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All questions of Business Environment for Commerce Exam
Through Environmental scanning a business firm can enjoy the ___________- a)Competition
- b)First Mover Advantage
- c)Benefit of taxes
- d)Last Mover Advantage
Correct answer is option 'B'. Can you explain this answer?
Through Environmental scanning a business firm can enjoy the ___________
a)
Competition
b)
First Mover Advantage
c)
Benefit of taxes
d)
Last Mover Advantage
|
Ishita Deshpande answered |
Environmental Scanning and First Mover Advantage
Environmental scanning refers to the process of gathering, analyzing, and disseminating information about the external environment of a business firm. This involves monitoring various factors such as economic, social, technological, political, and legal changes that can have an impact on the firm's operations and performance.
One of the benefits of environmental scanning is the first mover advantage that a business firm can enjoy. This refers to the advantage that a firm gains by being the first to introduce a new product, service, or technology in the market. Here's how environmental scanning can help a business firm to achieve this advantage:
Identifying Emerging Trends: Environmental scanning helps a business firm to identify emerging trends in the market. By analyzing various factors such as consumer preferences, technological advancements, and regulatory changes, a firm can spot opportunities to introduce new products or services that cater to the changing needs of the market.
Market Research: Once a firm identifies a potential opportunity, it can conduct market research to gather more information about the market demand, competition, and pricing strategies. This can help the firm to develop a better understanding of the market and make informed decisions about the timing and positioning of its products.
Innovation: By being the first mover in a market, a firm can leverage its innovation capabilities to create a unique product or service that sets it apart from the competition. This can help the firm to capture a larger market share and establish a strong brand identity.
Conclusion
In conclusion, environmental scanning is an important tool for business firms to stay ahead of the competition and achieve the first mover advantage. By monitoring the external environment and identifying emerging trends, a firm can spot opportunities to introduce new products or services that cater to the changing needs of the market. This can help the firm to capture a larger market share and establish a strong brand identity.
Environmental scanning refers to the process of gathering, analyzing, and disseminating information about the external environment of a business firm. This involves monitoring various factors such as economic, social, technological, political, and legal changes that can have an impact on the firm's operations and performance.
One of the benefits of environmental scanning is the first mover advantage that a business firm can enjoy. This refers to the advantage that a firm gains by being the first to introduce a new product, service, or technology in the market. Here's how environmental scanning can help a business firm to achieve this advantage:
Identifying Emerging Trends: Environmental scanning helps a business firm to identify emerging trends in the market. By analyzing various factors such as consumer preferences, technological advancements, and regulatory changes, a firm can spot opportunities to introduce new products or services that cater to the changing needs of the market.
Market Research: Once a firm identifies a potential opportunity, it can conduct market research to gather more information about the market demand, competition, and pricing strategies. This can help the firm to develop a better understanding of the market and make informed decisions about the timing and positioning of its products.
Innovation: By being the first mover in a market, a firm can leverage its innovation capabilities to create a unique product or service that sets it apart from the competition. This can help the firm to capture a larger market share and establish a strong brand identity.
Conclusion
In conclusion, environmental scanning is an important tool for business firms to stay ahead of the competition and achieve the first mover advantage. By monitoring the external environment and identifying emerging trends, a firm can spot opportunities to introduce new products or services that cater to the changing needs of the market. This can help the firm to capture a larger market share and establish a strong brand identity.
Giving freedom to Indian business and industries from all unnecessary government controls and restrictions is an example of ____________- a)Privatisation
- b)Globalisation
- c)Liberalisation
- d)None of these
Correct answer is 'C'. Can you explain this answer?
Giving freedom to Indian business and industries from all unnecessary government controls and restrictions is an example of ____________
a)
Privatisation
b)
Globalisation
c)
Liberalisation
d)
None of these
|
Naina Sharma answered |
Liberalisation means removal of trade barriers & restrictions made by the government
Facebook, Twitter and Whatsapp is the result of ________________- a)Political Environment
- b)Social Environment
- c)Technologcal Environment
- d)None of these
Correct answer is option 'C'. Can you explain this answer?
Facebook, Twitter and Whatsapp is the result of ________________
a)
Political Environment
b)
Social Environment
c)
Technologcal Environment
d)
None of these
|
|
Naina Sharma answered |
The social environment, refers to the immediate physical and social setting in which people live or in which something happens or develops. It includes the culture that the individual was educated or lives in, and the people and institutions with whom they interact.
