Page 1 : Multiple Choice Questions, , , , 1. Business environment is a group of powers., (a) Special (b) General, (c) Internal (d) Special and General, 2. Which of the following is not included in special powers of the business, environment., (a) Technical Situations (b) Customers, (c) Suppliers (d) Lnvestors, 3. Which of the following has got the First Mover Advantage?, (a) Asian Paints (b) Goodlass Nerolac, (c) Kansai Paints (d) Maruti Udyog, 4. Which of the following is available in time with the help of the study of, environment?, (a) Government Help (b) Foreign Aid, (c) Warning Signal (d) Material, 5. The study of environment makes available resources,, (a) Costly (b) Cheap, (c) Inferior (d) Useful, 6. Which of the following is undergoing quick changes?, (a) Competition (b) Fashion, (ce) Technique (d) All the above, 7. ITC Hotels made a study of the business environment and planned to open, ____in India and abroad., (a) Factories (b) Hotels, (c) Shops (d) Offices, , 15, , Scanned with CamScanner

Page 2 : 8. With the help of the study of business environment an organization can improve, its ., , {a) Present (b) Future, (c) Presentand Future (d) Past, 9. Which of the following is not a part of the internal environment?, (a) Customers (b) Objectives, {c) Policies (d) Organisation Structure 1 5, , 10. Which of the following is included in the Micro Environment (Operating, Environment)?, , (a) Suppliers (b) Competitor, (c) Suppliers and Competitor (d) Economic Environment, , 11. Which of the following is included under the Macro Environment (or General, Environment)?, , (a) Economic Environment (b) Political Environment, (c) Social and Legal Environment (d) All the above, , 12. A firm should make efforts that it has type of customers?, (a) One {b) Two, (c) Three (d) Many, , 13. Which of the following is included in the Economic Environment?, (a) Economic System (b) Economic Policies, (c) Economic Conditions (d) All the above, , 14. Determination of the economic policies is for the purpose of regulating, , (a) Political Environment (b) Social Environment, (c) Legal Regulatory Environment {d) Economic Activities, 15. Under which environmental effect, IBM and Coca-Cola had to leave India?, , (a) Political {b) Social, (c) Economic (d) Technical, , 16. Which of the following is a factor of the social environment of business?, (a) Customs (b) Level /Standard of Education, ({c) Rate of Interest (d) All the above, , Scanned with CamScanner

Page 3 : 17. Which component of business environment resulted in the relaxation of ban, imposed on the Foreign Direct Investment?, , (a) Economic Environment (b) Political Environment, (c) Social Environment (d) Legal Regulatory Environment, , 18. With the introduction of Photostat Machines in the market, the carbon paper, industry was adversely affected. Which component of environment was, responsible for it?, , (a) Economic (b) Political, (c) Technical (d) All the above, , 19. Which of the following deals with the process of simplification of ImportExport?, , (a) Liberalisation (b) Privatisation, (c) Liberalisation and Privatisation (d) Globalisation, , 20. Reducing the role of Public Sector and increasing the role of Private Sector, falls under ., , (a) Liberalisation (b) Privatisation, (c) Liberalisation and Privatisation (d) Globalisation, , 21. In all the countries there is a free-flow of goods and services under which of, the following does it come?, , (a) Liberalisation (b) Privatisation, (c) Liberalisation and Privatisation (d) Globalisation, 22. Under Industrial Policy the role of has been decided., (a) Public Sector (b) Private Sector, (c) Public Sector and Private Sector (d) Government, 23. Trade Policy brings under control the ., , (a) Import Trade (b) Export Trade, (c) Foreign Trade (d) Local Trade, 24. The income and expenditure policy of the government is called ., (a) Fiscal Policy (b) Industrial Policy, (c) Trade Policy (d) Monetary Reforms, 25. Under the Reserve Bank keeps control on the money supply in order, to achieve the objectives of the general economic policy., (a) Fiscal Policy (b) Monetary Policy, (c) Trade Policy (d) Industrial Policy, , 17, , Scanned with CamScanner

Page 4 : 26. Price control means that the companies will sell goods on the price., {a) Government (b) Market, (c) Printed (d) Volunury, , 27. The entry of the multinational companies in large numbers in the Indian, market has created ., , {a) Huge Demand (b) Huge Supply, {c) Tough Competition (d) Huge Demand and Supply, 28. With which of the following the Indian Companies have to compete?, {a) New and Old Indian Companies (b) Multinational Companies, {c) Imports (cl) All the above., 29. Asa result of the Economic Reforms the Seller Market has been replaced by, , fa) Buyer Market (b) Foreign Market, , (c) Whole-sale Market (cl) Retail Market, 30, These days companies cannot avoid investing in ., , {a) Research (b) Development, , (ce) Research and Development (d) Employees, 31, Which factor is not included in Internal Environment?, , {a) Objective (b) Policies, , {c) Public (d) Preduction-Method, 32. is included in Economic Environment,, , {a) Economic System (b) Economic Policies, , {c) Economic Conditions (d) AW of the above, 33, Which factor is not included in Micro Environment?, , {a) Customer (b) Public, , (c) Supplier (d) Production Capacity, 34, Which factor is not included in Macro Environment?, , {a) Economic Environment (b) Competitors, , fe) Social Environment (dl) Political Environment, , Scanned with CamScanner

Page 5 : 4., , Which of the following does not characterise the business environment? 1 8, , {a) Uncertainty (b) Employees, , {c) Relativity (d) Complexity, , Which of the following best indicates the importance of business environment?, {a) Identification (b) Improvement in performance, , (c) Coping with rapid changes (d) All of them, , Which of the following is an example of social environment?, , (a) Money supply in the economy (b) Consumer Protection Act, , (c) The Constitution of the country — (d) Composition of family, Liberalisation means, , {a) Integration among economies, , (b) Reduced government controls and restrictions, , {c) Policy of planned disinvesuments, , (d) None of them, , Which of the following does not explain the impact of Government policy, changes on business and industry?, , {a) More demanding customers (b) Increasing competition, (c) Change in agricultural prices (d) Market orientation, , Scanned with CamScanner