NCERT BOOK CLASS 12TH Business Studies MCQ
Chapter 3 : Business Environment
Important MCQs with Answers
1. What is Business Environment?
a) Internal factors of a company
b) External factors that affect the business
c) Only economic factors
d) Only social factors
Answer: b) External factors that affect the business
2. Which of the following is not a component of the Business Environment?
a) Economic Environment
b) Technological Environment
c) Employee Management
d) Social Environment
Answer: c) Employee Management
3. What is the full form of LPG?
a) Liberalization, Privatization, Globalization
b) Localization, Production, Growth
c) Liberalization, Production, Globalization
d) Localization, Privatization, Growth
Answer: a) Liberalization, Privatization, Globalization
4. In which year did economic reforms begin in India?
a) 1980
b) 1991
c) 2000
d) 2010
Answer: b) 1991
5. Which of the following is a component of the Economic Environment?
a) Cultural Values
b) Interest Rate
c) Population Growth
d) Political Stability
Answer: b) Interest Rate
6. What does Globalization mean?
a) Only an increase in imports and exports
b) Integration with the global economy
c) Only promoting foreign investment
d) Only technological development
Answer: b) Integration with the global economy
7. Which of the following is a component of the Political Environment?
a) Tax Policies
b) Social Customs
c) Technological Progress
d) Consumer Preferences
Answer: a) Tax Policies
8. What does Privatization mean?
a) Expansion of the public sector
b) Transfer of government enterprises to private ownership
c) Only promoting foreign companies
d) Only supporting small industries
Answer: b) Transfer of government enterprises to private ownership
9. The Technological Environment includes:
a) New machines and technology
b) Social values
c) Political parties
d) Economic policies
Answer: a) New machines and technology
10. What does Liberalization mean?
a) Increase in government control
b) Reduction in government restrictions
c) Only restrictions on imports
d) Only promotion of exports
Answer: b) Reduction in government restrictions
11. ‘Demand and Supply’ is related to which type of environment?
