Business Environment MCQ Questions for Class 12 Business Studies Chapter 3 with Answers

We have completed the NCERT/CBSE chapter-wise Multiple Choice Class 12 Business Studies Chapter 3 Business Environment with Answers by expert subject teacher for latest syllabus and examination. Prepare effectively for the exam taking the help of the Class 12 Business Studies Objective Questions PDF free of cost from here. Students also can take a free test of the Multiple Choice Questions of Business Environment. Each Qhas four options followed by the right answer. Download the Business Studies Quiz Questions with Answers for Class 12 Pdf and prepare to help students understand the concept very well.

MCQ Questions for Class 12 Business Studies with Answers

Q1. What creates fear in the minds of investors to invest in long term projects?

(i) Privatisation
(ii) Political Uncertainty
(iii) Liberalisation
(iv) None of the above

(ii) Political Uncertainty

Q2. Liberalisation means

(i) Integration among economies
(ii) Reduced government controls and restrictions
(iii) Policy of planned disinvestments
(iv) None of them

(ii) Reduced government controls and restrictions

Q3. Which of the following creates fear in the minds of investors?

(i) Political uncertainty
(ii) New innovations
(iii) None of these
(iv) Technological improvements

(i) Political uncertainty

Q4. Globalisation means

(i) reduced role of public sector
(ii) integration of economies
(iii) lowering interest rates
(iv) control of inflation

(ii) integration of economies

Q5. Celebration of Diwali is the example of:

(i) Technological Environment
(ii) Social Environment
(iii) Political Environment
(iv) Legal Environment

(ii) Social Environment

Q6. Business environment is a group of powers.

(i) Special
(ii) General
(iii) Internal
(iv) Special and General

(iv) Special and General

Q7. Export promotion is concerned with

(i) Privatisation
(ii) Globalisation
(iii) Liberalisation
(iv) None of the above

(ii) Globalisation

Q8. -feature of business environment states that various factors of business environment affect each other.

(i) Pervasive
(ii) Continuous
(iii) Dynamic
(iv) Interrelatedness

(iv) Interrelatedness

Q9. Export promotion is concerned with

(i) Privatisation
(ii) Globalisation
(iii) Liberalisation
(iv) None of the above

(ii) Globalisation

Q10. The entry of the multinational companies in large numbers in the Indian market has created .

(i) Huge Demand
(ii) Huge Supply
(iii) Tough Competition
(iv) Huge Demand and Supply

(iii) Tough Competition

Q11. Advance understanding of business environment will help in

(i) Privatisation
(ii) Planning and Policy Formulation
(iii) Developing new principles of management
(iv) None of the above

(ii) Planning and Policy Formulation

Q12. 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

(i) Totality of external forces
(ii) Dynamic nature
(iii) Interrelatedness
(iv) Relativity

(iii) Interrelatedness

Q13. Increased competition in the market will

(i) Increase the tax
(ii) Increase the profit
(iii) Increase the cost of production
(iv) Reduce the profit margin

(iv) Reduce the profit margin

Q14. The income and expenditure policy of the government is called.

(i) Fiscal Policy
(ii) Industrial Policy
(iii) Trade Policy
(iv) Monetary Reforms

(i) Fiscal Policy

Q15. Reduction in the role of public sector is due to

(i) Political Environment
(ii) Privatisation
(iii) Globalisation
(iv) Liberalisation

(ii) Privatisation

Q16. Technological improvements and innovations result in

(i) Increase in tax
(ii) Render existing products obsolete
(iii) Reduction in profit margins
(iv) None of the above

(ii) Render existing products obsolete

Q17. Which of the following deals with the process of simplification of Import-Export?

(i) Liberalisation
(ii) Privatisation
(iii) Liberalisation and Privatisation
(iv) Globalisation

(i) Liberalisation

Q18. When a company taken over another one and clearly becomes the new owner, the action is called

(i) Merger
(ii) Acquisition
(iii) Strategic Alliance
(iv) None of the above

(ii) Acquisition

Q19. Globalisation aims at

(i) Export Promotion
(ii) Foreign exchange reforms
(iii) Import liberalization
(iv) All of the above

(iv) All of the above

Q20. Which factor is not included in Internal Environment?

(i) Objective
(ii) Policies
(iii) Public
(iv) Production-Method

(iii) Public

Q21. Rise in GDP lead to rise in

(i) Increase in new taxes
(ii) Cost of Production
(iii) Disposable income of people
(iv) None of the above

(iii) Disposable income of people

Q22.Which of the following does not characterize the business environment?

(i) Complexity
(ii) Relativity
(iii) Employees
(iv) Uncertainty

(iii) Employees

Q23. A possible obstacle to growth of privatisation is

(i) Sale of least profitable enterprises
(ii) Profit earned by public enterprises
(iii) Licensing
(iv) All the options

(i) Sale of least profitable enterprises

Q24. External environment trends and changes will provide

(i) Threats
(ii) Goodwill
(iii) Less Competition
(iv) Profits

(i) Threats

Q25. External environment trends and changes will provide

(i) Threats
(ii) Goodwill
(iii) Less Competition
(iv) Profits

(i) Threats

Q26. Privatisation of ownership through sale of equity share is called

(i) Disinvestment
(ii) Denationalisation
(iii) Contracting
(iv) None of the options

(i) Disinvestment

Q27. Which of the following best indicates the importance of business environment?

(i) Coping with rapid changes
(ii) Identification
(iii) Improvement in performance
(iv) All of the above

(iv) All of the above

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MCQ Questions for Class 12 Business Studies with Answers

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