And the Technological environment refers to the state of science and technology and related aspects such as rate of technological progress, institutional arrangements for development and application of new technology, etc.
So, the correct answer is definitely technological environment.
And the Technological environment refers to the state of science and technology and related aspects such as rate of technological progress, institutional arrangements for development and application of new technology, etc.
So, the correct answer is definitely technological environment.
Increase or decrease in the value of Rupee is an example of _________- a)Political Environment
- b)Economic Environment
- c)Social Environment
- d)None of these
Correct answer is option 'B'. Can you explain this answer?
Increase or decrease in the value of Rupee is an example of _________
a)
Political Environment
b)
Economic Environment
c)
Social Environment
d)
None of these
|
Poonam Reddy answered |
The economic environment deals with the economic factors in the environment they could affect the consumer behavior. Since, value of money is one of the major factors in the economy, the increase and decrease its value is an example of economic environment.
Advertisements of cigarettes carry the statutory warning. This is becuase of ___- a)Political Environment
- b)Legal Environment
- c)Social Environment
- d)None of these
Correct answer is option 'B'. Can you explain this answer?
Advertisements of cigarettes carry the statutory warning. This is becuase of ___
a)
Political Environment
b)
Legal Environment
c)
Social Environment
d)
None of these
|
Kiran Mehta answered |
Legal environment is the environment which is governed by the legal system of the country. The laws which are passed by the government for business operation is called legal environment. Non-implementation of legal policies results in heavy fines, penalties & punishment &therefore every organization must follow all these regulations.
So in this case cigarettes carrying the statutory warning is an implementation made by the government which has to be followed which makes it the factor of legal environment.
So in this case cigarettes carrying the statutory warning is an implementation made by the government which has to be followed which makes it the factor of legal environment.
For the protection of a consumer?s right, there is _____________- a)Consumer protection Act 1984
- b)Consumer Protection Act, 1932
- c)Consumer Protection Act, 1956
- d)Consumer Protection Act, 1986
Correct answer is 'D'. Can you explain this answer?
For the protection of a consumer?s right, there is _____________
a)
Consumer protection Act 1984
b)
Consumer Protection Act, 1932
c)
Consumer Protection Act, 1956
d)
Consumer Protection Act, 1986
|
Tarun Kaushik answered |
Enacted in 1986, this Consumer Protection Act protects the interests of consumers in India against deficiencies and defects in goods or services. It makes provision for the establishment of consumer councils and other authorities for the easier and quicker settlement of consumers' disputes and related matters.
Subsidy to cotton textile businesses is the __________- a)Legal Environment
- b)Social Environment
- c)Political Environment
- d)Economic Environment
Correct answer is option 'C'. Can you explain this answer?
Subsidy to cotton textile businesses is the __________
a)
Legal Environment
b)
Social Environment
c)
Political Environment
d)
Economic Environment
|
Gowri Nambiar answered |
Political Environment and Subsidy to Cotton Textile Businesses
The political environment refers to the laws, regulations, and policies created by government bodies that affect businesses and the economy. In this context, the subsidy to cotton textile businesses is a policy decision made by the government to promote the growth and development of the textile industry.
The subsidy can take various forms, such as direct financial assistance, tax incentives, or preferential treatment in government procurement. The purpose of the subsidy is to provide support to cotton textile businesses, which may face challenges such as high input costs, competition from imports, and fluctuations in demand and prices.
The subsidy can have both positive and negative effects on the economy and society. On the one hand, it can stimulate job creation, increase exports, and enhance the competitiveness of the domestic textile industry. On the other hand, it can create market distortions, encourage inefficiencies, and lead to fiscal deficits.
Overall, the subsidy to cotton textile businesses is a manifestation of the government's role in shaping the economic environment and promoting industrial development. It reflects the political priorities, values, and interests of the ruling party and the broader society, and it can have significant implications for the business environment and the welfare of the population.
The political environment refers to the laws, regulations, and policies created by government bodies that affect businesses and the economy. In this context, the subsidy to cotton textile businesses is a policy decision made by the government to promote the growth and development of the textile industry.
The subsidy can take various forms, such as direct financial assistance, tax incentives, or preferential treatment in government procurement. The purpose of the subsidy is to provide support to cotton textile businesses, which may face challenges such as high input costs, competition from imports, and fluctuations in demand and prices.
The subsidy can have both positive and negative effects on the economy and society. On the one hand, it can stimulate job creation, increase exports, and enhance the competitiveness of the domestic textile industry. On the other hand, it can create market distortions, encourage inefficiencies, and lead to fiscal deficits.
