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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.

Medium · Level 5 · 25 questions

Practice questions

01If a company depends only on old success and does not observe new customer trends what is the weakness?

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Answer and explanation

02Which option gives the most balanced summary of features of business environment?

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03Which feature of business environment shows that it is the combined effect of many external forces?

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Answer and explanation

04When a change in customer preferences affects production planning which feature is shown?

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Answer and explanation

05A change in tax policy affects almost all industries. Which feature is this?

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Answer and explanation

06A change in technology reduces cost and also changes customer expectations. This is an example of which feature?

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07Trends change quickly in the fashion industry. Which feature of business environment does this show?

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Answer and explanation

08A company cannot accurately predict the impact of a new regulation. Which feature is this?

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09One event affects sales cost profit and brand image in different ways. Which feature does this indicate?

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10A technology is new in India but common in Japan. Which feature is this?

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11Which statement best explains the dynamic nature of business environment?

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12Delay by a supplier stops production. This is an example of which type of external force?

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13Rising inflation affects raw material and wage cost. This is an example of which external force?

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14A change in social values changes both product demand and advertising style. Which feature is shown?

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15Why is it difficult to understand the business environment?

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16A successful model of a company does not give the same result in another country. This is an example of which feature?

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17A firm had to change its pricing policy due to entry of a new competitor. This is the effect of which force?

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18Law technology society and economy together affect business. Which feature is this?

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19Which example shows uncertainty of business environment?

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20Growth of digital payments changed stores sales process and accounting method. Which feature is related to this?

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21Which is the correct group of specific forces in business environment?

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22Which is the correct group of general forces in business environment?

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23Which statement correctly states the relativity of business environment?

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24If the government makes pollution rules stricter and firms adopt new technology which feature is shown?

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Answer and explanation

25Because of which feature managers cannot draw only one simple meaning of environment?

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Answer and explanation

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