Class 12 - Business Studies - CH3: Business Environment (Short Q and A)

Business Environment

Very Short Q & A 

Dimensions of Business Environment

Q1: Define Business Environment

Answer: The totality of all individuals, institutions and other forces that are outside a business enterprise but that may affect its functioning and performance.

Q2: Give one importance of business environment?

Answer: It enables the firm to identify opportunities & getting the first movers advantages.

Q3: Which environment describes characteristics of the society in which the organization exists?

Answer: Social Environment

Q4:How have customers benefited by increased competition after liberalisation and globalisation?

Answer: At the time of purchase customers get a wider choice of products and services. They can compare quality of the products.

Q5: List any two elements of political environment?

Answer:

   (a) Political ideology & practices of the ruling party.
   (b) Nature of relationship of our country with foreign countries.

Q6:How can the firms cope up with changing technological environment?

Answer: They have to invest in R & D, product innvovations and develop new ways.

Q7: Which dimension of business environment involves improvement and innovations which provide new ways of producing goods and services and new methods and techniques of operating a business?

Answer: Technology environment.

Q8: Mention any two elements of social environment?

Answer:
   (a) Birth & death rates.
   (b) Concern with quality of life.

Q9: "Demand for reservation in jobs for minorities refers to an example of key component of general environment of business". Name this component.

Answer: Social Environment

Q10: Give one measure taken by Indian Government to introduce liberalisation.

Answer: Abolishing licensing requirements.

Q11: Which environment prohibits the advertisement of alcoholic beverages?

Answer: Legal Environment

Q12: What does legal environment prescribe?

Answer: It prescribes rules or laws that all members of business community must follow.

Q13: What do you mean by Globalisation?

Answer: When the various economies of the world integrate, it is known as Globalisation.

Q14: Give one impact of govt. policy changes on business industries?

Answer: Increase competition among multinational companies.

Q15: Which policy of Indian Government has moved India towards globalisation?

Answer: The Industrial Policy of 1991.

Q16: Give two changes introduced in industrial policy of july 1991?

Answer:
    (a) Abolition of industrial licensing.
    (b) Dereservation of industries for public sector.

Q17: It is the process by which government control over the industry is being loosened. Give the term to which this statement is trying to indicate.

Answer: Liberalisation

Q18: What do you mean by Liberalisation?

Answer:It means reduction in government controls and restrictions

Q19: What is meant by opportunities?

Answer: It refers to the positive external trends that help an enterprise to improve its performance.

Q20: State the factors of Micro Environment.

Answer: 1. Customers
             2. Suppliers
             3. Competitors
             4. Public
             5. Marketing intermediaries.

Q21: State the factors of Macro Environment.

Answer:
   1. Economical Environment
   2. Political Environment
   3. Social Environment
   4. Legal Regulatory Environment
   5. Technological Environment

Q22: What is meant by opportunities?

Answer: It refers to the positive external trends that help an enterprise to improve its performance.

Q23: Banking sector reforms have led to easier credit terms and better services. This is an example of a key component of the “Business Environment “name this component?

Answer: Economic Environment