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

Business Environment Class 12 MCQ is one of the best strategies to prepare for the CBSE Class 12 Board exam. If you want to complete a grasp concept or work on one’s score, there is no method except constant practice. Students can improve their speed and accuracy by doing more MCQ on Business Environment Class 12 PDF which will help them all through their board test.

Business Environment Class 12 MCQ

Business Studies Class 12 MCQ with answers are given here for Business Environment. These MCQs are based on the latest CBSE board syllabus and relate to the latest Class 12 Business Studies syllabus. By Solving these Class 12 MCQs, you will be able to analyze all of the concepts quickly in the chapter and get ready for the Class 12 Annual exam.

Learn Class 12 Business Environment MCQ PDF with answers according to the latest CBSE and NCERT syllabus. Students should prepare for the examination by solving CBSE MCQ on Principles of Management Class 12 PDF with answers given below.

Question 1. Business environment is a group of ________ powers.
(a) Special
(b) General
(c) Internal
(d) Special and General

Question 2. Which of the following is not a part of the internal environment?
(a) Customers
(b) Objectives
(c) Policies
(d) Organisation Structure

Question 3. The entry of the multinational companies in large numbers in the Indian market has created ________ .
(a) Huge Demand
(b) Huge Supply
(c) Tough Competition
(d) Huge Demand and Supply

Question 4. Which of the following is not included in special powers of the business environment.
(a) Technical Situations
(b) Customers
(c) Suppliers
(d) Investors

Question 5. Which of the following is available in time with the help of the study of environment?
(a) Government Help
(b) Foreign Aid
(c) Warning Signal
(d) Material

Question 6. Which of the following is a factor of the social environment of business?
(a) Customs
(b) Level /Standard of Education
(c) Rate of Interest
(d) All the above

Question 7. ITC Hotels made a study of the business environment and planned to open ________ in India and abroad.
(a) Factories
(b) Hotels
(c) Shops
(d) Offices

Question 8. Price control means that the companies will sell goods on the ________ price.
(a) Government
(b) Market
(c) Printed
(d) Voluntary

Question 9. Reducing the role of Public Sector and increasing the role of Private Sector falls under ________ .
(a) Liberalisation
(b) Privatisation
(c) Liberalisation and Privatisation
(d) Globalisation

Question 10. Which of the following is included under the Macro Environment (or General Environment)?
(a) Economic Environment
(b) Political Environment
(c) Social and Legal Environment
(d) All the above

Question 11. As a result of the Economic Reforms the Seller Market has been replaced by ________ .
(a) Buyer Market
(b) Foreign Market
(c) Whole-sale Market
(d) Retail Market

Question 12. Which of the following is included in the Micro Environment (Operating Environment)?
(a) Suppliers
(b) Competitor
(c) Suppliers and Competitor
(d) Economic Environment

Question 13. Trade Policy brings under control the ________ .
(a) Import Trade
(b) Export Trade
(c) Foreign Trade
(d) Local Trade

Question 14. Which of the following is included in the Economic Environment?
(a) Economic System
(b) Economic Policies
(c) Economic Conditions
(d) All the above

Question 15. A firm should make efforts that it has ________ type of customers?
(a) One
(b) Two
(c) Three
(d) Many

Question 16. Under which environmental effect, IBM and Coca-Cola had to leave India?
(a) Political
(b) Social
(c) Economic
(d) Technical

Question 17. Determination of the economic policies is for the purpose of regulating ________ .
(a) Political Environment
(b) Social Environment
(c) Legal Regulatory Environment
(d) Economic Activities

Question 18. Which component of business environment resulted in the relaxation of ban imposed on the Foreign Direct Investment?
(a) Economic Environment
(b) Political Environment
(c) Social Environment
(d) Legal Regulatory Environment

Question 19. Which factor is not included in Macro Environment?
(a) Economic Environment
(b) Competitors
(c) Social Environment
(d) Political Environment

Question 20. Which factor is not included in Internal Environment?
(a) Objective
(b) Policies
(c) Public
(d) Production-Method

Question 21. Which of the following is undergoing quick changes?
(a) Competition
(b) Fashion
(c) Technique
(d) All the above

Question 22. In all the countries there is a free-flow of goods and services under which of the following does it come?
(a) Liberalisation
(b) Privatisation
(c) Liberalisation and Privatisation
(d) Globalisation

