DELHI PUBLIC SCHOOL INDIRANAGAR

CLASS 12
BUSINESS STUDIES ASSIGNMENT SHEET
Business Environment Class 12 Business Studies MCQ
1. Which of the following is not a part of the business environment of business?
(a) Customers
(b) Suppliers
(c) Competitors
(d) None of the above

2. Which of the following is not a component of specific forces of business environment?

(a) Technological conditions
(b) Customers
(c) Employees
(d) Investors

3. The growing awareness about healthcare has led to an increase in the demand for
healthcare products and services in the country. Identify the feature of business environment
being described in the above case.
(a) Dynamic nature
(b) Uncertainty
(c) Relativity
(d) Interrelatedness

4. 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 —
(a) Totality of external forces
(b) Dynamic nature
(c) Interrelatedness
(d) Relativity

5. ‘Twinkle Stars’ is a well-known resort for organising parties, especially for children.
However, in past 6 months its popularity has reduced considerably as a new resort with better
ambience and facilities has opened within its vicinity. Name the related feature of business
environment which has influenced the business of ‘Twinkle Stars’ adversely.
(a) Totality of external forces
(b) Dynamic nature
(c) Interrelatedness
(d) Uncertainty
6. 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.
(a) Relativity
(b) Dynamic nature
(c) Uncertainty
(d) Interrelatedness

7. According to the United Nations Environmental Agency, the world produces around 300
million tons of plastic each year, half of which constitutes single-use items. Ford is recycling
over one billion plastic bottles every year to develop elements of the car’s interior, reducing
the amount of plastic ending up in a landfill. The American car maker has revealed that their
Romanian-built EcoSport SUVs’ carpets are made using 470 recycled single-use plastic
bottles. The process for making Ford EcoSport carpets involves shredding bottles and their
caps into tiny flakes and then heating them to 260° C. Identify the related dimension of
business environment.
(a) Economic dimension
(b) Social dimension
(c) Technological dimension
(d) Political dimension

8. 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.
(a) Ecoriomic dimension
(b) Technological dimension
(c) Social dimension
(d) Political dimension

9. The Uttarakhand government has developed surveillance network using latest satellite
technology. Under this system, the state’s mining department would be in a position to check
illegal mining activities across the state. The state government is also considering the use of
drones in its proposed campaign against illegal mining. Identify the related dimensions of
business environment.
(a) Economic dimension and Legal dimension
(b) Social dimension and Economic dimension
(c) Technological dimension and Political dimension
(d) Political dimension and Economic dimension

10. 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.
(a) Social dimension and Legal dimension
(b) Technological dimension and Political dimension
(c) Political dimension and Social dimension
(d) Economic dimension and Legal dimension

11. The Economic Survey, 2019 suggests that the psychological biases can be used in the
realm of tax compliance. It is in favour of using religious norms such “dying in debt is a sin”
to improve tax compliance. Identify the related dimensions of business environment.
(a) Legal dimension and Social dimension
(b) Social dimension and Economic dimension
(c) Technological dimension and Political dimension
(d) Political dimension and Economic dimension

12. 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.
(a) Economic dimension, Legal dimension and Social dimension
(b) Social dimension, Political dimension and Economic dimension
(c) Economic dimension, Technological dimension and Social dimension
(d) Social dimension, Political dimension and Legal dimension

13. ‘Yo Tummy’ began its business by offering the classic combo of hamburgers and fries.
But over time, their customers wanted healthier foods, so ‘Yo Tummy’ responded and began
offering healthy alternatives such as salads, fruits, wraps and oatmeal. If ‘Yo Tummy’ hadn’t
responded, they may have lost customers that wanted to eat healthier foods. The above case
highlights one of the points related to the importance of business environment and its
understanding by managers. Identify it.
(a) It helps in coping with rapid changes.
(b) It helps in improving performance.
(c) It helps the firm to identify threats and early warning signals.
(d) It enables the firm to identify opportunities and getting the first mover advantage.

14. 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.
(a) It helps in assisting in planning and policy formulation.
(b) It helps in coping with rapid changes.
(c) It helps in improving performance.
(d) It enables the firm to identify opportunities and getting the first mover advantage.

15. According to the World Health Organization, 39% of adults are overweight. Over the last
40 years, the prevalence of obesity has tripled around the world. With over half of consumers
drinking at least one sugary drink on a given day, regulations towards the beverage sector are
likely to become increasingly onerous. In the U.K., for example, a sugar tax was introduced
in 2018 on beverages containing more than 5% sugar. Identify the related dimensions of
business environment.
(a) Legal dimension and Social dimension
(b) Social dimension and Technological dimension
(c) Technological dimension and Legal dimension
(d) Political dimension and Technological dimension

16. 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
(a) Totality of external forces
(b) Dynamic nature
(c) Interrelatedness
(d) Relativity

17. India continues to be a lower-middle-income country along with 46 others, while Sri
Lanka has climbed to the upper-middle-income group for the fiscal year (FY) 2020,
according to the World Bank’s classification of countries by income levels, released on July
1, 2019.
Identify the related dimensions of business environment.
(a) Social dimension
(b) Technological dimension
(c) Economic dimension
(d) Political dimension

18. According to a report by the India Staffing Federation (ISF), India has emerged as the
fifth 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,
(a) Relativity
(b) Dynamic nature
(c) Uncertainty
(d) Interrelatedness

19. The Union Cabinet has given ‘in-principle’ nod to divest stakes in Air India — a wholly
government owned airline. This means the government is willing to shed a substantial portion
of its stake and hand over the management of the ailing airline to the private sector. Identify
the concept being described in the above lines.
(a) Liberalisation
(b) Privatisation
(c) Globalisation
(d) Demonetisation

20. 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.
(a) Demonetisation
(b) Privatisation
(c) Liberalisation
(d) Globalisation

21. In today’s world, the flow of goods and services is not only cheap and fast, but reliable
and secure. You can order anything you wish from any part of the world. Internet has been
connecting people without any limitations or boundaries in the way of doing business.
Identify the concept being described in the above lines.
(a) Liberalisation
(b) Globalisation
(c) Demonetisation
(d) Privatisation

22. On 8th November 2016, with the announcement from Government of India, all the ₹500
and ₹1,000 banknotes of the Mahatma Gandhi series have ceased to be a legal tender. The
givemment also announced the issuance of new ₹500 and ₹2,000 banknotes in exchange for
the demonetised banknotes. Identify the concept being described in the above lines.
(a) Globalisation
(b) Liberalisation
(c) Demonetisation
(d) Privatisation

23. Which of the following is a feature of demonetisation?

(a) Tax administration measure
(b) Channelising savings into the formal financial system
(c) Development of less-cash economy
(d) All of the above

24. 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.
(a) Increasing competition
(b) More demanding customers
(c) Necessity for change
(d) Market orientation
  

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