Taxmann's Business Economics & Business and Commercial Knowledge (Economics | BEBCK) | CRACKER

Chapter-Wise Comparison With Study Material

BUSINESS ENVIRONMENT

Introduction

1. Organizations depend upon which environment for Input:

(

a) Technological Environment

(

b) Social-Economic Environment

(

c) External Environment

(

d) Legal Environment

2. What is the single word that can best describe today’s business?

(

a) Technology

(

b) Persistence

(

c) Profit making

(

d) Change

3. A business is created to provide:

(

a) Products to Customers

(

b) Services to Customers

(

c) Employment opportunities

(

d) All of the above

4. In order to survive over the long term, a company must have the:

(

a) Ability to Prosper

(

b) Ability to change

(

c) Both (a) and (b)

(

d) None of the above

5. As per Charles Darwin, who survives?

(a) Strongest

(

b) Most Intelligent

(

c) Most responsive to change

(

d) All of the above

6. Data which is useful in decision making is called?

(

a) Database

(

b) Information

(

c) Resource

(

d) Law

7. Which one of the following is not true about business ?

(

a) It is created to provide products or services to customers.

(

b) It creates job opportunities.

(

c) It is beneficial to Society.

(

d) It always gives return on investment.

8. Read the following three statements:

(i) The environment is constantly changing in nature.

(ii) Various environmental constituents exist in isolation and do not interact with each other.

(

iii) The environment has a far reaching impact on organizations.

7.2

PART II : BUSINESS & COMMERCIAL KNOWLEDGE

From the combinations given below select an alternative that represents statements that are true:

12. The integral elements of business environment include.

(a) Internal forces

(b) External Forces

(

a) (i) and (ii)

(

b) (ii) and (iii)

(

c) (i) and (iii)

(

d) (i), (ii) and (iii)

9. Organic objective of business

(

a) Sales profit

(

b) Fitness of human resources

(

c) Product usage and disposal

(

d) All of the above [Nov. 2019]

10. Which of the following capability a company require to survive in long term?

(a) Frequent change in work force

(b) The ability to change

(

c) Vision to acquire profit

(d) Expansion in territory of business [July 2021]

Meaning of Business Environment

11. Which one of following is not true about Business Environment?

(

a) It represents all external forces, factors or conditions that exert same degree of impact on business decisions.

(

b) The success of business is affected by business environment.

(

c) The business must continuously monitor and adapt itself to the environment.

(

d) It includes internal forces only.

(

c) Both (a) and (b)

(

d) Either (a) or (b)

13. As per Traditional authors, the integral elements of business environment include:

(a) Internal forces only

(

b) External forces only

(

c) Internal & External forces

(

d) Internal or External Forces

14. In order to Survive and proposer a business:

I. Must Continuously monitor

II. Must adapt itself to the environment

III. Must Concentrate on its weakness only

IV. Must Concentrate on its Strength only.

(a) I

(b) I and II

(

c) II and III

(

d) III and IV

Characteristics of Business Environment

15. Which of the following is not an important characteristic of business environment?

(

a) Image building

(b) Giving direction for shrinking

(

c) Continuous learning

(

d) Opportunities and threats [Nov. 2020]

16. What is not a characteristic of business environment?

(a) Static

(

b) Complex

(

c) Far reaching

(

d) Multi-faced [CA CPT May 2019]

17. Which of the following are not characteristics of business environment:

(

a) Complex

(

b) Dynamic

(

c) Single Faceted

(

d) Far reaching impact [CA CPT May 2018]

18. Which is not a feature of business environment?

(

a) Simple

(

b) Complex

(

c) Multi fact

(

d) Dynamic [CA CPT Nov. 2018]

19. It is easy to understand the business environment in parts but difficult to grasp in totality. Therefore, Business Environment is.

(

a) Complex

(

b) Dynamic

(

c) Multi-faceted

(

d) Far Reaching impact

20. Now-a-days, the film industry generates revenue from ring tones/ caller tunes rather than sale of music

C.D. It exhibits _____________ feature of business environment.

(

a) Complex

(

b) Dynamic

(c) Multi-faceted

(

d) Far Reaching impact

21. An organisation like Aditya Birla Group has moved from textile to cement, to retail and to financial services as well as telecom due to changing circumstances. This example is related with _______ feature of Business Environment.

