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Dimensions of business environment - class-XI

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Which of the following is an example of social environment?

  1. Money supply in the economy

  2. Consumer protection Act

  3. The Constitution of the country

  4. Composition of family


Correct Option: D
Explanation:

Composition of family is an example of social environment. Social environment consists of the customs and traditions of the society in which business is existing. It includes the standard of living, taste, preference and education level of people living in the society where business exists.

To give people the power to share and make the world more open and connected is ______of Facebook.

  1. Mission

  2. Vision

  3. Both (A) and (B)

  4. None of above.


Correct Option: A
Explanation:

To give people the power to share and make the world more open and connected is mission of Facebook as mission can be defined as goal or objective of the organization. Mission statement defines what the organization is all about and its reason for existing.

A_________defines the company's business, its objectives and its approach to reach those objectives.

  1. Vision statement

  2. Mission statement

  3. Planning statement

  4. Forecasting statement


Correct Option: B
Explanation:

A mission statement is a brief description of why a company or nonprofit organization exists. In one to three sentences, it explains what the company does, who it serves, and what differentiates it from competitors. It’s used to provide focus, direction, and inspiration to employees while it tells customers or clients what to expect from the business.

Which factor has been the most rapidly changing component in an organisation's general environment in the past quarter century?

  1. Global

  2. Economic

  3. Social

  4. Technological


Correct Option: D
Explanation:

Technological factor has been the most rapidly changing component in an organization's general environment in the past quarter century. Technological factors involve changes taking place in the method of production, use of new equipment and machineries to improve the quality of product.

Business environment consists of which element?

  1. Internal

  2. External

  3. Both (a) and (b)

  4. None of these


Correct Option: C
Explanation:

A business environment consists of internal environment within a company or an organization and the external environment, which are the external environmental factors affecting the business.

To develop caliber professionals facilitating good corporate governance is ___________of ICSI.

  1. Mission

  2. Vision

  3. Both (A) and (B)

  4. None of above


Correct Option: A
Explanation:

To develop professionals of caliber and facilitate good corporate governance is the mission of ICSI. A mission can be defined as a goal or objective of the organization. The mission defines what the organization is all about and its reason for existing.

External forces are the pressures arising within the organization.

  1. True

  2. False

  3. Partly false

  4. None of the above


Correct Option: B
Explanation:
External forces are the pressures arising within the organization- this is a false statement.
External forces includes all entities that exist outside its boundaries, but have significant influence over its growth and survival. An organization has little or no control over external forces but it needs to constantly monitored to adapt to these external changed.

Threat to go on strike is ________ of resistance to change.

  1. an implicit expression

  2. an overt expression

  3. deferred expression

  4. all of the above


Correct Option: B
Explanation:

Threat to go on strike is an overt expression of resistance to change. It is considered as an overt expression of resistance to change as it is directly observable. Threat to go to strike is not hidden expression.

Business environment is multifaceted as__________________.

  1. it is an opportunity for some but a threat for others

  2. it has multiple work to do

  3. there are 40 many different businesses.

  4. none of the above.


Correct Option: A
Explanation:

Business environment is multifaceted as it is an opportunity for some but a threat for others. Changes may be viewed differently by different individuals. Early identification of opportunities helps an enterprise to have the first mover advantage and tap the opportunities at the earliest.

The government has decided to replace the MRTP Act by a new competition law on the recommendations of the _____________.

  1. Raghavan Committee

  2. Sivaraman Committee

  3. Narasimhan Committee

  4. Wanchoo Committee


Correct Option: A

Inflation is defined as __________.

  1. persistent rise in general price level

  2. fall in general price level

  3. fall in the value of money

  4. purchasing power of consumer


Correct Option: A

The Wildlife (Protection) Act was adopted in ____________.

  1. 1972

  2. 1973

  3. 1934

  4. 1935


Correct Option: A
Explanation:

The Wildlife (Protection) Act was adopted in 1972. Prohibition on Hunting of Specified wild animals, birds and plants, setting up and management of national parks and wildlife sanctuaries, control of Trade and Commerce in wildlife and wildlife products are some objectives of Wildlife Protection Act.

The use of advanced technology in industrial production causes ______.

  1. fall in the unit cost of production and prices

  2. increase in the demand for goods

  3. increase in the demand for labour

  4. all the above


Correct Option: D
Explanation:
Use of advanced technology helps to fasten the industrial productivity which in turn helps to uplift the economy. The use of advanced technology in industrial production causes:
a) fall in the unit cost of production and prices
b) increase in the demand for goods
c) increase in the demand for labour.

Which one is not an element of internal environment?

  1. Marketing capability

  2. Operational capability

  3. Money and Capital market

  4. Personal capability


Correct Option: C
Explanation:

Forces or conditions or surroundings within the boundary of the organization are the elements of the internal environment of the organization. The internal environment consists mainly of the organization’s owners, the board of directors, employees and culture.

Marketing capability, operational capability, and personal capability are part of internal environment. Money and capital market are part of external environment.

