Business Environment MCQ with Answers Pdf

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

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

Question. _______ technology having less chance of Error.
A. Capital intensive technology
B. Labor intensive technology
C. Both
D. Cant say

Question. _______ technology require more human efforts.
A. Capital intensive technology
B. Labor intensive technology
C. Both
D. Cant say

Question. What was the predecessor of WTO?
A. GAAT
B. IMF
C. ADB
D. UNCTAD

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.

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

Question. Fiscal policy is called as ________policy
A. Monetary
B. Budgetary
C. Industrial
D. Economic

Question. The term fraternity implies the spirit of _________________
A. Brotherhood
B. Judiciary
C. Justice
D. Value

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

Question. Economic environment refers to all forces which have a _______impact on business
A. Political
B. Natural
C. Economic
D. Social

Question. Micro environment is also called as_______
A. General environment
B. Operating environment
C. Economic environment
D. Political environment

Question. __________ environment sets the basis for developmental activity of the business system.
A. Financial environment
B. Technology environment
C. Global environment
D. Macro environment

Question. _____________ audit implies a report on the social performance of business unit.
A. Global
B. Local
C. Natural
D. Social

Question. In some circles a multinational corporations is referred to ____________
A. Multinational collaboration
B. Multinational entity
C. Multinational enterprises
D. Multinational development

Question. IMF stands
A. International money force
B. International monetary fund
C. Indian money fund
D. International multinational foreign

Question. External factors affecting a business environment also be referred to ____factors
A. Controllable
B. Uncontrollable factors
C. Relevant
D. Global

Question. Which is the one not included in national culture
A. Language
B. Internet
C. Belief
D. Attitude

Question. Culture spreads from one place to another and such transmission is called as____
A. Difference
B. Reputation
C. Adoption
D. Heritage

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

Question. ________ is a statement which derives the role that an organization plays in a society
A. Goals
B. Mission
C. Objective
D. Success

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.

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

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

Question. FERA is foreign exchange regulation act for __
A. Industries
B. Small scale
C. Labor
D. Owner

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

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

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

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

Question. __________ feature of business environment states that various factors of business environment affect each other.
A. Pervasive
B. Continuous
C. Dynamic
D. Interrelatedness

Question. Policy regarding population is termed/called as
A. Indian Population policy
B. National population policy
C. Demographic population policy.
D. Population policy.

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

Question. ________ environment is beyond the control of the business
A. Internal
B. External
C. Micro
D. Macro

Question. Self fulfillment and immediate gratification are ____________ cultural values
A. Decreases
B. Rises
C. Diminishes
D. Corporate

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

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

Question. ____________ economy is not owned or managed by the government but owned by private individuals.
A. Social
B. Capitalist
C. Mixed
D. Macro

Question. ——— is a very important factor that provides competitive advantage
A. Innovation
B. Modulation
C. Dimension
D. Variation

Question. Which can be a method of privatization
A. Denationalization
B. Purchasing shares
C. Takeover
D. Merger

Question. The aim of the private sector is to maximize __________
A. Loss
B. Profit
C. Import
D. Export

Question. ________ change is a potent fame the reconfiguration of industrial boundaries
A. Technological
B. Economical
C. Organizational
D. Environmental

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

Question. The _____________ is an introduction to the constitution and contains its basic philosophy.
A. Preamble
B. Society
C. Process
D. Service

Question. Establishment Year of International Monetary Fund.
A. 1945
B. 1935
C. 1845
D. 2005

Question. The second five year plan was given during 1956 regarding _
A. Legal planning
B. Soviet planning
C. Government planning
D. Agricultural planning

Question. Secularism is understood to mean according equal encouragement to all ________
A. Country
B. Ethics
C. Values
D. Religion

Question. _______ state can have an elected or hereditary head
A. Democratic
B. Autocratic
C. Socialized
D. Republic

Question. Study of human population is called as _______ environment
A. Political
B. Social
C. Demographic
D. Economic

Question. Which is not the part of compositional characteristics of population?
A. Size and growth
B. Power
C. Density
D. Literacy rate

Question. ___________ is a systematic application of scientific or other organized knowledge to practical task.
A. Technology
B. Society
C. Demography
D. Responsibility

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

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.

