Chapter 3: Business Environment

Important Questions

1. Explain the term ‘Business environment’ briefly?

2. List any 4 features of business environment?

3. How does understanding of business environment help the management in the following:-

1. Identification of threats and warnings.
2. Formulation of strategies and policies.

4. Identify the role of political environment in shaping the business?

5. How does change in technology effect the business environment?

MCQ

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