a) Economic Environment
b) Social Environment
c) Political Environment
d) Legal Environment
Answer: a) Economic Environment
12. What is the full form of FEMA?
a) Foreign Exchange Management Act
b) Foreign Economic Management Act
c) Financial Exchange Management Act
d) Fiscal Economic Management Act
Answer: a) Foreign Exchange Management Act
13. Which of the following is an example of the Social Environment?
a) GST rates
b) Age structure of the population
c) Bank rate
d) Import duty
Answer: b) Age structure of the population
14. What is the full form of WTO?
a) World Trade Organization
b) World Technology Organization
c) World Tariff Organization
d) World Taxation Organization
Answer: a) World Trade Organization
15. The ‘Make in India’ program is related to:
a) Only agricultural development
b) Promoting the manufacturing sector
c) Only the service sector
d) Only export restrictions
Answer: b) Promoting the manufacturing sector
16. What is the full form of SEZ?
a) Special Economic Zone
b) Special Export Zone
c) Social Economic Zone
d) Sustainable Economic Zone
Answer: a) Special Economic Zone
17. Which of the following is an example of the Legal Environment?
a) Consumer preferences
b) Labor laws
c) Social practices
d) Technological innovation
Answer: b) Labor laws
18. The ‘Digital India’ program is related to:
a) Only the hardware industry
b) Digital empowerment of the country
c) Only software exports
d) Only urban areas
Answer: b) Digital empowerment of the country
19. What is the full form of FDI?
a) Foreign Domestic Investment
b) Foreign Direct Investment
c) Fiscal Direct Investment
d) Financial Domestic Investment
Answer: b) Foreign Direct Investment
20. The objective of the ‘Startup India’ scheme is:
a) Only supporting large industries
b) Promoting innovation and entrepreneurship
c) Only increasing government jobs
d) Only supporting the agricultural sector
Answer: b) Promoting innovation and entrepreneurship
21. What is the main difference between ‘Domestic Investment’ and ‘Foreign Direct Investment (FDI)’?
a) In FDI, investment comes from outside the country
b) Domestic investment is only made by the government
c) FDI is only in the agricultural sector
d) Domestic investment uses foreign currency
Answer: a) In FDI, investment comes from outside the country
22. Which factor is not included in the ‘Macro Environment’?
a) Political-legal factors
b) Technological changes
c) Company’s internal management
d) Socio-cultural influences
Answer: c) Company’s internal management
23. What is the similarity between ‘Ecosystem’ and ‘Business Environment’?
a) Both are static
b) Both are influenced by external factors
c) Both focus only on economic aspects
d) Both are controlled by the government
Answer: b) Both are influenced by external factors
24. Which institution controls ‘Inflation’ in India?
a) SEBI
b) RBI
c) NITI Aayog
d) WTO
Answer: b) RBI
25. What are ‘Sustainable Development Goals (SDGs)’ related to?
a) Only environmental conservation
b) Economic, social, and environmental balance
c) Only industrial development
d) Only rural development
Answer: b) Economic, social, and environmental balance
26. What are ‘Tariff Barriers’?
a) Taxes imposed on imports
b) Schemes to promote exports
c) Restrictions on foreign investment
d) Relaxation in labor laws
Answer: a) Taxes imposed on imports
27. The ‘Swachh Bharat Abhiyan’ (Clean India Mission) is related to which type of environment?
a) Social Environment
b) Economic Environment
c) Technological Environment
d) Legal Environment
Answer: a) Social Environment
28. What is included in the ‘Demographic Environment’?
a) Age, gender, and education level of the population
b) Government tax policies
c) New technological discoveries
d) International trade agreements
Answer: a) Age, gender, and education level of the population
29. ‘Intellectual Property Rights (IPR)’ are related to which environment?
a) Legal Environment
b) Economic Environment
c) Political Environment
d) Natural Environment
Answer: a) Legal Environment
30. How does ‘Global Warming’ affect businesses?
a) Production costs may increase
b) Only the agricultural sector is affected
c) It has no impact on businesses
d) Only energy companies benefit
Answer: a) Production costs may increase
31. What is the ‘Blue Economy’ related to?
a) Sustainable use of marine resources
b) Space technology
c) Measures to prevent desertification
d) Nuclear energy development
Answer: a) Sustainable use of marine resources
32. What does an improvement in the ‘Ease of Doing Business’ ranking indicate?
a) Doing business in the country is becoming easier
b) Tax rates are increasing
c) Restrictions on foreign investment are rising
d) Labor laws are becoming stricter
Answer: a) Doing business in the country is becoming easier
33. ‘Data Privacy’ is related to which type of business environment?
a) Legal Environment
b) Economic Environment
c) Geographical Environment
d) Historical Environment
Answer: a) Legal Environment
34. What is the main objective of the ‘Atmanirbhar Bharat’ (Self-Reliant India) campaign?
a) Reducing dependence on imports
b) Decreasing foreign exchange reserves
c) Only increasing agricultural production
d) Expanding the public sector
Answer: a) Reducing dependence on imports
35. What does the ‘Gig Economy’ refer to?
a) Temporary/freelance work arrangements
b) Only technology companies
c) Growth in government jobs
d) Agriculture-based economy
Answer: a) Temporary/freelance work arrangements
36. Reducing ‘Carbon Footprint’ is related to:
a) Environment-friendly business practices
b) Increasing the number of employees
c) Rising production costs
d) Encouraging imports
Answer: a) Environment-friendly business practices
37. What is the core principle of the ‘Circular Economy’?
a) Converting waste into new resources
b) Reducing production rates
c) Focusing only on recycling
d) Increasing exports
Answer: a) Converting waste into new resources
38. The rise of ‘Digital Currency’ reflects which environmental factor?
a) Technological Environment
b) Political Environment
c) Natural Environment
d) Demographic Environment
Answer: a) Technological Environment
39. What can cause ‘Supply Chain Disruption’?
a) Global pandemic
b) Decrease in interest rates
c) Tax exemptions
d) Increase in workers’ wages
Answer: a) Global pandemic
40. Why are ‘Green Bonds’ issued?
a) To raise funds for environment-friendly projects
b) To reduce government deficit
c) To regulate the stock market
d) To increase foreign exchange reserves
Answer: a) To raise funds for environment-friendly projects
41. What is the primary reason for the ‘Work From Home’ culture?
a) Technological advancements and digital infrastructure
b) Reduction in office rent
c) Relaxation in labor laws
d) Increase in production costs
Answer: a) Technological advancements and digital infrastructure
42. How does ‘Fake News’ affect businesses?
a) Damages a company’s reputation
b) Reduces production costs
c) Increases exports
d) Improves worker productivity
Answer: a) Damages a company’s reputation
43. What is ‘Industry 4.0’ related to?
a) Automation and data exchange
b) Traditional production methods
c) Agricultural technology
d) Dependence on manual labor
Answer: a) Automation and data exchange
44. ‘Cyber Security’ policies are related to which type of environment?
