We have provided here Business Environment MCQ with Answers Pdf which will be helpful for students appearing in the Business Environment exam. These business Environment multiple choice questions and answers pdf have been prepared as per the latest examination guidelines and syllabus issued for the current academic year. All multiple-choice questions provided below have been provided with answers so that you can check your understanding.
MCQ Questions with Answers Business Environment Pdf
Question. A valid definition of a business purpose is to __
A. Create a customer
B. Maximize profits
C. Serve the society
D. Increase the wealth in the firm
Answer
A
Question. The Constitution declares India to be a sovereign, socialist, secular, democratic republic, assuring its citizens of justice, equality, and liberty, and endeavours to promote fraternity among them. The words “socialist” and “secular” were added to the definition in year:
A. 1956
B. 1976
C. 1970
D. 1952
Answer
B
Question. _______ technology having less chance of Error.
A. Capital intensive technology
B. Labor intensive technology
C. Both
D. Cant say
Answer
A
Question. _______ technology require more human efforts.
A. Capital intensive technology
B. Labor intensive technology
C. Both
D. Cant say
Answer
B
Question. What was the predecessor of WTO?
A. GAAT
B. IMF
C. ADB
D. UNCTAD
Answer
D
Question. A multi-national corporation (MNC) is defined by
A. Carrying out production in more than one country.
B. Having sales in more than one country.
C. Having a multi-ethnic workforce .
D. Having suppliers in more than one country.
Answer
A
Question. ——— is the process of analyzing the environment for the identification of the factors which have implication for the business.
A. Scanning
B. Assessment
C. Evaluation
D. Information
Answer
A
Question. Fiscal policy is called as ________policy
A. Monetary
B. Budgetary
C. Industrial
D. Economic
Answer
B
Question. The term fraternity implies the spirit of _________________
A. Brotherhood
B. Judiciary
C. Justice
D. Value
Answer
A
Question. ________ signifies the absence of any arbitrary restraint on the freedom of individual action and creations for the development of personality of The individual.
A. Fraternity
B. Liberty
C. Secularism
D. Socialism
Answer
B
Question. Economic environment refers to all forces which have a _______impact on business
A. Political
B. Natural
C. Economic
D. Social
Answer
C
Question. Micro environment is also called as_______
A. General environment
B. Operating environment
C. Economic environment
D. Political environment
Answer
B
Question. __________ environment sets the basis for developmental activity of the business system.
A. Financial environment
B. Technology environment
C. Global environment
D. Macro environment
Answer
A
Question. _____________ audit implies a report on the social performance of business unit.
A. Global
B. Local
C. Natural
D. Social
Answer
D
Question. In some circles a multinational corporations is referred to ____________
A. Multinational collaboration
B. Multinational entity
C. Multinational enterprises
D. Multinational development
Answer
C
Question. IMF stands
A. International money force
B. International monetary fund
C. Indian money fund
D. International multinational foreign
Answer
B
Question. External factors affecting a business environment also be referred to ____factors
A. Controllable
B. Uncontrollable factors
C. Relevant
D. Global
Answer
B
Question. Which is the one not included in national culture
A. Language
B. Internet
C. Belief
D. Attitude
Answer
B
Question. Culture spreads from one place to another and such transmission is called as____
A. Difference
B. Reputation
C. Adoption
D. Heritage
Answer
A
Question. A company is affected by two broad set of factors are _________________
A. Local and regional
B. Regional and national
C. Internal and external
D. Financial and non-financial
Answer
C
Question. ________ is a statement which derives the role that an organization plays in a society
A. Goals
B. Mission
C. Objective
D. Success
Answer
B
Question. Which of the following migration of population does not change the size of the population?
