MCQs From Business Environment

 (MCQs)** from Business Environment"** chapter 

*Business Environment – MCQs with Answers**

1. **Which of the following is not a feature of the business environment?**

   a) Uncertainty

   b) Complexity

   c) Static nature

   d) Interrelatedness

   **Answer:** c) Static nature

2. **Which type of business environment includes factors like inflation, interest rates, and taxation?**

   a) Social environment

   b) Political environment

   c) Economic environment

   d) Legal environment

   **Answer:** c) Economic environment

3. **Which of the following is an example of the legal environment?**

   a) Values in society

   b) Consumer Protection Act

   c) Inflation

   d) Government stability

   **Answer:** b) Consumer Protection Act

4. **Which component of business environment affects the lifestyle, customs, and values of society?**

   a) Technological

   b) Political

   c) Economic

   d) Social

   **Answer:** d) Social

5. **Liberalisation, Privatisation, and Globalisation are related to:**

   a) Political environment

   b) Economic reforms of 1991

   c) Legal changes

   d) Corporate restructuring

   **Answer:** b) Economic reforms of 1991

6. **Which dimension of the business environment includes new innovations and inventions?**

   a) Social

   b) Economic

   c) Technological

   d) Legal

   **Answer:** c) Technological

7. **Which of the following best describes "business environment"?**

   a) Internal factors affecting business

   b) All controllable factors

   c) External forces affecting business decisions

   d) Competitor analysis

   **Answer:** c) External forces affecting business decisions

8. **Political environment includes:**

   a) Interest rates and inflation

   b) Consumer trends

   c) Government stability and policies

   d) Labour laws

   **Answer:** c) Government stability and policies

9. **Which of the following is an example of a political environment factor?**

   a) Population growth

   b) Government taxation policy

   c) Inflation rate

   d) Availability of natural resources

   **Answer:** b) Government taxation policy

10. **Which of the following is not a part of the economic environment?**

    a) Rate of interest

    b) Value system

    c) Inflation rate

    d) Industrial policy

    **Answer:** b) Value system

11. **Which reform aimed at reducing the role of the public sector and increasing private sector participation?**

    a) Social reform

    b) Privatisation

    c) Liberalisation

    d) Globalisation

    **Answer:** b) Privatisation

12. **Which policy allowed foreign companies to enter Indian markets freely?**

    a) Fiscal policy

    b) Monetary policy

    c) Globalisation

    d) Nationalisation

    **Answer:** c) Globalisation

13. **The social environment of business includes:**

    a) Consumer laws

    b) Technological advancements

    c) Customs and traditions

    d) Capital market trends

    **Answer:** c) Customs and traditions

14. **Technological environment includes:**

    a) Values and beliefs

    b) Innovations and automation

    c) Political instability

    d) Income levels

    **Answer:** b) Innovations and automation

15. **Which of the following is not a dimension of the business environment?**

    a) Economic

    b) Cultural

    c) Legal

    d) Technological

    **Answer:** b) Cultural

16. **The process of integration of Indian economy with the world economy is called:**

    a) Liberalisation

    b) Privatisation

    c) Globalisation

    d) Specialisation

    **Answer:** c) Globalisation

17. **Liberalisation means:**

    a) More government control

    b) Relaxation of government rules and regulations

    c) Growth of the public sector

    d) Increase in taxes

    **Answer:** b) Relaxation of government rules and regulations

18. **Legal environment includes:**

    a) Political parties

    b) Laws such as Companies Act, Labour Laws

    c) Interest rates

    d) Social values

    **Answer:** b) Laws such as Companies Act, Labour Laws

19. **Why is business environment called dynamic?**

    a) It is rigid and fixed

    b) It keeps changing

    c) It is always favourable

    d) It is controlled by business managers

    **Answer:** b) It keeps changing

20. **Which is not a feature of the business environment?**

    a) Interrelated elements

    b) Dynamic nature

    c) Predictability

    d) Complexity

    **Answer:** c) Predictability

21. **Opportunities and threats to business are provided by:**

    a) Business policy

    b) Government support

    c) Business environment

    d) Market share

    **Answer:** c) Business environment

22. **The business environment helps in:**

    a) Avoiding competitors

    b) Identifying future problems

    c) Coping with rapid changes

    d) Building public image

    **Answer:** c) Coping with rapid changes

23. **Which of the following dimensions of the environment affects business due to changes in family structures and roles of women?**

    a) Economic

    b) Social

    c) Technological

    d) Legal

    **Answer:** b) Social

24. **The New Economic Policy in India was introduced in the year:**

    a) 1981

    b) 1991

    c) 2001

    d) 1975

    **Answer:** b) 1991

25. **Which of the following is an impact of globalisation on Indian business?**

    a) Decrease in competition

    b) Inflow

 of foreign capital and technology

    c) Increase in trade barriers

    d) Monopolistic control of public sector

    **Answer:** b) Inflow of foreign capital and technolog