a) Technological and Legal
b) Only Economic
c) Only Social
d) Only Political
Answer: a) Technological and Legal
45. What can disrupt the ‘Global Supply Chain’?
a) International conflicts
b) Changes in interest rates
c) Tax exemption policies
d) Local labor laws
Answer: a) International conflicts
46. What change has been brought about by the growth of ‘E-Commerce’?
a) Pressure on traditional retail businesses
b) Increase in production costs
c) Reduction in workforce size
d) Rise in export restrictions
Answer: a) Pressure on traditional retail businesses
47. What does ‘Data Localization’ mean?
a) Storing data within the country
b) Storing data abroad
c) Deleting data
d) Restricting data exchange
Answer: a) Storing data within the country
48. How do ‘AI and Machine Learning’ impact businesses?
a) Improve decision-making processes
b) Drastically increase the number of workers
c) Raise production costs
d) Complicate trade policies
Answer: a) Improve decision-making processes
49. What is the development of ‘Green Hydrogen’ related to?
a) Clean energy sources
b) Agricultural productivity
c) Urbanization
d) Tourism industry
Answer: a) Clean energy sources
50. What could be the potential impact of the ‘Metaverse’ on businesses?
a) New opportunities for virtual trade
b) Growth in physical stores
c) Reduction in production costs
d) Simplification of labor laws
Answer: a) New opportunities for virtual trade
51. ‘Business Ethics’ is related to which environment?
