Business Environment - MCQ with answer, Commerce - CA Foundation PDF Download

 Page 1


Dr.G.R.Damodaran College of Science
(Autonomous, affiliated to the Bharathiar University, recognized by the UGC)Re-accredited at the 'A' Grade Level by the
NAAC and ISO 9001:2008 Certified
CRISL rated 'A' (TN) for MBA and MIB Programmes
I B.com CS [2015-18]
Semester II
Core: Business Environment-205C
Multiple Choice Questions.
1. In which of the following basic categories can business environment be divided?
A. Local and Regional
B. Regional and National.
C. Internal and External.
D. Financial and Nonfinancial.
ANSWER: C
2. ____ is a statement Which derives the role that an organisation plays in a society.
A. Goals.
B. Mission.
C. Objective.
D. Success.
ANSWER: B
3. Economic environment refers to all forces which have a _____.
A. political.
B. natural
C. economic.
D. social.
ANSWER: C
4. ______environment is with in the control of the business.
A. Internal.
B. External.
C. Micro.
D. Macro.
ANSWER: A
5. ____ environment is beyond the control of the business.
A. Internal.
B. External.
C. Micro.
D. Macro.
ANSWER: B
6. Micro environment is also called as ________.
A. general environment.
B. operating environment.
C. economics environment.
D. political environment.
ANSWER: B
7. Macro environment is also called as _______.
A. general environment.
B. operating environment.
C. economic environment.
D. political environment.
ANSWER: A
8. The environment which is close to business and affect its capacity to work is known as ___environment.
A. internal.
B. external.
C. micro.
D. macro.
ANSWER: C
Page 2


Dr.G.R.Damodaran College of Science
(Autonomous, affiliated to the Bharathiar University, recognized by the UGC)Re-accredited at the 'A' Grade Level by the
NAAC and ISO 9001:2008 Certified
CRISL rated 'A' (TN) for MBA and MIB Programmes
I B.com CS [2015-18]
Semester II
Core: Business Environment-205C
Multiple Choice Questions.
1. In which of the following basic categories can business environment be divided?
A. Local and Regional
B. Regional and National.
C. Internal and External.
D. Financial and Nonfinancial.
ANSWER: C
2. ____ is a statement Which derives the role that an organisation plays in a society.
A. Goals.
B. Mission.
C. Objective.
D. Success.
ANSWER: B
3. Economic environment refers to all forces which have a _____.
A. political.
B. natural
C. economic.
D. social.
ANSWER: C
4. ______environment is with in the control of the business.
A. Internal.
B. External.
C. Micro.
D. Macro.
ANSWER: A
5. ____ environment is beyond the control of the business.
A. Internal.
B. External.
C. Micro.
D. Macro.
ANSWER: B
6. Micro environment is also called as ________.
A. general environment.
B. operating environment.
C. economics environment.
D. political environment.
ANSWER: B
7. Macro environment is also called as _______.
A. general environment.
B. operating environment.
C. economic environment.
D. political environment.
ANSWER: A
8. The environment which is close to business and affect its capacity to work is known as ___environment.
A. internal.
B. external.
C. micro.
D. macro.
ANSWER: C
9. Factors that create opportunities and threats to business units is known as_______.
A. internal environment.
B. external environment.
C. micro environment.
D. macro environment.
ANSWER: D
10. Internal factors affecting a business environment also are referred to ____factors.
A. controllable.
B. uncontrollable factors.
C. relevant.
D. global.
ANSWER: A
11. External factors affecting a business environment also be referred to ___factors.
A. controllable.
B. uncontrollable.
C. relevant.
D. global
ANSWER: B
12. Study of human population is called as _____ environment.
A. political.
B. social.
C. demographic.
D. economic
ANSWER: C
13. IN which year the essential commodities act introduced___.
A. 1954.
B. 1955.
C. 1956.
D. 1957.
ANSWER: B
14. Which is the one not included in national culture?
A. Language.
B. Internet.
C. Belief.
D. Attitude.
ANSWER: B
15. Culture spreads from one place to anther and such transmission is called as ________.
A. difference.
B. reputation.
C. adoption.
D. heritage.
ANSWER: A
16. An attitude composed of effect____.
A. flextime.
B. cognition.
C. relationship.
D. culture.
ANSWER: B
17. What is the main occupation of Kshatriyas?
A. engage in cleaning.
B. engaged in trade.
C. engaged in army work.
D. none of the above
ANSWER: C
18. A systematic application of scientific knowledge to practical task is known as________.
A. technology.
B. culture.
C. demograpic.
D. legal.
ANSWER: A
Page 3


Dr.G.R.Damodaran College of Science
(Autonomous, affiliated to the Bharathiar University, recognized by the UGC)Re-accredited at the 'A' Grade Level by the
NAAC and ISO 9001:2008 Certified
CRISL rated 'A' (TN) for MBA and MIB Programmes
I B.com CS [2015-18]
Semester II
Core: Business Environment-205C
Multiple Choice Questions.