Relaxing the restrictions and control imposed on business and industry means ______.

  1. liberalization

  2. privatisation

  3. globalisation

  4. none of these


Correct Option: A
Explanation:
Liberalization refers to relaxation of government restrictions usually in areas of social and economic policies. It refers to the process of eliminating unnecessary controls and restrictions on the smooth functioning of business enterprises.

General forces that affect business environment do not include _________.

  1. investor

  2. social conditions

  3. customers

  4. suppliers


Correct Option: A
Explanation:

The general forces that affect the business environment are the internal and external factors that are the social conditions in which the business operates, the customers that the business targets and the suppliers that supply the resources for the business to function.

Internal factors of business environment include __________.

  1. vision of the organization

  2. mission of the organization

  3. vision and mission of the organization

  4. vision and mission of the organization and other internal mechanism of the organization


Correct Option: D
Explanation:

The internal environment consists of all the things that makes the business function within the organization. Some of the internal factors of business environment are vision and mission, employees, technology etc.

Increase in the number of working women and the rise in no family households are examples of _______.

  1. the geographic shifts in population

  2. the changing family

  3. the changing age structure of the population

  4. a better-educated and more white-collar population


Correct Option: B
Explanation:

The changing social environment has led to increase in the number of working women and the rise in number of family household of changes in family.

Internal strategy of a business invariably takes care of ______.

  1. political environment

  2. media

  3. employees

  4. Both B and C


Correct Option: D
Explanation:

Internal strategy of a business consists of all the internal factors necessary for the success of the business. It consists of factors such as media, employees, management etc. Hence, internal strategy of a business invariably takes care of media and employees. 

Political environment is an factor external to the environment.

Out of the following which is not classify as a political-legal factor in the external environment?

  1. European Union's directive on working hours

  2. Government policy on corporate taxes

  3. Regulatory requirements for the telecommunication industry

  4. Consumers' attitude towards the competition in the gas and electricity industries


Correct Option: D
Explanation:

The consumer attitude and buying behavior are the marketing and promotional factors that play role in the external environment and will not classify as a legal-political external environment.

What does the acronym STEEP mean?

  1. Socio-cultural and demographics, Technology, Economic conditions, Ecology and physical environment, Political and legal

  2. Suppliers, Technology conditions, Ecology and physical environment, Political and legal

  3. Employees and Political legal

  4. Shareholders


Correct Option: A
Explanation:

STEEP is an acronym that means socio-cultural and demographics, Technology, Economic conditions, Ecology and physical environment, Political and legal

Which of the following is not an example of social environment?

  1. Composition of family

  2. Literacy rate

  3. Money supply in the economy

  4. Technology


Correct Option: D
Explanation:

The social environment includes composition of family, number of households, literacy rate of a certain population, money supply in the economy and per capita income of a family.

A society's basic values, lifestyles, culture, preferences are all parts of its _____ environment.

  1. cultural-economic

  2. physical environment

  3. natural

  4. socio-cultural


Correct Option: D
Explanation:

A society's basic values, lifestyles, culture, preferences are all parts of its socio-cultural environment.

Macro factors of business environment are generally _______.

  1. as controllable as micro factors

  2. less controllable than micro factors

  3. more controllable than micro factors

  4. none of the above


Correct Option: B
Explanation:

The macro-environment includes those things that may impact businesses but which are outside of their control. It is the larger, external environment within which businesses operate from an industry or economic standpoint. It is also known as General or Remote environment. Macro factors include inflation, government budget, etc. 

Recruitment of public relations consultants are a part of _______.

  1. operating environment

  2. general environment

  3. macro-environment

  4. competitive environment


Correct Option: D

State whether the statement is true or false.
Macro-environment is concerned with major issues and upcoming changes in the environment.

  1. True

  2. False

  3. Partly True

  4. Partly False


Correct Option: A
Explanation:

Macro-environment is concerned with major issues and upcoming changes in the environment as the macro-environment affects the functioning of the business much more than the micro-environment.

Which of the following factor is not included in micro-environment?

  1. Customers

  2. Employees

  3. Suppliers

  4. Technology


Correct Option: D

Which of the following affects an individual enterprise?

  1. General forces

  2. Specific forces

  3. Both (a) and (b)

  4. None of these


Correct Option: B
Explanation:

Specific forces affects an individual enterprise. Specific forces affect a particular business. Specific forces of business environment includes investors, customers, competitors and suppliers.

The term "threat of entrants" as per Porters approach to industry analysis is ___________.

  1. the possibility of an existing competitor capturing the entire market

  2. the possibility of an existing competitor withdrawing from the market

  3. the framework is a means of identifying the forces, which affect the level of competition in an industry or sector

  4. none of the above


Correct Option: C
Explanation:

The term " threat of entrants" as per Porters approach to industry analysis is the framework is a means of identifying the forces, which affect the level of competition in an industry or sector. Porter classifies 5 competitive force in the business environment. Porter's five forces can be defined as a simple but powerful tool which help to understand the competitiveness. It also helps to formulate business strategy.