A. External migration
B. Internal migration
C. International migration
D. National migration.
Answer
B
Question. Characteristic of population: calculation of sex ratio (Gender) means
A. Number of females per thousand male
B. Number of males per hundred female
C. Number of females per hundred male
D. Number of females per thousand male
Answer
A
Question. The economic system in which business units or factors of production are privately owned and governed is called as _____
A. Capitalism
B. Socialism
C. Democratic
D. Republic
Answer
A
Question. FERA is foreign exchange regulation act for __
A. Industries
B. Small scale
C. Labor
D. Owner
Answer
A
Question. “Gujarat is dry state” – what can we conclude from statement.
A. Taboo
B. Social stratification
C. Taste and preference
D. None of the Above
Answer
A
Question. Under ____ economic system, all the economic activities of the country are controlled and regulated by the government in the interest of the Public
A. Capitalism
B. Socialism
C. Democratic
D. Republic
Answer
B
Question. The economic system in which both public and private sectors co-exist is known as ____ economy
A. Capitalism
B. Socialism
C. Democratic
D. Mixed
Answer
D
Question. Fundamental Rights have no value without….
A. Right to Freedom
B. Right to Freedom of Religion
C. Right to Constitutional Remedies
D. Right to Property
Answer
C
Question. __________ feature of business environment states that various factors of business environment affect each other.
A. Pervasive
B. Continuous
C. Dynamic
D. Interrelatedness
Answer
D
Question. Policy regarding population is termed/called as
A. Indian Population policy
B. National population policy
C. Demographic population policy.
D. Population policy.
Answer
B
Question. The ________ of the government covers all those principles ,policies,rules and procedures and control the industrial enterprise of the economy.
A. Industrial
B. Fiscal
C. Monetary
D. Macro
Answer
A
Question. ________ environment is beyond the control of the business
A. Internal
B. External
C. Micro
D. Macro
Answer
A
Question. Self fulfillment and immediate gratification are ____________ cultural values
A. Decreases
B. Rises
C. Diminishes
D. Corporate
Answer
B
Question. Which condition population remain stable
I. High birthrate and high death rate
II. Low birthrate and high death rate
III. High birthrate and low death rate
IV. Low birthrate and low death rate
A. I & III
B. I & IV
C. II & III
D. All of the above
Answer
B
Question. ________________ environment can be defined as that part of the environment that is concerned with the entire social system.
A. General environment
B. Operating environment
C. Social environment
D. Political environment
Answer
C
Question. ____________ economy is not owned or managed by the government but owned by private individuals.
A. Social
B. Capitalist
C. Mixed
D. Macro
Answer
B
Question. ——— is a very important factor that provides competitive advantage
A. Innovation
B. Modulation
C. Dimension
D. Variation
Answer
A
Question. Which can be a method of privatization
A. Denationalization
B. Purchasing shares
C. Takeover
D. Merger
Answer
A
Question. The aim of the private sector is to maximize __________
A. Loss
B. Profit
C. Import
D. Export
Answer
B
Question. ________ change is a potent fame the reconfiguration of industrial boundaries
A. Technological
B. Economical
C. Organizational
D. Environmental
Answer
A
Question. Currently ________ is implemented by government in place of Five year plan.
A. Make in India
B. NITI aayog
C. Skill India
D. PM aayog
Answer
B
Question. The _____________ is an introduction to the constitution and contains its basic philosophy.
A. Preamble
B. Society
C. Process
D. Service
Answer
A
Question. Establishment Year of International Monetary Fund.
A. 1945
B. 1935
C. 1845
D. 2005
Answer
A
Question. The second five year plan was given during 1956 regarding _
A. Legal planning
B. Soviet planning
C. Government planning
D. Agricultural planning
Answer
A
Question. Secularism is understood to mean according equal encouragement to all ________
A. Country
B. Ethics
C. Values
D. Religion
Answer
D
Question. _______ state can have an elected or hereditary head
A. Democratic
B. Autocratic
C. Socialized
D. Republic
Answer
A
Question. Study of human population is called as _______ environment
A. Political
B. Social
C. Demographic
D. Economic
Answer
C
Question. Which is not the part of compositional characteristics of population?
