MCQ Chapter 3 Business Environment Class 12 Business Studies

Please refer to Business Environment MCQ Questions Class 12 Business Studies below. These MCQ questions for Class 12 Business Studies with answers have been designed as per the latest NCERT, CBSE books and syllabus issued for the current academic year. These objective questions for Business Environment will help you to prepare for the exams and get more marks.

Business Environment MCQ Questions Class 12 Business Studies

Please see solved MCQ Questions for Business Environment in Class 12 Business Studies. All questions and answers have been prepared by expert faculty of standard 12 based on latest examination guidelines.

Question. Under which environment effect, IBM and Coca –Cola had to leave India?
(a) Political
(b) Social
(c) Economical
(d) Technical

Question. Investors, customers, competitors and suppliers come under…….forces.
(a) General
(b) Specific
(c) General and Specific
(d) None of the above

Question. The trend of Yoga as a result of COVID -19 relates to…
(a) Social
(b) Political
(c) Technological
(d) Legal

Question. Introduction of mobile phones have negatively effected the business of cameras and watches it is related to
(a) Technological environment
(b) Political environment
(c)Legal environment
(d) Social environment

Question. “There is a great demand for reservation in jobs for economically weaker sections of the society.” Identify the type of dimension of business environment mentioned.
(a) Technological environment
(b) Political environment
(c) Legal environment
(d) Social environment

Question. Match the following

Column I	Column II
a) Stock Market indicates	(i) Political environment
b) Customs and traditions	(ii) Social environment
c) New techniques of operating business	(iii) Technoogical environment
d) General stability and peace in the country	(iv) Economic environment

Find the correct option.
(a) (iv) (iii) (i) (ii)
(b) (ii) (iii) (iv) (i)
(c) (iii) (iv) (ii) (i)
(d) (iv) (ii) (iii) (i)

Question. WhatsApp was the first application for mobile chat. Afterwards, many other applications came but still whatsapp is No.1 in mobile chat. Which importance of Business Environment is highlighted here.
(a) Helps in tapping resources
(b) Helps in policy making
(c) Identifying threat and getting warning signal
(d) Helps to identify opportunities and getting first mover advantages

Question……… is considered a major element of the economic environment.
(a) Public debt
(b) The nature of relationship of our country with foreign countries
(c)Birth and death rate
(d) Literacy rates

Question. Non-discriminatory employment practices is the part of which dimension of business environment?
(a) Political
(b) Social
(c) Economical
(d) Legal

Question. The government of India proposed to encourage e-transactions by encouraging the use of plastic money(through debit, credit and gift cards) or net banking by allowing deductions in usage charges, fees and income tax exemptions. Which component of business environment does it represent?
(a) Economic environment
(b) Political environment
(c) Legal environment
(d) Social environment

Question. which of the following dimensions of business environment includes legislations passed by the government administrative orders issued by government authorities.
(a) Technological environment
(b) Political environment
(c) Legal environment
(d) Social environment

Question. Specific attitudes that elected government representatives hold towards business is called… …………. environment.
(a) Legal
(b) Social
(c) Technological
(d) Political

Question. ‘Threats to law and order’ is an example of…….environment of business.
(a) Political
(b) Social
(c) Economical
(d) Legal

Question. Business environment is the sum total of all the factors and forces………to a business.
(a) Internal
(b) Specific
(c) External
(d) All of these

Question. It is very difficult to predict the changes of Business environment. No one can predict business environment 100% accurately. Which of the following feature of the business environment is highlighted by this point?
(a) Uncertainty
(b) Dynamic
(c) Relativity
(d) Complexity

Question. Which of the following best indicates the importance of business environment?
(a) Identification
(b) Improvement in performance
(c) Coping with rapid changes
(d) All of the above

Question. Which of the following is a component of economic environment?
(a) Concern with quality of life
(b) Rates of saving and investment
(c) Extent of government intervention in business
(d) Birth and death rate

Question. The court issued the order that for vehicles to be smokeless was most essential and that any one violatilng this order shall have to pay a heavy fine. Identify the dimension of Business environment?
(a) Economic environment
(b) Political environment
(c) Legal environment
(d) Social environment

Question. Banking sector reform has led to many attractive schemes of deposits and lending money. The banks are offering loans at very nominal rate of interest and with minimum formalities to be completed. Identify the dimension of Business environment highlighted here?
(a) Political
(b) Social
(c) Economical
(d) Technical

Question. Which of the following is an example of social environment?
(a) Money supply in the economy
(b) Consumer Protection Act
(c) The Constitution of the country
(d) Composition of family

Question. liberalisation is.
(a) free flow of goods and services between different countries of the world
(b) Increase participation of private sector
(c) Reduction in formalities, taxes and tariff
(d) Unity among political parties.

