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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 4 · 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. Only employee mistake
  2. Effect of natural external condition on business
  3. Only owner's personal preference
  4. Effect of office colour
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  1. Because it tells only office objects
  2. Because it tells owner's personal interest
  3. Because age and population structure can affect demand
  4. Because it has no relation with market
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  1. Because both can directly affect business
  2. Because both are employees inside company
  3. Because both are natural weather
  4. Because both are irrelevant
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  1. Complete stability
  2. Dynamism and uncertainty
  3. Only internal control
  4. Physical office
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  1. Including effect of customer income
  2. Including effect of government policy
  3. Including effect of competitor price
  4. Treating owner's personal meal as a main external force
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  1. When it affects decision, cost, demand or risk
  2. When it only entertains
  3. When it is unrelated to business
  4. When it is only personal interest
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  1. Only employee benefit
  2. Effect of external policy on cost and price
  3. Only office cleaning
  4. Only personal capital
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  1. It is an effective group of external forces
  2. It affects business decisions
  3. It is limited only to economic factors
  4. It can create opportunities and threats
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  1. Outcome-based analysis of external forces
  2. Only internal accounting check
  3. Office decoration
  4. Employee entertainment
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  1. Product design and promotion message
  2. Only wall painting
  3. Only owner's personal holiday
  4. Only office lock
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  1. Complete
  2. Partial
  3. Fully external
  4. Fully controllable
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  1. Because business has limited control over external forces
  2. Because external forces do not exist
  3. Because customers never change
  4. Because government makes no rules
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  1. Because environment affects only papers
  2. Because external forces can change both planning and outcomes
  3. Because performance is only internal
  4. Because decisions are unrelated to environment
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  1. Health awareness rises in society and a major customer demands low-sugar product
  2. One chair breaks in office
  3. Owner buys a new pen
  4. Employee's file is lost
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  1. Identification of opportunities
  2. Control of only internal production costs
  3. Decision regarding only office decoration
  4. Following only the owner's personal preference
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  1. Technology change reduces cost and lower price increases demand
  2. Company wall is white
  3. Owner goes home
  4. Employee drinks water
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  1. Revising strategy after observing changing policy and demand
  2. Always ignoring external changes
  3. Treating customer need as irrelevant
  4. Keeping the same plan in every situation
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  1. Social entertainment
  2. Economic external effect
  3. Only internal mistake
  4. Office arrangement
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  1. Because technology can also change customer behaviour, distribution and competition
  2. Because technology has no relation with business
  3. Because technology always remains fixed
  4. Because machines are never useful
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  1. Effect on cost, product and process
  2. Only owner's personal time
  3. Only office wall
  4. Only employee tea
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  1. It is only external crisis
  2. It is an overall group of external, dynamic and influential forces
  3. It is only company's assets
  4. It is only office arrangement
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  1. Only record keeping process
  2. Only internal control
  3. Linking external forces with strategic decisions
  4. Only office expense
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  1. Only internal accounting check
  2. Integrated analysis of external forces
  3. Only employee attendance control
  4. Decision of office decoration
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  1. Only internal production control
  2. Integrated analysis of external forces
  3. Only employee training
  4. An office-arrangement decision
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  1. Complete understanding
  2. Partial understanding
  3. Dynamic understanding
  4. Fully controllable understanding

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