Question 23. Which of the following deals with the process of simplification of Import-Export?
(a) Liberalisation
(b) Privatisation
(c) Liberalisation and Privatisation
(d) Globalisation

Question 24. Under Industrial Policy the role of ________ has been decided.
(a) Public Sector
(b) Private Sector
(c) Public Sector and Private Sector
(d) Government

Question 25. The study of environment makes available ________ resources.
(a) Costly
(b) Cheap
(c) Inferior
(d) Useful

Whoever needs to take the CBSE Class 12 Board Exam should look at this MCQ. To the Students who will show up in CBSE Class 12 Business Studies Board Exams, It is suggested to practice more and more questions. Aside from the sample paper you more likely had solved. These Business Environment Class 12 MCQ PDFs are ready by the subject specialists themselves.

Question 26. With the help of the study of business environment an organization can improve its ________ .
(a) Present
(b) Future
(c) Present and Future
(d) Past

Question 27. The income and expenditure policy of the government is called ________ .
(a) Fiscal Policy
(b) Industrial Policy
(c) Trade Policy
(d) Monetary Reforms

Question 28. These days companies cannot avoid investing in ________ .
(a) Research
(b) Development
(c) Research and Development
(d) Employees

Question 29. With which of the following the Indian Companies have to compete?
(a) New and Old Indian Companies
(b) Multinational Companies
(c) Imports
(d) All the above.

Question 30. ________ is included in Economic Environment.
(a) Economic System
(b) Economic Policies
(c) Economic Conditions
(d) All of the above

Question 31. Which factor is not included in Micro Environment?
(a) Customer
(b) Public
(c) Supplier
(d) Production Capacity

Question 32. With the introduction of Photostat Machines in the market, the carbon paper industry was adversely affected. Which component of environment was responsible for it?
(a) Economic
(b) Political
(c) Technical
(d) All the above

Question 34. Under ________ the Reserve Bank keeps control on the money supply in order to achieve the objectives of the general economic policy.
(a) Fiscal Policy
(b) Monetary Policy
(c) Trade Policy
(d) Industrial Policy

Question 35. Which of the following has got the First Mover Advantage?
(a) Asian Paints
(b) Goodlass Nerolac
(c) Kansai Paints
(d) Maruti Udyog

Question 36. Read the following statements: Assertion and Reason. Choose one of the correct alternatives given below:
Assertion (A) : Study of business Environment helps in coping with rapid changes.
Reason (R): Changes in Business environment affects all firms in the same way.
Alternatives:
(a) Both Assertion (A) and Reason (R) are True and Reason (R) is the correct explanation of Assertion (A) .
(b) both assertion (A) and reason(R) are true and assertion (R) is not the correct explanation of assertion(A)
(c) Assertion (A) is True but Reason (R) is False.
(d) Assertion (A) False but Reason (R) is True.

Question 37. Read the following statements: Assertion and Reason. Choose one of the correct alternatives given below:
Assertion (A) : Business environment helps in improving performance.
Reason (R): Enterprises that continuously monitor their environment and adopt suitable business practices are the ones which not only improve their present performance but also continue to succeed in the market for a longer period.
Alternatives:
(a) Both Assertion (A) and Reason (R) are True and Reason (R) is the correct explanation of Assertion (A) .
(b) both assertion (A) and reason(R) are true and assertion (R) is not the correct explanation of assertion(A)
(c) Assertion (A) is True but Reason (R) is False.
(d) Assertion (A) False but Reason (R) is True.

Question 38. Read the following statements: Assertion and Reason. Choose one of the correct alternatives given below:
Assertion (A) : Political factors play a major role in shaping the environment, in which business firms operate.
Reason (R): Political instability builds up confidence among the business people to invest in the long term projects.
Alternatives:
(a) Both Assertion (A) and Reason (R) are True and Reason (R) is the correct explanation of Assertion (A) .
(b) both assertion (A) and reason(R) are true and assertion (R) is not the correct explanation of assertion(A)
(c) Assertion (A) is True but Reason (R) is False.
(d) Assertion (A) False but Reason (R) is True.