(

a) Complex

(

b) Dynamic

(

c) Multi-faceted

(

d) Far Reaching impact

Importance of Business Environment

22. There is a ___________ interaction between Business and Business Environment.

(

a) Close

(

b) Close and continuous

(

c) Close and static

(

d) Continuous and Static

23. The interaction between Business and its Environment, helps the business in:

(a) Determining Opportunities and Threats

(b) Continuous learning

(

c) Giving directions for growth

(

d) All of the above

24. In relation to solving the problem of shortage of Electricity, “CPP” means:

(

a) Captive Power Plant

(b) Creative Power Plant

(

c) Central Power Plant

(

d) Controlled Power Plant

PART II : BUSINESS & COMMERCIAL KNOWLEDGE

25. The interaction between Business and Environment brings out:

(a) Opportunities for the business

(

b) Threats to the business

(

c) Opportunities for and Threats to the business

(

d) Complex and Dynamic analysis.

26. Which one of the following is not an advantage of Business Environment to the business?

(a) Determination of Opportunities & Threats

(

b) Meeting Competition

(

c) Image Building

(

d) Identification of financial needs.

Relationship between organisations and its Environment

27. Relationship between organisation and environment can be described through:

(a) Exchange of information

(b) Exchange of resources

(

c) Exchange of influence and power

(d) All of the above

28. Which one of the following is the major areas as regards interaction of organisation and its environment?

(a) Exchange of Information

(

b) Exchange of Resources

(

c) Exchange of influence power

(

d) All of the above.

29. The nature of relationship between the organization and the Environment depends upon:

I. Size of organisation

II. Age of organisation

III. Nature of Business

IV. Nature of ownership

V. Degree of Professionalization of management.

(a) I and II

(b) I, II and III

(c) I, II, III & IV

(

d) I, II, III, IV & V

30. Which one of the following is not true about External Environment?

(a) It offers opportunities

(

b) It offers limitations also

(

c) It creates pressures & threats

(

d) It never affects small business

31. Which one of the following Companies is affected by FMCG Company ‘Patanjali’ endorsed by Baba Ramdev?

(a) Hindustan Unilever Ltd.

(b) P&G Ltd.

(c) Dabur Ltd.

(d) Bajaj Auto Ltd.

32. In relation to resources, “5M” represents:

(

a) Men, Money, Method, Machine and Material

(

b) Management, Motivation, Money, Machine and Material

(

c) Morale, Money, Method, Machine and Material

(

d) Mobility, Method, Management, Machine and Material.

33. In the relationship between organizations and its environment, there is exchange of:

(

a) Information

(

b) Resources

(

c) Influence and Power

(

d) All of the above.

34. Which one of the following Statement is incorrect?

(a) The organisation is dependent on the external environment for disposal of its output of products and services.

(b) The organisation scans the external environmental valuables.

(

c) Apart from gathering in formability, the organization itself transmits information to several external agencies.

(d) The external environment offers strengths and weakness.

Organizations Response to its Environment

35. Which one of the following is organization’s response to its Environment?

(

a) Administrative

(

b) Competitive

(

c) Collective

(

d) All of the above.

36. The formation or clarification of the organization’s mission; the development of objectives, policies and budgets, etc. are the examples of ______________ response of organisation to environment :

(

a) Administrative

(

b) Competitive

(

c) Collective

(

d) None of the above

37. Which of the following internal strategies to respond to environment involves formulation and clarification of organization’s mission?

(a) Competitive Response

(b) Administrative Response

(c) Dynamic Response

(d) Collective Response

38. The methods like bargaining, Contracting, Co-opting, creating joint ventures, etc. are related with ___________ response of organisation to its environment.

(

a) Administrative

(

b) Competitive

(

c) Collective

(

d) Ministerial

39. What are the three classes of organization’s internal responses that business can opt?

(

(

(

(

a) Automatic Response, Comprehensive Response and Collective response

b) Administrative Response, Comprehensive Response and Collective Response

c) Administrative Response, Competitive Response and Collective Response

d) Automatic Response, Competitive Response and Collective Response [July 2021]

40. In order to respond appropriately, the organizations must:

(

a) Have the Capacity to monitor

(

b) Make sense of their environment

(

c) Identify and attend the environmental factors

(

d) All of the above.

41. In order to sustain competitive advantage, organizations must achieve an external position vis-à-vis their competitors or perform internally in ways that is/are:

7.6

(a) Unique

(b) Valuable

(

PART II : BUSINESS & COMMERCIAL KNOWLEDGE

c) Difficult to imitate

(

d) All of the above.

42. Which of the following statement is incorrect as regards organization’s response to its environment?

(

a) Organizations must have the capacity to monitor and make sense of their environments.

