Business Environment-MCQ

MULTIPLE CHOICE QUESTIONS

CHAPTER 3: Business Environment

1. Which of the following is not a feature of Business environment
   (a) Interrelated Elements
   (b) Dynamics
   (c) Complexity
   (d) Continuous


2. Identification of opportunities to get first more advantage is one of the importance of business environment
   (a) True
   (b) False
   (c) Cannot say


3. Which of the following does not explain the impact of government policy changes on business & industry
   (a) Increasing competition
   (b) More demanding market customers
   (c) Market orientations
   (d) Change in agricultural prices


4. ________ refers to negative and unfavourable external factors that are likely to create hurdles for a firm:-
   (a) Opportunities
   (b) Warning
   (c) Threats
   (d) None of these


5. Which of the following are the dimensions of the business environment:-
   (a) Economic & Social
   (b) Technological & Economic
   (c) Legal & Social
   (d) All of the above


6. Liberalisation means
   (a) Policy of planned disinvestment
   (b) Integrating among economies
   (c) End of license & reduction of government control
   (d) None of these


7. Globalization does not involve:-
   (a) Reduction of barrier
   (b) Free flow of goods & services
   (c) Global mechanism for settlement of economic disputes
   (d) Free flow of capital


8. Which of the following are the impact of govt. policy changes on business & industry?
   (a) Increased competition
   (b) Need for change
   (c) Demanding customers
   (d) All of the above

Answer Keys

1

d

2

a

3

d

4

c

5

d

6

c

7

a

8

d