Plus Two Business Studies Chapter Wise Questions and Answers Chapter 3 Business Environment

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Kerala Plus Two Business Studies Chapter Wise Questions and Answers Chapter 3 Business Environment

Plus Two Business Studies Business Environment One Mark Questions and Answers

Question 1.
Identify the factor which comes under social environment of a business. (Tax rates, Labour laws, Demographic features, political).
Answer:
Demographic features.

Question 2.
Growing consumerism is
Answer:
Social Environment.

Question 3.
Pick out the factors which do not form part of economic environment of a business firm. (Degree of competition, Customs, and traditions, Business cycle, Capital market)
Answer:
Customs and traditions.

Question 4.
‘Disinvestment’ comes under environment.
Answer:
Economic Environment.

Question 5.
Name the process which makes a detailed analysis about the business environment.
Answer:
Environmental Scanning.

Question 6.
Which of the following is an example of social environment?
(a) Money supply in the economy
(b) Consumer Protection Act
(c) The Constitution of the country
(d) Composition of family
Answer:
(d) Composition of family

Question 7.
Liberalisation means
(a) Integration among economies
(b) Reduced government controls and restrictions
(c) Policy of planned disinvestments
(d) None of them
Answer:
(b) Reduced government controls and restrictions.

Question 8.
Which among the following is not a component of the economic environment?
(a) Economic system
(b) Stability of government
(c) Interest rates and tax rates
(d) Foreign trade balance
Answer:
(b) Stability of government

Question 9.
Which among the following is not a component of social environment?
(a) Attitude of people
(b) Literacy rate
(c) Educational system
(d) Employment rate
Answer:
(d) Employment rate

Question 10.
Pick out the factor which does not form part of the economic environment of a business firm.
(a) tax rate
(b) disinvestment
(c) internet banking
(d) economic policy
Answer:
(c) internet banking

Question 11.
Pick out the factors which do not form part of social environment of a business firm.
(a) Degree of competition
(b) Customs & traditions
(c) Business cycle
(d) Demographic distribution
(i) a & b (ii) b & c (iii) b & d (iv) a & c
Answer:
(iv) a & c.

Question 12.
There are a number of legislations which regulate the day to day operations of business in India.

1. Identify the type of environment referred in this context.
2. Name any 2 legislations which regulate the business activities.

Answer:
1. Legal Environment
2. Two legislations which regulate the business activities:

• Trade Marks Act 1968
• Essential Commodities Act 1955

Question 13.
Which of the following business environment affects the growth of IT industry in Ernakulam?
(a) Social environment
(b) Technological environment
(c) Political environment
(d) Legal environment
Answer:
(b) Technological environment

Question 14.
Identify the factor which does not come under the economic environment of business.
(a) Inflation rate
(b) Employment rate
(c) Literacy rate
(d) Infrastructure facilities
Answer:
(c) Literacy rate

Question 15.
Identify the type of environmental change in the following case “Digital camera in place of film cameras.”
Answer:
Technological environment

Question 16.
Find the odd one.
(a) Unstable Government
(b) Import-Export policy
(c) Taxation Policy
(d) Licencing Policy
Answer:
(a) Unstable Government

Question 17.
Find the odd one out.
lifestyles, tradition, culture, disinvestment
Answer:
disinvestment.

Question 18.
Granting autonomy of operations to the private sector and foreign companies is called
Answer:
Liberalisation

Question 19.
The process by which an organization monitors its environment is called
Answer:
Environment Scanning.

Question 20.
environment consists of new approaches to production.
Answer:
Technological environment.

Question 21.
environment describes the characteristics of society.
Answer:
Social Environment

Question 22.
Find the odd one among the following
(a) Industrial & Labour Laws
(b) Consumer Organisation
(c) Commercial Laws
(d) Constitutional provision
Answer:
(b) Consumer Organisation

Question 23.
“In this modern era it has become possible to book railway tickets through Internet from home, office, etc” Identify the environment.
Answer:
Technological environment

Question 24.
The present nuclear family system totally changed our lifestyle. Moreover, women’s liberation movements have added to the freedom of women in society. Identify the business environment referred to in this context.
Answer:
Social Environment.

Question 25.
On November 1, 2008, Reserve Bank of India reduced the cash reserve ratio to 5.5% to improve the availability of credit. Identify the environment to which it relates.
Answer:
Economic Environment.

Plus Two Business Studies Business Environment Two Mark Questions and Answers

Question 1.
What do you mean by Liberalisation?
Answer:
Liberalisation:
Liberalization of economy means to free it from direct control imposed by the government. Liberalisation of the Indian industry has taken place with respect to the following.

1. Abolishing licensing requirement in most of the industries
2. Freedom in deciding the scale of business activities
3. Removal of restrictions on the movement of goods and services
4. Freedom in fixing the prices of goods and services
5. Reduction in tax rates
6. Simplifying procedures for imports and exports
7. Attract foreign capital and technology to India.

Question 2.
Explain the two methods of Privatisation.
Answer:
Privatisation:
Privatisation means transfer of the public sector enterprises to the private sector. The role of private sector is encouraged. This can be done in two ways.