(

b) Organizations must identify and attend to the environmental factors and features that all closely related to goal achievement and performance.

(

c) Organizations must have the interval capacity to develop effective responses.

(

d) Organisation can function ignoring the environment.

43. ABC company is aiming towards Joint venture and partnership with other firms to manage uncertainly. This is an example of following type of Organizational response to the environment?

(

a) Administrative response

(

b) Collective response

(

c) Competitive Response

(

d) Micro environmental response [Nov. 2020]

Environmental Influences on Business

44. In relation to a popular cold drink “Pepsi”, which one of the following is not internal factor?

(

a) Packaging

(

b) Scheme & Promotion

(c) Distribution Networks

(d) Health Awareness

45. Which one of the following statement is incorrect?

(a) Business does not function in an isolated Vacuum.

(b) Business function within a whole gambit of relevant environment.

(

c) Businesses have to negotiate their ways through it.

(

d) Business must monitor the environment periodically.

46. A Successful business has to ___________ the various opportunities and threats in its environment.

(

a) Identify

(

b) Identify and appraise

(

c) Identify, appraise and respond to

(

d) Identify, appraise, suggest and respond to.

47. Apart from the natural environment, environment of humans include:

(

a) Family

(b) Friends and peers

(

c) Neighbours and society

(

d) All of the above.

48. A successful business has to identity, appraise, and respond to the various and in its environment.

(

a) suppliers and customers

(

b) competitors and creditors

(

c) rules and regulations

(

d) opportunities and threats [Dec. 2021]

49. Which of the following is/are included in man-made structures within an environment?

(

a) Buildings and Roads

(

b) Furniture

(

c) Other Physical infrastructure

(d) All of the above

50. Different organizations use different inputs & produce different outputs. The input-output exchange activity is.

(

a) Different for organizations

(

b) A continuous process

(

c) It calls for an active interaction with the external environment

(

d) All of the above

51. Business functions as a part of broader environment. Business converts resources through various processes. This exchange process may bring…………………

(

a) Profits

(

b) Reputation

(

c) Good Public Image

(d) Any of the above

52. In an attempt to identify a framework for understanding the environment of organizations, various steps are required.

I. Explicit Consideration of immediate environment

II. To Check the nature (Static/ Simple/Complex)

III. Auditing of environmental influences.

The Sequential steps are

(

a) I, II & III

(

b) I, III & II

(

c) II, III and I

(

d) III, II and I

Environmental Analysis

53. Environmental Analysis helps in:

(a) Providing input for strategic decision making

(

b) Turning threat’s to firms advantage

(

c) Anticipate opportunities and to take optimal responses

(d) All of the above

53A. National Water Mission is related to:

(

a) Environmental Aspect

(

b) Legal cause

(

c) Social welfare

(

d) Economic planning

54. Business Environment analysis help in:

(

a) Give directions for growth

(

b) Determining opportunities and threats

(

c) Image building

(

d) All of the above. [CA CPT Nov. 2018]

55. Which of the following is not the basic goal of environmental Analysis?

(a) Understanding of Current and potential changes taking place in the environment.

(b) Provide inputs for strategic decision making.

(

c) Facilitate and foster strategic thinking in organization.

(

d) Provide the internal strengths of the organisation.

56. Environmental analysis helps in except ______________

64. ____________ is important and specific occurrence taking place in different environmental sectors.

(a) Events

(b) Trends

(

c) Issues

(

d) Expectations [CA CPT Nov. 2018]

65. Events, trends issues and expectations are an outcome of______

(

a) Environmental analysis

(

b) Micro environment

(

c) Macro Environment

(

d) Environmental scanning [Dec. 2021]

66. Trends relate to:

(

a) Happening of events in internal Environment

(

b) Grouping of similar or related events

(

c) Demands made by Interested group

(

d) None of the above

67. Factors like Trends, Events of different interest groups are needed to be considered in..............

(

a) Environmental analysis

(

b) Environmental inference

(

c) Environmental response

(

d) Environmental scanning [Nov. 2020]

68. __________ are the general tendencies or the causes of action along which events take place.

(

a) Events

(

b) Probability

(

c) Trends

(

d) Directions

69. The following factors are an outcome of environmental scanning except the

(

a) Expectations

(

b) Trends

(

c) Issues

(

d) Strategic thinking [June 2022]

70. The demands made by interested groups in the light of their concern for issues that arise in response to events and trends is called as ______________.

(

a) Appraisal

(

b) Evaluation

(

c) Observation

(

d) Expectations

71. The businesses should continuously _____________ and ____________ to the environment if it is to service and prosper.

