Updated by Tiwari Academy
on July 14, 2022, 8:30 AM
Class 12 Business Studies Chapter 3 MCQ and Important Questions of Business Environment for the academic session 2024-25. 12th Business Studies chapter 3 multiple choice questions and important questions provide extra revision for test yourself. Class 12 Business Studies Chapter 3 Solutions.
Class 12 Business Studies Chapter 3 MCQ
Q1
Which of the following is an example of social environment?
[A]. Mobile phones have outdated telephones.
[B]. Chinese products are being freely sold in the Indian market.
[C]. Demand for new garments increase during festival seasons.
[D]. The Government of India has amended Companies Act.
Answer: Option C
Explanation:
Social environment refers to tradition, values, culture and so on.
The Government of India has recently come up with an amendment to Companies Act 2013 regarding corporate social responsibility. It is a dimension of . . . . . . . . . environment.
It includes various social forces such as customs, beliefs, literacy rates, educational levels, lifestyle, values etc. Changes in social environment affect an organisation in the long run. Example: Now a days people are paying more attention towards their health, as a result of which demand for mineral water, Diet coke etc. has increased while demand of tobacco, Fast food products has decreased.
It constitutes the laws and legislations passed by the Government, administrative orders, court judgements, decisions of various commissions and agencies. Example: Advertisement of Alcoholic products is prohibited and it is compulsory to give statutory warning on advertisement of cigarettes.
Q13
What are Navratna companies?
[A]. Profit making private companies
[B]. Profit making public sector companies
[C]. Both [a] and [b]
[D]. Top 9 companies trading on Bombay Stock Exchange.
Answer: Option B
Explanation:
This concept was coined around 1991 to identify valuable PSUs.
Managerial response to changes in business environment
The impact of changes in economic policy of government has made managers aware of various areas where they have to focus to keep their business environment help them to take decision regarding increasing competition, the demands of customers and their expectations (consumer is the king), rapidly changing technological environment, necessity to adapt to change and need for developing human resources.
Q17
Budgetary support to public sector has increased as a consequence of the LPG. True or False?
[A]. True
[B]. False
[C]. Partially True
[D]. None of the Above
Answer: Option B
Explanation:
The dependence on public sector has reduced and many of PSUs have been sold.
The sum total of forces affecting the business in known as
[A]. Business environment
[B]. Social environment
[C]. Economic environment
[D]. All of the Above
Answer: Option A
Explanation:
The definition of business environment says that all forces external to business (which are outside business) which affect it are known as business environment.
How important are MCQs as far as chapter 3 class 12 business studies is concerned?
Chapter 3 “Business environment” is very important to understand the subject thoroughly. However, the weightage of the chapter has diminished over the last 3 years. Hence, to expect more number of questions as MCQs in class 12th chapter 3 Business studies chapter would be unwise.
What are the important topics for preparing MCQs in class 12 in chapter 3?
Dimensions of business environment which are social, political, economic, legal, technological are important from examination point of view and in particular- social and legal are important because students may be confused between the two.
Are we required to write the explanation for the correct answer in MCQ?
No, however we have provided explanation to MCQs so that students attain mastery over the subject.