Macro-environment is concerned with _____________.

  1. socio-cultural and demographers

  2. political and legal

  3. technological

  4. all of the above


Correct Option: D
Explanation:

Macro-environment refers to the general environment that can affect all the working conditions of the business. The main elements involved in this environment are PESTLE i.e. political, economic, social, technological, legal and environmental. Hence, it is concerned with all of the mentioned elements.

'Age distribution' is a term related to _________.

  1. culture factors

  2. rsources factors

  3. structure factors

  4. social factors


Correct Option: D
Explanation:

Social factors of PESTLE Analysis
-culture of the society that an organization operates within
-dempgraphic
- age distribution
- population growth rates
- level of education
- distribution of wealth
- social classes, living conditions and lifestyle

External environmental scanning includes scanning of _______.

  1. technical strength of organisation

  2. legal Environment

  3. manpower

  4. resources


Correct Option: B
Explanation:

External environmental scanning includes scanning of legal environment since legal environment does not depend on the internal activities of the business organization. Legal environment deals with the laws which the government make for the business organizations functioning in an economy.

Environmental scanning includes _______.

  1. internal

  2. external

  3. both (a) and (b)

  4. none of the above


Correct Option: C
Explanation:

Environmental scanning includes both internal and external. The complete awareness and understanding of business environment is known as environment scanning. Environment scanning is conducted to find out the influence of different factors and persons on the business transactions. It is done to identify opportunities and threats affecting the business organization.

What is most appropriate externally imposed strategy?

  1. Imposition of strategy by individual shareholder.

  2. Imposition of strategy by managers

  3. Reacting to threats and opportunities in the environment

  4. The imposition of strategy by Government in companies where it has extensive regulation.


Correct Option: D
Explanation:

The imposition of strategy by Government in companies where it has extensive regulation is the most appropriate externally imposed strategy since externally imposed strategy can be defined as strategy which is deliberately imposed on the organization from the elements of the external business environment upon which the organization has no or little control.

Research which is pro-actively carried out for a specific purpose is called ________.

  1. primary research

  2. secondary research

  3. active scanning

  4. creative destructions


Correct Option: A
Explanation:

Research which is pro-actively carried out for a specific purpose is called primary research. It helps to acquire data to serve the specific purpose. Primary research generally obtains information from the direct sources,

In the acronym PESTLE  'L' stands for _________.

  1. legal

  2. logical

  3. losses

  4. language


Correct Option: A
Explanation:

PESTEL stands for
P- Political
E- Economic
S- Social
T- Technological
E- Environmental
L- Legal

Which of the following is a way that employers perceive or use resumes?

  1. Employers use resumes to disqualify unsuitable applicants from the job.

  2. Employers assume that a resume is too short to be indicative of what the applicants work is like.

  3. Employers read every word in resumes to be through.

  4. Employers place very little emphasis on resumes when evaluating candidates for a job.


Correct Option: A

What is the watershed year in the history of e-mail marketing

  1. 1976

  2. 1974

  3. 1972

  4. 1970


Correct Option: A
Explanation:

1976 was a watershed year in the history of e-mail marketing. By 1976 email had really taken off, and commercial packages began to appear. Within a couple of years, 75% of all ARPANET traffic was email.

Cartel is :

  1. Fraudulent behaviour of company

  2. Fraudulent behaviours of bidden

  3. Fraudulent collusion between bidders

  4. All of the above


Correct Option: C
Explanation:
A cartel is an organization created from a formal agreement between a group of producers of a good or service to regulate supply in an effort to regulate or manipulate prices. In other words, a cartel is a collection of otherwise independent businesses or countries that act together as if they were a single producer and thus are able to fix prices for the goods they produce and the services they render without competition.
A cartel is a group of apparently independent producers whose goal is to increase their collective profits by means of price fixing, limiting supply, or other restrictive practices. Cartels typically control selling prices, but some are organized to control the prices of purchased inputs. Antitrust laws attempt to deter or forbid cartels. A single entity that holds a monopoly by this definition cannot be a cartel, though it may be guilty of abusing said monopoly in other ways. Cartels usually occur in oligopolies, where there are a small number of sellers and usually involve homogeneous products.

Which of the following can be classified as "external forces"?

  1. Political forces

  2. Educational and cultural forces

  3. Technological forces

  4. All of the above


Correct Option: D
Explanation:

Following can be classified as "external forces":
(I) Political forces
(II) Educational and cultural forces
(III) Technological forces
External forces includes all entities that exist outside its boundaries, but have significant influence over its growth and survival. An organization has little or no control over external forces but it needs to constantly monitored to adapt to these external changed.