(

a) Identify, appraise

(

b) Monitor, adapt

(

c) Identify, monitor

(

d) Monitor, appraise

72. While scanning environment, events are which of the following?

(

a) Group of similar events

(

b) Current concerned events

(

c) Demand made by Interested groups

(

d) Observed and tracked [July 2021]

73. Which one of the following is not a factor which need to be considered for environmental scanning?

(

a) Events

(

b) Trends

7.10

(c) Issues

(d) Strategy

PART II : BUSINESS & COMMERCIAL KNOWLEDGE

74. Perceiving the needs of the external environment and catering to them, satisfying the expectations and demands of the clientele groups is:

(a) Reciprocal agreement

(

b) Interdependent process

(

c) Management process

(

d) Interaction process

75. Change of customer’s liking from oily foods to healthy packaged foods can be classified amongst which of the following?

(a) Trend

(b) Event

(c) Issue

(d) Expectation

76. Which of the following is a part of process of Environmental Scanning?

(a) Scanning Strategic

(b) Perceived Environment Change

(

c) Strategic change

(d) All of the above.

Components of Business Environment

77. A threat is

(a) An unfavourable condition in organization environment which creates risk or damage to the Environment

(

b) An inherent limitation or constraint

(

c) An unfavourable condition in organization environment which consolidates its strength

(

d) None of the above

78. Internal Environment includes

(a) Demography

(b) Customer

(c) Economic

(

d) Mission and Objective [CA CPT May 2019]

79. Opportunity is

(a) Inherent Capacity

(

b) Strategic disadvantage

(

c) Favourable condition

(

d) None of the above [CA CPT May 2019]

80. SWOT stands for:

(a) Strength, Weakness, Opportunity, Threats

(

b) Strong, Weak, Opportunity, Transport

(

c) Strong, Weak, Occurring, Things

(

d) Strength, Weak, Opportunity, Things [CA CPT May 2018]

81. Through SWOT analysis:

(

a) Strengths and weakness existing within the environment can be matched with opportunities and threats in the organisation.

(

b) Strengths and weakness existing outside the organisation can be matched with opportunities and threats with the internal environment.

(

c) Strengths and weakness existing outside the organisation can be matched with opportunities and threats with the external environment.

(

d) Strengths and weakness existing within an organisation can be matched with opportunities and threats in the environment.

82. Which one of the following is not a part of interval Environment?

(a) Value System

(b) Mission and objectives

(

c) Customers

(d) Labour Union

83. Vikas Diagnostics is in the diagnostic industry which is highly competitive and fragmented with several companies present in the market. Its presence is also restricted and over dependent on states mostly in southern India. This is a sign of

………………

(

a) Strength

(

b) Weakness

(

c) Opportunity

(

d) Threat

[Dec. 2021]

84. The Micro Environment of external Environment includes:

(a) Market

(

b) Technological

(

c) Demographic

(

d) Economic

85. An effective organizational strategy includes which of the following activities ?

(

a) Capitalizes on the opportunities through the use of threats

(

b) Neutralizes the threats by minimizing the impact of weaknesses

(

c) Neutralizes the opportunities by minimizing the impact of weaknesses

(

d) Capitalizes on the weaknesses through the use of threats

[July 2021]

86. The interval environment of business organisation is composed of multiple elements existing within the organisation. It includes:

(

a) Management

(

b) Current Employees

(

c) Corporate Culture

(d) All of the above

87. The business should continuously ………….. and ………….. to the environment if it is to survive and prosper.

(

a) Identify, appraise

(

b) Monitor, adapt

(

c) Identify, Monitor

(

d) Monitor, appraise

[Jan. 2021]

88. The Micro and Macro environment are the major types of :

(

a) Interval Environment

(

b) External Environment

(

c) Both Internal and External environment

(

d) Business Environment.

89. The growing demand for the products or services, that a company provides, may be regarded as:

(

a) Opportunity

(

b) Strength

(

c) Weakness

(

d) Threat

90. The emergence of strong new competitors who are likely to offer stiff competition to the existing Companies in an industry is an example of :

(

a) Threat

(

b) Weakness

7.12 PART II : BUSINESS & COMMERCIAL KNOWLEDGE

(c) Problem

(d) Hurdle

90A. Emergence of strong new competitors in the industry is an example of:

(

a) Strength

(

b) Weakness

(

c) Opportunity

(

d) Threat

91. A Company is having superior research and development skills which can be used for new product development so that the Company gains competitive advantage. It is an example of :

(

a) Potential

(

b) Strength

(

c) Competitive advantage

(

d) Strong Capabilities.