A. Size and growth
B. Power
C. Density
D. Literacy rate
Answer
B
Question. ___________ is a systematic application of scientific or other organized knowledge to practical task.
A. Technology
B. Society
C. Demography
D. Responsibility
Answer
A
Question. Which one of the following is a part of economic environment?
A. Public debt
B. Lifestyle of people
C. Technological changes
D. Level of education
Answer
A
Question. Proper understanding of 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
C
Question. What is the main occupation of kshatriyas
A. Engaged in cleaning
B. Engaged in trade
C. Engaged in army work
D. None of the above
Answer
C
Question. A systematic application of scientific knowledge to practical task is known as_
A. Technology
B. Culture
C. Demographic
D. Legal
Answer
A
Question. Legal rules and regulations relevant to business are included in ____ environment of business.
A. Legal
B. Political
C. Economic
D. Technological
Answer
A
Question. According to whom, business environment is defined as total of all things external to firms and industries which effect their organization and Operations
A. Arthur.m.welmer
B. John wick
C. Bayord.o.wheeler
D. Mathew smith
Answer
A
Question. Business are raising/generate fund through
A. Capital market
B. Money market
C. Both
D. None of the above
Answer
C
Question. __________ means the proportion of a nation population living in urban areas.
A. Privatization
B. Globalization
C. Urbanization
D. Liberalization
Answer
C
Question. Business includes ___
A. Non-economic activities
B. Economic activities
C. Social activities
D. Production activities
Answer
B
Question. _______Is vast and fascinating subject for business
A. Technology
B. Profit making
C. Change
D. People
Answer
A
Question. Fiscal policy refers to the policy of government regarding taxation, public expenditure and___
A. Public debt
B. Budgets
C. Policies
D. Deposits
Answer
B
Question. One concept of culture determines the ____________ of people
A. Experience
B. Ethos
C. Education
D. Wealth
Answer
B
Question. What is the single word that can best describe todays business
A. Technology
B. Profit making
C. Change
D. People
Answer
C
Question. Which of the following is not an economic activity
A. A doctor practicing
B. A lawyer practicing law
C. A professional cricketer playing cricket
D. A student playing cricket
Answer
D
Question. Which of the following is not a fundamental right in the Constitution of India?
A. Right to work
B. Right to Equality
C. Right to Education
D. Right against exploitation
Answer
A
Question. ________is also called government which implements whatever is decided by the parliament
A. Legislature
B. Executive
C. Judiciary
D. Public
Answer
B
Question. _______plays the watch dog in order to ensure that both function in public interest and within the boundaries of constitution
A. Legislature
B. Executive
C. Judiciary
D. Public
Answer
C
Question. ____________ environment is very significantly influenced by the world trade organization principles and agreements.
A. Economic
B. Global
C. Legal
D. Political
Answer
B
Question. Competition is beneficial to the competing firms besides benefiting the ___
A. Producers
B. Intermediaries
C. Finances
D. Consumers
Answer
D
Question. Globalization does not involve.
A. Reduction of barrier
B. Free flow of goods and services.
C. Global mechanism for settlement of Economic disputes.
D. Free flow of Capital
Answer
A
Question. World Bank has cleared a loan to aid which Indian mission?
A. Start up India
B. Stand up India
C. Skill India
D. None of the above
Answer
C
Question. Which of the following institutions cannot be included in the international financial and monetary system?
A. World Bank
B. WTO
C. Bank for International Settlements
D. IMF
Answer
C
Question. ________should facilitate & enhance strategies thinking in organization
A. Strategic management
B. Environmental analysis
C. Business environment
D. Business analysis
Answer
B
Question.___________ is a short-term unsecured promissory note issued by reputed business organisations at a price lower than its face value and redeemable at par.
A. Treasury bill
B. Commercial paper
C. Certificate of deposit
D. Promissory note
Answer
B
Question. ________ is a source of financing to meet very short-term fund requirements of commercial banks with a provision of renewal.
