business and industries from all unnecessary government controls and restrictions is an example of ____________

  1. Liberalisation
  2. Privatisation
  3. Globalisation
  4. All the options
Answer-26

Question-27. Globalisation means

  1. Adopting a global outlook
  2. Setting of firms branches in other countries
  3. Earning profit from Exports
  4. Attracting foreign investment
Answer-27

Question-28. Gross Domestic Product (GDP) is concerned with ____________

  1. Economic Environment
  2. Social Environment
  3. Political Environment
  4. Legal Environment
Answer-28

Question-29. How many important features of New Economic Policy, 1991

  1. 3
  2. 2
  3. 4
  4. 5
Answer-29

Question-30. In all the countries there is a free-flow of goods and services under which of the following does it come?

  1. Liberalisation
  2. Privatisation
  3. Liberalisation and Privatisation
  4. Globalisation
Answer-30

Question-31. Increased competition in the market will _______

  1. Reduce the profit margin
  2. Increase the tax
  3. Increase the profit
  4. Increase the cost of production
Answer-31

Question-32. It is the process by which government control over the industry is being loosened. Give the term to which this statement is trying to indicate

  1. Liberalization
  2. Privatization
  3. Globalization
  4. None of the options
Answer-32

Question-33. Liberalisation means

  1. Integration among economies
  2. Reduced government controls and restrictions
  3. Policy of planned disinvestments
  4. None of them
Answer-33

Question-34. Liberalisation means

  1. Reduced government controls and restrictions
  2. Integration among economies
  3. Policy of planned disinvestments
  4. None of the options
Answer-34

Question-35. Liberalization means

  1. Liberating the industry, trade and economy from unwanted restrictions
  2. Reducing number of reserved industries from 17 to 8
  3. Opening up of economy to the world by attaining international competitiveness
  4. Free determination of interest rates
Answer-35

Question-36. Privatisation of ownership through sale of equity share is called

  1. Disinvestment
  2. Denationalisation
  3. Contracting
  4. None of the options
Answer-36

Question-37. Reducing the role of Public Sector and increasing the role of Private Sector fall sunder .

  1. Liberalisation
  2. Privatisation
  3. Liberalisation and Privatisation
  4. Globalisation
Answer-37

Question-38. Reduction in the role of public sector is due to _________

  1. Privatisation
  2. Political Environment
  3. Liberalisation
  4. Globalisation
Answer-38

Question-39. Relaxing the restrictions and controls imposed on Business and industry means

  1. Liberalisation
  2. Privatisation
  3. Globalisation
  4. None of the options
Answer-39

Question-40. Subsidy to cotton textile businesses is the __________

  1. Political Environment
  2. Legal Environment
  3. Social Environment
  4. Economic Environment
Answer-40

Question-41. Technological environment includes changes relating to

  1. Scientific improvement
  2. Method of production
  3. Use of new equipment
  4. All the options
Answer-41

Question-42. Technological improvements and innovations result in__

  1. Render existing products obsolete
  2. Increase in tax
  3. Reduction in profit margins
  4. None of the options
Answer-42

Question-43. The complete awareness and understanding of business environment is called _________

  1. Environmental Scanning
  2. Technological advancement
  3. Liberalisation
  4. Privatisation
Answer-43

Question-44. The entry of the multinational companies in large numbers in the Indian market has created .

  1. Huge Demand
  2. Huge Supply
  3. Tough Competition
  4. Huge Demand and Supply
Answer-44

Question-45. The Impact of changes in govt. policy on business are

  1. Increasing competition
  2. More demanding
  3. Rapidly changing technology environment
  4. All the options
Answer-45

Question-46. The income and expenditure policy of the government is called.

  1. Fiscal Policy
  2. Industrial Policy
  3. Trade Policy
  4. Monetary Reforms
Answer-46

Question-47. The negative effects of liberalization and globalization on business and industry in India are

  1. Destabilization of protected environment
  2. Threat from MNCs
  3. Acquisitions and mergers
  4. All the options
Answer-47

Question-48. The positive effects of liberalization and globalization on business and industry

  1. All round competition
  2. Export became matter of survival
  3. World class technology
  4. All the options
Answer-48

Question-49. The pre-liberalisation era of Indian Economy was under the grip of

  1. Unfavourable and alarming balance of payment
  2. Fiscal Deficit
  3. Under-employment
  4. Unemployment
Answer-49

Question-50. The trend of health and fitness has created a demand for products like gyms, bottled mineral water and food supplements etc., these are the example of

  1. Social Environment
  2. Political Environment
  3. Legal Environment
  4. Economic Environment
Answer-50

Question-51. Through Environmental scanning a business firm can enjoy the ___________

  1. First Mover Advantage
  2. Benefit of taxes
  3. Last Mover Advantage
  4. None of the options
Answer-51

Question-52. Under the Reserve Bank keeps control on the money supply in order to achieve the objectives of the general economic policy.