92. Process of strategy formulation starts with:

(

a) Appraisal of external and internal environment of the organization

(

b) Performance analysis

(

c) Choice of strategy

(d) None of the above

93. A ___________ is inherent capacity which an organisation can use to gain strategic advantage over it’s competitors.

(

a) Strength

(

b) Opportunities

(

c) Threat

(

d) Weakness

(a) Existence

(b) Growth

(

c) Profitability

(d) All of the above

95. The opportunities and threats operate in ______________ environment.

(a) Internal

(

b) External

(

c) Internal and External

(

d) Micro

96. An organization should use it’s ___________ to minimize impact of _______________.

(a) Strengths, weakness

(

b) Opportunities, weakness

(

c) Strengths, Threats

(

d) Opportunities, Threats.

Micro Environment

97. According to _______________, the aim of the business is to create and retain customer.

(

a) Peter Drucker

(b) Adam Smith

(

c) Henry Ford

(d) Schumpeter

98. _______________ have a vested interest in the well-being of the company.

(a) Shareholder

(b) Directors

(

c) Owner

(d) Employees

[CA CPT Nov. 2018]

94. An understanding of the external and internal environment is crucial for the ___________ of any organisation.

99. Cost structure of an industry is effected by __________ own bargaining power.

(a) Organizations

(

b) Suppliers

(

c) Consumer

(

d) Intermediary

[CA CPT May 2019]

100. All are elements of micro environment except:

(

a) Consumer

(

b) Suppliers

(

c) Competitors

(

d) Society

101. Competition brings direct benefit to

(

a) Customers

(

b) Suppliers

(

c) Government

(

d) Intermediaries

[CA CPT May 2019]

102. Competition is beneficial to the competing firms besides benefiting the ____________?

(

a) Intermediaries

(

b) Customers

(

c) Producers

(

d) Financiers

[Jan. 2021]

103. The market is larger than customers. The market is to be studied in terms of.

(

a) Actual and potential size

(

b) Growth prospect

(

c) Attractiveness

(

d) All of the above.

104. The price sensitivity of the market is an important factor of which element of Micro environment:

(

a) Suppliers

(

b) Market

(

c) Intermediaries

(

d) Customer

105. Microenvironment should address the following except_____

(

a) The employees of the firm

(

b) Intermediaries

(

c) Suppliers

(

d) Local Authorities

[Dec. 2021]

106. _____________ exert a considerable influence on the business organizations. They are the ones who act as a bridge between the manufacture and the marketer.

(

a) Customers

(

b) Intermediaries

(

c) Suppliers

(

d) Organisation.

107. The performance of business in the private sector is measured by:

(

a) Profitability

(

b) Customer Satisfaction

(

c) Number of employees

(

d) The salary of BOD

108. Environment which is close to business and affect its capacity to work is known as __________environment.

(

a) Micro

(

b) Macro

(

c) Internal

(

d) External

108A. Which of the following does not fall in the category of macro environment?

(

a) Big Bazaar

(

b) Fiscal Policy

(

c) Consumer Protection Act

(

d) Type of Government

PART II : BUSINESS & COMMERCIAL KNOWLEDGE

109. ____________ is also known as the task environment and affects business and marketing in the daily operating level.

(a) Micro Environment

(

b) Macro Environment

(

c) Mini Environment

(

d) Internal Environment

110. The non-specific elements of the organisations surroundings that may affect its activities are;

(

a) Customers, suppliers and employees

(

b) Suppliers, owners, employees

(

c) Owners, Board of Directors and Employees

(

d) Customers, Intermediaries, Suppliers.

111. ___________ with their own bargaining power affect the cost structure of the industry.

(a) Intermediaries

(b) Suppliers

(c) Consumer

(

d) Government

112. Who has given the preposition, “we have met the enemy and he is us” ?

(

a) Pogo

(

b) Drucker

(

c) Kotler

(

d) None of these

Macro Environment

113. All are elements of macro environment except:

(

a) Society

(

b) Government

(

c) Competitors

(

d) Technology

114. Which of the following is not part of internal environment of a business organization?

(a) Labour Unions

(b) Corporate Culture

(

c) Customers

(d) Organisational Structure

115. Macro Environment includes

(a) Strength

(b) Weakness

(

c) Opportunity

(d) All of the above

[CA CPT May 2019]

116. Luxury hotels and luxury car companies compete to get attract the disposal income of affluent customers. What type of competition is it?