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

Question. A systematic application of scientific knowledge to practical task is known as_
A. Technology
B. Culture
C. Demographic
D. Legal

Question. Legal rules and regulations relevant to business are included in ____ environment of business.
A. Legal
B. Political
C. Economic
D. Technological

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

Question. Business are raising/generate fund through
A. Capital market
B. Money market
C. Both
D. None of the above

Question. __________ means the proportion of a nation population living in urban areas.
A. Privatization
B. Globalization
C. Urbanization
D. Liberalization

Question. Business includes ___
A. Non-economic activities
B. Economic activities
C. Social activities
D. Production activities

Question. _______Is vast and fascinating subject for business
A. Technology
B. Profit making
C. Change
D. People

Question. Fiscal policy refers to the policy of government regarding taxation, public expenditure and___
A. Public debt
B. Budgets
C. Policies
D. Deposits

Question. One concept of culture determines the ____________ of people
A. Experience
B. Ethos
C. Education
D. Wealth

Question. What is the single word that can best describe todays business
A. Technology
B. Profit making
C. Change
D. People

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

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

Question. ________is also called government which implements whatever is decided by the parliament
A. Legislature
B. Executive
C. Judiciary
D. Public

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

Question. ____________ environment is very significantly influenced by the world trade organization principles and agreements.
A. Economic
B. Global
C. Legal
D. Political

Question. Competition is beneficial to the competing firms besides benefiting the ___
A. Producers
B. Intermediaries
C. Finances
D. Consumers

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

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

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

Question. ________should facilitate & enhance strategies thinking in organization
A. Strategic management
B. Environmental analysis
C. Business environment
D. Business analysis

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

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

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

Question. The short term financial instruments traded in money market is commonly called
A. Bonds
B. Shares
C. Notes
D. Commercial Papers

Question. The era of deregulation liberalization begin in _
A. 1950 – 51
B. 1980-81
C. 1991-92
D. 1960-61

Question. Identification of companies technological assets that may provide ___________ in new businesses
A. Opportunities
B. Development
C. Failure
D. Authority

Question. Macro environment is also known as ____
A. Direct environment
B. Indirect environment
C. Competitive environment
D. Social environment

Question. The macro environment consists of ___
A. Economic political &legal
B. Consumer competitors
C. Public
D. Middlemen

Question. What does micro environment consists of ___
A. Economic
B. Political &legal
C. Consumers competitors
D. Demographic

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

Question. Corporate contribution to political parties are now been ____________ in our country
A. Legalized
B. Customized
C. Introduced
D. Authorized

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

Question. _______ refers to all forces which have an economic impact
A. Technological environment
B. Political environment
C. Economic environment
D. Social environment

Question. ____________ is the market which helps existing investors to sell their securities.
A. Primary market
B. Secondary market
C. Capital market
D. Commodity market

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

Question. Political environments refers to the influence excreted by the ______political institutions
A. 2
B. 3
C. 4
D. 5

Question. Headquarters of World Trade Organization at
A. Geneva
B. Japan
C. South Korea
D. Russia

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.

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.

Question. The environment analysis that provides inputs for strategies decision making is _
A. Strategic management
B. Environmental analysis
C. Business environment
D. Business analysis

Question. Economic growth can be measured by ___________
A. The cpi
B. The cbi
C. Gdp
D. Mpc

Question. Industrial policy was set up in the year __
A. 1955
B. 1956
C. 1957
D. 1958

Question. _______ technology saves time.
A. Capital intensive technology
B. Labor intensive technology
C. Both
D. None of the above

Question. When was the first Five year Plan?
A. 1950.
B. 1951.
C. 1952.
D. 1953.

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

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

Question. ________ identifies the early signals of possible environment changes
A. Scanning
B. Monitoring
C. Forecasting
D. Assessing

Question. _____ micro environment is also known as direct environment
A. Economic
B. Political & legal
C. Competitors
D. Suppliers

Question. State directive principles are
A. Suggestion to direction
B. Instruments of instruction
C. Principles of instruction
D. Responsibility to state principles

Question. The environmental factor that includes peoples attitude to family, religion etc is
A. Cultural.
B. Economic.
C. Socio- cultural.
D. Political.

