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(Q1) Identify the type or dimension of environment to which the following are related:                              (CBSE, Sample Paper 2010)

(i) Banks reducing interest rates on housing loans.

(ii) An increasing number of working women.

(iii) Booking of air tickets through internet.

(iv) Alchohol beverages are prohibited to be advertised on ‘Door Darshan'.

Ans. (i) Economic Environment; (ii) Social Environment; (iii) Technological Environment; (iv) Legal Environment.

(Q2) The understanding of business environment helps the managers to identify threats'. What is meant by threats' here?                                                                                          (CBSE Delhi 2011)

Ans. Threats refer to the external environment trends and changes that will hinder a firm's performance.

(Q3) “The understanding of Business  Environment enables the firm to identify opportunities." What is meant by opportunities' here?                                                                   (CBSE, All India 2011)

Ans. Opportunities refer to the positive external trends or changes that will help a firm to improve its performance.

(Q4) Why is it said that ‘Business Environment' is a “Relative Concept"?(CBSE. Foreign 2011) Ans. Business environment is a relative concept since it differs from country to country and even region to region.

(Q5) Business environment includes both' specific and general forces'. List any four specific forces.                                                                                                             (CBSE Delhi 2011)

Ans. Four specific forces are: (i) Suppliers; (ii) Investors; (iii) Customers; and (iv) Competitors.

(Q6) Business Environment includes both 'specific and general forces'. List any four general forces.                                                                                                             (CBSE, All India 2011)

Ans. Four general forces are: (i) Economic Environment; (ii) Social Environment; (iii) Political Environment; (iv) Legal Environment.

(Q7) Just after declaration of Lok Sabha Elections 2009 results, the Bombay stock exchange's price index (Sensex) rose by 2100 points in a day. Identify the environmental factor which led to this rise.                                                                                                   (CBSE, Sample Paper 2010)

Ans. Political Environment. 

(Q8) What is included in Technological Environment of Business? (CBSE Foreign 2011)

Ans. Technological environment includes forces relating to scientific improvements and innovations which provide new ways of producing goods and services and new methods and techniques of operating a business.

(Q9) State any two impacts of change of government policy on business and industry.

(CBSE, Sample Paper 2010)

Ans. (i) Increasing competition; (ii) More demanding customers

(Q10) Give any one factor responsible for new economic policy of Liberalisation, Privatisation and Globalisation.                                                                                               (CBSE, 2012)

 Ans. Economic development of the country

(Q11) Govt. of India is seriously thinking to allow oil marketing public sector undertakings to fix their own price for petrol and diesel. Which economic reform is the reason of this change in government's policy?                                                                         (CBSE, Sample Paper 2010)

Ans. The reason for this change in the Government's policy is 'Liberalisation'.

(Q12) Define ‘Liberalisation' as a process of economic reforms. (CBSE, All India Compt. 2011)

Ans. Liberalisation refers to removal of entry and growth restrictions on the private sector enterprise.

(Q13) Give the meaning of the term business environment'.              (CBSE Delhi Compt. 2012)

Ans. Business Environment means the sum total of all individuals, institutions and other forces that are outside the control of a business enterprise, but that may affect its performance.

(Q14) Define ‘Privatisation' as a process of economic reforms in one sentence.

(CBSE, Delhi Compt. 2011)

Ans. Privatisation means transfer of ownership, management and control of public sector enterprises to the entrepreneurs in the private sector.

(Q15) Why is it said that ‘Business Environment is complex?(CBSE, All India Compt. 2013)

Ans. Business environment is complex as it is a combination of many factors, which are interrelated and interdependent and it is very difficult to know relative influence of a particular force on functioning of the business enterprise.

(Q16) What is included in Political Environment of business? State.                       (CBSE Delhi.2014)

Ans. Political environment includes political conditions such as' general stability and peace in the country and specific attitudes that elected government representatives hold towards business.

