240+ Business Environment Solved MCQs


A company is affected by two broad set of factors are _________________

A. Local and regional
B. Regional and national
C. Internal and external
D. Financial and non-financial
Answer» C. Internal and external

________ is a statement which derives the role that an organization plays in a society

A. Goals
B. Mission
C. Objective
D. Success
Answer» B. Mission

Economic environment refers to all forces which have a _______impact on business

A. Political
B. Natural
C. Economic
D. Social
Answer» C. Economic

The ________ of the government covers all those principles ,policies,rules and procedures and control the industrial enterprise of the economy.

A. Industrial
B. Fiscal
C. Monetary
D. Macro
Answer» A. Industrial

________ environment is beyond the control of the business

A. Internal
B. External
C. Micro
D. Macro
Answer» B. External

Micro environment is also called as_______

A. General environment
B. Operating environment
C. Economic environment
D. Political environment
Answer» B. Operating environment

________________ environment can be defined as that part of the environment that is concerned with the entire social system.

A. General environment
B. Operating environment
C. Social environment
D. Political environment
Answer» C. Social environment

____________ economy is not owned or managed by the government but owned by private individuals.

A. Social
B. Capitalist
C. Mixed
D. Macro
Answer» B. Capitalist

__________ environment sets the basis for developmental activity of the business system.

A. Financial environment
B. Technology environment
C. Global environment
D. Macro environment
Answer» A. Financial environment

_____________ audit implies a report on the social performance of business unit.

A. Global
B. Local
C. Natural
D. Social
Answer» D. Social

External factors affecting a business environment also be referred to ____factors

A. Controllable
B. Uncontrollable factors
C. Relevant
D. Global
Answer» B. Uncontrollable factors

Study of human population is called as _______ environment

A. Political
B. Social
C. Demographic
D. Economic
Answer» C. Demographic

Which is not the part of compositional characteristics of population?

A. Size and growth
B. Power
C. Density
D. Literacy rate
Answer» B. Power

Which is the one not included in national culture

A. Language
B. Internet
C. Belief
D. Attitude
Answer» B. Internet

Culture spreads from one place to another and such transmission is called as____

A. Difference
B. Reputation
C. Adoption
D. Heritage
Answer» A. Difference

Which of the following migration of population does not change the size of the population?

A. External migration
B. Internal migration
C. International migration
D. National migration.
Answer» B. Internal migration

What is the main occupation of kshatriyas

A. Engaged in cleaning
B. Engaged in trade
C. Engaged in army work
D. None of the above
Answer» C. Engaged in army work

A systematic application of scientific knowledge to practical task is known as_

A. Technology
B. Culture
C. Demographic
D. Legal
Answer» A. Technology

Characteristic of population: calculation of sex ratio (Gender) means

A. Number of females per thousand male
B. Number of males per hundred female
Answer» A. Number of females per thousand male

As per Malthu’s theory growth of population is increase

A. Geometrically
B. Arithmetically
C. Progressively.
D. Drastically
Answer» A. Geometrically

Corporate values are the _______ of the corporate sector

A. Shared values
B. Moral beliefs
C. Customer satisfaction
D. Goodwill
Answer» B. Moral beliefs

The economic system in which business units or factors of production are privately owned and governed is called as _____

A. Capitalism
B. Socialism
C. Democratic
D. Republic
Answer» A. Capitalism

Under ____ economic system, all the economic activities of the country are controlled and regulated by the government in the interest of the Public

A. Capitalism
B. Socialism
C. Democratic
D. Republic
Answer» B. Socialism

The economic system in which both public and private sectors co-exist is known as ____ economy

A. Capitalism
B. Socialism
C. Democratic
D. Mixed
Answer» D. Mixed

Policy regarding population is termed/called as

A. Indian Population policy
B. National population policy
C. Demographic population policy.
D. Population policy.
Answer» B. National population policy

Fiscal policy refers to the policy of government regarding taxation, public expenditure and___

A. Public debt
B. Budgets
C. Policies
D. Deposits
Answer» B. Budgets

--------- is the process of analyzing the environment for the identification of the factors which have implication for the business.

