Class 12 Business Environment CBSE Questions & Answers

Class 12 · Business Environment

This is Business Studies class 12 Business Environment CBSE Questions & Answers. There are 15 questions in this test with each question having around four answer choices.

Questions & Answers

1
What will be the affect of increase in tax by the government?
  • A
    Increase in profit margin
  • B
    None of these
  • C
    Increase in cost of production
    Correct
  • D
    Creates fear in the minds of investors
2
Increased competition in the market will _____________
  • A
    Increase the profit
  • B
    Increase the cost of production
  • C
    Reduce the profit margin
    Correct
  • D
    Increase the tax
3
Changes in fashions and tastes of consumers will ______________
  • A
    Increase the profit
  • B
    Increase the Sale
  • C
    Shift the market demand from existing product to new ones
    Correct
  • D
    Increase the cost of production
4
Which of the following creates fear in the minds of investors?
  • A
    New innovations
  • B
    Technological improvements
  • C
    None of these
  • D
    Political uncertainty
    Correct
5
Technological improvements and innovations result in________
  • A
    None of these
  • B
    Increase in tax
  • C
    Render existing products obsolete
    Correct
  • D
    Reduction in profit margins
6
Increase or decrease in the value of Rupee is an example of _________
  • A
    Social Environment
  • B
    None of these
  • C
    Economic Environment
    Correct
  • D
    Political Environment
7
Advertisements of cigarettes carry the statutory warning. This is becuase of ___
  • A
    None of these
  • B
    Legal Environment
    Correct
  • C
    Political Environment
  • D
    Social Environment
8
Facebook, Twitter and Whatsapp is the result of ________________
  • A
    Social Environment
  • B
    Technologcal Environment
    Correct
  • C
    None of these
  • D
    Political Environment
9
For the protection of a consumer?s right, there is _____________
  • A
    Consumer Protection Act, 1956
  • B
    Consumer Protection Act, 1932
  • C
    Consumer Protection Act, 1986
    Correct
  • D
    Consumer protection Act 1984
10
Rise in GDP lead to rise in ___________________
  • A
    Increase in new taxes
  • B
    Cost of Production
  • C
    None of these
  • D
    Disposable income of people
    Correct
11
The complete awareness and understanding of business environment is called _________
  • A
    Privatisation
  • B
    Liberalisation
  • C
    Environmental Scanning
    Correct
  • D
    Technological advancement
12
Through Environmental scanning a business firm can enjoy the ___________
  • A
    Competition
  • B
    First Mover Advantage
    Correct
  • C
    Last Mover Advantage
  • D
    Benefit of taxes
13
External environment trends and changes will provide ____________
  • A
    Less Competition
  • B
    Profits
  • C
    Threats
    Correct
  • D
    Goodwill
14
Globalisation aims at _____________
  • A
    Export Promotion
  • B
    Foreign exchange reforms
  • C
    Import liberalisation
  • D
    All of these
    Correct
15
Advance understanding of business environment will help in __________
  • A
    Developing new principles of management
  • B
    Nothing
  • C
    Privatisation
  • D
    Planning and Policy Formulation
    Correct