Please refer to Chapter 3 Business Environment MCQ Class 12 Business Studies with answers below. These multiple-choice questions have been prepared based on the latest NCERT book for Class 12 Business Studies. Students should refer to MCQ Questions for Class 12 Business Studies with Answers to score more marks in Grade 12 Business Studies exams. Students should read the chapter Business Environment and then attempt the following objective questions.

We give MCQ on Business Environment Class 12 with Answers, and Marking Scheme. Here we have provided you with Class 12 Business Environment MCQ to make your preparation better. A Student can also Unseen Passage for Class 12 with answers to score good marks in the Class 12 Board exam.

MCQ Questions Class 12 Business Studies Chapter 3 Business Environment

The Business Environment MCQ Class 12 Business Studies provided below covers all important topics given in this chapter. These MCQs will help you to properly prepare for exams.

Question. 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

Question. Rise in GDP lead to rise in
(a) Increase in new taxes
(b) Cost of Production
(c) Disposable income of people
(d) None of the above

Question. External environment trends and change QQs will provide
(a) Threats
(b) Goodwill
(c) Less Competition
(d) Profits

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

Question. Twinkle Stars’ is a well-known resort for organising parties, especially for children. However, in past 6 months its popularity has reduced considerably as a new resort with better ambience and facilities has opened within its vicinity. Name the related feature of business environment which has influenced the business of ‘Twinkle Stars’ adversely.
(a) Totality of external forces
(b) Dynamic nature
(c) Interrelatedness
(d) Uncertainty

Question. Advance understanding of business environment will help in
(a) Privatisation
(b) Planning and Policy Formulation
(c) Developing new principles of management
(d) None of the above

Question. Technological improvements and innovations result in
(a) Increase in tax
(b) Render existing products obsolete
(c) Reduction in profit margins
(d) None of the above

Question. Globalisation is the term used to describe process of removal of restriction on
(a) Investment
(b) Foreign Trade
(c) Both (a) and (b)
(d) None of the above

Question. Competition Act was enacted in the year——-
(a) June 2002
(b) Dec. 2002
(c) January 1999
(d) None of these

Question. When a company taken over another one and clearly becomes the new owner, the action is called
(a) Merger
(b) Acquisition
(c) Strategic Alliance
(d) None of the above 

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. Export promotion is concerned with ______________
(a) Privatisation
(b) Globalisation
(c) Liberalisation
(d) None of the above

Question. Facebook, Twitter and WhatsApp is the result of ________________
(a) Political Environment
(b) Social Environment
(c) Technological Environment
(d) None of the above

Question. Changes in fashions and tastes of consumers will ______________
(a) Shift the market demand from existing product to new ones
(b) Increase the cost of production
(c) Increase the profit
(d) Increase the Sale

Question. An increase or decrease in the value of Rupee is an example of _________
(a) Political Environment
(b) Economic Environment
(c) Social Environment
(d) None of the above

Question. Liberalization means
(a) Reduced government controls and restrictions
(b) Policy of planned disinvestments
(c) Integration among economies
(d) None of the above

Question. Gross Domestic Product (GDP) is concerned with _______
(a) Political Environment
(b) Legal Environment
(c) Economic Environment
(d) Social Environment

Question. Technological improvements and innovations result in________
(a) Increase in tax
(b) Render existing products obsolete
(c) Reduction in profit margins
(d) None of the above

Question. Export promotion is concerned with __________
(a) Privatisation
(b) Globalisation
(c) Liberalisation
(d) None of the above

Question The growing awareness about healthcare has led to an increase in the demand for healthcare products and services in the country. Identify the feature of business environment being described in the above case.
(a) Dynamic nature
(b) Uncertainty
(c) Relativity
(d) Interrelatedness

Question. Technological improvements and innovations result in________
(a) Increase in tax
(b) Render existing products obsolete
(c) Reduction in profit margins
(d) None of the above

Question. Which of the following best indicates the importance of the business environment?
(a) Coping with rapid changes
(b) Identification
(c) Improvement in performance
(d) All of the above

Question DigiLocker is the country’s first secured cloud-based platform for the storage, issuance and verification of documents with the Driving License & Vehicle Registration System of the Road Transport Ministry. The integration of a government department with DigiLocker since its launch last year is one of the biggest of its kind. It will spare 1 people the trouble of carrying licences & vehicle papers, which can be accessed on phones using the DigiLocker app. Identify the related dimension of business environment.
(a) Ecoriomic dimension
(b) Technological dimension
(c) Social dimension
(d) Political dimension

Question. The Government of India launched “Make in India” initiative in September, 2014 to increase foreign direct investment (FDI) in 25 sectors. As of April, 2015, FDI inflow in India increased by 48% since the launch of “Make in India” initiative.
Identify the concept being described in the above lines, with regard to inflow of FDI.
(a) Demonetisation
(b) Privatisation
(c) Liberalisation
(d) Globalisation

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. Liberalization means
(a) Free determination of interest rates
(b) Liberating the industry, trade and economy from unwanted restrictions
(c) Opening up of economy to the world by attaining international competitiveness
(d) Reducing number of reserved industries from 17 to 8

Question. Which among the following is not opened for private sector participation
(a) Railways
(b) Telecommunication sector
(c) Education sector
(d) Power sector

Question. The Planning commission was set up in India in ——
(a) 1950
(b) 1951
(c) 1947
(d) 1952

Question. Globalisation aims at _____________
(a) Export Promotion
(b) Foreign exchange reforms
(c) Import liberalisation
(d) All of the above 

Question. Liberalisation means
(a) Reduced government controls and restrictions
(b) Policy of planned disinvestments
(c) Integration among economies
(d) None of the above

Question. What was the predecessor of WTO?
(a) GAAT
(b) IMF
(c) ADB
(d) None of the above

Question. PLR stands for
(a) Prime ministers Land Recovery
(b) Prime Lending Rate
(c) Price Leverage Rate
(d) None of these

Question. What creates fear in the minds of investors to invest in long term projects?
(a) Privatisation
(b) Political Uncertainty
(c) Liberalisation
(d) None of the above

Question. Business environment is a group of powers.
(a) Special
(b) General
(c) Internal
(d) Special and General

Question. In order to boost and double India’s export of goods and services to over USD 1,000 billion by 2025, it is important to lower effective corporate tax rate, bring down cost of capital and simplify regulatory and tax framework. Identify the related dimension of business environment.
(a) Social dimension and Legal dimension
(b) Technological dimension and Political dimension
(c) Political dimension and Social dimension
(d) Economic dimension and Legal dimension

Question Which of the following is not a part of the business environment of business?
(a) Customers
(b) Suppliers
(c) Competitor
(d) None of the above

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