A. Scanning
B. Assessment
C. Evaluation
D. Information
Answer» A. Scanning

Fiscal policy is called as ________policy

A. Monetary
B. Budgetary
C. Industrial
D. Economic
Answer» B. Budgetary

One concept of culture determines the ____________ of people

A. Experience
B. Ethos
C. Education
D. Wealth
Answer» B. Ethos

Self fulfillment and immediate gratification are ____________ cultural values

A. Decreases
B. Rises
C. Diminishes
D. Corporate
Answer» B. Rises

Which condition population remain stable
I. High birthrate and high death rate
II. Low birthrate and high death rate
III. High birthrate and low death rate
IV. Low birthrate and low death rate

A. I & III
B. I & IV
D. All of the above
Answer» B. I & IV

--------- is a very important factor that provides competitive advantage

A. Innovation
B. Modulation
C. Dimension
D. Variation
Answer» A. Innovation

Which can be a method of privatization

A. Denationalization
B. Purchasing shares
C. Takeover
D. Merger
Answer» A. Denationalization

In india liberalization and privatization began from__

A. 1991
B. 1971
C. 1981
D. 1947
Answer» A. 1991

Industrial policy of 1948 aimed at ____

A. Industrialization
B. Growth of agriculture
C. Development of infrastructure
D. Development of service sector
Answer» A. Industrialization

The aim of the private sector is to maximize __________

A. Loss
B. Profit
C. Import
D. Export
Answer» B. Profit

Business are raising/generate fund through

A. Capital market
B. Money market
C. Both
D. None of the above
Answer» C. Both

__________ means the proportion of a nation population living in urban areas.

A. Privatization
B. Globalization
C. Urbanization
D. Liberalization
Answer» C. Urbanization

________ change is a potent fame the reconfiguration of industrial boundaries

A. Technological
B. Economical
C. Organizational
D. Environmental
Answer» A. Technological

What was the period of the 12th five-year plan of India?

A. 2007 to 2012
B. 2012 to 2017
C. 2017 to 2022
D. 2010 to 2015
Answer» B. 2012 to 2017

Corporate contribution to political parties are now been ____________ in our country

A. Legalized
B. Customized
C. Introduced
D. Authorized
Answer» B. Customized

Currently ________ is implemented by government in place of Five year plan.

A. Make in India
B. NITI aayog
C. Skill India
D. PM aayog
Answer» B. NITI aayog

The _____________ is an introduction to the constitution and contains its basic philosophy.

A. Preamble
B. Society
C. Process
D. Service
Answer» A. Preamble

The term fraternity implies the spirit of _________________

A. Brotherhood
B. Judiciary
C. Justice
D. Value
Answer» A. Brotherhood

________ signifies the absence of any arbitrary restraint on the freedom of individual action and creations for the development of personality of The individual.

A. Fraternity
B. Liberty
C. Secularism
D. Socialism
Answer» B. Liberty

Secularism is understood to mean according equal encouragement to all ________

A. Country
B. Ethics
C. Values
D. Religion
Answer» D. Religion

_______ state can have an elected or hereditary head

A. Democratic
B. Autocratic
C. Socialized
D. Republic
Answer» A. Democratic

___________ is a systematic application of scientific or other organized knowledge to practical task.

A. Technology
B. Society
C. Demography
D. Responsibility
Answer» A. Technology

The era of deregulation liberalization begin in _

A. 1950 - 51
B. 1980-81
C. 1991-92
D. 1960-61
Answer» A. 1950 - 51

Identification of companies technological assets that may provide ___________ in new businesses

A. Opportunities
B. Development
C. Failure
D. Authority
Answer» A. Opportunities

Which one of the following is a part of economic environment?

A. Public debt
B. Lifestyle of people
C. Technological changes
D. Level of education
Answer» A. Public debt

Proper understanding of business environment is not a prerequisite for

A. Tapping of useful resources.
B. Identification of opportunities and threats.
C. Formulation of strategies.
D. Better coordination of employee efforts.
Answer» C. Formulation of strategies.

Legal rules and regulations relevant to business are included in ____ environment of business.