Question. Secondary market is in the form of
A. Stock exchange.
B. Money market.
C. New issue market.
D. Commercial exchange.

Question. SEBI is a regulator of
A. Capital market.
B. Money market.
C. Commodity market.
D. Overseas market.

Question. ________ is concerned with developing projection of direction, scope, speed & intensity of environmental change
A. Scanning
B. Monitoring
C. Forecasting
D. Assessing

Question. Which plan gives priority for family planning
A. State policy
B. Judicial policy
C. Industrial
D. Energy

Question. Governments policy towards industries is called as ____
A. Economic policy
B. Industrial policy
C. Monetary policy
D. Work policy

Question. For the society, religion has no influence on.
A. Holidays
B. Language
C. Role of women
D. Marketing Practices

Question. Social Stratification is done on the basis of
A. Income level
B. Caste
C. Education
D. All of the Above

Question. ______ involves freedom of doing business.
A. Globalization
B. Privatization
C. Liberalization
D. None of the Above

Question. Which of the following modern business is dynamic
A. Mass production
B. Mass marketing
C. Mass sales
D. Mass purchase

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

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

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

Question. Which one of the following is a money market instrument?
A. Unit of mutual fund
B. Debenture
C. Bond
D. Treasury bill

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

Question. The first MNC came to India in ___
A. 1920
B. 1921
C. 1919
D. 1923

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

Question. Free trade is based on the principle of ___
A. Comparative advantage
B. Comparative scale
C. Economies of advantage
D. Production possibility advantage

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.

Question. The legal system in India is based on
A. Common law.
B. Civil law.
C. Theocratic law.
D. Hindu law.

Question. _______is the primary motive for a business enterprise
A. Profit
B. Maximize customers
C. Human objective
D. Maximize suppliers

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)

Question. WTO aims at:
A. Establishing rules for domestic trade
B. Restricting trade practices
C. Liberalising international trade
D. None of these

Question. Psu is ___
A. Private sector unit
B. Private serious unit
C. Private steel unit
D. Private scale unit

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.

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

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

Question. Population is a component of the ______environment
A. Demographic
B. Social
C. Natural
D. Technology

Question. _______ technology helps to gain more profit.
A. Capital intensive technology
B. Labor intensive technology
C. Both
D. Cant say

Question. Strata means….
A. Group of same kind of people
B. Group of different kind of people
C. Both
D. Cant say

Question. Multinational corporations is also referred to ____
A. Multinational collaboration
B. Multinational entity
C. Transnational corporation
D. Multinational development

Question. Gdp is _
A. Gross domestic product
B. Gross domestic percentage
C. Gross domestic personnel
D. Gross domestic public

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

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

Question. Who gave a practical shape to privatization
A. Margrat thatcher
B. Louis peter
C. Williams
D. Fayol

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.

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

Question. ‘World Bank’ was founded in
A. October, 1948
B. April, 1949
C. July, 1944
D. May, 1945

Question. In india liberalization and privatization began from__
A. 1991
B. 1971
C. 1981
D. 1947

Question. Industrial policy of 1948 aimed at ____
A. Industrialization
B. Growth of agriculture
C. Development of infrastructure
D. Development of service sector

Question. What are the bodies which political environment consists of
A. Middlemen
B. Suppliers
C. Customer
D. Legislature executive & judiciary

Question. _________ decides on a particular course of action
A. Legislature
B. Executive
C. Judiciary
D. Public

Question. India is good example for ________economy
A. Socialist
B. Mixed
C. Capitalist
D. Communist

Question. _______ are a primary mechanism for motivating business activities
A. Social relationship
B. Profit
C. Customers
D. Assets

Question. As per Malthu’s theory growth of population is increase
A. Geometrically
B. Arithmetically
C. Progressively.
D. Drastically

Question. Corporate values are the _______ of the corporate sector
A. Shared values
B. Moral beliefs
C. Customer satisfaction
D. Goodwill

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.

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.