1. In which of the following basic categories can business environment be divided?
A. Local and Regional
B. Regional and National.
C. Internal and External.
D. Financial and Nonfinancial.
ANSWER: C
2. ____ is a statement Which derives the role that an organisation plays in a society.
A. Goals.
B. Mission.
C. Objective.
D. Success.
ANSWER: B
3. Economic environment refers to all forces which have a _____.
A. political.
B. natural
C. economic.
D. social.
ANSWER: C
4. ______environment is with in the control of the business.
A. Internal.
B. External.
C. Micro.
D. Macro.
ANSWER: A
5. ____ environment is beyond the control of the business.
A. Internal.
B. External.
C. Micro.
D. Macro.
ANSWER: B
6. Micro environment is also called as ________.
A. general environment.
B. operating environment.
C. economics environment.
D. political environment.
ANSWER: B
7. Macro environment is also called as _______.
A. general environment.
B. operating environment.
C. economic environment.
D. political environment.
ANSWER: A
8. The environment which is close to business and affect its capacity to work is known as ___environment.
A. internal.
B. external.
C. micro.
D. macro.
ANSWER: C
9. Factors that create opportunities and threats to business units is known as_______.
A. internal environment.
B. external environment.
C. micro environment.
D. macro environment.
ANSWER: D
10. Internal factors affecting a business environment also are referred to ____factors.
A. controllable.
B. uncontrollable factors.
C. relevant.
D. global.
ANSWER: A
11. External factors affecting a business environment also be referred to ___factors.
A. controllable.
B. uncontrollable.
C. relevant.
D. global
ANSWER: B
12. Study of human population is called as _____ environment.
A. political.
B. social.
C. demographic.
D. economic
ANSWER: C
13. IN which year the essential commodities act introduced___.
A. 1954.
B. 1955.
C. 1956.
D. 1957.
ANSWER: B
14. Which is the one not included in national culture?
A. Language.
B. Internet.
C. Belief.
D. Attitude.
ANSWER: B
15. Culture spreads from one place to anther and such transmission is called as ________.
A. difference.
B. reputation.
C. adoption.
D. heritage.
ANSWER: A
16. An attitude composed of effect____.
A. flextime.
B. cognition.
C. relationship.
D. culture.
ANSWER: B
17. What is the main occupation of Kshatriyas?
A. engage in cleaning.
B. engaged in trade.
C. engaged in army work.
D. none of the above
ANSWER: C
18. A systematic application of scientific knowledge to practical task is known as________.
A. technology.
B. culture.
C. demograpic.
D. legal.
ANSWER: A
19. ___ is defined as systematic assessment of the social impact of the activities of a business firm.
A. Social audit.
B. Social responsibility.
C. Social interaction.
D. Social benefit.
ANSWER: A
20. What are the elements of business ethics?
A. V alues rights and duties.
B. attitudes pressure and environment.
C. value environment and attitude.
D. Responsibilities.
ANSWER: A
21. Corporate values are the _______ of the corporate sector.
A. shared values.
B. moral beliefs.
C. customer satisfaction.
D. goodwill.
ANSWER: B
22. The economic system in which business units or factors of production are privately owned and governed is called as______.
A. capitalism.
B. socialism.
C. democratic.
D. republic.
ANSWER: A
23. The economic system in which both public and private sectors co exist is known as ___economy.
A. capitalism.
B. socialism.
C. democratic.
D. republic.
ANSWER: B
24. One Reserve Bank of India introduced certificates of deposit in ____.
A. 1964.
B. 1989.
C. 1986.
D. 1990
ANSWER: B
25. Fical policy refers to the policy of government regarding taxtation public expenditure and ____.
A. public debt.
B. budgets.
C. policies.
D. deposits.
ANSWER: B
26. The sixth plan mentions 17 criteria for determining the prevalence of ____.
A. poor.
B. academician.
C. backwardness.
D. business.
ANSWER: C
27. Fiscal policy is called as ______ policy.
A. monetary.
B. budgetary.
C. industrial.
D. economic.
ANSWER: B
28. One concept of culture determines the ___ of people.
A. experience.
B. ethos.
C. education.
D. wealth.
ANSWER: B
Page 4


Dr.G.R.Damodaran College of Science
(Autonomous, affiliated to the Bharathiar University, recognized by the UGC)Re-accredited at the 'A' Grade Level by the
NAAC and ISO 9001:2008 Certified
CRISL rated 'A' (TN) for MBA and MIB Programmes
I B.com CS [2015-18]
Semester II
Core: Business Environment-205C
Multiple Choice Questions.