Which of the following can be classified as "external forces"?
(I) Technological forces
(II) Social forces
(III) Political forces
Select the correct answer from the options given below:

  1. (I)

  2. (II)

  3. (III)

  4. All of the above


Correct Option: D
Explanation:
Following can be classified as "external forces":
(I) Technological forces
(II) Social forces
(III) Political forces
External forces includes all entities that exist outside its boundaries, but have significant influence over its growth and survival. An organization has little or no control over external forces but it needs to constantly monitored to adapt to these external changed.

Environment scanning applies to -
1.External scanning processes
2. Motivational scanning processes
3. Internal scanning processes
4. Lead scanning processes

Select the correct answer from the options given below -

  1. None of the given

  2. Except 4 all other

  3. Both 1 and 3

  4. 1 only


Correct Option: C
Explanation:
Environment scanning applies to-
a) External scanning process- It includes scanning of environment which does not affect the business directly.
b) Internal scanning process- It includes scanning of environment which does  affect the business directly.

External environmental scanning accounts the _________.

  1. social environment (general forces)

  2. task environment (industry analysis)

  3. both (A) and (B)

  4. neither (A) nor (B)


Correct Option: C
Explanation:
External scanning process  includes scanning of environment which does not affect the business directly.
External environmental scanning accounts both the social environment(general forces) and task environment( industry analysis).

A general enduring statement of the intent of business which reflects the belief and philosophy of management is known as_________.

  1. Mission

  2. Vision

  3. Objectives

  4. None of the above


Correct Option: A
Explanation:

A general enduring statement of the intent of business which reflects the belief and philosophy of management is known as mission.A mission statement defines the company's business, its objectives and its approach to reach those objectives. In short, mission is the aim of the company. It states the principles which a company abide to reach its goal.

In the PESTEL framework for environmental analysis what does the letter S stand for?

  1. Superior

  2. Surroundings

  3. Society

  4. Socio cultural


Correct Option: D
Explanation:

PESTLE analysis is a useful tool for understanding the big picture of the environment in which an entrepreneur is planning to operate.PESTLE stands for Political, Economic, Sociological, Technological, Legal, and Environmental.

The advantages of competition rivalry are___________________.

  1. Identifying the actual competitors

  2. Assessing competitors' objectives, strategies, strengths & weakness, and reaction patterns

  3. To root out the companies

  4. All the above


Correct Option: D
Explanation:
Competition rivalry proved to be beneficial. Competitor analysis is a critical aspect of analyzing the internal business environment. The advantages of competition rivalry are:a) Identifying the actual competitors
b) Assessing competitors' objectives, strategies, strengths & weakness, and reaction patterns
c) To root out the companies

PESTLE stands for __________________.

  1. Political, Environmental, Sociological, Technological, Long, and Environmental

  2. Political, Economic, Sociological, Theoretical, Legal, and Environmental

  3. Political, Economic, Sociological, Technological, Legal, and Environmental

  4. Political, European, Sociological, Technological, Legal, and Environmental


Correct Option: C
Explanation:

PESTLE analysis is a useful tool for understanding the big picture of the environment in which an entrepreneur is planning to operate.PESTLE stands for Political, Economic, Sociological, Technological, Legal, and Environmental.

 ___________ is careful monitoring of an organization's internal and external environments for detecting early signs of opportunities and threats that may influence its current and future plans.

  1. Early scanning

  2. Economic scanning

  3. Environment scanning

  4. Customer scanning


Correct Option: C
Explanation:

Environment Scanning is careful monitoring of an organization's internal and external environments for detecting early signs of opportunities and threats that may influence its current and future plans. It helps to improve the business organization's condition in the market. It helps to analyse threats and grab the opportunities at the earliest.

The importance of environmental scanning was first recognized by life insurance firms in the late _______.

  1. 1670s

  2. 1770s

  3. 1870s

  4. 1970s


Correct Option: D
Explanation:

Environment Scanning is careful monitoring of an organization's internal and external environments for detecting early signs of opportunities and threats that may influence its current and future plans.The importance of environmental scanning was recognized by life insurance firms in the late 1970s.

Which of the following technique can be used in environment scanning?

  1. SWOT Analysis

  2. PEST/PESTEL Analysis

  3. Industry Analysis

  4. All of above


Correct Option: D
Explanation:
Environment Scanning is careful monitoring of an organization's internal and external environments for detecting early signs of opportunities and threats that may influence its current and future plans.Following technique can be used in environment scanning:
A) SWOT Analysis
B) PEST/PESTEL Analysis
C) Industry Analysis.

Porter's Forces Analysis assumes that there are important forces that determine competitive power in a business situation. These are:
I. Supplier power, Threat of new entry
II. Supplier power, Buyer power, Competitive rivalry
III. Supplier power, Competitive rivalry, Threat of new entry
IV. Supplier power, Buyer power, Competitive rivalry, Threat of substitution, Threat of new entry
Select the correct answer from the options given below-

  1. IV

  2. III

  3. II

  4. I


Correct Option: A
Explanation:
The Porter's five forces tool is a simple but powerful tool to evaluate the power of business.Porter's Forces Analysis assumes that there are important forces that determine competitive power in a business situation. These are: a) Supplier power,
b) Buyer power,
c) Competitive rivalry,
d) Threat of substitution,
e)  Threat of new entryAs per Porter's Forces Analysis, supplier power assesses how easily suppliers may drive up prices.As per Porter's Forces Analysis, buyer power evaluates how easy it is for buyers to drive prices down.