(Q17) What is included in Legal Environment of Business? State.               (CBSE All India 2014)

Ans. Legal environment includes various legislations passed by the government, administrative orders issued by government authorities, court judgments and decisions tendered by various commissions and agencies.

(Q18) Why is business environment called dynamic? State.              (CBSE Delhi Compt. 2014)

Ans. Business environment is called dynamic as it keeps on changing.

(Q19) ‘Demand for reservation in jobs for minorities' refers to an example of key component of general environment of business. Name and explain the component.           (CBSE Delhi 2006)

Hint: Social Environment.

(Q20) Banking sector reforms have led to easier credit terms and better services. This is an example of a key component of the ‘Business Environment'. Name this component and explain it in brief.                                                                                                    (CBSE, All India 2006)

Hint: Economic Environment.

(Q21) The court passed an order to ban polythene bags as:

(i) These bags are creating many environmental problems which affect the life of people in general.

(ii) Society in general is more concerned about quality of life.

Identify the different dimensions of Business Environment by quoting the lines from the above particulars and also state any two values communicated to the society.

(CBSE Sample Paper 2014)

Ans.  Legal environment - "The Court passed an order to ban polythene bags.'

Ø  Social environment—"The bags are creating many environmental problems which affect the life of people in general. Society in general is more concerned about quality of life."

Ø  Political environment- The Government decided to give subsidy to jute industry to promote this business."

Ø  Technological environment-'Innovative techniques are being developed to manufacture jute bags at low rates."

Ø  Economic environment-"Incomes are rising and people can afford to buy these bags."

(Q22) As per the directions issued by Supreme Court, the government passed an order to ban the sale of tobacco products within the area of 200 meters of all educational institutions as:

(a) Its consumption is injurious to health;

(b) People are becoming more conscious about health and fitness.

It is indicating the government's attitude towards this business. Identify the ‘Business Environment under four different dimensions quoting the lines from the above para.

(CBSE, Delhi Compt. 2013)

(Q23) The government encouraged foreign companies to invest in some sectors of retailing.

The argument is:

(a) Customers can purchase the products of these companies as their incomes are rising.

(b) It will increase innovations which will provide new ways of producing goods.

This will ultimately improve the quality of life. Identify and explain the 'Business Environment under four different dimensions quoting the lines from the above description.

        (CBSE, All India Compt. 2013)

SHORT ANSWER TYPE QUESTIONS 

(Q1) Define Business Environment. State any three of its features.  (CBSE, Sample Paper 2015)

(Q2) What is meant by ‘Business Environment? Explain 'Dynamic nature' and Uncertainty as features of Business Environment?                                                     (CBSE, Delhi 2011)

Ans. Dynamic nature Business environment is dynamic as it keeps on changing in terms of technological improvement, change in fashion and tastes, entry of new competitors in the market, etc.

Uncertainty: Business environment is uncertain as it is very difficult to predict future happenings especially when environment changes are taking place too frequently e.g., in case of IT and fashion industries.

(Q3) Why is the understanding of business environment important for managers? Explain with the help of any four points.                                                                            (CBSE, Delhi 2014)

OR

Understanding of environment by business managers enables them not only to identify and evaluate, but also to react to the forces external to their firms. In the light of the statement, explain any four points of importance of business environment.      (CBSE, All India Compt. 2014)

(Q4) Explain any two impacts of Government policy changes on Business and Industry.

(CBSE, Delhi 2011)

(Q5) Explain ‘Increasing competition' and “More demanding customers' as impact of Government policy changes on Business and Industry.                                                        (CBSE, All India 2011)

(Q6) Explain 'Necessity for change' and ‘Need for developing human resources' as impacts of Government policy changes on Business and Industry.                                 (CBSE, Foreign 2011)

(Q7) The Indian corporate sector has come face-to-face with several challenges due to government policy changes in business and industry' Explain any four such changes.

        (CBSE, All India Compt. 2014)