  1. Fiscal Policy
  2. Monetary Policy
  3. Trade Policy
  4. Industrial Policy
Answer-52

Question-53. What are the Components of Business Environment

  1. Internal Environment
  2. External Environment
  3. Micro Environment
  4. All the options
Answer-53

Question-54. What are the decisions taken by government of India pertaining to Industrial Sector in the new industrial policy of 1991?

  1. VRS to shed the excess load of workers
  2. Disinvestment of public sector share holding
  3. Referring sick units to BIFR
  4. All the options
Answer-54

Question-55. What are the economics reforms since 1991 or new Economics policy

  1. Privatization
  2. Liberalization
  3. Globalization
  4. All the options
Answer-55

Question-56. What are the features of Business Environment

  1. Dynamic
  2. Uncertainty
  3. Relativity
  4. All the options
Answer-56

Question-57. What creates fear in the minds of investors to invest in long term projects?

  1. Political Uncertainty
  2. Privatisation
  3. Globalisation
  4. All the options
Answer-57

Question-58. What is the Impact of Government policy changes on business and industry

  1. Increasing Competition
  2. More Demanding Customer
  3. Rapidly Changing Technological Environment
  4. All the options
Answer-58

Question-59. What is the importance of business

  1. First mover advantage
  2. Taping useful resources
  3. Improving in performance.
  4. All the options
Answer-59

Question-60. What will be the affect of increase in tax by the government

  1. Increase in cost of production
  2. Creates fear in the minds of investors
  3. Increase in profit margin
  4. None of the options
Answer-60

Question-61. Which among the following is not opened for private sector participation

  1. Railways
  2. Power sector
  3. Telecommunication sector
  4. Education sector
Answer-61

Question-62. Which among these can be condition for the success of privatisation

  1. Barriers to enter the market
  2. Alternative institutional arrangements
  3. Measurability of performance
  4. All the options
Answer-62

Question-63. Which among these is not a method of privatisation

  1. Sale of Business
  2. Denationalisation
  3. Franchising
  4. All the options
Answer-63

Question-64. Which element / dimension of business environment involves improvement and innovations which provide new ways of producing goods and services and new methods and techniques of operating a business.

  1. Technological Environment
  2. Social Environment
  3. Legal Environment
  4. Political Environment
Answer-64

Question-65. Which environment describes characteristics of the society in which the organization exists.

  1. Social Environment
  2. Legal Environment
  3. Political Environment
  4. All the options
Answer-65

Question-66. Which environment prohibits the advertisement of alcoholic beverages

  1. Legal Environment
  2. Technological Environment
  3. Social Environment
  4. Political Environment
Answer-66

Question-67. Which factor is not included in Internal Environment?

  1. Objective
  2. Policies
  3. Public
  4. Production-Method
Answer-67

Question-68. Which factor is not included in Macro Environment?

  1. Economic Environment
  2. Competitors
  3. Social Environment
  4. Political Environment
Answer-68

Question-69. Which is not essential feature of Liberalisation

  1. The government redefined the role of public sector.
  2. No restriction on expansion or contraction of business
  3. Free movement of goods and services.
  4. Freedom in fixing the prices of goods and services.
Answer-69

Question-70. Which is not essential feature of Privatisation

  1. No restriction on expansion or contraction of business
  2. The government redefined the role of public sector.
  3. Policy of planned disinvestments of the public sector.
  4. Refining of sick enterprises to the Board of Industrial and Financial Reconstruction.
Answer-70

Question-71. Which is not included in Specific Environment

  1. Social
  2. Investors
  3. Customers
  4. Competitors
Answer-71

Question-72. Which of the following best indicates the importance of business environment

  1. Improvement in performance
  2. Identification
  3. Coping with rapid changes
  4. All the options
Answer-72

Question-73. Which of the following deals with the process of simplification of Import-Export?

  1. Liberalisation
  2. Privatisation
  3. Liberalisation and Privatisation
  4. Globalisation
Answer-73

Question-74. Which of the following does not characterise the business environment

  1. Employees
  2. Relativity
  3. Dynamic
  4. Uncertainty
Answer-74

Question-75. Which of the following does not explain the impact of Government policy changes on business and industry?