As per Porter's Forces Analysis,_______ assesses how easily suppliers may drive up prices.

  1. buyer power

  2. supplier power

  3. threat of new entry

  4. threat of substitution


Correct Option: B
Explanation:
As per Porter's Forces Analysis, supplier power assesses how easily suppliers may drive up prices.The Porter's five forces tool is a simple but powerful tool to evaluate the power of business.Porter's Forces Analysis assumes that there are important forces that determine competitive power in a business situation. These are: a) Supplier power,
b) Buyer power,
c) Competitive rivalry,
d) Threat of substitution,
e)  Threat of new entry

Which of the following are specific forces of business environment?  
(I)    Investors 
(II)   Social conditions  
(III)  Competitors 
(IV)  Technology 
(V)   Suppliers
(VI)  Political conditions 
   Select the correct answer from the options given below - 

  1. (I), (II), (III) & (V) only

  2. (II), (IV) & (VI) only

  3. (I), (III) & (V) only

  4. (II), (III) & (VI) only


Correct Option: A
Explanation:

Specific forces of the business environment refers to those forces which does not affect every department of the business organization. For example: investors, social conditions, competitors and suppliers are the specific forces.

___________ affects the competitiveness of a firm.

  1. Technology

  2. Management

  3. Sub-standard goods

  4. Advertisements


Correct Option: A
Explanation:

Technology affects the competitiveness of a firm. It affects greatly since improved technology helps to yield greater profit and reduce the cost.

As per Porter's Forces Analysis, _________ evaluates how easy it is for buyers to drive prices down.

  1. buyer power

  2. supplier power

  3. threat of new entry

  4. threat of substitution


Correct Option: A
Explanation:
The Porter's five forces tool is a simple but powerful tool to evaluate the power of business.Porter's Forces Analysis assumes that there are important forces that determine competitive power in a business situation. These are: a) Supplier power,
b) Buyer power,
c) Competitive rivalry,
d) Threat of substitution,
e)  Threat of new entryAs per Porter's Forces Analysis, supplier power assesses how easily suppliers may drive up prices.As per Porter's Forces Analysis, buyer power evaluates how easy it is for buyers to drive prices down.

Financial factors consist of ___________.

  1. financial policies

  2. financial positions

  3. capital structure

  4. all of the above


Correct Option: D
Explanation:

Financial factors consist of financial policies, financial positions and capital structure. It is an important internal factor which has a substantial impact on business functioning and performance. Financial facilities are required to start and operate the organization.

Management Structure and Nature is a part of _______.

  1. external environment

  2. internal environment

  3. both (a) & (b)

  4. none of the above


Correct Option: A
Explanation:

Management Structure and Nature is a part of external environment. This structure of the organization influences the business decisions. These needs to be appropriately managed for smooth functioning and operations.

Demand for packaged food is a ________.

  1. political factor

  2. technological factor

  3. social factor

  4. economic factor


Correct Option: C
Explanation:

Demand for packaged food is a social factor. It is one of the most important factors among other macro environmental factors. It leaves an impact directly or indirectly on the business environment.

PESTLE analysis is a useful tool for understanding the 'big picture' of the ________ in which an entrepreneur is planning to operate.

  1. environment

  2. strategy

  3. position

  4. marketing proposition.


Correct Option: A
Explanation:

PESTLE analysis is a useful tool for understanding the big picture of the environment in which an entrepreneur is planning to operate.PESTLE stands for Political, Economic, Sociological, Technological, Legal, and Environmental.

In general, Vision and Mission statements of an organisation are a result of ________.

  1. operational planning

  2. strategic planning

  3. middle level planning

  4. performance planning


Correct Option: B
Explanation:
In general, Vision and Mission statements of an organization are a result of strategic planning.Vision statement describes the desired future position of a company. It  projects the future dream. A vision statement is a picture of a company in the future which is inspirational note and the framework for  all strategic planning.
Mission statement is a brief description of a company's fundamental purpose.

Which one of the following describes the desired future position of a company?

  1. Mission statement

  2. Vision statement

  3. Competitive advantage

  4. Qualitative policy.


Correct Option: B
Explanation:

Vision statement describes the desired future position of a company. It  projects the future dream. A vision statement is a picture of a company in the future which iis inspirational note and the framework for  all strategic planning.

In which type of environmental scanning, ad hoc decisions are made?

  1. Passive Scanning

  2. Active Scanning

  3. Directed Scanning

  4. None of the above


Correct Option: A
Explanation:

Passive scanning helps to take the ad hoc decisions. Ad hoc decisions refer to those decisions which are taken in case of emergencies. Passive scanning is also known as ongoing scanning which takens place unconsciously in the organization.