Overall, the subsidy to cotton textile businesses is a manifestation of the government's role in shaping the economic environment and promoting industrial development. It reflects the political priorities, values, and interests of the ruling party and the broader society, and it can have significant implications for the business environment and the welfare of the population.
The trend of health and fitness has created a demand for products like gyms, bottled mineral water and food supplements etc., these are the example of _______________- a)Political Environment
- b)Legal Environment
- c)Social Environment
- d)Economic Environment
Correct answer is option 'C'. Can you explain this answer?
The trend of health and fitness has created a demand for products like gyms, bottled mineral water and food supplements etc., these are the example of _______________
a)
Political Environment
b)
Legal Environment
c)
Social Environment
d)
Economic Environment
|
|
Naina Sharma answered |
The trend of health and fitnness has created a demand for products is a social environment...... because these goods results in consumption by all the people in the society so it is generally related to social environment.
Which of he following does not characterise the business environment?- a)Complexity
- b)Relativity
- c)Employees
- d)Uncertainty
Correct answer is option 'C'. Can you explain this answer?
Which of he following does not characterise the business environment?
a)
Complexity
b)
Relativity
c)
Employees
d)
Uncertainty
|
|
Kavita Joshi answered |
Among the options given above, employees do not characterise business environment. Business environment refers to the external forces such as individuals, enterprises, situations, and other such forces that affect the performance of the organisation. Employees are integral to an organisation and does not characterise its environment.
Export promotion is concerned with ______________- a)Privatisation
- b)Globalisation
- c)Liberalisation
- d)None of these
Correct answer is option 'B'. Can you explain this answer?
Export promotion is concerned with ______________
a)
Privatisation
b)
Globalisation
c)
Liberalisation
d)
None of these
|
|
Poonam Reddy answered |
Globalization means interaction of a company or an organization with world economy. Importing and exporting is one of the major factor of globalization, hence export promotion is concerned with globalization.
This a MCQ (Multiple Choice Question) based practice test of Chapter 3 - Business Environment of Business Studies of Class XII (12) for the quick revision/preparation of School Board examinationsQ Celebration of Diwali is the example of:- a)Technological Environment
- b)Social Environment
- c)Political Environment
- d)Legal Environment
Correct answer is option 'B'. Can you explain this answer?
This a MCQ (Multiple Choice Question) based practice test of Chapter 3 - Business Environment of Business Studies of Class XII (12) for the quick revision/preparation of School Board examinations
Q Celebration of Diwali is the example of:
a)
Technological Environment
b)
Social Environment
c)
Political Environment
d)
Legal Environment
|
Amar Jain answered |
Explanation:
Social environment refers to the cultural and social factors that influence the business operations. Celebration of Diwali is an example of social environment because it is a cultural festival celebrated in India and influences the business operations in various ways.
Below are the detailed explanations of how Diwali celebration affects the business environment:
1. Increase in Consumer Spending: During Diwali, people tend to spend more on buying gifts, sweets, clothes, and other items. This leads to an increase in consumer spending and boosts the sales of businesses.
2. Increase in Demand: Due to the increase in consumer spending, there is a rise in demand for products and services during the Diwali season. Businesses need to prepare themselves to meet the high demand and ensure that there is no shortage of goods.
3. Festive Discounts: To attract more customers, businesses offer festive discounts and promotions during the Diwali season. This helps to increase sales and also promotes customer loyalty.
4. Impact on Production: Businesses need to prepare themselves in advance to meet the high demand during Diwali. This may require an increase in production, hiring of temporary staff, and managing the supply chain effectively.
5. Impact on Employees: Diwali is a major festival in India, and employees tend to take leave during this period to celebrate with their families. Businesses need to plan their operations accordingly and ensure that there is no disruption in the work.
In conclusion, celebration of Diwali is an example of social environment as it influences the business operations in various ways such as increase in demand, increase in consumer spending, festive discounts, impact on production, and impact on employees.
Social environment refers to the cultural and social factors that influence the business operations. Celebration of Diwali is an example of social environment because it is a cultural festival celebrated in India and influences the business operations in various ways.
Below are the detailed explanations of how Diwali celebration affects the business environment:
1. Increase in Consumer Spending: During Diwali, people tend to spend more on buying gifts, sweets, clothes, and other items. This leads to an increase in consumer spending and boosts the sales of businesses.
