Balbharti Maharashtra State Board 11th OCM Important Questions Chapter 7 Business Environment Important Questions and Answers.
Maharashtra State Board 11th Commerce OCM Important Questions Chapter 7 Business Environment
Select the correct option and rewrite the sentence
Question 1.
……………….. indicates the importance of the business environment.
(a) Identifying opportunities and threats
(b) Identifying firm’s strength and weakness
(c) both (a) and (b)
Answer:
(c) both (a) and (b)
Question 2.
……………….. is an example of the social environment.
(a) Gross Domestic Product
(b) Consumer Protection, Act
(c) Customs and beliefs
Answer:
(c) Customs and beliefs
Question 3.
Liberalisation means ………………..
(a) reduced government controls and restrictions
(b) integration of economies
(c) policy of planned disinvestment
Answer:
(a) reduced government controls and restrictions
Question 4.
……………….. explains the impact of Government policy changes on business and industry.
(a) More demanding customers
(b) License system
(c) More industries for public sector
Answer:
(a) More demanding customers
Question 5.
……………….. environment consist of the methods and techniques adopted for production.
(a) Legal
(b) Political
(c) Technological
Answer:
(c) Technological
Question 6.
The policies decided by shareholders, managers, labour unions and the employees are known as ………………..
(a) Internal environment factors
(b) External environment factors
(c) International factors
Answer:
(a) Internal environment factors
Question 7.
……………….. is very powerful because powers such as policy making, law making, budget approving, etc. are in its hands.
(a) Government
(b) Judiciary
(c) Legislature
Answer:
(c) Legislature
Question 8.
……………….. economy is known as free market economy.
(a) Socialist
(b) Capitalist
(c) Mixed
Answer:
(b) Capitalist
Question 9.
……………….. does not involve an equal division of existing wealth among the people.
(a) Capitalist Economy
(b) Socialist Economy
(c) Mixed Economy
Answer:
(b) Socialist Economy
Question 10.
Globalisation includes ………………..
(a) Minimising high import tariffs
(b) Introduction of selective competition in the reserved area
(c) Reduction in physical restrictions on import and import duties.
Answer:
(a) Minimising high import tariffs
Question 11.
Changes in the fiscal policy of the Government is an aspect of ……………….. environment.
(a) Political
(b) Social
(c) Economic
Answer:
(c) Economic
Question 12.
Changes in the judicial system is an aspect of ……………….. environment.
(a) Economic
(b) Social
(c) Legal
Answer:
(c) Legal
Question 13.
Privatisation implies reduction in the role of ……………….. sector.
(a) Public
(b) Private
(c) Joint
Answer:
(a) Public
Question 14.
Level of literacy is an aspect of ……………….. environment.
(a) Economic
(b) Social
(c) Political
Answer:
(b) Social
Question 15.
Changes in the ruling government is an aspect of ……………….. environment.
(a) Economic
(b) Social
(c) Political
Answer:
(c) Political
Match the pairs
Question 1.
| Part A | Part B |
| (a) Globalisation | (1) Reduced role of Public sector |
| (b) Privatisation | (2) Digital India |
| (c) Liberalisation | (3) Competition Act, 2002 |
| (d) Technological Environment | (4) Mining of coal |
| (e) Natural Environment | (5) Integration of world economies |
| (6) Increased role of public sector | |
| (7) Exercising controls | |
| (8) Occupation of people | |
| (9) Differentiation of economies | |
| (10) Removing unnecessary controls |
Answer:
| Part A | Part B |
| (a) Globalisation | (5) Integration of world economies |
| (b) Privatisation | (1) Reduced role of Public sector |
| (c) Liberalisation | (10) Removing unnecessary controls |
| (d) Technological Environment | (2) Digital India |
| (e) Natural Environment | (4) Mining of coal |
Question 2.
| Part A | Part B |
| (a) Internal Environment | (1) Stability and peace in the country |
| (b) Social Environment | (2) Value System |
| (c) Political Environment | (3) Monetary Policy |
| (d) Economic Environment | (4) Indian Contract Act, 1872 (2017) |
| (e) Legal Environment | (5) Customs and Traditions |
| (6) Digital India |
Answer:
| Part A | Part B |
| (a) Internal Environment | (2) Value System |
| (b) Social Environment | (5) Customs and Traditions |
| (c) Political Environment | (1) Stability and peace in the country |
| (d) Economic Environment | (3) Monetary Policy |
| (e) Legal Environment | (4) Indian Contract Act, 1872 (2017) |
Question 3.
| Part A | Part B |
| (a) Privatisation | (1) Management |
| (b) Internal Environment | (2) National economy |
| (c) Liberalisation | (3) Values and demographic trends |
| (d) Political Environment | (4) Disinvestment |
| (e) Globalisation | (5) Delicensing |
| (f) Legal Environment | (6) World Economy |
| (g) Social Environment | (7) National Income Distribution |
| (h) Economic Environment | (8) Judicial System |
Answer:
| Part A | Part B |
| (a) Privatisation | (4) Disinvestment |
| (b) Internal Environment | (1) Management |
| (c) Liberalisation | (5) Delicensing |
| (d) Political Environment | (2) National economy |
| (e) Globalisation | (6) World Economy |
| (f) Legal Environment | (8) Judicial System |
| (g) Social Environment | (3) Values and demographic trends |
| (h) Economic Environment | (7) National Income Distribution |
Write a word or a term or a phrase which can substitute each of the following statements
Question 1.
