1.         There are an estimated 1,500 bacteria per square centimeter of skin on one’s hand. One of the best ways to prevent bacteria related illnesses and other infectious disease is to wash our hands with soap and water. While almost everyone has heard this message, studies have shown that people still are not washing their hands, be it children, adults or aged people.

In India, especially South India, as well as other parts of the world, eating with our hands is part of the culture. Though many may view this custom as uncivilized, the practice is not as easy as it may look. There is in fact a skill to it and manners to follow. There are also several health benefits from eating with your hands such as it improves digestion and prevention of diabetes. Which dimension of business environment is highlighted in the above two paragraphs?

(a)        Technological and Social respectively

(b)        Social and Economic respectively

(c)        Social and Technological respectively

(d)        Social in both paragraphs

Ans:  (d) Social in both paragraphs

2.         The number of retail outlets selling silk and cotton sarees are much more in number in Chennai than in Delhi, due to more demand of sarees in Chennai. Which characteristic of Business Environment is reflected here?

(a)        Inter-relatedness                      (b) Dynamic

(c) Complexity                                     (d) Relativity

Ans: (d) Relativity

3.         GST (Goods and Service Tax) is a land mark step in the history of India  by rationalizing taxation. GST is going to be a changer for the country’s economy and promote ease of doing business. It will mark a paradigm shift in the nation’s business environment. Identify the components of business environment.

(a)        Legal and Economic Environment

(b)        Political and Legal Environment

(c)        Social and Legal Environment

(d)        Economic and Social Environment

Ans: (a) Legal and Economic Environmen

4.         Many businesses are using social media like face book and twitter to promote themselves. This is an example of which dimension of Business environment:

(a)        Social                                       (b) Economic

(c)        Legal                                        (d) Technological

Ans: (d) Technological

5.         In winters the demand for woolens rises. This is an example of which feature of Business Environment:

(a)        Dynamic nature                       (b) Inter-relatedness

(c)        Complexity                  (d) Uncertainty

Ans. (b) Inter-relatedness

6.         Recently the government has decontrolled the price of Diesel. This is an example of:

(a)        Privatisation                 (b) Globalisation

(c)        Liberalisation               (d) Nationalisation

Ans: (c) Liberalisation

7.         FERA was replaced by FEMA, a step taken by Government under:

(a)        Privatisation                             (b) Industrialisation

(c)        Globalisation                           (d) Liberalisation

Ans: (d) Liberalisation

8.         Devaluation of Indian rupee and the inflation in the economy are the examples

of which dimension of business environment

(a)        Political environment               (b) Legal environment

(c)        Economic environment                        (d) Technological environment

Ans: (c)            Economic environment          

9.         ......... refers to removal of unnecessary and industrrefers to removal of unnecessary control and restrictions for smooth functioning of business and industry.

(a)        Globalization                           (b) Modernisation

(c) Privatization                                               (d) Liberalisation

Ans: (d) Liberalisation

10.       The government has recently announced the opening of multibrand retail to foreign direct investment. Which dimension of change in Business Environment does this represent?

(a) Economic Environment                              (b) Political Environment

(c) Legal Environment                                     (d) Social Environment

Ans: (a)            Economic Environment

11.       ‘Reduction in taxes rates and lifting of unnecessary controls over the economy’ is an example of:

(a)        Privatization                                         (b) Globalization

(c)        Liberalization                                       (d) Capitalization

Ans: (c)            Liberalization

12.       Which of the following is NOT an impact of Government Policy changes on Business and Industry?

(a)        Increasing Competition            (b) Increasing enrolment in schools

(c)        Market Orientation       (d) More demanding customers

Ans. (b) Increasing enrolment in schools