  1. More demanding customers
  2. Increasing competition
  3. Change in agricultural prices
  4. Market orientation
Answer-75

Question-76. Which of the following is an example of social environment

  1. Composition of family
  2. Consumer Protection Act
  3. Money supply in the economy
  4. The Constitution of the country
Answer-76

Question-77. Which of the following is an example of social environment?

  1. Money supply in the economy
  2. Consumer Protection Act
  3. The Constitution of the country
  4. Composition of family
Answer-77

Question-78. Which of the following statements is incorrect?

  1. Business environment is aggregative in nature
  2. Business environment is dynamic in nature
  3. Business environment does not include both specific and general forces
  4. Business environment is a relative concept
Answer-78

Question-79. Which one is not an element of internal environment?

  1. Money and capital market
  2. Marketing capabilities
  3. Operational Capabilities
  4. Personal Capabilities
Answer-79

Question-80. Which process aims at giving greater role to the private sector role to the public sector

  1. Privatization
  2. Liberalization
  3. Globalization
  4. None of the options
Answer-80

Question-81. Why it is important for business enterprises to understand their environment

  1. It Enables the Firm to Identify Opportunities
  2. It Helps the Firm to Identify Threats
  3. It Helps in Coping with Rapid Changes
  4. All the options
Answer-81

Question-82. With the introduction of Photostat Machines in the market, the carbon paper industry was adversely affected. Which component of environment was responsible for it?

  1. Economic
  2. Political
  3. Technical
  4. All the above
Answer-82

Question-83. "Demand for reservation in jobs for minorities refer to an example of key component of general environment of business". Name this component.(

  1. Economic environment
  2. Political environment
  3. Legal environment
  4. Social environment
Answer-83

Question-84. "The understanding of business environment enables the firm to identify opportunities". What is meant by opportunities here?

  1. Negative changes in external environment
  2. Positive changes in external environment
  3. Negative changes in internal environment
  4. None of these
Answer-84

Question-85. ___ feature of business environment states that various factors of business environment affect each other.

  1. Pervasive
  2. Continuous
  3. Dynamic
  4. Interrelatedness
Answer-85

Question-86. ___ is the integration of world economy into a single market through removal of trade barriers between countries.

  1. Privatisation
  2. Liberalisation
  3. Globalisation
  4. Both(a) and (b)
Answer-86

Question-87. ___ nature of business environment suggests that environment keeps on changing.

  1. Dynamic
  2. Pervasive
  3. Continuous
  4. Multidimensional
Answer-87

Question-88. ________ is considered as the major element of political environment.

  1. The extent of government intervention in business
  2. Planned outlay in public and private sectors
  3. Expectation from the workforce
  4. Administrative order issued by government authorities
Answer-88

Question-89. A business has to offer wider choice in purchasing enhanced quality of goods and services in order to maintain an edge over its competitors. The implementation of the new economic policy with liberalisation, privatisation and globalisation has posed various challenges for the corporate sector. One of the important challenges is explained in the above lines. Identify it.

  1. Increasing competition
  2. More demanding customers
  3. Necessity for change
  4. Market orientation
Answer-89

Question-90. According to a report by the India Staffing Federation (ISF), India has emerged as thefifth largest market worldwide in flexi-staffing in 2018 and the country would have 6.1 million flexi-workforce by 2021. It showed that Haryana, Gujarat, Karnataka, Madhya Pradesh and Telangana are the states with high growth potential for flexi- staffing but Andhra Pradesh tops the list of states with favourable business environment. Identify the feature of business environment being discussed above,

  1. Relativity
  2. Dynamic nature
  3. Uncertainty
  4. Interrelatedness
Answer-90

Question-91. Any kind of external devices, like compact discs (CD's) for computer, have become obsolete. Google, with its Google Drive service, Apple with its iCloud offering, enables the users store documents, photos, music and movies on web-based servers. Identify the feature of business environment being described in the above lines.

  1. Relativity
  2. Dynamic nature
  3. Uncertainty
  4. Interrelatedness
Answer-91

Question-92. As a result of major government initiatives, more and more people are going'green'. In order to keep in line with the trend,'Clapaway' a carpet cleaning company has advertised that they only use natural cleaners that come from renewable resources and that all their service vehicles are hybrid vehicles that use both gas and electricity. Identify one of the points related to the importance of business environment and its understanding by managers which is being highlighted in the above case.

  1. It helps in assisting in planning and policy formulation.
  2. It helps in coping with rapid changes.
  3. It helps in improving performance.
  4. It enables the firm to identify opportunities and getting the first mover advantage.
Answer-92



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