2. Increase in Demand: Due to the increase in consumer spending, there is a rise in demand for products and services during the Diwali season. Businesses need to prepare themselves to meet the high demand and ensure that there is no shortage of goods.
3. Festive Discounts: To attract more customers, businesses offer festive discounts and promotions during the Diwali season. This helps to increase sales and also promotes customer loyalty.
4. Impact on Production: Businesses need to prepare themselves in advance to meet the high demand during Diwali. This may require an increase in production, hiring of temporary staff, and managing the supply chain effectively.
5. Impact on Employees: Diwali is a major festival in India, and employees tend to take leave during this period to celebrate with their families. Businesses need to plan their operations accordingly and ensure that there is no disruption in the work.
In conclusion, celebration of Diwali is an example of social environment as it influences the business operations in various ways such as increase in demand, increase in consumer spending, festive discounts, impact on production, and impact on employees.
Liberalisation means- a)Reduced government controls and restrictions
- b)Policy of planned disinvestments
- c)Integration among economies
- d)None of them
Correct answer is option 'A'. Can you explain this answer?
Liberalisation means
a)
Reduced government controls and restrictions
b)
Policy of planned disinvestments
c)
Integration among economies
d)
None of them
|
Rajat Patel answered |
Liberalization means relaxation of various government restrictions in the areas of social and economic policies. Liberalizing trade policy by the government that is removal of tariff, subsidies and other restrictions on the flow of goods and services between countries is also termed as liberalization.
Liberalization is the result of New Industrial Policy which abolished the "License system". All industries except six major industries were liberalized. As a result industries grew rapidly and therefore liberalization also means deregulation and delicensing of industries.
Which of the following creates fear in the minds of investors?- a)Political uncertainty
- b)New innovations
- c)None of these
- d)Technological improvements
Correct answer is option 'A'. Can you explain this answer?
Which of the following creates fear in the minds of investors?
a)
Political uncertainty
b)
New innovations
c)
None of these
d)
Technological improvements
|
Ishan Choudhury answered |
Political uncertainty threatens the investors the most because different political parties has different policies in case of political uncertainity the government changes very quickly hence investors fears for investing their money.
Which of the following does not explain the impact of Government policy changes on business and industry?- a)More demanding customers
- b)Change in agricultural prices
- c)Increasing competition
- d)Market orientation
Correct answer is 'B'. Can you explain this answer?
Which of the following does not explain the impact of Government policy changes on business and industry?
a)
More demanding customers
b)
Change in agricultural prices
c)
Increasing competition
d)
Market orientation
|
Advait Chakraborty answered |
Change in agricultural prices does not exotom the impact of Government policy changes on business and industry.
Advance understanding of business environment will help in __________- a)Privatisation
- b)Planning and Policy Formulation
- c)Developing new principles of management
- d)Nothing
Correct answer is option 'B'. Can you explain this answer?
Advance understanding of business environment will help in __________
a)
Privatisation
b)
Planning and Policy Formulation
c)
Developing new principles of management
d)
Nothing
|
|
Nandini Iyer answered |
Assisting in planning and policy formulation:Business environment brings both threats and opportunities to a business. Hence, understanding of environment helps the management in
What will be the affect of increase in tax by the government?- a)Increase in cost of production
- b)Creates fear in the minds of investors
- c)Increase in profit margin
- d)None of these
Correct answer is option 'A'. Can you explain this answer?
What will be the affect of increase in tax by the government?
a)
Increase in cost of production
b)
Creates fear in the minds of investors
c)
Increase in profit margin
d)
None of these
|
Arya Reddy answered |
Increase in Tax by the Government
Introduction:
Tax is a compulsory payment made by individuals and businesses to the government. The government uses the revenue generated from taxes to fund public services and infrastructure. An increase in tax by the government can have various effects on the economy.
Increase in Cost of Production:
One of the significant effects of an increase in tax by the government is an increase in the cost of production. Businesses have to pay more taxes, which increases their operating costs. To maintain their profit margins, businesses may pass on the additional costs to their customers by increasing the price of their goods and services. This can lead to inflation, reducing the purchasing power of consumers.
Creates Fear in the Minds of Investors:
An increase in tax can also create fear in the minds of investors. Higher taxes can reduce the after-tax return on investment, making it less attractive to invest in the economy. This can lead to a decrease in investment, which can negatively impact economic growth and development.