(a) Direct Competition

(b) Indirect Competition

(c) No Competition

(d) Both Direct and indirect Competition

117. Which of the following is not a correct statement?

(

a) Make in India campaign is an example of political-legal environment

(

b) Changes in corporate tax is an example of economic environment

(

c) Increase in intellectual property is an example of economic environment

(

d) Reliance Jio as a competitor of BSNL is an example of internal environment

[June 2022]

118. Which of the following is not a part of the economic environment?

(

a) Market and trade cycles

(

b) Consumer buying patterns

(

c) Strength of consumer spending

(

d) Interest and exchange rates

[Foundation Jan. 2021]

119. Which of the following factor affects the economic environment?

(

a) Economic System

(

b) Economic Condition

(

c) Economic Policies

(

d) All of the above

120. Race, age, income, educational background, asset ownership, location, etc. form part of which environment?

(

a) Demographic Environment

(

b) Socio-Cultural Environment

(

c) Economic Environment

(d) Technological Environment

121. ____________ of the government covers all those principles, policies, rules, regulations and procedures, which direct and control the industrial enterprises of the country and shape the pattern of industrial development.

(a) Industrial Policy

(

b) Monetary Policy

(

c) Investment Policy

(

d) Generic Policy

121A. Monetary policy does NOT concentrate upon:

(

a) Interest rate

(

b) Credit control

(

c) Liquidity adjustment

(

d) Disposable income

122. Which factor affect demand for companies product?

(a) Political

(b) Social

(

c) Economic

(d) Legal [Nov. 2019]

123. Demographic environment relates to:

(a) Characteristics of population in an area, district, country or in the World.

(b) Influence almost all enterprises in a similar manner.

(c) Positive and negative impact of significant international event.

(d) All of the above.

[CA CPT May 2018]

124. Which of the following statement is not a factor influencing socio-cultural environment:

(a) Family structure and changes in it, attitude towards and within the family, and family values.

(

b) Educational levels, awareness and consciousness of rights, and work ethics of members of society.

(c) Opportunities arising out of technological innovation.

(d) Role of women in society, position of children and adolescents in family and society.

125. Business and technology are:

(a) Interrelated

(b) Interdependent

(

c) Interrelated & Interdependent

(d) None of the above [Dec. 2022]

7.16

PART II : BUSINESS & COMMERCIAL KNOWLEDGE

126. Which of the following is not a factor of Demographic Environment?

(a) Ethnic Mix

(

b) Legal

(

c) Population size

(

d) Geographic Distribution [Foundation Jan. 2021]

127. Which of the following is not an example of socio-cultural environment?

(a) Family structure

(

b) Educational levels

(

c) Role of women in society

(

d) Raising income [Nov. 2020]

128. Which of the following constitute Demographic Environment?

(

a) Nature of economy i.e. capitalism, socialism, Mixed

(

b) Size, composition, distribution of population, sex ratio

(

c) Foreign trade policy of Government

(

d) Economic policy i.e. fiscal and monetary policy of Government

129. Which of the following is one of the most significant macro policy indicator that impact business?

(

a) Trade policy

(

b) International trade

(

c) Tax rates

(

d) Rural policy [July 2021]

130. Physical resources and technological capabilities are one of the components of___________

(a) Macro enlightenment

(

b) Micro environment

(

c) Internal environment

(d) External environment [June 2022]

131. The Fiscal Policy includes government policy in respect of :

(a) Public Expenditure

(b) Taxation

(

c) Public Debt

(

d) All of the above

132. The important elements in political-legal environment are:

(

a) Government, legal and economical.

(

b) Government, legal and political.

(

c) Technological, legal and economical.

(

d) Government, technological and legal.

133. The ___________ environment refers to the nature and direction of the economy in which a company competes or may compete.

(a) Sociocultural

(

b) Internal

(

c) Micro

(

d) Economic

134. The Central Government has introduced new GST law which has influenced most of the business. It is related with which of the following elements of Macro environment?

(

a) Demographic

(

b) Economic

(

c) Political-Legal

(

d) Sociocultural

135. Study of human population is called as _____________ environment.

(a) Political

(

b) Demographic

(

c) Global

(

d) Economic

136. Which of the following is a factor of Demographic Environment?

(

a) Population size

(

b) Geographic Distribution

(

c) Ethnic Mix

(

d) All of the above.

137. While analyzing technological Environment, which of the following is not considered

(a) Capital requirement

(b) Current technology being used

(c) Upcoming technologies relevant to business

(d) The relations with the country creating the technology

138. Which one of the following Statement is incorrect?

(a) Customers are the people who pay money to acquire an organization’s products.

