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Subjects

Business Studies

Features of business environment

In Class 12 Business Studies, this topic from the chapter “Business Environment” explains the main features of the forces that influence business decisions and performance. Students learn that the business environment is the totality of external factors, including specific forces such as customers and competitors and general forces such as economic, social, political, legal and technological conditions. The topic also covers their interrelatedness, dynamic nature, uncertainty, complexity and relativity, helping learners understand why businesses must continuously monitor and respond to environmental changes.

Expert · Level 2 · 25 questions

Practice questions

01Which statement gives the correct relation between totality and complexity?

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02A mobile company improved camera because young customers were creating video content and competitors were selling the same feature. Which forces are affecting it?

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03A company expected cost reduction from new technology but cyber risk and training expense increased. Which feature is shown?

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04In which example is the indirect effect of a general force clearest?

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05An insurance company changes premium after considering pandemic risk hospital cost government directions and customer fear together. Which feature is shown?

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06For a software company foreign client demand directly sets priority while currency rate indirectly changes profit. Which difference is shown?

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07In which situation can complexity lead to a wrong conclusion?

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08An electric vehicle company must consider battery import policy, charging network, electricity tariff, customer trust and competitor prices together. This is a deep example of which feature?

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09A news platform added a short video feature because young readers were changing and advertisers demanded a new content style. Which feature is shown?

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10In which example is the cause chain of interrelatedness strongest?

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11The same fuel price rise harms a logistics company and gives opportunity to a bicycle manufacturer. Which feature does this clarify?

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12In which situation should a manager make a contingency plan due to uncertainty?

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13A food company is affected together by nutrition label rules retail shelf policy and consumer health awareness. Which feature is applied?

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14A hotel chain emphasized safety and weather in a hill area but convenience and speed in a metro city. This is a managerial use of which feature?

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15Which option correctly shows the external nature and limited control of business environment?

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16A hospital equipment maker must understand doctors preferences government purchase rules technical certification and patient safety concerns together. This is the best example of which feature?

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17A company thought a new law would only increase cost but customers treated compliance as a sign of trust. Which feature is shown?

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18In which situation would general force and specific force be incorrectly identified?

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19A manufacturing company revised machines process worker training and brand message after pollution standards changed. Which feature is most appropriate?

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20An online learning company sales change together due to exam date parents income internet availability and competitor discounts. This requires analysis of which feature?

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21A company follows cash payment model in an old market but adopts digital subscription model in a new urban market. Which feature does it accept?

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22In which example are dynamism and interrelatedness of external environment shown together?

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23A company forecast upcoming demand but raw material was not available due to sudden import restriction. Which feature is tested here?

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24A market researcher said linking sales fall only to inflation is wrong because distribution channel changed and customer trust also fell. Which feature is he emphasizing?

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25For an agricultural equipment company weather credit availability government subsidy farmer income and local dealer network together determine demand. Which is the most correct conclusion?

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