a) Socio-cultural environment
b) Geographical environment
c) Only economic environment
d) Only political environment
Answer: a) Socio-cultural environment
52. How does ‘Infrastructure Development’ impact the environment?
a) Both economic and social
b) Only technological
c) Only legal
d) Only global
Answer: a) Both economic and social
53. In which year was the ‘Corporate Social Responsibility (CSR)’ law implemented in India?
a) 2013
b) 2005
c) 2018
d) 2020
Answer: a) 2013
54. What does the ‘Digital Divide’ indicate?
a) Inequality in technological access
b) Differences in production costs
c) Discrimination in the labor market
d) Variations in tax policies
Answer: a) Inequality in technological access
55. What is the main objective of the ‘Skill India Mission’?
a) Developing employable skills
b) Only providing technical education
c) Securing jobs abroad
d) Increasing government jobs
Answer: a) Developing employable skills
56. What sector is ‘FemTech’ related to?
a) Women’s health technology
b) Agricultural technology
c) Financial technology
d) Educational technology
Answer: a) Women’s health technology
57. What concept is ‘Biodegradable Packaging’ linked to?
a) Sustainable development
b) Pricing strategy
c) Market segmentation
d) Product differentiation
Answer: a) Sustainable development
58. What is the main benefit of participating in the ‘Global Value Chain’?
a) Increased specialization and efficiency
b) Control over local markets
c) Higher labor costs
d) Reduced tax burden
Answer: a) Increased specialization and efficiency
59. What are ‘Dark Patterns’ associated with?
a) Unethical digital marketing practices
b) Solar energy technology
c) Supply chain management
d) Financial accounting
Answer: a) Unethical digital marketing practices
60. What is the objective of the ‘Right to Repair’ movement?
a) Consumers’ right to repair products
b) Empowering manufacturers
c) Controlling product prices
d) Extending warranty periods
Answer: a) Consumers’ right to repair products
61. What does ‘Silent Quitting’ signify?
a) Employees doing the bare minimum
b) Quietly leaving a job
c) Protesting
d) Halting production
Answer: a) Employees doing the bare minimum
62. In which sector is ‘AgriTech’ an innovation?
a) Agricultural technology
b) Educational technology
c) Health technology
d) Manufacturing technology
Answer: a) Agricultural technology
63. What concept is ‘Circular Fashion’ linked to?
a) Sustainable textile industry
b) Luxury branding
c) Fast fashion trends
d) Garment export policies
Answer: a) Sustainable textile industry
64. What is ‘Greenwashing’?
a) Misleading environmental claims
b) Green energy production
c) Water conservation technology
d) Carbon credit trading
Answer: a) Misleading environmental claims
65. What is ‘Digital Twin’ technology used for?
a) Virtual simulation of physical systems
b) Cryptocurrency mining
c) Social media marketing
d) Financial transactions
Answer: a) Virtual simulation of physical systems
66. What is the ‘Net Zero’ target related to?
a) Balancing carbon emissions
b) Zero import policy
c) Zero net profit
d) Zero unemployment rate
Answer: a) Balancing carbon emissions
67. What is ‘Stagflation’?
a) Inflation with economic stability
b) Inflation with unemployment
c) Sharp decline in exports
d) Currency devaluation
Answer: b) Inflation with unemployment
68. What is the purpose of the ‘Plastic Credit’ scheme?
a) Encouraging plastic waste management
b) Increasing plastic production
c) Imposing plastic taxes
d) Banning plastic exports
Answer: a) Encouraging plastic waste management
69. What environmental factor does investment in the ‘Space Economy’ reflect?
a) Expansion of the technological environment
b) Political stability
c) Scarcity of natural resources
d) Changes in labor laws
Answer: a) Expansion of the technological environment
70. What is the ‘Digital Rupee’ an example of?
a) CBDC (Central Bank Digital Currency)
b) Cryptocurrency
c) Digital wallet
d) Online banking
Answer: a) CBDC (Central Bank Digital Currency)
71. What does ‘Silent Resignation’ mean?
a) Employees mentally disengaging from work
b) Quietly quitting a job
c) Resigning in protest
d) Planning for retirement
Answer: a) Employees mentally disengaging from work
72. What does ‘Hyperautomation’ combine?
a) AI, ML, and RPA
b) Only robotics
c) Cloud computing
d) Blockchain technology
Answer: a) AI, ML, and RPA
73. What is the main reason for the growth of the ‘EdTech’ industry?
a) Demand for digital education
b) Government grants
c) Shortage of teachers
d) Changes in exam patterns
Answer: a) Demand for digital education
74. What has been the impact of the ‘FinTech’ revolution on businesses?
a) Increased financial inclusion
b) Closure of bank branches
c) Higher tax rates
d) Reduced exports
Answer: a) Increased financial inclusion
75. What concept is ‘Web 3.0’ technology based on?
a) Decentralized internet
b) Faster internet speed
c) Free online services
d) Government control
Answer: a) Decentralized internet
76. What does the ‘Great Resignation’ indicate?
a) Mass voluntary quitting of jobs
b) Layoffs due to recession
c) Increase in retirements
d) Reluctance to switch jobs
Answer: a) Mass voluntary quitting of jobs
77. Which industry faces the main challenge of ‘Decarbonization’?
a) Energy sector
b) IT sector
c) Education sector
d) Tourism industry
Answer: a) Energy sector
78. What trend does investment in ‘Climate Tech’ reflect?
a) Focus on green technologies
b) Ignoring climate change
c) Promoting conventional energy
d) Reducing industrial production
Answer: a) Focus on green technologies
79. What is the concept of ‘Super App’ related to?
a) Integrated digital platform
b) Supercomputer applications
c) AI-based apps
d) Government service apps
Answer: a) Integrated digital platform
80. What does ‘Quiet Hiring’ mean?
a) Skill-based temporary hiring
b) Secret recruitment
c) Referral-based hiring
d) Hiring without interviews
Answer: a) Skill-based temporary hiring
81. What is ‘Surveillance Capitalism’?
a) Commercial use of personal data
b) Government surveillance systems
c) Manufacturing of security cameras
d) Monitoring of insurance sector
Answer: a) Commercial use of personal data
82. Which scheme promotes ‘Financial Inclusion’?
a) Jan Dhan Yojana
b) Make in India
c) Startup India
d) Digital India
Answer: a) Jan Dhan Yojana
83. What does ‘Nomadic Workforce’ mean?
a) Location-independent work style
b) Migrant laborers
c) Temporary contract workers
d) Working in remote villages
Answer: a) Location-independent work style
84. Which sector is being revolutionized by ‘Blockchain Technology’?
a) Financial transactions
b) Agricultural production
c) Manufacturing process
d) Human resource management
Answer: a) Financial transactions
85. What are ‘ESG (Environmental, Social, Governance)’ criteria related to?
a) Sustainable investing
b) Tax planning
c) Product pricing
d) Marketing strategy
Answer: a) Sustainable investing
86. What does ‘Data Sovereignty’ mean?
a) A country’s control over its data
b) Corporate monopoly on data
c) Cost of data storage
d) Data analysis techniques
Answer: a) A country’s control over its data
87. Which is the government scheme for ‘Gig Workers’?
a) e-Shram portal
b) MSME portal
c) Udhyam Bharat portal
d) Skill India portal
Answer: a) e-Shram portal
88. What is the purpose of ‘Circular Supply Chain’?
a) Recycling of resources
b) Reducing transportation costs
c) Decreasing number of suppliers
d) Speeding export processes
Answer: a) Recycling of resources
89. What does ‘Micro-mobility’ refer to?
a) Short-distance electric vehicles
b) Mobility of micro-industries
c) Rural transport systems
d) Aircraft industry
Answer: a) Short-distance electric vehicles
90. Who is ‘Digital Tax’ imposed on?
a) Companies providing digital services
b) Online shopping consumers
c) Social media users
d) Digital marketing agencies
Answer: a) Companies providing digital services
Let me know if you need any refinements or additional explanations