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 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

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FAQs on Business Environment - MCQ with answer, Commerce - CA Foundation

1. What is the meaning of business environment?

Ans. Business environment refers to the internal and external factors that affect the operations and success of a business. Internal factors include the company's culture, policies, and resources, while external factors include economic, political, legal, and social factors.

2. What are the components of the business environment?

Ans. The components of the business environment include internal and external factors. Internal factors include the company's culture, policies, and resources, while external factors include economic, political, legal, and social factors.

3. How does the business environment affect a company's success?

Ans. The business environment can have a significant impact on a company's success. A favorable business environment can lead to growth and profitability, while an unfavorable environment can lead to decline and failure. For example, a booming economy can lead to increased demand for goods and services, while economic recession can lead to decreased demand and lower profits.

4. What is the importance of studying the business environment?

Ans. Studying the business environment is essential for companies to identify opportunities and threats. By understanding the internal and external factors that affect their operations, companies can develop strategies to capitalize on opportunities and mitigate risks. For example, a company operating in a highly regulated industry can anticipate changes in regulations and adjust their operations accordingly.

5. How can companies adapt to changes in the business environment?

Ans. Companies can adapt to changes in the business environment by being proactive and flexible. This can involve monitoring changes in the external environment, developing contingency plans, and investing in new technologies and processes. For example, a company facing increased competition can invest in research and development to develop new products and services.

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Document Description: Business Environment - MCQ with answer, Commerce for CA Foundation 2024 is part of CA Foundation preparation. The notes and questions for Business Environment - MCQ with answer, Commerce have been prepared according to the CA Foundation exam syllabus. Information about Business Environment - MCQ with answer, Commerce covers topics like and Business Environment - MCQ with answer, Commerce Example, for CA Foundation 2024 Exam. Find important definitions, questions, notes, meanings, examples, exercises and tests below for Business Environment - MCQ with answer, Commerce.

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Full syllabus notes, lecture & questions for Business Environment - MCQ with answer, Commerce - CA Foundation - CA Foundation | Plus excerises question with solution to help you revise complete syllabus | Best notes, free PDF download

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