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Test: Business Environment - 2


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20 Questions MCQ Test Business Studies (BST) Class 12 | Test: Business Environment - 2

Test: Business Environment - 2 for Commerce 2022 is part of Business Studies (BST) Class 12 preparation. The Test: Business Environment - 2 questions and answers have been prepared according to the Commerce exam syllabus.The Test: Business Environment - 2 MCQs are made for Commerce 2022 Exam. Find important definitions, questions, notes, meanings, examples, exercises, MCQs and online tests for Test: Business Environment - 2 below.
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Test: Business Environment - 2 - Question 1

Booking of Railway tickets through internet from home or office is an example of _________

Detailed Solution for Test: Business Environment - 2 - Question 1

Yes booking ticket through internet from home or office is example of technological environment.......... it is technology because it is done through internet

Test: Business Environment - 2 - Question 2

Giving freedom to Indian business and industries from all unnecessary government controls and restrictions is an example of ____________

Detailed Solution for Test: Business Environment - 2 - Question 2

Liberalisation means removal of trade barriers & restrictions made by the government

Test: Business Environment - 2 - Question 3

Reduction in the role of public sector is due to __________

Detailed Solution for Test: Business Environment - 2 - Question 3

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.

Test: Business Environment - 2 - Question 4

Export promotion is concerned with ______________

Detailed Solution for Test: Business Environment - 2 - Question 4

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.

Test: Business Environment - 2 - Question 5

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

Detailed Solution for Test: Business Environment - 2 - Question 5

Uncertainty of future is risk in the investment. There is no clue that when the government policies will change and what it will do the rate of return for the long-term investors. Hence, there is always a fear of political uncertainties.

Test: Business Environment - 2 - Question 6

What will be the affect of increase in tax by the government?

Detailed Solution for Test: Business Environment - 2 - Question 6

Tax is paid by the owners of the business or a company to the government, such taxes are included in the cost of production. Production costs can include a variety of expenses, such as labor, raw materials, consumable manufacturing supplies, and general overhead. 
Therefore, an increase in taxes will definitely increase the cost of production and will reduce the profits.

Test: Business Environment - 2 - Question 7

Changes in fashions and tastes of consumers will ______________

Detailed Solution for Test: Business Environment - 2 - Question 7

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.

Test: Business Environment - 2 - Question 8

Increased competition in the market will _____________

Detailed Solution for Test: Business Environment - 2 - Question 8

Because increase in competion in the market will give more choices to the consumer to consume whichever goods they want, resulting in decrease of fixed customers for a particular product line.

Test: Business Environment - 2 - Question 9

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

Detailed Solution for Test: Business Environment - 2 - Question 9

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.

Test: Business Environment - 2 - Question 10

Technological improvements and innovations result in________

Test: Business Environment - 2 - Question 11

Increase or decrease in the value of Rupee is an example of _________

Detailed Solution for Test: Business Environment - 2 - Question 11

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.

Test: Business Environment - 2 - Question 12

Advertisements of cigarettes carry the statutory warning. This is becuase of _______.

Detailed Solution for Test: Business Environment - 2 - Question 12

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.

Test: Business Environment - 2 - Question 13

Facebook, Twitter and Whatsapp is the result of ________________

Detailed Solution for Test: Business Environment - 2 - Question 13

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.

Test: Business Environment - 2 - Question 14

For the protection of a consumer?s right, there is _____________

Detailed Solution for Test: Business Environment - 2 - Question 14

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.

Test: Business Environment - 2 - Question 15

Rise in GDP lead to rise in ___________________

Detailed Solution for Test: Business Environment - 2 - Question 15

National disposable income is estimated as the sum total of net domestic income at factor cost ,net indirect tax ,net factor income from abroad and net of current transfer from rest of the world because of rise in disposable income

Test: Business Environment - 2 - Question 16

The complete awareness and understanding of business environment is called _________

Detailed Solution for Test: Business Environment - 2 - Question 16

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.

Test: Business Environment - 2 - Question 17

Through Environmental scanning a business firm can enjoy the ___________

Detailed Solution for Test: Business Environment - 2 - Question 17

Environmental scanning means gathering information about all the market which could affect the product or service. By gathering information, the business can find out if there is any competitor already in the market, if not they could be the first one in the market.
A first mover is a service or product that gains a competitive advantage by being the first to market with a product or service. Being first typically enables a company to establish strong brand recognition and customer loyalty before competitors enter the market.

Test: Business Environment - 2 - Question 18

External environment trends and changes will provide ____________.

Detailed Solution for Test: Business Environment - 2 - Question 18

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.

Test: Business Environment - 2 - Question 19

Globalisation aims at _____________

Detailed Solution for Test: Business Environment - 2 - Question 19

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.

Test: Business Environment - 2 - Question 20

Advance understanding of business environment will help in __________

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