A. Treasury Bill
B. Commercial Paper
C. Certificate of Deposit
D. Call Money
Answer
D
Question. Liberalization means
A. Reducing number of reserved industries from 17 to 8
B. Liberating the industry, trade and economy from unwanted restrictions
C. Opening up of economy to the world by attaining international competitiveness
D. Free determination of interest rates
Answer
B
Question. The short term financial instruments traded in money market is commonly called
A. Bonds
B. Shares
C. Notes
D. Commercial Papers
Answer
D
Question. The era of deregulation liberalization begin in _
A. 1950 – 51
B. 1980-81
C. 1991-92
D. 1960-61
Answer
A
Question. Identification of companies technological assets that may provide ___________ in new businesses
A. Opportunities
B. Development
C. Failure
D. Authority
Answer
A
Question. Macro environment is also known as ____
A. Direct environment
B. Indirect environment
C. Competitive environment
D. Social environment
Answer
B
Question. The macro environment consists of ___
A. Economic political &legal
B. Consumer competitors
C. Public
D. Middlemen
Answer
A
Question. What does micro environment consists of ___
A. Economic
B. Political &legal
C. Consumers competitors
D. Demographic
Answer
C
Question. What was the period of the 12th five-year plan of India?
A. 2007 to 2012
B. 2012 to 2017
C. 2017 to 2022
D. 2010 to 2015
Answer
B
Question. Corporate contribution to political parties are now been ____________ in our country
A. Legalized
B. Customized
C. Introduced
D. Authorized
Answer
B
Question. Who is responsible for presenting the Union Budget before the Parliament?
A. Prime Minister
B. RBI Governor
C. Finance Minister
D. None of the above
Answer
D
Question. _______ refers to all forces which have an economic impact
A. Technological environment
B. Political environment
C. Economic environment
D. Social environment
Answer
C
Question. ____________ is the market which helps existing investors to sell their securities.
A. Primary market
B. Secondary market
C. Capital market
D. Commodity market
Answer
B
Question. ____________ is the institution which provides a platform for trading of existing securities having long-term maturity.
A. SEBI
B. WTO
C. Stock exchange
D. RBI
Answer
C
Question. Political environments refers to the influence excreted by the ______political institutions
A. 2
B. 3
C. 4
D. 5
Answer
B
Question. Headquarters of World Trade Organization at
A. Geneva
B. Japan
C. South Korea
D. Russia
Answer
A
Question. The objectives of import duty is/are
A. To raise income for the government.
B. To restrict imports.
C. To encourage exports.
D. To raise income and restrict imports.
Answer
D
Question. The following is not a feature of globalisation
A. Similar strategies are adopted by a firm in all markets.
B. Only multinational firms engage in international business.
C. The convergence of ideas and culture.
D. Obliteration of national boundaries.
Answer
A
Question. The environment analysis that provides inputs for strategies decision making is _
A. Strategic management
B. Environmental analysis
C. Business environment
D. Business analysis
Answer
A
Question. Economic growth can be measured by ___________
A. The cpi
B. The cbi
C. Gdp
D. Mpc
Answer
C
Question. Industrial policy was set up in the year __
A. 1955
B. 1956
C. 1957
D. 1958
Answer
B
Question. _______ technology saves time.
A. Capital intensive technology
B. Labor intensive technology
C. Both
D. None of the above
Answer
A
Question. When was the first Five year Plan?
