BUSINESS STUDIES
CLASS-12
CHAPTER-3
QUESTIONS PAPER
1. ‘The Burger Hub' began its business by offering the classic combo of hamburgers and fries.
But over time, their customers wanted healthier foods, so ‘The Burger Hub’ responded and
began offering healthy alternatives such as salads, fruits, wraps and oatmeal. If ‘The Burger
Hub’ hadn't responded, they may have lost customers that wanted to eat healthier foods.
The above case highlights one of the points related to the importance of business
environment and its understanding by managers. Identify it.
a) It helps in coping with rapid changes.
b) It helps in improving performance.
c) It helps the firm to identify threats and early warning signals.
d) It enables the firm to identify opportunities and get the first mover advantage.
2. According to the United Nations Environmental Agency, the world produces around 300
million tons of plastic each year, half of which constitute single-use items. Ford is recycling
over one billion plastic bottles every year to develop elements of the car's interior, reducing
the amount of plastic ending up in a landfill. The American car maker has revealed that their
Romanian-built EcoSport SUVs' carpets are made using 470 recycled single-use plastic
bottles. The process for making Ford EcoSport carpets involves shredding bottles and their
caps into tiny flakes and then heating them to 260° C. Identify the related dimension of
business environment.
a) Economic dimension
b) Social dimension
c) Technological dimension
d) Political dimension
3. The growing awareness about healthcare has led to an increase in the demand for
healthcare products and services in the country. Identify the feature of business
environment being described in the above case.
a) Dynamic nature
b) Uncertainty
c) Relativity
d) Interrelatedness
4. ASSERTIONS: Understanding of legal knowledge is a pre-requisite for the smooth
functioning of business and industry.
REASONS: Legal environment includes various laws passed by the government,
administrative orders issued by government authorities, court judgments as well as
decisions rendered by the central, state or local governments.
a) Both Assertion (A) and Reason (R) are true and Reason (R) is correct explanation of
Assertion (A).
b) Both Assertion (A) and Reason (R) are true but Reason (R) is not the correct
explanation of Assertion (A).
c) Assertion (A) is true but Reason (R) is false.
d) Assertion (A) is false but Reason (R) is true.
, 5. 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
6. Assertion: Totality of external forces is an important feature of the business environment.
Reason: Business environment is the sum total of all things external to business
organizations and, as such, is aggregative in nature.
a) Both Assertion (A) and Reason (R) are true and Reason (R) is correct explanation of
Assertion (A).
b) Both Assertion (A) and Reason (R) are true but Reason (R) is not the correct
explanation of Assertion (A).
c) Assertion (A) is true but Reason (R) is false.
d) Assertion (A) is false but Reason (R) is true
7. According to the World Health Organization, 39% of adults are overweight. Over the last 40
years, the prevalence of obesity has tripled around the world. With over half of consumers
drinking at least one sugary drink on a given day, regulations towards the beverage sector
are likely to become increasingly onerous. In the UK, for example, a sugar tax was
introduced in 2018 on beverages containing more than 5% sugar. Identify the related
dimensions of business environment.
a) Legal dimension and Social dimension
b) Social dimension and Technological dimension
c) Technological dimension and Legal dimension
d) Political dimension and Technological dimension
8. Pick out the factors which do not form part of social environment of a business firm.
a. Degree of competition
b. Customs and traditions
c. business cycle
d. Demographic distribution
a) a and b
b) b and c
c) b and d
d) a and c
9. Assertion: Economic environment is one of the dimensions or components of the Social
environment
Reason: Gross Domestic Product, National Income, Per Capita Income, Inflation, Monetary
policies, Fiscal policies, Profit earnings, rate of interests etc. are the main aspects of
economic environment
a) Both Assertion(A) and Reason(R) are True and Reason(R) is the correct explanation
of (A).
b) Both Assertion(A) and Reason(R) are True and Reason(R) is not the correct
explanation of(A).
c) Assertion(A) is True but Reason(R) is False.
d) Assertion(A) is False but Reason(R) is True.