(b) The organizations cannot survive without customers.

(

c) Consumer is one who ultimately Consumes or uses the product or service.

(d) Customer is always a Consumer.

138A. Which of the following is not a correct statement?

(a) ‘Make in India’ campaign is an example of political- legal environment

(b) Changes in corporate tax is an example of political - legal environment

(c) Increase in GDP is an example of economic environment

(d) Reliance Jio as a competitor of BSNL is an example of internal environment

139. The event of conducting Commonwealth Games in India is an example of the following element of Macro Environment?

(a) Political-Legal Environment

(b) Socio-Cultural Environment

(

c) Technological Environment

(

d) Global Environment [July 2021]

PESTLE Analysis

140. In the PEST framework for environmental analysis what does the letter E stand for?

(a) Ecological

(b) Economic

(c) Ethical

(d) Educational

140A. In PESTLE analysis ‘P’ stands for:

(a) Period

(b) Process

(c) Political

(d) Punctuality

141. The two E’s in PESTLE stands for:

(a) Economic and Environment

(b) Endless and Economic

7.18 PART II : BUSINESS & COMMERCIAL KNOWLEDGE

(

c) Entry and Exist

(d) End and Exit

[CA CPT May 2018, Jan. 2021]

142. The term PESTLE analysis is used to describe a framework for analyzing:

(

a) Macro Environment

(

b) Micro Environment

(

c) Both Macro and Micro Environment

(

d) None of above

143. PESTLE refers to-

(a) Political, Economic, Sociocultural, Technological, Legal & Environmental factors affecting business

(b) All these are External Factors

(c) All these constitute Macro Environment

(d) All of the above

144. Which of the following factor is not included in Traditional model “PEST” available for environmental monitoring?

(a) Political and Legal

(

b) Economic and Environmental

(

c) Legal and environmental

(

d) Economic and Legal.

145. PESTLE analysis does not include

(

a) Legal

(

b) Economic

(

c) Technology

(

d) Policy [CA CPT May 2019]

146. Intellectual property rights and copyrights is an example of which element of PESTLE matrix?

(a) Economic

(

b) Legal

(

c) Political

(

d) Technological [Dec. 2021]

147. Which environmental factors regulate the values and beliefs, traditions and customs of society?

(

a) Political-legal factors

(

b) Technological factors

(

c) Economic factors

(

d) Sociocultural factors

148. ___________ describe a framework for analysis of macro environmental factor.

(

a) SOCIAL

(

b) PESTLE

(

c) POLITICAL

(

d) MIXED

[CA CPT Nov. 2018, Nov. 2020]

149. In PESTLE Matrix, which of the following is not a part of Social Factor?

(a) Health and Safety law

(b) Demographics

(

c) Religious

(

d) Lifestyle trends

150. Which analysis is used for proactive and strategic thinking in its decision making?

(

a) SWOT

(

b) TOWS

(

c) PESTLE

(

d) None [Nov. 2019]

151. In the PESTLE analysis ‘S’ Stands for

(

a) Society

(

b) Social

(

c) Socio-cultural

(

d) Social responsibility [June 2022]

152. Intellectual property rights and copyrights is an example of which of the following key factor of PESTLE Matrix?

(

a) Social

(

b) Economic

(

c) Political

(

d) Technological [Nov. 2020]

153. In PESTLE Analysis, _______ ________ factors are how and to what extent the government intervenes in the economy and the activities of business firms.

(

a) Political

(

b) Economic

(

c) Environmental

(

d) Legal

154. Environmental factors in PESTLE Matrix include:

(

a) Energy Consumption

(

b) Waste disposal

(

c) Environmental Hazards/legislation

(

d) All of the above

155. All of the following are the elements of Political factor except.

(

a) Political Stability

(

b) Market and Trade Cycles

(

c) Current and future taxation policy

(

d) Regulatory bodies and processes.

Strategic Response to be Environment

156. Strategically, the businesses show make efforts to :

(

a) Exploit the opportunities

(

b) Overcome the threats

(

c) Both (a) & (b)

(

d) Either (a) or (b)

156A. Which one the following is not the strategic response to the environment.

(a) Administrative response

(

b) Competitive response

(

c) Collective response

(

d) Political response

157. The following statement relates to which strategic response approach to the environment:

They seek to monitor the changes in that environment, analyse their impact on their own goals and activities and translate their assessment in terms of specific strategies for survival, stability and strength.

