Business Environment

Question 1

Proper understanding of the business environment is not a prerequisite for

(a) tapping of useful resources.
(b) identification of opportunities and threats.
(c) formulation of strategies.
(d) better coordination of employee efforts.

Answer 1

C- formulation of strategies

Question 2

Which one of the following is the impact of Government policy changes on business and industry?

(a) Increase in agricultural productivity
(b) Increase in product prices
(c) Increase in competition
(d) Increase in urbanisation

Answer 2

C- Increase in competition

Question 3

As a result of major government initiatives, more and more people are going ‘green’. In order to keep in line with the trend, ‘Clapaway’ a carpet cleaning company has advertised that they only use natural cleaners that come from renewable resources and that all their service vehicles are hybrid vehicles that use both gas and electricity. Identify one of the points related to the importance of the business environment and its understanding by managers which is being highlighted in the above case.

(a) It helps in assisting in planning and policy formulation.
(b) It helps in coping with rapid changes.
(c) It helps in improving performance.
(d) It enables the firm to identify opportunities and getting the first-mover advantage.

Answer 3

C- helps in improving performance

Question 4

Electric vehicles with zero tailpipe emission are emerging as a good alternative to ‘ problems like climate change, surging pollution leading to ill health, crude import bill and energy security. Identify the related dimensions of the business environment.

(a) Economic dimension, Legal dimension and Social dimension
(b) Social dimension, Political dimension and Economic dimension
(c) Economic dimension, Technological dimension and Social dimension
(d) Social dimension, Political dimension and Legal dimension

Answer 4

C- Economic, technological and social dimension

Question 5

Any kind of external devices, like compact discs (CD’s) for computer, has become obsolete. Google, with its Google Drive service, Apple with its iCloud offering, enables the users to store documents, photos, music and movies on web-based servers. Identify the feature of the business environment being described in the above lines.

(a) Relativity
(b) Dynamic nature
(c) Uncertainty
(d) Interrelatedness

Answer 5

C- Uncertainty since difficult to predict changes

Question 6

Privatisation involves freedom of doing business.T/F

Answer 6

False, Liberalisation involves freedom of doing business

Question 7

Identify the dimension of environment. The service sector is a major contributor to GDP but employs a less workforce.

Answer 7

Economic Environment

Question 8

Even if the population is large and poor, there is a sizeable market for luxuries. Identify the dimension of the business environment

Answer 8

Social Environment

Question 9

Which of the following is a feature of Business Environment?

a) Relative concept
b) helps in tapping useful resources
c) enables the firm to get first-mover advantage
d) all of the above

Answer 9

d)all of the above

Question 10

The shift of demand from soft drinks to juices is a threat to soft drink producer and opportunity for juice producer. Identify the feature of business environment

Answer 10

Relativity

Question 11

The feature of Business Environment that enabled the analysis of changes in the environment.

Answer 11

Dynamic Nature

Question 12

Identify the reform. Allowing Free flow of FDI and allowing setting up MNCs

Answer 12

Globalisation