A. Legal
B. Political
C. Economic
D. Technological
Answer» A. Legal

India is good example for ________economy

A. Socialist
B. Mixed
C. Capitalist
D. Communist
Answer» B. Mixed

_______ are a primary mechanism for motivating business activities

A. Social relationship
B. Profit
C. Customers
D. Assets
Answer» A. Social relationship

According to whom, business environment is defined as total of all things external to firms and industries which effect their organization and Operations

A. Arthur.m.welmer
B. John wick
C. Bayo
D. o.wheeler
Answer» D. o.wheeler

Business includes ___

A. Non-economic activities
B. Economic activities
C. Social activities
D. Production activities
Answer» B. Economic activities

_______Is vast and fascinating subject for business

A. Technology
B. Profit making
C. Change
D. People
Answer» A. Technology

What is the single word that can best describe todays business

A. Technology
B. Profit making
C. Change
D. People
Answer» C. Change

______ involves freedom of doing business.

A. Globalization
B. Privatization
C. Liberalization
D. None of the Above
Answer» C. Liberalization

Which of the following modern business is dynamic

A. Mass production
B. Mass marketing
C. Mass sales
D. Mass purchase
Answer» B. Mass marketing

Which of the following is not an economic activity

A. A doctor practicing
B. A lawyer practicing law
C. A professional cricketer playing cricket
D. A student playing cricket
Answer» D. A student playing cricket

A valid definition of a business purpose is to __

A. Create a customer
B. Maximize profits
C. Serve the society
D. Increase the wealth in the firm
Answer» A. Create a customer

The Constitution declares India to be a sovereign, socialist, secular, democratic republic, assuring its citizens of justice, equality, and liberty, and endeavours to promote fraternity among them. The words "socialist" and "secular" were added to the definition in year:

A. 1956
B. 1976
C. 1970
D. 1952
Answer» B. 1976

Which of the following is not a fundamental right in the Constitution of India?

A. Right to work
B. Right to Equality
C. Right to Education
D. Right against exploitation
Answer» A. Right to work

____________ environment is very significantly influenced by the world trade organization principles and agreements.

A. Economic
B. Global
C. Legal
D. Political
Answer» B. Global

Fundamental Rights have no value without….

A. Right to Freedom
B. Right to Freedom of Religion
C. Right to Constitutional Remedies
D. Right to Property
Answer» C. Right to Constitutional Remedies

__________ feature of business environment states that various factors of business environment affect each other.

A. Pervasive
B. Continuous
C. Dynamic
D. Interrelatedness
Answer» D. Interrelatedness

Competition is beneficial to the competing firms besides benefiting the ___

A. Producers
B. Intermediaries
C. Finances
D. Consumers
Answer» D. Consumers

___________ is a short-term unsecured promissory note issued by reputed business organisations at a price lower than its face value and redeemable at par.

A. Treasury bill
B. Commercial paper
C. Certificate of deposit
D. Promissory note
Answer» B. Commercial paper

________ is a source of financing to meet very short-term fund requirements of commercial banks with a provision of renewal.

A. Treasury Bill
B. Commercial Paper
C. Certificate of Deposit
D. Call Money
Answer» D. Call Money

____________ is the market which helps existing investors to sell their securities.

A. Primary market
B. Secondary market
C. Capital market
D. Commodity market
Answer» B. Secondary market

____________ is the institution which provides a platform for trading of existing securities having long-term maturity.

C. Stock exchange
Answer» C. Stock exchange

_______is the primary motive for a business enterprise

A. Profit
B. Maximize customers
C. Human objective
D. Maximize suppliers
Answer» A. Profit

The following statement with respect to culture is false

A. Culture is enduring
B. Culture is changing
C. Culture is evolved among the members of a society
D. Culture is determined by national boundaries
Answer» D. Culture is determined by national boundaries

________is the business through which new ideas and innovations are given a sharp and are converted into useful products and services

A. Market leadership
B. Challenge
C. Joy of creation
D. Growth
Answer» C. Joy of creation

___________ is the integration of world economy into a single market through removal of trade barriers between countries.

