Test: Business Environment- Assertion & Reason Type Questions - Commerce MCQ

Direction: In the following questions, a statement of Assertion (A) is followed by a statement of Reason (R). Mark the correct choice as:

Assertion (A): The business environment helps in understanding the threats which are likely to happen in the future.

Reason (R): Environmental awareness can help managers to identify various threats on time and serve as an early warning signal.

Direction: In the following questions, a statement of Assertion (A) is followed by a statement of Reason (R). Mark the correct choice as:

Assertion (A): Understanding of legal knowledge is a pre-requisite for the smooth functioning of business and industry.

Reason (R): Legal environment includes various legislations passed by the Government, administrative orders issued by government authorities, court judgments as well as the decisions rendered by various commissions and agencies at every level of the government; Centre, State or Local.

Direction: In the following questions, a statement of Assertion (A) is followed by a statement of Reason (R). Mark the correct choice as:

Assertion (A): Interest rates, taxes, inflation, stock market indices, value of rupee, personal disposable income, unemployment rate, etc. are the factors which affect the economic environment.

Reason (R): The economic environment consists of an economic system, economic policies and economic conditions prevailing in a country.

Direction: In the following questions, a statement of Assertion (A) is followed by a statement of Reason (R). Mark the correct choice as:

Assertion (A): Business environment includes both specific and general forces

Reason (R): General forces such as investors, customers, competitors and suppliers affect individual enterprises directly and immediately in their day-to-day working.

Direction: In the questions given below are two statements labelled as Assertion (A) and Reason (R). In the context of the two statements, which one of the following is correct?

Assertion (A): The internal factors are generally regarded as controllable factors.

Reason (R): Since, the company has control over internal factors

Direction: In the questions given below are two statements labelled as Assertion (A) and Reason (R). In the context of the two statements, which one of the following is correct?

Assertion (A): Desire competition is generally very high in countries characterised by limited disposable incomes.

Reason (R): In competitive world the firms has to compete, not only the other firms which market the same or similar products, but also all those who compete for the discretionary income of the consumer.

Direction: In the questions given below are two statements labelled as Assertion (A) and Reason (R). In the context of the two statements, which one of the following is correct?

Assertion (A): High intensity of competitive rivalry can make an industry more competitive and decrease profit potential for the existing firms.

Reason (R): Industry with excess production capacity will have greater rivalry among competitors.

Direction: In the questions given below are two statements labelled as Assertion and Reason (R). In the context of the two statements, which one of the following is correct?

Assertion (A): Environmental understanding provide enough information regarding the need of consumers.

Reason (R): Environmental understanding is not an early warning system.

Direction: In the questions given below are two statements labelled as Assertion (A) and Reason (R). In the context of the two statements, which one of the following is correct?

Assertion (A): The image and brand equity of the company matters a lot in raising finance forming joint ventures and other alliance.

Reason(R): The main motive of any business should be wealth maximisation.

Direction: In the questions given below are two statements labelled as Assertion (A) and Reason (R). In the context of the two statements, which one of the following is correct?

Assertion (A): Micro environment is also known as operating environment of business.

Reason (R): Micro environment forces have a direct bearing on the operations of the firm.

Direction: In the questions given below are two statements labelled as Assertion (A) and Reason (R). In the context of the two statements, which one of the following is correct?

Assertion (A): The private proprietorship is replaced by social ownership as and when we move from a capitalist system to a socialist system.

Reason (R): Under socialism properties are managed by the state.

Direction: In the questions given below are two statements labelled as Assertion (A) and Reason (R). In the context of the two statements, which one of the following is correct?

Assertion (A): Business environment does not affect much the decision-making of the companies.

Reason (R): Business environment is related to all external forces outside the organisation.