Increase in Profit Margins:
While an increase in tax may increase the cost of production for businesses, it can also lead to an increase in profit margins. If businesses can increase their prices without losing customers, they may be able to offset the additional tax paid by increasing their profit margins. This can lead to increased investment in the economy, as businesses are more profitable.
Conclusion:
In conclusion, an increase in tax by the government can have both positive and negative effects on the economy. It can increase the cost of production, create fear in the minds of investors, or increase profit margins. The government must carefully consider the impact of tax increases on businesses and consumers to ensure that the economy remains stable and sustainable.
Introduction:
Tax is a compulsory payment made by individuals and businesses to the government. The government uses the revenue generated from taxes to fund public services and infrastructure. An increase in tax by the government can have various effects on the economy.
Increase in Cost of Production:
One of the significant effects of an increase in tax by the government is an increase in the cost of production. Businesses have to pay more taxes, which increases their operating costs. To maintain their profit margins, businesses may pass on the additional costs to their customers by increasing the price of their goods and services. This can lead to inflation, reducing the purchasing power of consumers.
Creates Fear in the Minds of Investors:
An increase in tax can also create fear in the minds of investors. Higher taxes can reduce the after-tax return on investment, making it less attractive to invest in the economy. This can lead to a decrease in investment, which can negatively impact economic growth and development.
Increase in Profit Margins:
While an increase in tax may increase the cost of production for businesses, it can also lead to an increase in profit margins. If businesses can increase their prices without losing customers, they may be able to offset the additional tax paid by increasing their profit margins. This can lead to increased investment in the economy, as businesses are more profitable.
Conclusion:
In conclusion, an increase in tax by the government can have both positive and negative effects on the economy. It can increase the cost of production, create fear in the minds of investors, or increase profit margins. The government must carefully consider the impact of tax increases on businesses and consumers to ensure that the economy remains stable and sustainable.
Reduction in the role of public sector is due to __________- a)Political Environment
- b)Privatisation
- c)Globalisation
- d)Liberalisation
Correct answer is option 'B'. Can you explain this answer?
Reduction in the role of public sector is due to __________
a)
Political Environment
b)
Privatisation
c)
Globalisation
d)
Liberalisation
|
Infinity Academy answered |
Privatization means conversion of public sector enterprises into private ownership by selling the shares of the company to private person or an organization, which means the shares cannot be sold to the public.
As the control and management transferred to private ownership, the role of public sector is reduced.
As the control and management transferred to private ownership, the role of public sector is reduced.
Globalisation aims at _____________- a)Export Promotion
- b)Foreign exchange reforms
- c)Import liberalisation
- d)All of these
Correct answer is option 'D'. Can you explain this answer?
Globalisation aims at _____________
a)
Export Promotion
b)
Foreign exchange reforms
c)
Import liberalisation
d)
All of these
|
Arun Yadav answered |
Globalisation refers to promoting trade relations with the rest of the world. this is possible only through export promotion, liberalising import restrictions and bringing about changes in foreign exchange reforms.
Gross Domestic Product (GDP) is concerned with ____________- a)Political Environment
- b)Legal Environment
- c)Economic Environment
- d)Social Environment
Correct answer is 'C'. Can you explain this answer?
Gross Domestic Product (GDP) is concerned with ____________
a)
Political Environment
b)
Legal Environment
c)
Economic Environment
d)
Social Environment
|
|
Aryan Khanna answered |
Economic Environment consists of Gross Domestic product, Income at National level and per capita level. Profit earning rate, monetary and fiscal policy of the government etc. It helps to keep track of the economy affecting the business.
Booking of Railway tickets through internet from home or office is an example of _________- a)Political Environment
- b)None of these
- c)Economic Environment
- d)Technological Environment
Correct answer is 'D'. Can you explain this answer?
Booking of Railway tickets through internet from home or office is an example of _________
a)
Political Environment
b)
None of these
c)
Economic Environment
d)
Technological Environment
|
Charvi Ahuja answered |
**Answer:**
Booking railway tickets through the internet from home or office is an example of the technological environment.
**Explanation:**
The technological environment refers to the application of technology and the use of tools and techniques to carry out various activities. In the case of booking railway tickets through the internet, several technological components are involved:
1. **Internet Connectivity:** The availability of internet connectivity is essential for booking railway tickets online. Users need access to a stable internet connection to access the website or application through which they can book their tickets.
2. **Online Ticketing Platforms:** Various online platforms and websites are specifically designed to facilitate the booking of railway tickets. These platforms provide a user-friendly interface that allows users to search for train schedules, check seat availability, and make reservations.
