Let’s take Business Studies MCQs on Principles of Management.
Question 1.Business environment is the sum total of all the factors and forces________to a business.
(A) Internal
(B) External
(C) Specific
(D) All of these
Question 2.Investors, customers, competitors and suppliers come under________forces.
(A) General
(B) General and Specific
(C) Specific
(D) None of the above
Question 3.Specific attitudes that elected government representatives hold towards business is called _________ environment.
(A) Political
(B) Technological
(C) Social
(D) Legal
Question 4.Which of the following best indicates the importance of business environment?
(A) Identification
(B) Coping with rapid changes
(C) Improvement in performance
(D) All of the above
Question 5.“There is a great demand for reservation in jobs for economically weaker sections of the society.” Identify the type of dimension of business environment mentioned.
(A) Social environment
(B) Legal environment
(C) Political environment
(D) Technological environment
Question 6. WhatsApp was the first application for mobile chat. Afterwards, many other applications came but still whatsapp is No.1 in mobile chat. Which importance of Business Environment is highlighted here.
(A) Helps to identify opportunities and getting first mover advantages
(B) Identifying threat and getting warning signal
(C) Helps in policy making
(D) Helps in tapping resources
Question 7.The government of India proposed to encourage e-transactions by encouraging the use of plastic money(through debit, credit and gift cards) or net banking by allowing deductions in usage charges, fees and income tax exemptions. Which component of business environment does it represent?
(A) Social environment
(B) Legal environment
(C) Political environment
(D) Economic environment
Question 8.The court issued the order that for vehicles to be smokeless was most essential and that any one violatilng this order shall have to pay a heavy fine. Identify the dimension of Business environment?
(A) Social environment
(B) Legal environment
(C) Political environment
(D) Economic environment
Question 9.Which of the following is an example of social environment?
(A) Composition of family
(B) The Constitution of the country
(C) Consumer Protection Act
(D) Money supply in the economy
Question 10.Match the following
| Column I | Column II |
| A. Stock Market indicates | (i) Political environment |
| B.Customs and traditions | (ii) Social environment |
| C. New techniques of operating business | (iii) Technoogical environment |
| D. General stability and peace in the country | (iv) Economic environment |
| (a) | (b) | (c) | (d) | |
| (A) | (iv) | (iii) | (i) | (ii) |
| (B) | (ii) | (iii) | (iv) | (i) |
| (C) | (iii) | (iv) | (ii) | (i) |
| (D) | (iv) | (ii) | (iii) | (i) |
Question 11.which of the following dimensions of business environment includes legislations passed by the government administrative orders issued by government authorities.
(A) Social environment
(B) Legal environment
(C) Political environment
(D) Technological environment
Question 12.Which of the following is a component of economic environment?
(A) Birth and death rate
(B) Extent of government intervention in business
(C) Rates of saving and investment
(D) Concern with quality of life
Question 13. Banking sector reform has led to many attractive schemes of deposits and lending money. The banks are offering loans at very nominal rate of interest and with minimum formalities to be completed.
Identify the dimension of Business environment highlighted here?
(A) Technical
(B) Economical
(C) Social
(D) Political
Question 14.Under which environment effect, IBM and Coca –Cola had to leave India?
(A) Technical
(B) Economical
(C) Social
(D) Political
Question 15.Introduction of mobile phones have negatively effected the business of cameras and watches it is related to _______.
(A) Social environment 1
(B) Legal environment
(C) Political environment
(D) Technological environment
Question 16. __________is considered a major element of the economic environment.
(A) Literacy rates
(B) Birth and death rate
(C) The nature of relationship of our country with foreign countries
(D) Public debt
Question 17. Non-discriminatory employment practices is the part of which dimension of business environment?
(A) Legal
(B) Economical
(C) Social
(D) Political
Question 18.‘Threats to law and order’ is an example of __________ environment of business.
(A) Legal
(B) Economical
(C) Social
(D) Political
Question 19. The trend of Yoga as a result of COVID -19 relates to ________.
(A) Legal
(B) Technological
(C) Political
(D) Social
Question 20. It is very difficult to predict the changes of Business environment. No one can predict business environment 100% accurately. Which of the following feature of the business environment is highlighted by this point?
(A) Complexity
(B) Relativity
(C) Dynamic
(D) Uncertainty
Question 21.
- Assertion (A) Entry of new firms in the market may make an enterprise think afresh about how to deal with the situations
- Reason (R) Business environment assist in planning and policy formulation.
(A) Assertion (A) is false but Reason (R) is true
(B) Assertion (A) is true but Reason (R) is false
(C) Both Assertion (A) and Reason (R) are true but reason (R) is not the correct explanation of Assertion (A)
(D) Both Assertion(A) and Reason (R) is the correct explanation of Assertion (A)
Question 22.
- Assertion (A) Demand for sarees may be fairly high in India whereas it may be almost non existent in America.
- Reason (R) Business environment consists of numerous inter-related and dynamic conditions of forces which arise from different sources.
(A) Both Assertion(A) and Reason (R) is the correct explanation of Assertion (A)
(B) Both Assertion (A) and Reason (R) are true but reason (R) is not the correct explanation of Assertion (A)
(C) Assertion (A) is true but Reason (R) is false
(D) Assertion (A) is false but Reason (R) is true
Question 23.
- Assertion (A) :Turbulent market conditions, less brand loyalty, Kodivision and subdivision of market are just a few of the images to describe business environment.
- Reason (R) :Business environment is getting dynamic where changes are taking place at a slow pace.
(A) Both Assertion(A) and Reason (R) is the correct explanation of Assertion (A)
(B) Both Assertion (A) and Reason (R) are true but reason (R) is not the correct explanation of Assertion (A)
(C) Assertion (A) is true but Reason (R) is false
(D) Assertion (A) is false but Reason (R) is true
Question 24.
- Assertion (A) Manufacturers have now flexible manufacturing systems.
- Reason (R) Agricultural and industrial production trends are the economic dimensions of the environment which affect the business environment.
(A) Both Assertion(A) and Reason (R) is the correct explanation of Assertion (A)
(B) Both Assertion (A) and Reason (R) are true but reason (R) is not the correct explanation of Assertion (A)
(C) Assertion (A) is true but Reason (R) is false
(D) Assertion (A) is false but Reason (R) is true
Question 25.
- Assertion (A) Reservation of jobs for backward classes as per the constitution of India affects the business environment.
- Reason (R) Various elements of legal dimensions affect the business environment.
(A) Both Assertion(A) and Reason (R) is the correct explanation of Assertion (A)
(B) Both Assertion (A) and Reason (R) are true but reason (R) is not the correct explanation of Assertion (A)
(C) Assertion (A) is true but Reason (R) is false
(D) Assertion (A) is false but Reason (R) is true