A. 1950.
B. 1951.
C. 1952.
D. 1953.
Answer
B
Question. The following statement with respect to culture is false
A. Culture is enduring
B. Culture is changing
C. Culture is evolved among the members of a society
D. Culture is determined by national boundaries
Answer
D
Question. ________is the business through which new ideas and innovations are given a sharp and are converted into useful products and services
A. Market leadership
B. Challenge
C. Joy of creation
D. Growth
Answer
C
Question. ________ identifies the early signals of possible environment changes
A. Scanning
B. Monitoring
C. Forecasting
D. Assessing
Answer
A
Question. _____ micro environment is also known as direct environment
A. Economic
B. Political & legal
C. Competitors
D. Suppliers
Answer
A
Question. State directive principles are
A. Suggestion to direction
B. Instruments of instruction
C. Principles of instruction
D. Responsibility to state principles
Answer
B
Question. The environmental factor that includes peoples attitude to family, religion etc is
A. Cultural.
B. Economic.
C. Socio- cultural.
D. Political.
Answer
C
Question. Secondary market is in the form of
A. Stock exchange.
B. Money market.
C. New issue market.
D. Commercial exchange.
Answer
A
Question. SEBI is a regulator of
A. Capital market.
B. Money market.
C. Commodity market.
D. Overseas market.
Answer
A
Question. ________ is concerned with developing projection of direction, scope, speed & intensity of environmental change
A. Scanning
B. Monitoring
C. Forecasting
D. Assessing
Answer
B
Question. Which plan gives priority for family planning
A. State policy
B. Judicial policy
C. Industrial
D. Energy
Answer
A
Question. Governments policy towards industries is called as ____
A. Economic policy
B. Industrial policy
C. Monetary policy
D. Work policy
Answer
B
Question. For the society, religion has no influence on.
A. Holidays
B. Language
C. Role of women
D. Marketing Practices
Answer
B
Question. Social Stratification is done on the basis of
A. Income level
B. Caste
C. Education
D. All of the Above
Answer
D
Question. ______ involves freedom of doing business.
A. Globalization
B. Privatization
C. Liberalization
D. None of the Above
Answer
C
Question. Which of the following modern business is dynamic
A. Mass production
B. Mass marketing
C. Mass sales
D. Mass purchase
Answer
A
Question. Which of the following is not an essential feature of social environment?
A. Competitiveness
B. Respect for the individual
C. Better quality of life
D. Bailment
Answer
D
Question. Technological environment consist of
A. Proves cause and effect relationship
B. Creation of Knowledge and its application
C. Finding facts and maintenance
D. Management of technology
Answer
B
Question. Which one of the following is not a function of financial market?
A. Mobilisation of savings
B. Price determination of securities
C. Floating of companies
D. Lowering transaction cost
Answer
C
Question. Which one of the following is a money market instrument?
A. Unit of mutual fund
B. Debenture
C. Bond
D. Treasury bill
Answer
D
Question. ________environment refers to all economic factors which have a bearing on the functioning of a business
A. Economic
B. Technological
C. Natural
D. Social
Answer
A
Question. The first MNC came to India in ___
A. 1920
B. 1921
C. 1919
D. 1923
Answer
B
Question. An effective crisis management plan will __
A. Minimize the seriousness of the problem
B. Exaggerate minor incident
C. Use the internet to convey the public affairs message
D. Immediately apologize to the public and accept any liability
Answer
A
Question. Free trade is based on the principle of ___
A. Comparative advantage
B. Comparative scale
C. Economies of advantage
D. Production possibility advantage
Answer
A
Question. The operating risk in the host country does not include the risk of
A. Change in government policies.
B. Exchange control.
C. Price controls.
D. Sanctions.
Answer
D
Question. The legal system in India is based on
A. Common law.
B. Civil law.
C. Theocratic law.
D. Hindu law.
Answer
D
Question. _______is the primary motive for a business enterprise
A. Profit
B. Maximize customers
C. Human objective
D. Maximize suppliers
Answer
A
Question. ___________ is the integration of world economy into a single market through removal of trade barriers between countries.
A. Privatisation
B. Liberalisation
C. Globalisation
D. Both (a) and (b)
Answer
B
Question. WTO aims at:
A. Establishing rules for domestic trade
B. Restricting trade practices
C. Liberalising international trade
D. None of these
Answer
C
Question. Psu is ___
A. Private sector unit
B. Private serious unit
C. Private steel unit
D. Private scale unit
Answer
A
Question. What is the main role of the World Bank?