3. **Payment Gateways:** Online ticket booking platforms integrate payment gateways that enable users to make secure online transactions. These gateways provide different payment options, including credit/debit cards, net banking, e-wallets, etc.
4. **Secure Data Transmission:** When booking railway tickets online, sensitive personal and financial information is transmitted over the internet. The technological environment ensures the implementation of secure protocols and encryption techniques to protect this data from unauthorized access and ensure privacy.
5. **Automated Systems:** Online ticket booking platforms are automated systems that efficiently handle a large volume of transactions. They automate various processes, including ticket availability updates, seat selection, fare calculation, and confirmation of bookings.
6. **Mobile Applications:** Along with websites, mobile applications are also available for booking railway tickets. These applications leverage mobile technology to provide a convenient and accessible platform for users to make reservations.
7. **Integration with Other Systems:** Online ticket booking platforms are often integrated with other systems, such as the railway database and reservation system. This integration ensures that accurate and up-to-date information is available to users during the booking process.
In conclusion, booking railway tickets through the internet from home or office exemplifies the utilization of technology and the various components of the technological environment.
Booking railway tickets through the internet from home or office is an example of the technological environment.
**Explanation:**
The technological environment refers to the application of technology and the use of tools and techniques to carry out various activities. In the case of booking railway tickets through the internet, several technological components are involved:
1. **Internet Connectivity:** The availability of internet connectivity is essential for booking railway tickets online. Users need access to a stable internet connection to access the website or application through which they can book their tickets.
2. **Online Ticketing Platforms:** Various online platforms and websites are specifically designed to facilitate the booking of railway tickets. These platforms provide a user-friendly interface that allows users to search for train schedules, check seat availability, and make reservations.
3. **Payment Gateways:** Online ticket booking platforms integrate payment gateways that enable users to make secure online transactions. These gateways provide different payment options, including credit/debit cards, net banking, e-wallets, etc.
4. **Secure Data Transmission:** When booking railway tickets online, sensitive personal and financial information is transmitted over the internet. The technological environment ensures the implementation of secure protocols and encryption techniques to protect this data from unauthorized access and ensure privacy.
5. **Automated Systems:** Online ticket booking platforms are automated systems that efficiently handle a large volume of transactions. They automate various processes, including ticket availability updates, seat selection, fare calculation, and confirmation of bookings.
6. **Mobile Applications:** Along with websites, mobile applications are also available for booking railway tickets. These applications leverage mobile technology to provide a convenient and accessible platform for users to make reservations.
7. **Integration with Other Systems:** Online ticket booking platforms are often integrated with other systems, such as the railway database and reservation system. This integration ensures that accurate and up-to-date information is available to users during the booking process.
In conclusion, booking railway tickets through the internet from home or office exemplifies the utilization of technology and the various components of the technological environment.
Which of the following best indicates the importance of business environment?- a)Coping with rapid changes
- b)Identification
- c)Improvement in performance
- d)All of these
Correct answer is 'D'. Can you explain this answer?
Which of the following best indicates the importance of business environment?
a)
Coping with rapid changes
b)
Identification
c)
Improvement in performance
d)
All of these
|
Ajay Pawriya answered |
If a Business man studies deeply about the environment changes then he would be capable of coping with rapid changes in environment which would lead to improvement in performance of by the way of identification of opportunities.thats why.
When a company taken over another one and clearly becomes the new owner, the action is called- a)Merger
- b)Acquisition
- c)Strategic Alliance
- d)None of the above
Correct answer is option 'B'. Can you explain this answer?
When a company taken over another one and clearly becomes the new owner, the action is called
a)
Merger
b)
Acquisition
c)
Strategic Alliance
d)
None of the above
|
|
Neha Sharma answered |
The terms "mergers" and "acquisitions" are often used interchangeably, although in actuality, they hold slightly different meanings. When one company takes over another entity, and establishes itself as the new owner, the purchase is called an acquisition.
Increased competition in the market will _____________- a)Increase the tax
- b)Increase the profit
- c)Increase the cost of production
- d)Reduce the profit margin
Correct answer is option 'D'. Can you explain this answer?
Increased competition in the market will _____________
a)
Increase the tax
b)
Increase the profit
c)
Increase the cost of production
d)
Reduce the profit margin
|
Tejas Desai answered |
Explanation:
Increased competition refers to the situation where a large number of firms are offering similar products or services in the market. This situation can have various impacts on the firms operating in the market.
