Multiple Choice Questions on Business Environment:

1. What is the business environment?

(1) Business Environment is the sum total of all the internal and external factors that create an impact on the business.

(2) Business Environment is the sum or collection of all internal and external factors such as employees, customers’ needs and expectations, supply and demand, management, clients, suppliers, owners

(3) Both 1 and 2

(4) None of these

Answer: 3

2. External environment of business is______

(1) Physical

(2) Demographical

(3) Economic

(4) All of these

Answer: 4

3. Micro environment is also called as_______

(1) General environment

(2) Operating environment

(3) Economic environment

(4) Political environment

Answer: B

4. Which of the following is not a part of the business environment of business?

(1) Customers

(2) Suppliers

(3) Competitors

(4) None of the above

Answer: D

5. Which of the following is not a feature of the business environment?

(1) Interrelated Elements

(2) Complexity

(3) Dynamics

(4) Continuous

Answer: 4

6. How many elements are there in the business environment?

(1) Six elements

(2) Nine

(3) Two

(4) One

Answer: 1

7. Which of the following is a elements in of business environment___________

(1) political, economic, social, 

(2) technological, 

(3) legal and environmental

(4) All of these 

Answer: 4

8. A company is affected by two broad set of  factors are_________________

(1) Local and regional

(2) Regional and national

(3) Internal and external

(4) Financial and non-financial

Answer: 3

9. Which of the following is composed of the business environment _______

(1) Human resources.

(2) Value system.

(3) Vision and mission.

(4) All of these 

Answer: 4

10. Which of the following are the features of the business environment?

(1) Uncertainty

(2) Dynamic 

(3) Complex and Relativity

(4) All of these

Answer: 4

11. ___ nature of business environment suggests that environment keeps on changing.

(1) Dynamic

(2) Pervasive

(3) Continuous

(4) Multidimensional

Answer: 1

12. Which of the following is an example of elements in a company’s micro-environment are:

(1) Customers

(2) Competitors

(3) Staff members

(4) All of these 

Answer: 4

13. Which of the following is a not example of elements in a company’s micro-environment are:

(1) Suppliers

(2) Media

(3) Shareholders

(4) None of these

Answer: 4

14. Which of the following are the dimensions of the business environment?

(1) Legal and social

(2) Technological and economic

(3) Social and economical

(4) All of the above

Answer: 4

15. Economic environment of business consist of________ 

(1) economic conditions, 

(2) economic policies, 

(3) industrial policies and economic system.

(4) All of these 

Answer: 4

16. __________ environment sets the basis for developmental activity of the business system.

(1) Financial environment

(2) Technology environment

(3) Global environment

(4) Macro environment

Answer: 1

17. Which one of the following is not a feature of the business environment?

(1) Uncertainty

(2) Interdependence

(3) Complexity

(4) Stability

Answer: 4

18. Proper understanding of business environment is not a prerequisite for____________

(1) tapping of useful resources.

(2) identification of opportunities and threats.

(3) formulation of strategies.

(4) better coordination of employee efforts.

Answer: 3