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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.

Hard · Level 2 · 25 questions

TOPIC PRACTICE

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25 questions

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  1. Relativity
  2. Dynamic nature
  3. Totality
  4. Specific force
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  1. Price income customer trust and competitor promotion all play a role in declining sales
  2. Company bought one table
  3. Employee wore identity card
  4. Old receipt was kept in a file
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  1. Only increasing advertisement expenditure
  2. Deciding only on one customer's opinion
  3. Forming strategy by considering demand competition law technology and social trends together
  4. Removing old files
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  1. Totality
  2. Uncertainty
  3. Relativity
  4. Internality
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  1. Company can analyse once and fix decisions forever
  2. External signals keep changing so monitoring and response must be continuous
  3. Customers never respond
  4. Government policy remains separate from business
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  1. Totality
  2. Complete control
  3. Stability
  4. Internal accounting
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  1. A competitor opened a shop on the same road
  2. Main customer complained
  3. Inflation increased reducing consumer spending and affecting demand in many sectors
  4. One supplier arrived late
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  1. Stability
  2. Specific force
  3. Complete certainty
  4. Relativity
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  1. Uncertainty is difficulty of future prediction and complexity is difficulty of combined impact of many components
  2. Uncertainty is only internal salary and complexity is only office colour
  3. Both mean complete stability
  4. Both are only legal terms
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  1. A company wants to enter a new industry where law technology customer preference and capital cost are changing
  2. Company only has to replace an old chair
  3. Company has to label files
  4. Company has to clean office
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  1. Only cost accounting
  2. First mover advantage and opportunity identification
  3. Complete risk elimination
  4. Internal discipline
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  1. Company ignored new environmental rules
  2. Company discontinued old products and launched green products according to rules
  3. Company removed customer complaints
  4. Company stopped market study
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  1. Interrelatedness
  2. Relativity
  3. Specific force
  4. Externality
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  1. New data security policy requires marketing customer service and information systems to change processes
  2. Company bought a file cabinet
  3. Employee drank water
  4. Office calendar was changed
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  1. Customer preferences may change over time
  2. New technology may change business methods
  3. Business conditions always remain the same and unchanged
  4. Changes in government policy may affect business
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  1. Both are specific forces
  2. Customer is general force and social value is specific force
  3. Customer is specific force but social value change is general force
  4. Both are internal forces
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  1. Company changes product design price and distribution together based on market signals
  2. Company reads a report and changes nothing
  3. Company ignores customer feedback
  4. Company invests only by guesswork
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  1. Stability and internality
  2. Dynamism and uncertainty
  3. Totality and complete control
  4. Specific force and stability
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  1. Company sold the same product in all cities without change
  2. Company sold warm clothes in hilly areas and light clothes in coastal areas
  3. Company ignored customer income
  4. Company ran the same advertisement everywhere without study
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  1. It is the combined effect of many forces outside the company
  2. It is only the private wish of owner
  3. It is only salary policy
  4. It is only the group of factory machines
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  1. Excess of relativity
  2. Excess of internal control
  3. Ignoring interrelatedness and total impact
  4. Correct use of specific force
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  1. Dynamic and complex nature
  2. Complete stability
  3. Only internality
  4. Only accounting
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  1. Company treats rising demand for sustainable products as temporary and does not invest
  2. Company conducts customer survey and improves product
  3. Company complies with new policy on time
  4. Company monitors competitor activity
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  1. New rule may stop sale of old product if the company does not modify it on time
  2. Employee took leave
  3. Company purchased stationery
  4. Office lighting is low
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  1. It is only another name for customer list
  2. It is a changing complex interrelated and relative group of external forces due to which future is not fully certain
  3. It is a stable process inside the company
  4. It is limited only to government rules

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