MCQ on Business Environment Class 12 Business Studies includes Multiple choice questions on Introduction & Meaning & Importance of Business Environment and Dimensions of Business Environment. Answers to Business Environment MCQ with Answers Class 12 Business Studies CBSE are available after clicking on the answer.
MCQ on Business Environment Class 12
Topic 1 – Introduction, Meaning & Importance of Business Environment MCQ With Answers
1. Which of the following is true about Business Environment : –
a) It is dynamic ;
b) It is the area or condition in which the business operates ;
c) Different factors in the business environment can impact organization positively or negatively.
d) All of the above
Answer
Answer: (d) All of the above
2. Business environment is created by : –
a) Internal factors ;
b) External factors ;
c) Both (a) and (b)
d) None of the above
Answer
Answer: (c) Both (a) and (b)
3. Which of the following are Internal factors in the Business Environment of an organisation : –
a) Employees,
b) Labour unions
c) Value systems
d) All of the above
Answer
Answer: (d) All of the above
4. Which of the following are External factors in the Business Environment of an organisation : –
a) Competitors ;
b) Government policies ;
c) Pandemic
d) All of the above
Answer
Answer: (d) All of the above
5. Which of the following are External factors in the Business Environment of an organisation : –
a) Employees,
b) Labour unions
c) Value systems
d) None of the above
Answer
Answer: (d) None of the above
6. Micro environment factors include : –
a) Customers
b) Suppliers
c) Intermediaries
d) All of the above
Answer
Answer: (d) All of the above
7. Macro environment includes : –
a) Political factors
b) Demographic factors
c) Technological factors
d) All of the above
Answer
Answer: (d) All of the above
MCQ on Business Environment Class 12
8. Which of the following is not a feature of Business Environment :
a) Business environment is dynamic
b) Business environment has relativity
c) Business environment is unpredictable
d) All of the above
Answer
Answer: (d) All of the above
9. Business environment keeps on changing on regular basis . This characteristic of the business environment is called : –
a) Dynamic
b) Relativity
c) Unpredictable
d) None of the above
Answer
Answer: (a) Dynamic
10. Business environment is different for each organization within the same and different industry. This characteristic of the business environment is called : –
a) Dynamic
b) Relativity
c) Unpredictable
d) None of the above
Answer
Answer: (b) Relativity
11. Read the following statements of Assertion(A) and Reason(R) and choose the correct alternative:
Assertion(A) -Economic uncertainty, low brand loyalty, and market division and subdivision are just a few symbols that can be used to define the business environment.
Reason(R) – Business environment is getting dynamic where changes are taking place at a slow pace.
(a) Both A and R are correct
(b) A is correct R is incorrect
(c) Both A and R are correct and R is the correct explanation of R
(d) Both A and R are correct and R is not the correct explanation of R
Answer
Answer: (b) A is correct R is incorrect
12. Read the following statements of Assertion(A) and Reason(R) and choose the correct alternative:
Assertion(A) – Manufacturers have flexible manufacturing systems.
Reason(R) – Agricultural and industrial production trends are the economic dimensions of the environment which affect the business environment.
(a) Both A and R are correct
(b) A is correct R is incorrect
(c) Both A and R are correct and R is the correct explanation of R
(d) Both A and R are correct and R is not the correct explanation of R
Answer
Answer: (d) Both A and R are correct and R is not the correct explanation of R
13. Read the following statements of Assertion(A) and Reason(R) and choose the correct alternative:
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.
(a) Both A and R are correct
(b) A is correct R is incorrect
(c) Both A and R are correct and R is the correct explanation of R
(d) Both A and R are correct and R is not the correct explanation of R
Answer
Answer: (d) Both A and R are correct and R is not the correct explanation of R
14. ‘Yo China’ started its business by offering the exemplary combo of noodles and manchurian. In any case, over the long run, their clients needed better food service, so ‘Yo China’ reacted and started offering sound choices like plates of mixed greens, natural products, wraps and oats. In the event that ‘Yo China’ hadn’t reacted, they might have lost clients that needed to eat better food varieties. The above case features one of the focuses identified with the significance of the business climate and its comprehension by chiefs. Identify it.
(a) It enables in managing speedy changes.
(b) It enhances performance.
(c) It allows the organization to pick out threats and early caution signals.
(d) It allows the organization to discover possibilities and get the primary mover advantage.
Answer
Answer: (a) It enables in managing speedy changes.