Reduced Profit Margin:
One of the major impacts of increased competition is the reduction in the profit margin of the firms. This happens because the firms are forced to lower their prices in order to attract customers and compete with their rivals. As a result, the profit margin of the firms decreases.
Increased Cost of Production:
In order to stay competitive, firms may also have to invest in new technologies or marketing strategies that can increase their cost of production. This can further reduce their profit margin.
Conclusion:
Therefore, increased competition in the market can lead to reduced profit margins for the firms operating in the market. However, it can also benefit the consumers as they have more options to choose from and can buy products or services at lower prices.
Increased competition refers to the situation where a large number of firms are offering similar products or services in the market. This situation can have various impacts on the firms operating in the market.
Reduced Profit Margin:
One of the major impacts of increased competition is the reduction in the profit margin of the firms. This happens because the firms are forced to lower their prices in order to attract customers and compete with their rivals. As a result, the profit margin of the firms decreases.
Increased Cost of Production:
In order to stay competitive, firms may also have to invest in new technologies or marketing strategies that can increase their cost of production. This can further reduce their profit margin.
Conclusion:
Therefore, increased competition in the market can lead to reduced profit margins for the firms operating in the market. However, it can also benefit the consumers as they have more options to choose from and can buy products or services at lower prices.
Technological improvements and innovations result in________- a)Increase in tax
- b)Render existing products obsolete
- c)Reduction in profit margins
- d)None of these
Correct answer is 'B'. Can you explain this answer?
Technological improvements and innovations result in________
a)
Increase in tax
b)
Render existing products obsolete
c)
Reduction in profit margins
d)
None of these
|
Saptarshi Ghoshal answered |
Technological improvements and innovations result in rendering existing products obsolete. This is because new technology often offers better features, increased efficiency, and lower costs, which make existing products less desirable in comparison. This can lead to a decrease in demand for existing products and a reduction in profit margins for companies that produce them.
Innovation and technological improvements also create new opportunities for businesses to introduce new products and services. However, this requires significant investment in research and development, which can be costly. Moreover, new products may not be successful in the market, resulting in losses for companies that take risks in developing them.
Overall, while technological improvements can have significant benefits for businesses and society as a whole, they can also lead to challenges for companies that fail to adapt to changing market conditions. Companies that are successful in embracing innovation and adapting to changing market trends are more likely to thrive in the long run.
Innovation and technological improvements also create new opportunities for businesses to introduce new products and services. However, this requires significant investment in research and development, which can be costly. Moreover, new products may not be successful in the market, resulting in losses for companies that take risks in developing them.
Overall, while technological improvements can have significant benefits for businesses and society as a whole, they can also lead to challenges for companies that fail to adapt to changing market conditions. Companies that are successful in embracing innovation and adapting to changing market trends are more likely to thrive in the long run.
Can you explain the answer of this question below:Rise in GDP lead to rise in ___________________
- A:
Increase in new taxes
- B:
Cost of Production
- C:
Disposable income of people
- D:
None of these
The answer is C.
Rise in GDP lead to rise in ___________________
Increase in new taxes
Cost of Production
Disposable income of people
None of these
|
|
Nandini Iyer answered |
Higher production leads to a lower unemployment rate, further fueling
External environment trends and changes will provide ____________- a)Threats
- b)Goodwill
- c)Less Competition
- d)Profits
Correct answer is option 'A'. Can you explain this answer?
External environment trends and changes will provide ____________
a)
Threats
b)
Goodwill
c)
Less Competition
d)
Profits
|
|
Naina Sharma answered |
All outside factors that may affect an organization make up the external environment. Such factors are uncertain factors which increases risk in the business. The external environment is divided into two parts: Directly Interactive and Indirectly Indirective.All outside factors that may affect an organization make up the external environment. Such factors are uncertain factors which increases risk in the business. The external environment is divided into two parts: Directly Interactive and Indirectly Indirective.
Changes in fashions and tastes of consumers will ______________- a)Shift the market demand from existing product to new ones
- b)Increase the cost of production
- c)Increase the profit
- d)Increase the Sale
Correct answer is option 'A'. Can you explain this answer?
Changes in fashions and tastes of consumers will ______________
a)
Shift the market demand from existing product to new ones
b)
Increase the cost of production
c)
Increase the profit
d)
Increase the Sale
|
|
Naina Sharma answered |
Changes in fashions and tastes of consumers will shift the market demand from existing product to new ones because the demands of people changed, so they don't want to buy old-fashioned products. They were fascinated by new modern products. Now, they buy new-fashioned products which has good quality and price than other products.