(a) Proceed with caution

(b) Least resistance

(

c) Dynamic response

(d) Static Response

158. A strategic response where business are very passive in their behaviour is called as:

(a) Least resistance

(b) Proceed with caution

(

c) Dynamic response

(

d) Strategic action [June 2022]

7.20

PART II : BUSINESS & COMMERCIAL KNOWLEDGE

159. Which of the following is not a FMCG Company:

(a) Patanjali

(

b) Colgate

(

c) Bajaj

(

d) Amul

[CA CPT May 2018]

160. Which of the following is not a characteristic least resistance strategic response:

(

a) Simple goal maintaining

(

b) Passive approach

(

c) Dynamic

(

d) All of the above

161. Which of the following approaches of strategic response to the environment is related with controlling the external environment?

(

a) Least Resistance

(

b) Proceed with caution

(

c) Dynamic Response

(

d) All of the above

162. _____________ is the highest level response of business where they try to convert threats into opportunities.

(

a) Resistance

(

b) Caution

(

c) Dynamic

(

d) Complex

163. Reviving missions, objective and goals are some examples of ____ response.

(

a) Competitive response

(

b) Dynamic response

(

c) Administrative response

(

d) Collective response [Dec. 2021]

164. A strategic response where businesses are very passive in their behaviour is called as …….

(a) Least resistance

(

b) Proceed with caution

(

c) Dynamic response

(

d) Strategic action [July 2021]

165. What is the kind of response that businesses should make efforts to exploit the opportunity and thought the threats:

(

a) Strategic Responses

(

b) Least resistance

(

c) Diversify

(

d) Simplify

166. The strategic approach to the environment followed by “Airtel” may be regarded as:

(

a) Wait and watch

(

b) Proceed with Caution

(

c) Proceed with Dynamic response.

(

d) Aggressive.

167. Which of the following response is either proactive or reactive?

(

a) Administrative

(

b) Competitive

(

c) Collective

(

d) Dynamic [June 2022]

168. In response to the changes in the environment organizations in general should:

(

a) Understand the impact of changes on the strategy and make appropriate modifications.

(

b) Make efforts that changes are reverted back so that organizations can function smoothly.

(

c) Ignore the changes.

(

d) None of the above.

169. The “Least Assistance approach” of Strategic response to the environment has been followed by the Company:

(a) Airtel

(

b) BSNL

(

c) Vodafone

(

d) None of the above

170. Which of the following is not true as regards dynamic response?

(

a) They want to control external environment

(

b) The feedback systems are highly dynamic & Powerful

(

c) They Converts threats into opportunities

(d) They just manage to survive by way of coping with their changing external environments.

171. ______________ response not merely recognise and ward off threats but also covert threat into opportunities:

(a) Aggressive

(

b) Dynamic

(

c) Static

(

d) Passive

172. An organization is planning to create a Joint Venture to cope up with environmental uncertainty. This is an example of the following type of organizational response to its environment.

(a) Administrative Response

(b) Collective Response

(

c) Competitive Response

(d) Micro Environmental Response [July 2021]

173. ……………………….. is a road map of a company’s future.

(

) Objective

Goal

7.22

PART II : BUSINESS & COMMERCIAL KNOWLEDGE

BUSINESS ECONOMICS & BUSINESS AND COMMERCIAL KNOWLEDGE (ECONOMICS

| BEBCK) | CRACKER

AUTHOR : RITU GUPTA

PUBLISHER : TAXMANN

DATE OF PUBLICATION : JANUARY 2023

EDITION : 7th Edition

ISBN NO : 9789356226340

NO. OF PAGES : 376

BINDING TYPE : PAPERBACK

DESCRIPTION

Rs. 345 USD 33

This book is prepared exclusively for the Foundation Level of Chartered Accountancy Examination requirement. It covers the past exam questions & detailed answers strictly as per the new syllabus of ICAI.

The Present Publication is the 7th Edition for CA-Foundation | June 2023 exams. This book is authored by Dr Ritu Gupta, with the following noteworthy features:

• As per the latest syllabus of ICAI

• Coverage of this book includes:

• All Past Exam Questions

• CA Foundation Solved Paper – December 2022 | Memory Based

• Questions from ICAI Study Material

• [Chapters are Divided into Sub-Topics] for easy learning

• [Most Amended & Updated] Questions of Business and Commercial Knowledge have been updated as per the current scenario

• [Marks Distribution] Chapter-wise marks distribution (new syllabus) from May 2018 onwards

• [Comparison with ICAI Study-Material] has been provided chapter-wise

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