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Subjects

Business Studies

Meaning of business environment

In Class 12 Business Studies, this topic explains the meaning of the business environment—the totality of external forces, conditions and institutions that influence how a business operates and makes decisions. Students understand why a business cannot function in isolation and how changes in economic, social, political, legal, technological and competitive conditions can create opportunities or challenges. It provides a clear foundation for studying the features and importance of the Business Environment chapter.

Hard · Level 2 · 25 questions

TOPIC PRACTICE

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Up to 25 questions from this page. Select your focus, then start.

25 questions

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  1. Losing bank passbook
  2. Demand for cloth bags rises due to growing anti-plastic values in society
  3. Office window breaking
  4. Owner changing private car
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  1. Because it only indicates manager's table
  2. Because it only indicates company's cash records
  3. Because the main influence comes from outside the boundary of business
  4. Because no decision is affected by it
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  1. Business environment is only employees' capability
  2. Internal environment is only government policy
  3. There is no difference between both
  4. Business environment focuses on external forces and internal environment focuses on forces within the organisation
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  1. Multi-factor external analysis
  2. Employee discipline only
  3. Accounting matching only
  4. Machine maintenance only
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  1. It shows that not every outside object but influential external elements matter
  2. It shows that only office decoration matters
  3. It shows that business is not affected
  4. It shows that only owner's preference matters
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  1. When it brings market change
  2. When it affects cost
  3. When it has no real effect on business decision
  4. When it changes legal rule
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  1. Only chairs kept inside company
  2. Only employees' personal items
  3. Only owner's holidays
  4. Economic, social, technological, political and legal external situations
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  1. External standards affect product decisions
  2. Product design is always decided by internal taste
  3. Customer safety rules are irrelevant
  4. Business need not follow any external rule
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  1. Regular monitoring of changes
  2. Ignoring all external information
  3. Keeping the same plan forever
  4. Having no contact with customers
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  1. Business changes its strategy according to external changes
  2. Business stops every external change
  3. Business sticks only to old rules
  4. Business always ignores customers
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  1. Identifying threat
  2. Identifying opportunity
  3. Full control
  4. Internal decoration
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  1. Customers reduce orders and recession also lowers market demand
  2. Company buys a new pen
  3. Owner changes his chair
  4. Office clock stops
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  1. Because every change is equally beneficial for all
  2. Because external changes can bring possibility of benefit or loss
  3. Because risk is only internal
  4. Because opportunity has no relation with environment
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  1. Company observes both customer income and inflation
  2. Company includes changing technology in product planning
  3. Company monitors competitors' prices
  4. Company assumes external environment never changes
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  1. Because business environment is concerned only with government penalties
  2. Because external factors can also create opportunities for a business
  3. Because a business never faces any threat from external factors
  4. Because market conditions always remain stable
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  1. Chain of economic external influence
  2. Office discipline only
  3. Personal decision only
  4. Decoration change only
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  1. A supplier delays and interest rate also rises
  2. Owner buys a new pen
  3. Employee changes chair
  4. Office door is closed
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  1. Study of all external influences
  2. Study of economic, social and legal factors
  3. Totality of forces affecting business
  4. Study of tax rates only
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  1. Customer taste is an external market force
  2. Customer taste is only a company machine
  3. Customer taste never affects demand
  4. Customer taste always remains stable
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  1. Business always wins all opportunities
  2. Market response may be late and opportunities may be missed
  3. External threats end automatically
  4. Customer demand always remains same
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  1. An external clue showing change in demand, price or competition
  2. Only office bell
  3. Only company seal
  4. Only owner's private voice
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  1. Employee changes his bag
  2. Company buys a new machine without seeing market
  3. Competitor launches artificial intelligence based service affecting old service providers
  4. Calendar is placed on office wall
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  1. Only information about office decoration
  2. External information that can change cost, demand or rules
  3. Owner's personal holiday information
  4. Employee's personal colour preference
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  1. It is only the internal arrangement of company
  2. It is only another name for economic recession
  3. It is only a list of government laws
  4. It is a dynamic, complex and influential group of external forces
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  1. Because understanding their effect on business is also necessary
  2. Because external forces never change
  3. Because all outside objects have the same effect
  4. Because business runs only by internal cost

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