Rise in GDP lead to rise in ___________________- a)Increase in new taxes
- b)Cost of Production
- c)Disposable income of people
- d)None of these
Correct answer is 'C'. Can you explain this answer?
Rise in GDP lead to rise in ___________________
a)
Increase in new taxes
b)
Cost of Production
c)
Disposable income of people
d)
None of these
|
Anuj Choudhury answered |
Rise in GDP leads to rise in Disposable income of people
Explanation:
Gross Domestic Product (GDP) is the total value of goods and services produced by a country in a particular period. When GDP increases, it indicates a growth in the economy, which has a positive impact on various aspects of the economy, including people's disposable income.
Here are the reasons why a rise in GDP leads to a rise in disposable income:
1. Increase in employment opportunities: A rise in GDP leads to an increase in job opportunities, which reduces the unemployment rate. When more people have jobs, it leads to an increase in their income, which in turn increases their disposable income.
2. Increase in wages: With the growth of the economy, companies tend to increase the wages of their employees to retain them and attract new talent. When wages increase, people have more money to spend, which increases their disposable income.
3. Increase in government spending: The government spends more when the economy is growing, which leads to the creation of infrastructure and social welfare programs. This spending leads to an increase in people's disposable income.
4. Increase in investments: A growing economy attracts more investments, which leads to the creation of new businesses and the expansion of existing ones. This leads to an increase in employment opportunities, which leads to an increase in people's disposable income.
Therefore, it can be concluded that a rise in GDP leads to a rise in people's disposable income, which in turn leads to increased consumption, investments, and economic growth.
Explanation:
Gross Domestic Product (GDP) is the total value of goods and services produced by a country in a particular period. When GDP increases, it indicates a growth in the economy, which has a positive impact on various aspects of the economy, including people's disposable income.
Here are the reasons why a rise in GDP leads to a rise in disposable income:
1. Increase in employment opportunities: A rise in GDP leads to an increase in job opportunities, which reduces the unemployment rate. When more people have jobs, it leads to an increase in their income, which in turn increases their disposable income.
2. Increase in wages: With the growth of the economy, companies tend to increase the wages of their employees to retain them and attract new talent. When wages increase, people have more money to spend, which increases their disposable income.
3. Increase in government spending: The government spends more when the economy is growing, which leads to the creation of infrastructure and social welfare programs. This spending leads to an increase in people's disposable income.
4. Increase in investments: A growing economy attracts more investments, which leads to the creation of new businesses and the expansion of existing ones. This leads to an increase in employment opportunities, which leads to an increase in people's disposable income.
Therefore, it can be concluded that a rise in GDP leads to a rise in people's disposable income, which in turn leads to increased consumption, investments, and economic growth.
Relaxing the restrictions and controls imposed on Business and industry means- a)Liberalisation
- b)Privatisation
- c)Globalisation
- d)None of the above
- e)
Correct answer is option 'A'. Can you explain this answer?
Relaxing the restrictions and controls imposed on Business and industry means
a)
Liberalisation
b)
Privatisation
c)
Globalisation
d)
None of the above
e)
|
Kunal Patel answered |
Liberalization refers to relaxation of government restrictions usually in areas of social and economic policies. It refers to the process of eliminating unnecessary controls and restrictions on the smooth functioning of business enterprises.
The complete awareness and understanding of business environment is called _________- a)Liberalisation
- b)Environmental Scanning
- c)Technological advancement
- d)Privatisation
Correct answer is option 'B'. Can you explain this answer?
The complete awareness and understanding of business environment is called _________
a)
Liberalisation
b)
Environmental Scanning
c)
Technological advancement
d)
Privatisation
|
|
Arun Khanna answered |
Business Environment can be defined as ‘’the forces, factors and institutions with which the businessman has to deal with to achieve its objectives’’. In general words we can say business environment is surroundings in which business exists. Environment Scanning: Complete awareness and understanding of business environment is known as environment scanning.
Chapter doubts & questions for Business Environment - Business Studies CUET UG Mock Test Series 2026 2025 is part of Commerce exam preparation. The chapters have been prepared according to the Commerce exam syllabus. The Chapter doubts & questions, notes, tests & MCQs are made for Commerce 2025 Exam. Find important definitions, questions, notes, meanings, examples, exercises, MCQs and online tests here.
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