A. Privatisation
B. Liberalisation
C. Globalisation
D. Both (a) and (b)
Answer» B. Liberalisation

Liberalization means

A. Reducing number of reserved industries from 17 to 8
B. Liberating the industry, trade and economy from unwanted restrictions
C. Opening up of economy to the world by attaining international competitiveness
D. Free determination of interest rates
Answer» B. Liberating the industry, trade and economy from unwanted restrictions

The short term financial instruments traded in money market is commonly called

A. Bonds
B. Shares
C. Notes
D. Commercial Papers
Answer» D. Commercial Papers

Macro environment is also known as ____

A. Direct environment
B. Indirect environment
C. Competitive environment
D. Social environment
Answer» B. Indirect environment

_____ micro environment is also known as direct environment

A. Economic
B. Political & legal
C. Competitors
D. Suppliers
Answer» A. Economic

State directive principles are

A. Suggestion to direction
B. Instruments of instruction
C. Principles of instruction
D. Responsibility to state principles
Answer» B. Instruments of instruction

The macro environment consists of ___

A. Economic political &legal
B. Consumer competitors
C. Public
D. Middlemen
Answer» A. Economic political &legal

What does micro environment consists of ___

A. Economic
B. Political &legal
C. Consumers competitors
D. Demographic
Answer» C. Consumers competitors

Who is responsible for presenting the Union Budget before the Parliament?

A. Prime Minister
B. RBI Governor
C. Finance Minister
D. None of the above
Answer» C. Finance Minister

_______ refers to all forces which have an economic impact

A. Technological environment
B. Political environment
C. Economic environment
D. Social environment
Answer» C. Economic environment

Political environments refers to the influence excreted by the ______political institutions

A. 2
B. 3
C. 4
D. 5
Answer» B. 3

What are the bodies which political environment consists of

A. Middlemen
B. Suppliers
C. Customer
D. Legislature executive & judiciary
Answer» D. Legislature executive & judiciary

_________ decides on a particular course of action

A. Legislature
B. Executive
C. Judiciary
D. Public
Answer» A. Legislature

________is also called government which implements whatever is decided by the parliament

A. Legislature
B. Executive
C. Judiciary
D. Public
Answer» B. Executive

_______plays the watch dog in order to ensure that both function in public interest and within the boundaries of constitution

A. Legislature
B. Executive
C. Judiciary
D. Public
Answer» C. Judiciary

Headquarters of World Trade Organization at

A. Geneva
B. Japan
C. South Korea
D. Russia
Answer» A. Geneva

Globalization does not involve.

A. Reduction of barrier
B. Free flow of goods and services.
C. Global mechanism for settlement of Economic disputes.
D. Free flow of Capital
Answer» A. Reduction of barrier

________should facilitate & enhance strategies thinking in organization

A. Strategic management
B. Environmental analysis
C. Business environment
D. Business analysis
Answer» B. Environmental analysis

The environment analysis that provides inputs for strategies decision making is _

A. Strategic management
B. Environmental analysis
C. Business environment
D. Business analysis
Answer» A. Strategic management

The first MNC came to India in ___

A. 1920
B. 1921
C. 1919
D. 1923
Answer» B. 1921

An effective crisis management plan will __

A. Minimize the seriousness of the problem
B. Exaggerate minor incident
C. Use the internet to convey the public affairs message
D. Immediately apologize to the public and accept any liability
Answer» A. Minimize the seriousness of the problem

Economic growth can be measured by ___________

A. The cpi
B. The cbi
C. Gdp
D. Mpc
Answer» C. Gdp

What was the predecessor of WTO?

Answer» D. UNCTAD

A multi-national corporation (MNC) is defined by

A. Carrying out production in more than one country.
B. Having sales in more than one country.
C. Having a multi-ethnic workforce .
D. Having suppliers in more than one country.
Answer» A. Carrying out production in more than one country.
  • Question and answers in Business Environment,
  • Business Environment multiple choice questions and answers,
  • Business Environment Important MCQs,
  • Solved MCQs for Business Environment,
  • Business Environment MCQs with answers PDF download