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Published on: 25/10/2025
Download CBSE Class 12th Standard CBSE Business Studies question papers, sample papers, important questions, and previous year solved papers in PDF format. Get free study materials, NCERT solutions, and exam preparation resources for Class 12th Standard CBSE Business Studies
Questions + Answers key
Take MCQ Business Studies Test

1.
Male CEOs are most preferred for all type of organization. Don’t you think female executive need to have a fair chance? If so give valuable suggestions.
2.
What is the main reason behind the inefficiency of the public sector undertakings?
3.
After the change in government policy is it necessary for firms to adapt the market orientation technique.Why?
4.
Which industrial policy has opened the doors of Indian economy for multi-national companies.
5.
Name any two challenges, which Indian Corporate sector is facing due to changes in government policy.
6.
Define 'privatisation' as a process of economic reforms.
7.
Define 'liberalisation' as a process of economic reforms in one sentence.
8.
what is included in 'legal environment' of business?
9.
What is included in 'political environment' of business?
10.
What is economic and non-economic environment of business?
11.
Write two economic factors influencing the business environment.
12.
Give the name of environment that provides the framework, within which the business has to function?
13.
'Nothing can be said with certainty about the factors of business environment'. Why?
14.
Give a practical example, which shows that the study of business environment enables a firm to identify the opportunities.
15.
Demand for LED TVs is increasing day-by-day.Thus, TV manufactures have started making LED TVs instead of LCD.Identify the significance of business environment being portrayed in the given case.
16.
Technology is improving day-by-day. Which feature of business environment is highlighted in the given statement?
17.
'The understanding of business enables the firm to identify opportunities'.What is meant by 'opportunities' here?
18.
The people of some regions translated the slogan of 'Come Alive' as 'Come Out of the Grave'. due to this, the company lost its market share.Identify the dimension of business environment and state how this dimension affects the business.
19.
It is usually observed that changes in technology, products, taste and preference of consumer, regulations, government policy, interest and inflation rates take place frequently in markets.
20.
What do you understand by business environment?
21.
Explain by giving any five reasons why understanding of business environment is important for a manager.
22.
The government restricted the use of LPG cylinders to only nine per family per year. Name the dimension of business environment highlighted in the above. Explain the dimension. What is the value hereby elicited by the government? Economic Environment
23.
Mr. Prasanth Gupta is the owner and manager of a grocery store. He attended a management seminar. The topic was on globalisation and impact of technology on business. He was shocked by many television ads and mailers to see different opportunities available on the internet for his expansion. To upgrade the technology in his business outside the city and he feels internet does not have any application to the retail industry. What should Mr. Prasanth do to avoid any negative impact of the changes in business environment? By adopting technological environment what values Mr. Prasanth can exhibit in his business?
1.
( )
Women empowerment, Equality, Recognising the talent.
2.
( )
PSUs fail to adapt the changes as they were cautious and conservative in their approach.Lots of political interference, red tapism and bureaucracy further did not let PSUs perform to their full potential.
3.
( )
It is so because due to increasing competition and more demanding customers it becomes necessary for firms to understand and analyze the market first and then produce goods according to the customers.
4.
( )
New Economic Policy, 1991.
5.
( )
The two challenges are:
(i) Increasing competition.
(ii) Need to be market oriented.
6.
( )
Privatisation means giving greater role to the private sector in the nation-building process and drastically reducing the role of the public sector.
7.
( )
Liberalisation means liberating Indian business and industry from all unnecessary government controls and restrictions.
8.
( )
(i) Several acts passed by Government.
(ii) Court Judgements.
(iii) Statutory warnings prescribed under law.
9.
( )
The following components are included in political environment of business:
(i) Constitutional Framework.
(ii) Political System.
(iii) Political Structure.
10.
( )
Economic environment of business consists of factors like - fiscal policy, monetary policy, etc.
Non-economic environment refers to social , political, legal factors, etc.
11.
( )
Two economic factors influencing business environment are:
(i) Changes in disposal income of people.