Environment scanning involves monitoring of _______.

  1. monitoring Govt. regulations

  2. monitoring Competitors

  3. monitoring supplier & client

  4. monitoring internal & external environment


Correct Option: D
Explanation:

Environment scanning involves monitoring of monitoring internal and external environment.The careful monitoring of an organization's internal and external environments for detecting early signs of opportunities and threats that may influence its current and future plans means environment scanning.

Which of the following is not a part of Environmental factor?

  1. Emphasis on safety

  2. Energy available and costs,

  3. Waste disposal,

  4. Environmental legislation


Correct Option: A
Explanation:

Emphasis on safety is not a part of Environmental factor since it is not related directly to the environment. Emphasis on safety falls under the social factor since it includes values and practices.

What does 'L' signify in environment scanning tool - PESTLE?

  1. Legal

  2. Logical

  3. Legitimate

  4. Language


Correct Option: A
Explanation:

PESTLE analysis is a useful tool for understanding the big picture of the environment in which an entrepreneur is planning to operate.PESTLE stands for Political, Economic, Sociological, Technological, Legal, and Environmental.

Which of the following is not one of the Porter's five force factor?

  1. New Entrant

  2. Supplier power

  3. Competitor

  4. Political factor


Correct Option: D
Explanation:
Political factor is not one of the Porter's five force factor.The Porter's five forces tool is a simple but powerful tool to evaluate the power of business.Porter's Forces Analysis assumes that there are important forces that determine competitive power in a business situation. These are: a) Supplier power,
b) Buyer power,
c) Competitive rivalry,
d) Threat of substitution,
e)  Threat of new entryAs per Porter's Forces Analysis, supplier power assesses how easily suppliers may drive up prices.As per Porter's Forces Analysis, buyer power evaluates how easy it is for buyers to drive prices down.

Which of the following is not a political factor that impacts external macro-environment?

  1. Population growth rate,

  2. Tax policy,

  3. Government type and stability

  4. Regulation and de-regulation trends


Correct Option: A
Explanation:

Population growth rate  is not a political factor that impacts external macro-environment. It is a demographic feature. Population growth rate specifies the rate at which the population is increasing or decreasing.

Which of the following is an environmental scanning tool?

  1. PENTLE

  2. PINTLE

  3. PESTLE

  4. PANTLE


Correct Option: C
Explanation:

PESTLE analysis is a useful tool for understanding the big picture of the environment in which an entrepreneur is planning to operate.PESTLE stands for Political, Economic, Sociological, Technological, Legal, and Environmental.

Which of the following is an environment scanning tool?

  1. PENTLE

  2. PINTLE

  3. PESTLE

  4. PANTLE


Correct Option: C
Explanation:

PESTLE analysis is a useful tool for understanding the big picture of the environment in which an entrepreneur is planning to operate.PESTLE stands for Political, Economic, Sociological, Technological, Legal, and Environmental.

Political environment refers to________________.

  1. global integration

  2. legislature

  3. economic factor

  4. none of the above


Correct Option: B
Explanation:

Political environment refers to legislature. The political environment of a country gets influenced by the political organizations such as philosophy of political parties, ideology of government or party in power, nature and extent of bureaucracy influence of primary groups.

When we analyze the processes of change in the business environment it conceptualizing it as_________.

  1. Complex

  2. Static

  3. Dynamic

  4. Diverse


Correct Option: C
Explanation:
When we analyze the processes of change in the business environment it conceptualizing it as: Dynamic. Business environment keeps on changing whether in terms of technological improvement, shifts in consumer preferences or entry of new competition in the market.

Buyers cannot exercise high bargaining power over their suppliers if ___________.

  1. the volume they buy accounts for a large percentage of their suppliers sales

  2. there are few buyers in the market

  3. they have many suppliers to choose from

  4. there is a high concentration of suppliers


Correct Option: D
Explanation:

Buyers cannot exercise high bargaining power over their suppliers if there is a high concentration of suppliers. Bargaining power of the buyer refers to the relative power of the buyer which he uses to influence sellers. In this situation, buyer have very less relative power to exercise on sellers.

Internal factors of business environment include ______________.

  1. vision of the organization

  2. mission of the organization

  3. vision and mission of the organization.

  4. vision and mission of the organization and other internal mechanism of the organization


Correct Option: D
Explanation:

Internal factors of business environment include vision and mission of the organization and other internal mechanism  of  the organization. The internal factors has received considerable  attention by firms. A business has absolute control  on the internal factors of the business organization.

What is most appropriate Externally imposed strategy is?

  1. Imposition of strategy by individual shareholder.

  2. Imposition of strategy by managers

  3. Reacting to threats and opportunities in the environment

  4. The imposition of strategy by Government in companies where it has extensive regulation.


Correct Option: D
Explanation:

The imposition of strategy by Government in companies where it has extensive regulation is the most appropriate externally imposed strategy. It is an externally imposed strategy since government is an external agent but it does affect the activities of the business organizations indirectly.