Controllable factor of the business environment
Answer:
Internal environment
Question 2.
The environment of business that includes economic condition, policies and system, basic philosophy, national income, money supply, trade cycle economic development.
Answer:
Economic environment
Question 3.
The environment of business that includes stability and peace in the country, specific attitudes of selected representative.
Answer:
Political environment
Question 4.
The environment of business which consist of factors such as climate, minerals, soil, landforms, rivers and oceans etc.
Answer:
Natural environment
Question 5.
The environment of business which consist of the methods and techniques adopted for production.
Answer:
Technological environment
Question 6.
The environment of business which regulates and controls within the legal framework of a country.
Answer:
Legal environment
Question 7.
The process of eliminating unnecessary controls and restrictions for smooth functioning of business.
Answer:
liberalization
Question 8.
The process of integration of national economy with world through cross country information, ideas, technologies, goods, services and people.
Answer:
Globalization
Question 9.
The process of reducing the involvement of state or public sectors by involving of private sector in economic activities.
Answer:
Privatization.
State whether the following statements are True or False
Question 1.
Internal factors of business environment are uncontrollable factors.
Answer:
False
Question 2.
Business and Environment are independent.
Answer:
False
Question 3.
Social Environment is not important for business.
Answer:
False
Question 11.
Business Environment consists of internal as well as external factors.
Answer:
True
Question 4.
All business from are affected by the government and its policies.
Answer:
True
Question 5.
Liberalization of Indian economy resulted into easy entry of foreign business in India.
Answer:
True
Question 6.
Privatisation is an effective tool for restriction and reforming the public sector.
Answer:
True
Find the odd word out
Question 1.
Legislature, Government Shareholders.
Answer:
Shareholders
Question 2.
Social, Employees, Legal.
Answer:
Employees
Question 3.
Judiciary, Social values, Traditions.
Answer:
Judiciary
Question 4.
Value system, Human Resources, Marketing Resources.
Answer:
Marketing Resources
Question 5.
Liberalization, Socialization, Globalization.
Answer:
Socialization,
Question 6.
Technological, Weather, Climate.
Answer:
Technological
Question 7.
Social aspects, Economical aspect, Traditions.
Answer:
Economical aspect
Question 8.
Capitalist Economy, Mixed Economy, Indian Economy.
Answer:
Indian Economy
Question 9.
Indian Contract Act 1872, Indian Partnership Act 1932, Industrial Dispute Act 1947.
Answer:
Indian Partnership Act, 1932
Question 10.
Natural Environment, Economic Environment, Political Environment.
Answer:
Natural Environment.
Complete the sentence
Question 1.
The business environment constitute threats to the firm and offers ………………… for potential market.
Answer:
opportunities
Question 2.
Every society develops its own ………………… which means how the members of that society between and interact with each other.
Answer:
culture
Question 3.
Indian political system comprises of three vital institution like …………………, ………………… and Judiciary.
Answer:
Legislature, Government
Question 4.
………………… changes are fast and to keep pace with it, business should be ever alert.
Answer:
Technological
Question 5.
All nation would be interdependent in the ………………… economy.
Answer:
Global.
Select the correct option
Question 1.
Which analysis will enable managers to deal with business challenges?
(Environmental / Data / Political)
Answer:
Environmental
Question 2.
Which factor of Business Environment are regarded as uncontrollable?
(Internal / External)
Answer:
External
Question 3.
Trade and commerce between two nations are dependent on which factors?
(Social / Geographic / Technological)
Answer:
Geographic
Question 4.
Which is the most powerful institution in the Indian Political system?
(Legislature / Government / Judiciary)
Answer:
Legislature
Question 5.
In which economic system factors of productions are organized .managed and oriented by government?
(Capitalist / Socialist / Mixed)
Answer:
Socialist
Question 6.
Which economic system is followed in India?
(Capitalist / Socialist / Mixed)
Answer:
Mixed
Question 7.
Which of the following has created on economically interdependent international environment?
(Liberalisation / Privatisation / Globalisation)
Answer:
Globalisation
Correct the underline word and rewrite the following sentence
Question 1.
Internal factors of Business Environment are uncontrollable.
Answer:
External factors of Business Environment are uncontrollable.
Question 2.
External factor of business are controllable.
