Business Environment_Practice Set
TRUE OR FALSE
State with reasons whether the following statements are True or False.
1 Market intermediaries are part of a company's micro-environment. T
2 Hotels have moderately high barriers of entry and high barriers to exit. T
3 The economic environment consists of factors that affect consumer's purchasing power and spending T
patterns.
4 Computerized video checkout services are examples of the technological environmental factor. T
5 Government legislation and regulation aiming at protecting consumers from unfair business practices is T
an example of the political environmental factor.
6 Companies can use an environmental scanning plan to determine the environmental areas that need to T
be monitored
7 The internet is a major technological force influencing how we market hospitality and tourism products T
and service Companies must stop thinking about the past and start competing for the future.
8 Visioning the future is the ability to understand how the business environment provides opportunities T
and threat.
9 Complexity refers to the degree of change and the rate of change in the environment. T
10 An organization is always powerless in the business environment and has no control over the changes. F
11 A firm's macroeconomic environment includes influences such as inflation, employment levels, T
economic grow end external.
MULTIPLE CHOICE QUESTIONS
1 Which of the following is not a feature of business environment. d
(a) Interrelated elements
(b) Dynamics
(c) Complexity
(d) Continuous
2 Identification of opportunities to get first more advantage is one of the importance of business a.
environment statement is:
(a) True
(b) False
(c) Cannot say
3 Which of the following does not explain the impact of government policy changes on business and b.
industry ?
(a) Increasing competition.
(b) More demanding market customers
(c) Market Orientation.
(d) Change in Agricultural prices.
4 ______________refers to negative and unfavorable external factors that are likely to create hurdles for a c.
firm:
(a) Warning
(b) Opportunities
(c) Threats
(d) None of These
5 Which of the following are the dimensions of the business environment?
, (a) Economic and social (b). Technological and Economic
(c) Legal and social (d) All of these.
6 Liberalization means: c.
(a) Policy of planned disinvestment
(b) Integrating among economies
(c) End of license and reduction of government control
(d) None of these
7 Globalization does not involve: a.
(a) Reduction of barrier
(b) Free flow of goods & services
(c) Global mechanism for settlement of economic disputes
(d) Free flow of capital
8 Which of the following are the impact of govt. policy changes on business & industry? d.
(a) Increased competition
(b) Need for change
(c) Demanding customers
(d) All of these
9 Which of the following is not a part of the business environment? d.
(a) Customers
(b) Suppliers
(c) Competitors
(d) None of these
10 Which of the following is not a component of specific forces of business environment? a
(a) Technological conditions
(b) Customers
(c) Investors
(d) Employees
11 The growing awareness about healthcare has led to an increase in the demand for healthcare product in d
the country. Identify the feature of business environment being described in the above case.
(a) Dynamic nature
(b) Uncertainty
(c) Relativity.
(d) Interrelatedness.
12 Since more number of people have become more beauty and health conscious, our economy has d
unprecedented surge in the number of health and beauty spas and wellness clinics. Related feature
environment being described in the above lines is:
(a) Totality of external forces
(b) Dynamic nature
(c) Interrelatedness
(d) Relativity
13 . "Twinkle Stars' is a well-known resort for organizing parties, especially for children. However, in its b.
popularity has reduced considerably as a new resort with better ambience and facilities has or vicinity.
Name the related feature of business environment which has influenced the business of
adversely.
(a) Totality of external forces
(b) Interrelatedness
(c) Dynamic nature
(d) Uncertainty
TRUE OR FALSE
State with reasons whether the following statements are True or False.
1 Market intermediaries are part of a company's micro-environment. T
2 Hotels have moderately high barriers of entry and high barriers to exit. T
3 The economic environment consists of factors that affect consumer's purchasing power and spending T
patterns.
4 Computerized video checkout services are examples of the technological environmental factor. T
5 Government legislation and regulation aiming at protecting consumers from unfair business practices is T
an example of the political environmental factor.
6 Companies can use an environmental scanning plan to determine the environmental areas that need to T
be monitored
7 The internet is a major technological force influencing how we market hospitality and tourism products T
and service Companies must stop thinking about the past and start competing for the future.
8 Visioning the future is the ability to understand how the business environment provides opportunities T
and threat.
9 Complexity refers to the degree of change and the rate of change in the environment. T
10 An organization is always powerless in the business environment and has no control over the changes. F
11 A firm's macroeconomic environment includes influences such as inflation, employment levels, T
economic grow end external.
MULTIPLE CHOICE QUESTIONS
1 Which of the following is not a feature of business environment. d
(a) Interrelated elements
(b) Dynamics
(c) Complexity
(d) Continuous
2 Identification of opportunities to get first more advantage is one of the importance of business a.
environment statement is:
(a) True
(b) False
(c) Cannot say
3 Which of the following does not explain the impact of government policy changes on business and b.
industry ?
(a) Increasing competition.
(b) More demanding market customers
(c) Market Orientation.
(d) Change in Agricultural prices.
4 ______________refers to negative and unfavorable external factors that are likely to create hurdles for a c.
firm:
(a) Warning
(b) Opportunities
(c) Threats
(d) None of These
5 Which of the following are the dimensions of the business environment?
, (a) Economic and social (b). Technological and Economic
(c) Legal and social (d) All of these.
6 Liberalization means: c.
(a) Policy of planned disinvestment
(b) Integrating among economies
(c) End of license and reduction of government control
(d) None of these
7 Globalization does not involve: a.
(a) Reduction of barrier
(b) Free flow of goods & services
(c) Global mechanism for settlement of economic disputes
(d) Free flow of capital
8 Which of the following are the impact of govt. policy changes on business & industry? d.
(a) Increased competition
(b) Need for change
(c) Demanding customers
(d) All of these
9 Which of the following is not a part of the business environment? d.
(a) Customers
(b) Suppliers
(c) Competitors
(d) None of these
10 Which of the following is not a component of specific forces of business environment? a
(a) Technological conditions
(b) Customers
(c) Investors
(d) Employees
11 The growing awareness about healthcare has led to an increase in the demand for healthcare product in d
the country. Identify the feature of business environment being described in the above case.
(a) Dynamic nature
(b) Uncertainty
(c) Relativity.
(d) Interrelatedness.
12 Since more number of people have become more beauty and health conscious, our economy has d
unprecedented surge in the number of health and beauty spas and wellness clinics. Related feature
environment being described in the above lines is:
(a) Totality of external forces
(b) Dynamic nature
(c) Interrelatedness
(d) Relativity
13 . "Twinkle Stars' is a well-known resort for organizing parties, especially for children. However, in its b.
popularity has reduced considerably as a new resort with better ambience and facilities has or vicinity.
Name the related feature of business environment which has influenced the business of
adversely.
(a) Totality of external forces
(b) Interrelatedness
(c) Dynamic nature
(d) Uncertainty
