Short Answer Questions | Business Studies (BST) Class 12 - Commerce PDF Download

Q1: Give your views on ‘Economic Environment in India.
Ans: The economic environment in India consists of various macro-level factors related to the means of production and distribution of wealth which have an impact on business. These are

• Stage of economic development of the country.
• The economic structure in the form of a mixed economy.
• Economic policies of Government including industrial monetary and fiscal policy.
• Economic planning including five-year plans etc.
• Infrastructural factors such as financial institutions.

Q2: State briefly the influence of the technological environment on business and industries.
Ans: Positive effects:

• The efficiency of business increases tremendously to face global competition.
• The firm is able to produce better quality products at a cheaper price.

Negative effects:

• Continuous up-gradation as per the changing environment has become a necessity to remain competitive in the market.
• Small and medium enterprises find it difficult to invest in the new technologies due to limited funds available.

Q3: Do you agree with the statement that “Environment offers opportunities as well as threats”? Discuss.
Ans: Yes, the statement that the business environment offers opportunities, as well as threats, holds true. Threats to the domestic industry can be in the form of increased or cutthroat competition, no availability of a trained workforce.
Shortage of raw materials, a shift in consumer demand to other products, etc. For example, Chinese toy manufacturers have taken over the world toy market. Now they almost have taken monopoly in this sector.
The opportunities can be experienced in the form of easy accessibility to new technology, opening, up of new investment avenues increased orders, world quality products due to competition, etc. For example, there is increased demand for environment-friendly products.

Q4: Explain the Environment analysis and its Diagnosis with SWOT analysis.
Ans: Environment Analysis is the study of various factors of l environment affecting the business, like economic factors, political factors, technological factors, global factors, etc. Environment analysis helps to anticipate opportunities and to plan to take appropriate actions to avail these opportunities. By careful analysis of the environment, the business comes to know the opportunities provided and threats posed by the environment.