Topic 2 – Dimensions of Business Environment
Q1. Dimensions of business environment are
a) Economic Environment
b) Social Environment
c) Legal Environment
d) All of these
Answer
Answer: (d)All of these
Q2. Which of the following is not a dimension business environment?
a) Political Environment
b) Legal Environment
c) Commercial Environment
d) Both a and c
Answer
Answer: (c)Commercial Environment
Q3. Change in Interest rates, inflation rates, changes in disposable income of people are examples of
a) Economic Environment
b) Social Environment
c) Legal Environment
d) Political Environment
Answer
Answer: (a)Economic Environment
Q4. Which of the following is not a component of Economic Environment?
a) Rate of Savings and investment
b) Money supply in the economy
c) Public Debts
d) Consumption habits
Answer
Answer: (d)Consumption habits
Q5. The social environment of business includes
a) Customs and traditions
b) Values
c) Social trends
d) All of these
Answer
Answer: (d)All of these
MCQ on Business Environment Class 12
Q6. ‘Airline companies have Internet and World Wide Web pages where customers can look for flight times, destinations and fares and book their tickets online.’ This is an example of which business environment?
a) Political Environment
b) Technological Environment
c) Social Environment
d) Legal Environment
Answer
Answer: (b)Technological Environment
Q7. Which of the following is not a component of social environment?
a) Population Shift
b) Composition of family
c) Life expectancy
d) None of these
Answer
Answer: (d)None of these
Q8. ‘The health-and-fitness trend has become popular among large number of urban dwellers. This has created a demand for products like organic food.’ This is an example of
a) Customs and traditions
b) Values
c) Social trends
d) All of these
Answer
Answer: (c)Social trends
Q9. Authorities all over the world are becoming increasingly concerned about environmental issues. To ensure the same, numerous national governments recently overturned an order prohibiting the use of plastic luggage, which is non-biodegradable. As a result, the authorities decided to grant a textile industry subsidy as well (luggage). Within the statement, the minister mentioned that they believe it will be beneficial because human incomes are increasing and more people are able to afford cotton baggage. Following this subsidy, Aman discovered amazing ability in the cotton cross luggage industry, which had no longer been established in India but was thriving in the UK, where he had completed his graduation. He launched the product, and his business took off. As a result, more groups entered the market with various articles and modifications.
Based upon the above paragraph answer the following questions-
I. Which business dimension is highlighted in the line,” As a result, the authorities decided to grant a textile industry subsidy as well (luggage).”
(a) Legal
(b) Political
(c) Economic
(d) Social
Answer
Answer: (b) Political
II. Which business dimension is highlighted in the line,” Within the statement, the minister mentioned that they believe it will be beneficial because human incomes are increasing and more people are able to afford cotton baggage.”?
(a) Legal
(b) Political
(c) Economic
(d) Social
Answer
Answer: (c) Economic
III. The merits of the business environment is highlighted in the lines, “Following this subsidy, Aman discovered amazing ability in the cotton cross luggage industry, which had no longer been established in India but was thriving in the UK, where he had completed his graduation.”
(a) Identify opportunities
(b) Tapping useful resources
(c) Coping with rapid changes
(d)Assisting in planning
Answer
Answer: (a) Identify opportunities
IV. The merit of the business environment is highlighted in the lines,” He launched the product, and his business took off. As a result, more groups entered the market with various articles and modifications.”
(a) Identify opportunities
(b) Identify threats
(c) Assisting in planning
(d) Coping with rapid changes
Answer
Answer: (b) Identify threats
V. Which dimension of the business environment is highlighted in the given lines,”To ensure the same, numerous national governments recently overturned an order prohibiting the use of plastic luggage, which is non-biodegradable.”?
(a) Political
(b) Legal
(c) Technological
(d) Economic
Answer
Answer: (b) Legal
Business Studies Class 12 MCQs – Term 1
- Nature and Significance of Management MCQs
- Principles of Management MCQs
- MCQ on Business Environment
- MCQ on Planning
- MCQ on Organising
- Marketing Management MCQs
Frequently Asked Questions on MCQ on Business Environment Class 12
1. Are these MCQ’s on Business Environment Class 12 are based on 2021-22 CBSE Syllabus ?
Yes . There are 23 MCQ’s on this Chapter in this blog.
2. Are you giving all the chapters of Business Studies Class 12 which are given in CBSE syllabus for 2021-22 ?
Yes, we have provide total of 400+ MCQ from all chapters.