1. In which of the following basic categories can business environment be divided?
A. Local and Regional
B. Regional and National.
C. Internal and External.
D. Financial and Nonfinancial.
ANSWER: C
2. ____ is a statement Which derives the role that an organisation plays in a society.
A. Goals.
B. Mission.
C. Objective.
D. Success.
ANSWER: B
3. Economic environment refers to all forces which have a _____.
A. political.
B. natural
C. economic.
D. social.
ANSWER: C
4. ______environment is with in the control of the business.
A. Internal.
B. External.
C. Micro.
D. Macro.
ANSWER: A
5. ____ environment is beyond the control of the business.
A. Internal.
B. External.
C. Micro.
D. Macro.
ANSWER: B
6. Micro environment is also called as ________.
A. general environment.
B. operating environment.
C. economics environment.
D. political environment.
ANSWER: B
7. Macro environment is also called as _______.
A. general environment.
B. operating environment.
C. economic environment.
D. political environment.
ANSWER: A
8. The environment which is close to business and affect its capacity to work is known as ___environment.
A. internal.
B. external.
C. micro.
D. macro.
ANSWER: C
9. Factors that create opportunities and threats to business units is known as_______.
A. internal environment.
B. external environment.
C. micro environment.
D. macro environment.
ANSWER: D
10. Internal factors affecting a business environment also are referred to ____factors.
A. controllable.
B. uncontrollable factors.
C. relevant.
D. global.
ANSWER: A
11. External factors affecting a business environment also be referred to ___factors.
A. controllable.
B. uncontrollable.
C. relevant.
D. global
ANSWER: B
12. Study of human population is called as _____ environment.
A. political.
B. social.
C. demographic.
D. economic
ANSWER: C
13. IN which year the essential commodities act introduced___.
A. 1954.
B. 1955.
C. 1956.
D. 1957.
ANSWER: B
14. Which is the one not included in national culture?
A. Language.
B. Internet.
C. Belief.
D. Attitude.
ANSWER: B
15. Culture spreads from one place to anther and such transmission is called as ________.
A. difference.
B. reputation.
C. adoption.
D. heritage.
ANSWER: A
16. An attitude composed of effect____.
A. flextime.
B. cognition.
C. relationship.
D. culture.
ANSWER: B
17. What is the main occupation of Kshatriyas?
A. engage in cleaning.
B. engaged in trade.
C. engaged in army work.
D. none of the above
ANSWER: C
18. A systematic application of scientific knowledge to practical task is known as________.
A. technology.
B. culture.
C. demograpic.
D. legal.
ANSWER: A
19. ___ is defined as systematic assessment of the social impact of the activities of a business firm.
A. Social audit.
B. Social responsibility.
C. Social interaction.
D. Social benefit.
ANSWER: A
20. What are the elements of business ethics?
A. V alues rights and duties.
B. attitudes pressure and environment.
C. value environment and attitude.
D. Responsibilities.
ANSWER: A
21. Corporate values are the _______ of the corporate sector.
A. shared values.
B. moral beliefs.
C. customer satisfaction.
D. goodwill.
ANSWER: B
22. The economic system in which business units or factors of production are privately owned and governed is called as______.
A. capitalism.
B. socialism.
C. democratic.
D. republic.
ANSWER: A
23. The economic system in which both public and private sectors co exist is known as ___economy.
A. capitalism.
B. socialism.
C. democratic.
D. republic.
ANSWER: B
24. One Reserve Bank of India introduced certificates of deposit in ____.
A. 1964.
B. 1989.
C. 1986.
D. 1990
ANSWER: B
25. Fical policy refers to the policy of government regarding taxtation public expenditure and ____.
A. public debt.
B. budgets.
C. policies.
D. deposits.
ANSWER: B
26. The sixth plan mentions 17 criteria for determining the prevalence of ____.
A. poor.
B. academician.
C. backwardness.
D. business.
ANSWER: C
27. Fiscal policy is called as ______ policy.
A. monetary.
B. budgetary.
C. industrial.
D. economic.
ANSWER: B
28. One concept of culture determines the ___ of people.
A. experience.
B. ethos.
C. education.
D. wealth.
ANSWER: B
29. Self fulfillment and immediate gratification are_____cultural values.
A. decreases.
B. rises.
C. diminishes.
D. corporte.
ANSWER: B
30. National stock exchange was set up a joint stock company by all indian financial institution and banks on November 27 ____.