Analysing process of change in the business environment involves conceptualizing it as.

  1. Complex

  2. Static

  3. Dynamic

  4. Diverse


Correct Option: C
Explanation:

Analyzing process of change in the business environment involves conceptualizing it as dynamic. Business environment keeps on changing whether in terms of technological improvement, shifts in consumer preferences or entry of new competiion in the market.

The 6 MS of internal environment are ____________________________.

  1. Media, management, money, monitory policy, mission man

  2. Monitory policy, man, marketing, resources, money, machinery miscellaneous factors.

  3. Man, marketing resources, machinery, management, money, miscellaneous, money machinery

  4. None of the above


Correct Option: C
Explanation:
The type of business environment within a company is called internal environment. Internal environment contains the owners of the business, the shareholders, the managing director, the non-managers, employees, the customer, structure of the business organization and the culture of the organization.The 6 MS of internal environment are:Man, marketing resources, machinery, management, money, miscellaneous, money machinery.

Which of following relates to population?

  1. Demographic environment

  2. Social environment

  3. Cultural environment

  4. Natural environment


Correct Option: A
Explanation:

Demographic environment relates to population.Demographics refer to the size, density, distribution and growth rate of population.Demographics is a part of the macro environment of the business organization. It is one of the key factors of the business environment.

A society's basic values, lifestyle, culture, preferences are all part of its ____________ Environment.

  1. cultural-economic

  2. physical environment

  3. natural

  4. socio cultural


Correct Option: D
Explanation:

A society's basic values, lifestyle, culture, preferences are all part of its socio-cultural Environment. These factors directly or indirectly leave n impact on the business environment.  Societal values and lifestyles are dynamic in nature- these changes over time.

State whether the following statement is True or False:
Big and powerful firms adopt the response of gaining command over the environment.

  1. True

  2. False


Correct Option: A
Explanation:

Big and powerful firms adopt the response of gaining command over the environment- this statement is true. It is seen that large firms together create an oligopoly and hence price determination is done by these big and powerful firms.

Demonetization and GST are examples of changes in ________.

  1. political environment

  2. social environment

  3. technological environment

  4. global environment


Correct Option: A
Explanation:

Demonetization and GST are examples of changes in political environment. Political environment of a country gets influenced by the political organizations. Demonetization and GST are classified under political environment since these reforms are taken by the government of India..

State whether the following statement is True or False:
Wait and watch is a response of least resistance.

  1. True

  2. False


Correct Option: A
Explanation:

Wait and watch is a response of least resistance- this is a true statement. This kind of statement are optimistic in nature and when somebody in a company perform an activity in a lethargic manner then such kind of statement are passed to assure that person that the work can be performed in an efficient manner. 

State whether the following statement is True or False:
Innovative approach requires no feedback system.

  1. True

  2. False


Correct Option: B
Explanation:

Innovative approach requires no feedback system- this statement is false. Innovative approach also requires feedback system since feedback is of utmost necessary to check whether the planning and strategy of the business gets implemented properly.

Age, family size, sex composition and other people related elements are part of _______.

  1. political environment

  2. economic environment

  3. demographic environment

  4. natural environment.


Correct Option: C
Explanation:

Age, family size, sex composition and other people related elements are part of demographic environment.Demographic environment relates to population.Demographics refer to the size, density, distribution and growth rate of population.Demographics is a part of the macro environment of the business organization. It is one of the key factors of the business environment.

Classify the following into economic and non-economic activities. 

  1. A mother cooking food for her children

  2. A teacher teaching in a coaching centre

  3. A young boy helps an old man in crossing the road

  4. The chaat seller outside a school

  5. A lady officer in Delhi Police


Correct Option: A
Explanation:

A. It is a non-economic activity as a mother cooks food for her children out of love and affection and not with a motive to earn a profit or income.

B. It is an economic activity as the teacher is teaching with a motive to earn income or livelihood.
C. It is a non- economic activity as there is no earning of the young boy.
D. It is an economic activity as his motive is to earn profit.
E. It is an economic activity as the officer is doing this job to earn a livelihood.

Bajaj Auto offers "value for money, for years" is an example of ____________.

  1. vision

  2. mission

  3. objective

  4. goal


Correct Option: B
Explanation:


Bajaj Auto offers "value for money, for years" is an example of mission. A mission statement refers to a firm\'s primary objectives and the scope of its operations or why does the organization operates and how do they market their product or services. Therefore, the mission of Bajaj Auto is "value for money, for years". 

A vividly descriptive image of what a company wants to be known for _____________.

  1. Vision

  2. Mission

  3. Objective

  4. Goal


Correct Option: A
Explanation:

A vision statement refers to what an organisation wants to be in the upcoming years of its operations. It describes the future view of the company or it terms of operations in future to achieve the organisational goals which it has set in the mission statement. 

A statement of a firm's unique purpose and the scope of its operations in product, and market terms is known as _____________.