A. To be a forum for trade and liberalization.
B. To facilitate private investment around the world.
C. To assist countries in development.
D. All of the options given are correct.
Answer
C
Question. Which of the following is not a business opportunity generated by Globalisation ?
A. Access to low cost labour
B. Cheap International Transport
C. Currency Crisis
D. Less stringent regulations of the Business Environment
Answer
C
Question. Goals of World bank includes
A. Promotion of foreign investment
B. Promotion of international trade
C. Facilitation of capital investment
D. All of the Above
Answer
D
Question. Population is a component of the ______environment
A. Demographic
B. Social
C. Natural
D. Technology
Answer
A
Question. _______ technology helps to gain more profit.
A. Capital intensive technology
B. Labor intensive technology
C. Both
D. Cant say
Answer
D
Question. Strata means….
A. Group of same kind of people
B. Group of different kind of people
C. Both
D. Cant say
Answer
A
Question. Multinational corporations is also referred to ____
A. Multinational collaboration
B. Multinational entity
C. Transnational corporation
D. Multinational development
Answer
C
Question. Gdp is _
A. Gross domestic product
B. Gross domestic percentage
C. Gross domestic personnel
D. Gross domestic public
Answer
A
Question. Which is not the member of World bank Group
A. International monetory fund
B. International finance corporation
C. International development Association
D. International bank for development and reconstruction
Answer
A
Question. The World Bank is a recognized member of
A. United Nations Development Council
B. United Nations Development Group
C. United Nations Security Council
D. United Nations General Assembly
Answer
B
Question. Who gave a practical shape to privatization
A. Margrat thatcher
B. Louis peter
C. Williams
D. Fayol
Answer
A
Question. Primary and secondary markets develop simultaneously because they
A. Complement each other.
B. Compete with each other.
C. Control each other.
D. Function independently.
Answer
A
Question. One of the long term objectives of the five year plan is reducing inequalities of ___ wealth and income
A. Increased
B. Decreased
C. Medium
D. Low level
Answer
A
Question. ‘World Bank’ was founded in
A. October, 1948
B. April, 1949
C. July, 1944
D. May, 1945
Answer
C
Question. In india liberalization and privatization began from__
A. 1991
B. 1971
C. 1981
D. 1947
Answer
A
Question. Industrial policy of 1948 aimed at ____
A. Industrialization
B. Growth of agriculture
C. Development of infrastructure
D. Development of service sector
Answer
A
Question. What are the bodies which political environment consists of
A. Middlemen
B. Suppliers
C. Customer
D. Legislature executive & judiciary
Answer
D
Question. _________ decides on a particular course of action
A. Legislature
B. Executive
C. Judiciary
D. Public
Answer
A
Question. India is good example for ________economy
A. Socialist
B. Mixed
C. Capitalist
D. Communist
Answer
B
Question. _______ are a primary mechanism for motivating business activities
A. Social relationship
B. Profit
C. Customers
D. Assets
Answer
A
Question. As per Malthu’s theory growth of population is increase
A. Geometrically
B. Arithmetically
C. Progressively.
D. Drastically
Answer
A
Question. Corporate values are the _______ of the corporate sector
A. Shared values
B. Moral beliefs
C. Customer satisfaction
D. Goodwill
Answer
B
Question. The following factors are key drivers of globalisation
A. Government action, exchange rates, competition and sociodemographic factors.
B. Market convergence, competition, exchange rates and cost advantages.
C. Cost advantages, government action, economic cycles and competition.
D. Market, cost, competition and government policies.
Answer
D
Question. Export control refers to restrictions on
A. Domestic firms from engaging in exports.
B. Items that can be exported from the country.
C. Foreign countries exporting to the country.
D. Domestic firms engaging in trade with nation.
Answer
B
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