Question 39. Read the following statements: Assertion and Reason. Choose one of the correct alternatives given below:
Assertion (A) : The political environment has immediate and great impact on the business transactions so businessmen must scan this environment very carefully.
Reason (R): The business man has to make changes in his organisation according to the changing factor of political environment.
Alternatives:
(a) Both Assertion (A) and Reason (R) are True and Reason (R) is the correct explanation of Assertion (A) .
(b) both assertion (A) and reason(R) are true and assertion (R) is not the correct explanation of assertion(A)
(c) Assertion (A) is True but Reason (R) is False.
(d) Assertion (A) False but Reason (R) is True.

Question 40. Read the following statements: Assertion and Reason. Choose one of the correct alternatives given below:
Assertion (A) : Technological environment includes forces related to scientific improvements and innovations which provide new ways of producing goods and services and new way of operating business.
Reason (R): Import and export of technology is important for a nation to develop.
Alternatives:
(a) Both Assertion (A) and Reason (R) are True and Reason (R) is the correct explanation of Assertion (A) .
(b) both assertion (A) and reason(R) are true and assertion (R) is not the correct explanation of assertion(A)
(c) Assertion (A) is True but Reason (R) is False.
(d) Assertion (A) False but Reason (R) is True.

Question 41. Read the following statements: Assertion and Reason. Choose one of the correct alternatives given below:
Assertion (A) : Business environment is a complex phenomenon.
Reason (R): It is relatively easier to understand in parts but difficult to grasp in its totality;
Alternatives:
(a) Both Assertion (A) and Reason (R) are True and Reason (R) is the correct explanation of Assertion (A) .
(b) both assertion (A) and reason(R) are true and assertion (R) is not the correct explanation of assertion(A)
(c) Assertion (A) is True but Reason (R) is False.
(d) Assertion (A) False but Reason (R) is True.

Question 42. Read the following statements: Assertion and Reason. Choose one of the correct alternatives given below:
Assertion (A) : A company, which is conscious about the changes of business environment, can take better advantage of opportunities instead of losing them to competitors.
Reason (R): External environment provides numerous opportunities for business units.
Alternatives:
(a) Both Assertion (A) and Reason (R) are True and Reason (R) is the correct explanation of Assertion (A) .
(b) both assertion (A) and reason(R) are true and assertion (R) is not the correct explanation of assertion(A)
(c) Assertion (A) is True but Reason (R) is False.
(d) Assertion (A) False but Reason (R) is True.

Question 43. Read the following statements: Assertion and Reason. Choose one of the correct alternatives given below:
Assertion (A) : Business environment cannot be predicted. It is highly uncertain and unpredictable.
Reason (R): Business environment keeps on changing. Sometimes there is a change in technology, tastes and preferences of consumers, etc.
Alternatives:
(a) Both Assertion (A) and Reason (R) are True and Reason (R) is the correct explanation of Assertion (A) .
(b) both assertion (A) and reason(R) are true and assertion (R) is not the correct explanation of assertion(A)
(c) Assertion (A) is True but Reason (R) is False.
(d) Assertion (A) False but Reason (R) is True.

Question 44. Read the following statements: Assertion and Reason. Choose one of the correct alternatives given below:
Assertion (A) : Business Environment is largely uncertain.
Reason (R): It is very difficult to predict future happenings
Alternatives:
(a) Both Assertion (A) and Reason (R) are True and Reason (R) is the correct explanation of Assertion (A) .
(b) both assertion (A) and reason(R) are true and assertion (R) is not the correct explanation of assertion(A)
(c) Assertion (A) is True but Reason (R) is False.
(d) Assertion (A) False but Reason (R) is True.

Question 45. Read the following statements: Assertion and Reason. Choose one of the correct alternatives given below:
Assertion (A) : Business environment is very complex.
Reason (R): it helps the firm to identify threats and early warning signals.
Alternatives:
(a) Both Assertion (A) and Reason (R) are True and Reason (R) is the correct explanation of Assertion (A) .
(b) both assertion (A) and reason(R) are true and assertion (R) is not the correct explanation of assertion(A)
(c) Assertion (A) is True but Reason (R) is False.
(d) Assertion (A) False but Reason (R) is True.

You can easily get good marks If you study with the help of MCQ on Business Environment Class 12 PDF. We trust that information provided is useful for you. NCERT Class 12 Business Environment MCQ PDF Free Download would without a doubt create positive results.

We hope the information shared above in regards to Business Environment Class 12 MCQ with Answers has been helpful to you. If you have any questions regarding the CBSE MCQ on Business Environment Class 12 Pdf, write a comment below and we will get back to you as soon as possible.