A. 1991.
B. 1992.
C. 1993.
D. 1994.
ANSWER: B
31. Which can be a method of privation?
A. Denationalization.
B. Purchasing shares.
C. Takeover.
D. Merger.
ANSWER: A
32. In India liberalization and privatization began from____.
A. 1991.
B. 1971.
C. 1981.
D. 1947.
ANSWER: C
33. Industrial policy of 1948 aimed at ______.
A. industrialization
B. growth of agriculture.
C. development of infrastructure .
D. development of service sector.
ANSWER: A
34. _______ state can have an elected or hereditary head.
A. Democratic.
B. Autocratic.
C. Socialized.
D. Republic.
ANSWER: A
35. The era of deregulation / liberalization begin in ___.
A. 1950and51.
B. 1980.
C. 1991.
D. 1960.
ANSWER: A
36. ___________ occupies the central place in business.
A. People.
B. Raw material.
C. Labour.
D. Finished goods.
ANSWER: B
37. India is good example for ________economy.
A. socialist.
B. mixed .
C. capitalist.
D. communist.
ANSWER: B
38. Business includes _____.
A. non-economic activities.
B. economic activities.
C. social activities.
D. production activities.
ANSWER: B
Page 5


Dr.G.R.Damodaran College of Science
(Autonomous, affiliated to the Bharathiar University, recognized by the UGC)Re-accredited at the 'A' Grade Level by the
NAAC and ISO 9001:2008 Certified
CRISL rated 'A' (TN) for MBA and MIB Programmes
I B.com CS [2015-18]
Semester II
Core: Business Environment-205C
Multiple Choice Questions.
1. In which of the following basic categories can business environment be divided?
A. Local and Regional
B. Regional and National.
C. Internal and External.
D. Financial and Nonfinancial.
ANSWER: C
2. ____ is a statement Which derives the role that an organisation plays in a society.
A. Goals.
B. Mission.
C. Objective.
D. Success.
ANSWER: B
3. Economic environment refers to all forces which have a _____.
A. political.
B. natural
C. economic.
D. social.
ANSWER: C
4. ______environment is with in the control of the business.
A. Internal.
B. External.
C. Micro.
D. Macro.
ANSWER: A
5. ____ environment is beyond the control of the business.
A. Internal.
B. External.
C. Micro.
D. Macro.
ANSWER: B
6. Micro environment is also called as ________.
A. general environment.
B. operating environment.
C. economics environment.
D. political environment.
ANSWER: B
7. Macro environment is also called as _______.
A. general environment.
B. operating environment.
C. economic environment.
D. political environment.
ANSWER: A
8. The environment which is close to business and affect its capacity to work is known as ___environment.
A. internal.
B. external.
C. micro.
D. macro.
ANSWER: C
9. Factors that create opportunities and threats to business units is known as_______.
A. internal environment.
B. external environment.
C. micro environment.
D. macro environment.
ANSWER: D
10. Internal factors affecting a business environment also are referred to ____factors.
A. controllable.
B. uncontrollable factors.
C. relevant.
D. global.
ANSWER: A
11. External factors affecting a business environment also be referred to ___factors.
A. controllable.
B. uncontrollable.
C. relevant.
D. global
ANSWER: B
12. Study of human population is called as _____ environment.
A. political.
B. social.
C. demographic.
D. economic
ANSWER: C
13. IN which year the essential commodities act introduced___.
A. 1954.
B. 1955.
C. 1956.
D. 1957.
ANSWER: B
14. Which is the one not included in national culture?
A. Language.
B. Internet.
C. Belief.
D. Attitude.
ANSWER: B
15. Culture spreads from one place to anther and such transmission is called as ________.
A. difference.
B. reputation.
C. adoption.
D. heritage.
ANSWER: A
16. An attitude composed of effect____.
A. flextime.
B. cognition.
C. relationship.
D. culture.
ANSWER: B
17. What is the main occupation of Kshatriyas?
A. engage in cleaning.
B. engaged in trade.
C. engaged in army work.
D. none of the above
ANSWER: C
18. A systematic application of scientific knowledge to practical task is known as________.
A. technology.
B. culture.
C. demograpic.
D. legal.
ANSWER: A
19. ___ is defined as systematic assessment of the social impact of the activities of a business firm.