(ii) Stock market indices.
12.
( )
Legal environment
13.
( )
Nothing can be said with certainty about business environment because business environment is dynamic.
14.
( )
Nerolac Company was the first company, which understood the environment and captured the opportunity of car painting in India, as no other company was having that technology before.
15.
( )
Study of business environment helps in coping with rapid technological changes.
16.
( )
Business environment is dynamic in nature.
17.
( )
'Opportunities' in the given statement refer to the positive changes in external environment, which will help a firm to improve its performance.
18.
This is the effect of social environment, as it hurts the sentiments of the people and therefore they decided to stop the use of the product.
Effect of Social Environment on Business Firms:
The social elements affect the business firms in the following ways:
(i) Traditions It refers to such social practices that are followed for decades. Traditions like celebrations of festivals provide greater opportunities to business like confectionary, sweets, greeting cards, gift galleries, etc.
(ii) Trends It refers to changes and inclination towards new products.The emerging trend of health and physical fitness provide opportunities to business like gyms, diet drinks, mineral water, food supplements, etc.
(iii) Values It refers to concepts that a society holds in high esteem, such as freedom, social justice, equality, etc. Values affect business enterprises by making it more responsible towards society, enforcing non-discriminatory employment practices and providing freedom of choice to its customers.
19.
Business environment is not static and it keeps on changing. These changes are so fast and effective that a company has to scan its environment in order to survive in the long-run.
For example,
(i) Flat Screen TVs are replaced by LCDs and LEDs, is an example of technological change.
(ii) Shift towards health consciousness, leading to more healthy options food items, fitness equipment, etc, are examples of social change.
(iii) More impetus for development of communication and information technology is an example of political factor.
20.
Business environment refers to the sum total of factors and institutions that operate outside the business enterprise but affects its performance. It includes social, economic, political, legal and technological factors.
21.
Importance/Benefits of business Environment
Business enterprises cannot work in isolation. Therefore, a good understanding of environment not only helps the manager to deal with uncertain situations but also helps enterprises to identify the benefit from opportunities that the environment offers. The following points highlight the importance of business environment:
1.It Enables the firm to identify Opportunities and Get the First Mover Advantage
Opportunities are the positive trends that help firms to grow. A good knowledge of business environment helps a manager to identify such opportunities earlier to take its benefit, rather than losing it to other competing enterprises.
For example, Maruti Udyog was the first automobile company in India to recognize the opportunity to develop small cars, due to which, it is still one of the market leaders in that segment.
2.It Helps the Firm to identify Threats and Early Warning Signals
Threats refer to the negative trends, which will hinder the performance of the enterprise. The businessmen, who are able to scan and understand the business environment on time get a warning signal to deal with such negative changes. e.g. due to entry of many automobile companies in India, Maruti Udyog had started paying attention towards making strategies to survive in the competition.
3.It Helps in Tapping Useful Resources
Environment is a source of various resources for business like finance, machinery, raw materials, etc. Contrary to this, business enterprise supplies goods and services to the society in the form of taxes, products, return on investment, etc.. A good understanding of environment helps that firm to convert such resources into output required by the environment and society.
4.It helps in Coping With Rapid Changes
Business environment is fast changing due to turbulent market conditions, more demanding customers, changing technology and increasing global competition. In order to cope up with such changes and derive benefit from them, managers must examine their environment and develop suitable action.
5.It Assists in Planning and Helps in Policy Formulation
Since, business environment is a source of identifying both opportunities and threats, its proper analysis and understanding provide the base for planning and guides in framing policies. It helps an enterprise to decide the future course of action and provides guidelines for decision-making.
22.
(i) Encouraging the use of alternate resources.
(ii) Economically usage of commodities
(iii) Proper utilisation of scarce resources
(iv) To be conscious to live within limited budget of available commodities
23.
i) Responsibility to use resources
ii) Care for his customers
iii) Adaptability
iv) Commitment to serve the stakeholders in a better manner.
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