10. From the following pictorial presentations, identify the dimension of business environment.
CLASS-12
CHAPTER-3
QUESTIONS PAPER
1. ‘The Burger Hub' began its business by offering the classic combo of hamburgers and fries.
But over time, their customers wanted healthier foods, so ‘The Burger Hub’ responded and
began offering healthy alternatives such as salads, fruits, wraps and oatmeal. If ‘The Burger
Hub’ hadn't responded, they may have lost customers that wanted to eat healthier foods.
The above case highlights one of the points related to the importance of business
environment and its understanding by managers. Identify it.
a) It helps in coping with rapid changes.
b) It helps in improving performance.
c) It helps the firm to identify threats and early warning signals.
d) It enables the firm to identify opportunities and get the first mover advantage.
2. According to the United Nations Environmental Agency, the world produces around 300
million tons of plastic each year, half of which constitute single-use items. Ford is recycling
over one billion plastic bottles every year to develop elements of the car's interior, reducing
the amount of plastic ending up in a landfill. The American car maker has revealed that their
Romanian-built EcoSport SUVs' carpets are made using 470 recycled single-use plastic
bottles. The process for making Ford EcoSport carpets involves shredding bottles and their
caps into tiny flakes and then heating them to 260° C. Identify the related dimension of
business environment.
a) Economic dimension
b) Social dimension
c) Technological dimension
d) Political dimension
3. The growing awareness about healthcare has led to an increase in the demand for
healthcare products and services in the country. Identify the feature of business
environment being described in the above case.
a) Dynamic nature
b) Uncertainty
c) Relativity
d) Interrelatedness
4. ASSERTIONS: Understanding of legal knowledge is a pre-requisite for the smooth
functioning of business and industry.
REASONS: Legal environment includes various laws passed by the government,
administrative orders issued by government authorities, court judgments as well as
decisions rendered by the central, state or local governments.
a) Both Assertion (A) and Reason (R) are true and Reason (R) is correct explanation of
Assertion (A).
b) Both Assertion (A) and Reason (R) are true but Reason (R) is not the correct
explanation of Assertion (A).
c) Assertion (A) is true but Reason (R) is false.
d) Assertion (A) is false but Reason (R) is true.
, 5. 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
6. Assertion: Totality of external forces is an important feature of the business environment.
Reason: Business environment is the sum total of all things external to business
organizations and, as such, is aggregative in nature.
a) Both Assertion (A) and Reason (R) are true and Reason (R) is correct explanation of
Assertion (A).
b) Both Assertion (A) and Reason (R) are true but Reason (R) is not the correct
explanation of Assertion (A).
c) Assertion (A) is true but Reason (R) is false.
d) Assertion (A) is false but Reason (R) is true
7. According to the World Health Organization, 39% of adults are overweight. Over the last 40
years, the prevalence of obesity has tripled around the world. With over half of consumers
drinking at least one sugary drink on a given day, regulations towards the beverage sector
are likely to become increasingly onerous. In the UK, for example, a sugar tax was
introduced in 2018 on beverages containing more than 5% sugar. Identify the related
dimensions of business environment.
a) Legal dimension and Social dimension
b) Social dimension and Technological dimension
c) Technological dimension and Legal dimension
d) Political dimension and Technological dimension
8. Pick out the factors which do not form part of social environment of a business firm.
a. Degree of competition
b. Customs and traditions
c. business cycle
d. Demographic distribution
a) a and b
b) b and c
c) b and d
d) a and c
9. Assertion: Economic environment is one of the dimensions or components of the Social
environment
Reason: Gross Domestic Product, National Income, Per Capita Income, Inflation, Monetary
policies, Fiscal policies, Profit earnings, rate of interests etc. are the main aspects of
economic environment
a) Both Assertion(A) and Reason(R) are True and Reason(R) is the correct explanation
of (A).
b) Both Assertion(A) and Reason(R) are True and Reason(R) is not the correct
explanation of(A).
c) Assertion(A) is True but Reason(R) is False.
d) Assertion(A) is False but Reason(R) is True.
10. From the following pictorial presentations, identify the dimension of business environment.