Question. Booking of railway tickets through internet from home or office is an example of_____.
(a) Political Environment 
(b) Economic Environment
(c) Technological Environment
(d) Social Environment

Question. External environment trends and changes will provide________.
(a) Threats 
(b) Less competition
(c) Goodwill
(d) Profits

Question. Correct example of political environment is
(a) Money supply
(b) Innovation and development
(c) Change in preference and taste
(d) profile of political leaders

Question. Face book, Twitter and Whatsapp is the result of ___________.
(a) Political Environment 
(b) Economic Environment
(c) Social Environment
(d) Technological Environment

Question. The laws of mining rules and regulations licence required for running the business is an example of.
(a) Economic environment
(b) political environment
(c) social environment
(d) legal environment

Question. Technological improvement and innovations results in _____.
(a) Increase in Tax 
(b) Render existing production obsolete
(c) Reduction in profit margin
(d) More demanding customers

Question. Which of the following creates fear in the mind of investors?
(a) Political uncertainty
(b) New innovations
(c) Technological improvement
(d) Change in taste and preference of customers

Question. With the introduction of mineral water bottle in India Bisleri was the was able to capture the big market share in India Which importance of business environment is highlight in above case
(a) Helps in tapping resources
(b) Help in policy making
(c) Improve performance
(d) Help to identify opportunity E and getting first mover advantage

Question. Increase or decrease in the value of rupee is an example of ________.
(a) Political Environment 
(b) Economic Environment
(c) Social Environment
(d) legal Environment

Question. What will be the affect of increase in tax by government?
(a) Increase in cost of production 
(b) Creates fear in the mind of investors
(c) Increase in profit margin
(d) Increase in competition

Question. “Now adays consumers are we health-conscious which is giving rise to increase demand of Organic products,” Which factor of business environment is highlight in above statement.
(a) legal environment
(b) Political environment
(c) economic environment
(d) social environment

Question. which one is specific Force for a garment manufacturing industry?
(a) Change in law
(b) change in government
(c) change in fashion
(d) change in technology

Question. “Introduction of mobile phone have negatively affected the business of watches and cameras” Which factor of business environment is related with the sentence.
(a) social environment
(b) Technological environment
(c) Political environment
(d) environment

Question. “free flow of goods and services between different countries of the world is an example of.
(a) Gobalisation
(b) privatisation
(c) liberalisation
(d) demonetisation

Question. Through environmental scanning business firms can enjoy _____.
(a) Competition 
(b) First mover advantages
(c) Benefit of Tax
(d) Tapping useful resources

Question. Packets of cigarettes carry the statutory warning ‘Cigarette smoking is injurious to health’ is an example of________.
(a) Political Environment
(b) Technological Environment
(c) legal Environment
(d)Social Environment

Question. “Nowadays Womens are very health conscious which is is witches giving rise to to increase demand of of Organic products” This statement is related with the factor of of business environment is
(a) Political environment
(b) legal environment
(c) social environment
(d) Technological environment

Question. Giving freedom to Indian business and industries from all unnecessary government controls and restrictions is an example of_______.:
(a) Privatization 
(b) Globalization
(c) Liberalization
(d) Demonetization

Question. “Sudden announcement of demonetisation by our Prime Minister” is an example of this feature of business environment
(a) Relativity
(b) specific and general forces
(c) Inter related
(d) uncertain

Direction questions There are two statements marked as Assertion (A) and Reason (R). Read the statements and choose the appropriate option from the options given below
(a) Both Assertion(A) and Reason (R) is the correct explanation of Assertion (A)
(b) Both Assertion (A) and Reason (R) are true but reason (R) is not the correct explanation of Assertion (A)
(c) Assertion (A) is true but Reason (R) is false
(d) Assertion (A) is false but Reason (R) is true

Question. Assertion (A) Demand for sarees may be fairly high in India whereas it may be almost non existent in America.
Reason (R) Business environment consists of numerous inter-related and dynamic conditions of forces which arise from different sources.

Question. Assertion (A) Reservation of jobs for backward classes as per the constitution of India affects the business environment.
Reason (R) Various elements of legal dimensions affect the business environment.

Question. Assertion (A) Entry of new firms in the market may make an enterprise think afresh about how to deal with the situations
Reason (R) Business environment assist in planning and policy formulation.

Question. Assertion (A) Manufacturers have now flexible manufacturing systems.
Reason (R) Agricultural and industrial production trends are the economic dimensions of the environment which affect the business environment.

Question. Assertion (A) Turbulent market conditions, less brand loyalty, Kodivision and subdivision of market are just a few of the images to describe business environment.
Reason (R) Business environment is getting dynamic where changes are taking place at a slow pace.

Match the followings:

Question. Match the statement with suitable feature of business environment.

i. Specific force	a. Dynamic nature
ii. Shift in consumer preference	b. Uncertainty
	c. Investors, customers

Question. Match example with the importance of Business environment

i. Indian firm finds that a foreign Multinational is entering the Indian Market with new substitutes	a. tapping useful resources
ii. It decide to provide resources with firm’s Own expectations to get something in return	b. Identify threats and early warming signals
	c. identify opportunities and getting first mover advantage

Question. Identify the statement with the importance of business environment

i. Managers must understand and examine the environment and develop suitable courses of action	a. improving performance
ii. Adapting suitable business practices formulation	b. planning and policy
	c. coping with rapid

Question. Match meaning with the term :

i. Relaxing the restriction and control imposed On business and industry means Scanning	a. Privatization
ii. The complete awareness and understanding Of business environment is called	b. Environmental
	c. Liberalization

Question. Match with the dimension of Business environment

i. Subsidy to cotton textile business is the	a. Political Environment
ii. Gross Domestic Product is concerned with	b. legal Environment
	c. Economic Environment