A. Social audit.
B. Social responsibility.
C. Social interaction.
D. Social benefit.
ANSWER: A
20. What are the elements of business ethics?
A. V alues rights and duties.
B. attitudes pressure and environment.
C. value environment and attitude.
D. Responsibilities.
ANSWER: A
21. Corporate values are the _______ of the corporate sector.
A. shared values.
B. moral beliefs.
C. customer satisfaction.
D. goodwill.
ANSWER: B
22. The economic system in which business units or factors of production are privately owned and governed is called as______.
A. capitalism.
B. socialism.
C. democratic.
D. republic.
ANSWER: A
23. The economic system in which both public and private sectors co exist is known as ___economy.
A. capitalism.
B. socialism.
C. democratic.
D. republic.
ANSWER: B
24. One Reserve Bank of India introduced certificates of deposit in ____.
A. 1964.
B. 1989.
C. 1986.
D. 1990
ANSWER: B
25. Fical policy refers to the policy of government regarding taxtation public expenditure and ____.
A. public debt.
B. budgets.
C. policies.
D. deposits.
ANSWER: B
26. The sixth plan mentions 17 criteria for determining the prevalence of ____.
A. poor.
B. academician.
C. backwardness.
D. business.
ANSWER: C
27. Fiscal policy is called as ______ policy.
A. monetary.
B. budgetary.
C. industrial.
D. economic.
ANSWER: B
28. One concept of culture determines the ___ of people.
A. experience.
B. ethos.
C. education.
D. wealth.
ANSWER: B
29. Self fulfillment and immediate gratification are_____cultural values.
A. decreases.
B. rises.
C. diminishes.
D. corporte.
ANSWER: B
30. National stock exchange was set up a joint stock company by all indian financial institution and banks on November 27 ____.
A. 1991.
B. 1992.
C. 1993.
D. 1994.
ANSWER: B
31. Which can be a method of privation?
A. Denationalization.
B. Purchasing shares.
C. Takeover.
D. Merger.
ANSWER: A
32. In India liberalization and privatization began from____.
A. 1991.
B. 1971.
C. 1981.
D. 1947.
ANSWER: C
33. Industrial policy of 1948 aimed at ______.
A. industrialization
B. growth of agriculture.
C. development of infrastructure .
D. development of service sector.
ANSWER: A
34. _______ state can have an elected or hereditary head.
A. Democratic.
B. Autocratic.
C. Socialized.
D. Republic.
ANSWER: A
35. The era of deregulation / liberalization begin in ___.
A. 1950and51.
B. 1980.
C. 1991.
D. 1960.
ANSWER: A
36. ___________ occupies the central place in business.
A. People.
B. Raw material.
C. Labour.
D. Finished goods.
ANSWER: B
37. India is good example for ________economy.
A. socialist.
B. mixed .
C. capitalist.
D. communist.
ANSWER: B
38. Business includes _____.
A. non-economic activities.
B. economic activities.
C. social activities.
D. production activities.
ANSWER: B
39. What is the single word that can best describe today s business?
A. Technology.
B. Profit Making.
C. Change.
D. People.
ANSWER: C
40. Is the modern business dynamic?
A. mass production.
B. mass marketing.
C. mass sales.
D. mass purchase.
ANSWER: A
41. A valid definition of a business purpose is to _______.
A. create a customer.
B. maximize profits.
C. serve the society.
D. increase the wealth in the firm.
ANSWER: A
42. Is todays business is not characterized by diversification?
A. Social relationship.
B. Profit.
C. Customers.
D. Assets.
ANSWER: B
43. Is interference of government in business is common in every country?
A. 1960.
B. 1970.
C. 1980.
D. 1990.
ANSWER: A
44. ____refers to the system of moral principles and rules of conduct applied to business.
A. Business culture.
B. Business ethics.
C. Business.
D. Society.
ANSWER: B
45. Competition is beneficial to the competing firms besides benefiting the ______?
A. producers.
B. intermediaries.
C. finances.
D. consumers.
ANSWER: D
46. What are the main concepts concerning about business goals or objectives?
A. Mission, objectives.
B. Mission , targets.
C. Mission, objectives, target.
D. Target, objectives.
ANSWER: C
47. Goals realization continuously will lead to _______.
A. mission fulfillment.
B. maximize customers.
C. high revenue.
D. maximize suppliers.
ANSWER: A
48. _______is the primary motive for a business enterprise.
A. Profit.
B. Maximize customers.
C. Human objective.
D. Maximize suppliers.
ANSWER: A