1. Disinvestment of a part of the shares held by the government in public sector units,
2. Dereservatiion of areas formerly reserved for the public sector.

Plus Two Business Studies Business Environment Three Mark Questions and Answers

Question 1.
Draw a diagram showing the dimensions of the Business environment.
Answer:

Question 2.
Mr. Babu Raj, an engineering graduate who wants to know the factors of legal environment approaches you. Give him an idea about the legal environment affecting business.
Answer:
A business has to work within the framework of the legal systems of the country. Legal environment includes the Acts that have been passed by the Parliament and State Legislature. The important laws that affect business include The Contract Act, Companies Act, Factories Act, Minimum Wages Act, Essential Commodities Act, etc.

Question 3.
Match the following.

Answer:

Question 4.
Explain the characteristics of Globalisation.
Answer:
Globalization:
Globalisation means the integration of the various economies of the world-leading towards the emergence of a cohesive global economy. Features of Globalisation:

1. Free flow of goods and services across nations
2. Free flow of capital across nations
3. Free flow of information and technology
4. Free movement of people across borders

Plus Two Business Studies Business Environment Four Mark Questions and Answers

Question 1.
Classify the following factors of business environment under appropriate heads.

1. Attitude of People
2. Economic Policies
3. Acts and Laws
4. Information Technology

Answer:

Question 2.
“Understanding family lifestyle and customs is important for the food processing industries”.

1. Observe this statement and identify the type of business environment referred to this context.
2. State its significance in business.

Answer:
1. Social environment.

2. Social environment:
The social factors include attitude of people, cultural heritage, customs and beliefs of people, literacy rate, educational system, demographic distribution, etc. The socio-cultural environment very much influences the business to follow a code of conduct. A business concern must understand the society in its various dimensions for its success.

Plus Two Business Studies Business Environment Five Mark Questions and Answers

Question 1.
Classify the following environmental factors into Economic, Social and Legal factors.

1. Tax Rates
2. Labour Laws
3. Level of Education
4. Human Rights
5. Foreign Trade
6. Demographic Composition
7. Liberalisation
8. Customs and Belief
9. trademark

Answer:

Question 2.
“It is the forces outside the control of a business”

1. What is it?
2. List out the importance of such forces.

Answer:
1. Identification of opportunities:
Environment provides numerous opportunities for business success. Early identification of opportunities helps an enterprise to be the first to exploit them.

2. Identification of threats:
Environmental awareness help managers to identify various threats on time and serves as an early warning signal.

3. Tapping useful resources:
Business environment helps to know the availability of resources and making them available on time.

4. Coping with rapid changes:
Environmental scanning enables the firms to adapt themselves to the changes in the market.

5. Assistance in planning and policy formulation:
Environmental understanding and analysis is the basis for planning and policymaking.

6. Improving performance:
Environment scanning helps an organisation in improving its performance

Question 3.
“The success of a business depends on correctly forecasting the environmental factors.”

1. Do you agree?
2. Explain its importance

Answer:
1. Yes. The business environment refers to the totality of all factors which are external and beyond the control of business enterprise.

2. The importance of Business Environment are:
a. Identification of opportunities:
Environment provides numerous opportunities for business success. Early identification of opportunities helps an enterprise to be the first to exploit them.

b. Identification of threats:
Environmental awareness help managers to identify various threats on time and serves as an early warning signal.

c. Tapping useful resources:
Business environment helps to know the availability of resources and making them available on time.

d. Coping with rapid changes:
Environmental. scanning enables the firms to adapt themselves to the changes in the market.

e. Assistance in planning and policy formulation:
Environmental understanding and analysis is the basis for planning and policymaking.

f. Improving performance:
Environment scanning helps an organisation in improving its performance

Plus Two Business Studies Business Environment Eight Mark Questions and Answers

Question 1.

1. Identify the various environmental factors influencing the operations of a company in your locality.
2. Also, classify them and present in a suitable diagram.

Answer:

1. Economic Environment:
Interest rates, inflation rates, changes in disposable income of people, stock market indices and the value of rupee are some of the economic factors that can affect the business enterprise.

2. Social Environment:
The social environment of business includes social forces like customs and traditions, values, social trends, literacy rate, educational levels, lifestyle, etc.

3. Technological Environment:
Technological environment consists of new products, new technologies, new approaches to product, new methods, and equipment, etc.

4. Political Environment:
Political environment includes constitution, political parties, and their ideology, types of govt., political stability, attitude towards business, etc,

5. Legal Environment:
Legal environment includes various legislations passed by the central, state or local governments.

Question 2.
List out the impact of Government policy changes in business and industry.
Answer:
Impact of Government Policy Changes on Business and Industry:
The government policy of liberalisation, privatisation, and globalisation has made a definite impact on the working of enterprises in business and industry in terms of the following.

1. Competition for Indian firms has increased.
2. The customer’s wider choice in purchasing better quality of goods and services.
3. Rapid technological advancement has changed/ improved the production process.
4. Enterprises are forced to continuously modify their operations.
5. Need for Developing Human Resources arise.
6. There is a shift from production oriented concept to market oriented concept.