Answer:
Internal factor of business are controllable.
Question 3.
Vision, mission and objectives of business are related to External factors.
Answer:
Vision, mission and objectives of business are related to Internal factors.
Question 4.
Social trends and social values are part of economic environment.
Answer:
Social trends and social values are part of social environment.
Question 5.
Factors like climate, minerals, soil, river, etc. are elements of political environment.
Answer:
Factors like climate, minerals, soil, river, etc. are elements of natural environment.
Question 6.
Socialist Economy is also known as free market economy.
Answer:
Capitalist Economy is also known as free market economy.
Question 7.
GST is part of political environment.
Answer:
GST is part of legal environment.
Question 8.
Privatisation has resulted into easy of foreign business in India.
Answer:
Liberalisation has resulted into easy of foreign business in India.
Question 9.
Globalisation is an effective tool for restricting and reforming the public sector.
Answer:
Privatisation is an effective tool for restricting and reforming the public sector.
Question 10.
Liberalisation means integration of natural economy with world economic.
Answer:
Globalisation means integration of natural economy with world economic.
Study the following case/situation and express your opinion.
1. Just after declaration of Lok Sabha 2014 result, the Bombay Stock Exchange Sensex rose by 1000 points in a day.
Question 1.
Identify the environmental factor which led to this rise giving reason.
Answer:
Rise in stock market index (sensex) is economic environment. But it has done due to political environment (Lok Sabha Election Results)
Question 2.
Explain any two other dimensions of the environment.
Answer:
Two other dimensions of the environment are (a) Legal environment and (b) Technological environment
2. Government of India is seriously thinking to allow oil marketing under public sector, by fixing their own price for petroleum products.
Question 1.
Name the economic reform related to this decision.
Answer:
Privatization is the economic reform related to this decision.
Question 2.
Name other two reforms recommended in new economic policy.
Answer:
The other two reforms recommended in new Economic policy are Liberalization and Globalization.
3. Today it is common to see computerized information Kiosks and Internet / Word Wide Web multimedia pages highlighting the virtues of products.
Question 1.
Name the dimension of business environment highlighted in this statement.
Answer:
Technological environment
4. An advertisement of baby product giving information to the potential buyers that “Mother Milk is the best”.
Question 1.
Name the component of business environment.
Answer:
Legal Environment.
5. Zero Defect Zero Effect(ZED) is a slogan coined by the PM of India, with reference to the Make in India initiative launched by the government. The Zed model aims to make India the manufacturer of the world and present the products in the global market.
Before the. initiative was launched, the limits of Foreign Direct Investment(FDI) in various sector had been released. The application for licenses was made available Online and various other norms and production were also considered by the government.
Question 1.
From the above, identify the major components of New Economic Policy of 1991.
Answer:
Liberalization and Globalization.
Question 2.
In the light of the above discussion explain the component of NEP 1991.
Answer:
- Liberalization : It refers to the process of eliminating unnecessary controls and restrictions for smooth functioning of business.
- Privatization : It refers to reduce the involvement of state or public sectors by involving of private sector in economic activities.
- Globalization : It refers to integration of national economy and societies through cross country flows of information, ideas, technologies, goods, services, capital, finance and people.
6. It is interesting to know that the menu items of multinational food chains are customized to suit the general palates of the local people in the region. When it started business in India in the year 1996, the company went through a complete location strategy. Me Donald’s changed its product menu to accommodate the vegetable burger given the large population. It priced the products by close to 15%. Also, the Mc-Aloo Tikki burger ‘is not available anywhere but in the Indian outlets of Me Donalds.
Question 1.
Identify the relevant feature of business environment discussed in the case above.
Answer:
Relativity is the feature of business environment discusses in the case above.
Question 2.
State the other features of business environment.
Answer:
- The features of business environment are:
- Determining opportunities and threats
- Identifying firm’s strength and weakness
- Continuous learning
- Image Building
- Meeting Competition
- Giving Direction for growth
7. Ultra paint company which is manufacturing paints has been enjoying a prominent market position as it manufactured best quality paints, made timely payment of taxes to government. It assembled various inputs like finance, machines, raw material, etc. from its environment. But since last year it has been dumping its untreated possessions waste on the river bank which has created many health problems for the people. As a result, the court passed an order to seal the manufacturing unit of the company.
Question 1.
State the importance of business environment highlighted in the above case.
Answer:
Business environment helps in tapping useful resources.
Question 2.
Identify any two dimension of business environment mentioned in the above case and comment.
Answer:
- Social environment : “It has been dumping untreated possession of waste on river bank problems” for people. This shows that it is at the cost of human life as their life is affected.
- Legal Environment : “The court passed on order to seal the company”. It shows that through court interference the company was sealed.
Question 3.
State any two values which have been overlooked by the company.
Answer:
Company overlooked Environment protection, concern for human life, respect for law and order and social responsibility.