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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.

Medium · 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. Legal and economic environment
  2. Only natural environment
  3. Only customer environment
  4. Only advertising environment
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  1. Legal environment
  2. Natural environment
  3. Cultural environment
  4. Internal environment
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  1. Because product and marketing decisions are affected by it
  2. Because tax laws stop because of it
  3. Because banks close because of it
  4. Because account book ends because of it
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  1. Flexible and realistic plan
  2. Plan without information
  3. Plan based only on guess
  4. Plan without goal
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  1. Preparation to face competition
  2. Preparation for tax evasion
  3. Compulsion to remove employees
  4. Plan to sell assets
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  1. Legal and technological pressure
  2. Social and cultural pressure
  3. Only internal managerial pressure
  4. Only economic pressure
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  1. It is a set of external forces
  2. It is always fully under business control
  3. It can show both opportunities and threats
  4. It changes with time
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  1. Customers
  2. Trade union
  3. Weather
  4. National income
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  1. Policy support
  2. Internal error
  3. Employee absence
  4. Shop decoration
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  1. Socio-cultural environment
  2. Economic accounting
  3. Internal control
  4. Financial statement
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  1. Because it can affect production cost and location decisions
  2. Because it only decides logo colour
  3. Because it decides employees age
  4. Because it changes accounting headings
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  1. Social environment
  2. Legal environment
  3. Natural environment
  4. Internal accounting
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  1. Legal environment
  2. Social environment
  3. Natural environment
  4. Technological environment
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  1. Because it represents the total effect of many external forces
  2. Because it represents only customer
  3. Because it only tells number of machines
  4. Because it only tells salary expense
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  1. External threat
  2. Internal strength
  3. Accounting gain
  4. Office opportunity
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  1. Relativity
  2. Stability
  3. Full control
  4. Uniformity
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  1. Not understanding technological change in environment
  2. Forgetting employee birthdays
  3. Choosing wrong building colour
  4. Changing accounting year
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  1. Particular customer
  2. Competitor
  3. Tax policy of the whole country
  4. Supplier
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  1. Getting first mover advantage
  2. Ending law
  3. Stopping wages
  4. Hiding accounts
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  1. Because priorities are set according to external opportunities
  2. Because all expenses become compulsory
  3. Because production stops automatically
  4. Because customer needs end
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  1. It is a changing and interrelated set of external forces that affects business
  2. It is only the private plan of owner
  3. It is only factory machines
  4. It is only calculation of profit
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  1. Internal rules
  2. Business environment
  3. Office structure
  4. Personal goals
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  1. Government
  2. Customers
  3. Company owner
  4. Accounts department
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  1. Social environment
  2. Legal environment
  3. Natural environment
  4. Internal environment
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  1. Technological environment
  2. Political environment
  3. Cultural environment
  4. Natural environment

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