  1. vision

  2. mission

  3. objective

  4. goal


Correct Option: B
Explanation:

b'A mission statement refers to a firm\'s unique purpose of survival or its primary objectives and the scope of its operations or why does the organization operates and how do they market their product or services. Example: Bajaj Auto offers "value for money, for years" is an example of mission. '

Which of the following is nature of the business environment?
(i) Multifaceted
(ii) Uncertain
(iii) Dynamic.
Select the correct answer from the options given below.

  1. (i) & (ii)

  2. (ii) & (iii)

  3. (i) & (iii)

  4. (i), (ii) & (iii)


Correct Option: D
Explanation:

 Business environment refers to the forces, factors and institutions with which the businessman has to deal with in order to achieve its objectives. It has the following nature: 

1. Multifaceted: All the forces and factors of business environment are inter-related to each other due to which it becomes a multifaceted factor for a business. 

2. Dynamic: Business environment is highly flexible and keeps on changing. So it is not static or rigid in nature and it need to be monitored continuously due to its dynamic nature. 

3. Uncertain: As business environment change very fast and continuously, it is very difficult to predict the changes of business environment. Therefore, it is highly uncertain. 

To develop caliber professionals facilitating good corporate governance is ______ of ICS.

  1. Mission

  2. Vision

  3. Both (A) and (B)

  4. None of above


Correct Option: A
Explanation:

A mission statement refers to a firm's unique purpose of survival or its primary objectives, the ways to achieve those objectives and the scope of its operations and how do they market their product or services to the target market. Therefore, to develop caliber professionals facilitating good corporate governance is the mission of ICS.

A ________ statement defines the company's business, its objectives and its approach to reach those objectives.

  1. Planning

  2. Mission

  3. Forecasting

  4. Policy


Correct Option: B
Explanation:

Mission is a company's statement that defines the company's business and why the company was started. The statements includes the objectives of the company which usually refers to long tern objectives and the company's plans and strategies in order to achieve those objectives. 

Which two work environments should be good for spawning the new enterprises?

  1. Finance and marketing

  2. Finance and R&D

  3. Marketing and R&D

  4. Marketing and IT


Correct Option: B
Explanation:

The two work environment which will be good for spawning the new enterprises are finance and research and development as they aim at developing the conduct of business in all dimensions which includes all sectors of the business environment as well. 

Which of the following represent example of general, application and user controls activities, respectively,in the computer environment?

  1. Control over access to programs, computer exception reports, and manual checks of computer output

  2. Manual checks of computer output, control over access to programs and computer exception reports,

  3. computer exception reports, control over access to programs, and manual checks of computer output

  4. Manual checks of computer output, computer exception reports and control over access to programs


Correct Option: A
Explanation:

Control over access to programs, computer exception reports, and manual checks of computer output represent example of general, application and user controls activities, respectively in the computer environment. All the computer-based activities are related with the computer environment.

Which of the following can be treated as ultimate goal?

  1. Vision

  2. Mission

  3. Corporate Strategy

  4. Corporate Objectives


Correct Option: A
Explanation:

Vision of a business refers to the state where the management wants to take the business. It is that period when the business flourish. Therefore, it is the ultimate goal for an organisation as it can be achieved only by achieving the objectives and mission of the business.

Mission & Vision Statements are NOT commonly used to: ____________.

  1. Guide management's thinking on strategic issues, especially during times of significant change

  2. Create wider linkages with customers, suppliers and alliance partners

  3. Help establish a framework for ethical behaviour

  4. Inspire employees to work more productively by providing focus and common goals


Correct Option: A
Explanation:

Strategy formulation refers to the process of building the mission and vision of the business where the main mission of the business with the major objectives for which the business was started is set up along with the strategies and policies to achieve those objectives and mission.

Therefore, mission and vision does not guide the managements thinking on strategic issues but as to solve these issues the mission and vision of a business are developed.

Which of the following is an economic factor -

  1. Exchange rates

  2. Licensing regulations

  3. Labour courts

  4. Employment needs


Correct Option: B
Explanation:

Licensing regulations is an economic factor as it includes with providing sufficient business license to the corporate units in order to survive in competition that prevails in the market. After, liberalization, many of such license where removed so that many business can flourish in the country. 

Which dimension of an organization's environment refers to the degree to which it can support growth?

  1. Capacity

  2. Technology

  3. Structure

  4. Volatility


Correct Option: A
Explanation:

The capacity of an organisation defines whether the organisation is able to initiate growth or not. This capacity is build over the years by increasing the retained earnings from the business and using them as growth generating agents later on.

Which are the $6$Ms of internal environment?

  1. Media, management, money, monitory policy, mission man

  2. Monitory policy, man, marketing, resources, money, machinery, miscellaneous factors.

  3. Man, marketing resources, machinery, management, money, miscellaneous

  4. None of the above


Correct Option: C
Explanation:

The six M's of internal enviornment are Man, Marketing, Machinery, Management, Money, Miscellaneous, Money.

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