Plus Two Business Studies Chapter Wise Previous Questions Chapter 3 Business Environment

Kerala Plus Two Business Studies Chapter Wise Previous Questions Chapter 3 Business Environment

Plus Two Business Studies Business Environment 1 Mark Important Questions

Question 1.
Which of the following is an example of Social environment? (FEBRUARY – 2009)
a) Economic system
b) Stability of Government
c) Consumer protection Act
d) Composition of family
Answer:
d) Composition of family

Question 2.
Find out the environment which describes the char-acteristics of the society.(MARCH-2009)
a) Political environment
b) Legal environment
c) Social environment
d) Technological environment
Answer:
c) Social environment

Question 3.
On November 1,2008 Reserve Bank of India reduced the cash reserve ratio to 5.5% to improve the avail-ability of credit.
identify the environment to which it relates to. (MAY-2009)
Answer:
Economic Environment

Question 4.
Find the odd one. (FEBRUARY-2010)
a) Unstable Government
b) Import-Export policy
c) Taxation Policy
d) Licensing Policy
Answer:
a) Unstable Government

Question 5.
Mr. Ramachandran, a Keralite, is doing computer software business in Germany. He wants to establish a computer software industrial project in Technopark, Thiruvananthapuram because of the business environment prevailing in Kerala.
Identify the particular business environment attracted Mr.Ramachandran. ?(MAY-2010)
Answer:
Political Environment

Question 6.
The Management of Kerala Bank Ltd. has decided to introduce core banking sysem in its branches in Kerala for providing modern banking facilities to its customers. Identify the business environment the bank has been made use of. (MAY-2011)
Answer:
Technological environment

Question 7.
“Introduction of internet banking in banking sector.” Identify the environment referred here. (MARCH-2012)
Answer:
Technological environment

Question 8.
The environment consists of components such as beliefs, traditions, etc. is known as environment. (MARCH-2013)
a) Legal
b) Economic
c) Political
d) Social
Answer:
d) Social

Question 9.
The environment which consists of those elements related to government affairs is called. (MAY-2013)
a) Economic environment
b) Social environment
c) Political environment
d) Legal environment
Answer:
c) Political environment

Question 10.
Royal Insurance Company Ltd. decided to computerise all its branches in Kerala to provide better services to the customers.
Identify the external environment the company has made use of. (MARCH-2015)
Answer:
Technological environment

Question 11.
Abolition of unnecessary licensing and quotas are examples of ___________ (MARCH-2016)
Answer:
Liberalisation

Question 12.
Life expectancy is one of the key elements that influences: (MAY-2016)
a) legal environment
b) Economic environment
c) Social environment
d) Political environment
Answer:
c) Social environment

Question 13.
The integration of the various economies of the world leading towards the emergence of a cohesive global economy is known as _________?(MARCH-2017)
Answer:
Globalisation

Question 14.
Stability and peace prevailing in the country are examples of (MAY-2017)
a) Legal environment
b) Economic environment
c) Social environment
d) Political environment
Answer:
d) Political Environment

Plus Two Business Studies Business Environment 2 Marks Important Questions

Question 1.
“Industrial policies usually give more importance to rural and backward areas.”Give four reasons. (MAY-2013)
Answer:
i) It helps in employment generation and utilization of local resources.
ii) It helps to promote economic and industrial development in the rural area.
iii) It helps to develop traditional sector industries to achieve equitable social development.

Plus Two Business Studies Business Environment 3 Marks Important Questions

Question 1.
Classify the following environmental factors into Economic, Social and Legal factors. (MAY-2009)
1) Tax Rates
2) LabourLaws
3) Level of Education
4) Human Rights
5) Foreign Trade
6) Demographiccomposition
7) Liberalisation
8) Customs and Beliefs
(9) Trademarks Act
Answer:

Question 2.
As a commerce student describe your point of view regarding the fact that aim of globalization is to look up on the world as a global village.”(FEBRUARY-2010)
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:
a) Free flow of goods and services across nations
b) Free flow of capital across nations
c) Free flow of information and technology
d) Free movement of people across borders

Question 3.
“Scaning helps to get detailed information”. Give your comments in relation to business environment. (MARCH-2010)
Answer:
1) Identification of opportunities : Environment provides numerous opportunities for business suc-cess. 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 .

Question 4.
Match the following. (MARCH-2012)

Answer:
a) Legal environment – Labour laws
b) Economic environment – Disinvestment policy
c) Social environment – Level of literacy

Question 5.
‘Govt, has decided to increase foreign direct investment in insurance sector.’ Which area of business environment is mentioned in the above decision. Explain. (MARCH-2013)
Answer:
a) Political environment
b) Political Environment: Political environment includes constitution, political parties and their ideology, types of govt., political stability, attitude towards business, etc.

Question 6.
“Smart phones were widely used in rail ticket booking, internet browsing, e-commerce, etc.” Explain the element of business environment referred here.(MARCH-2016)
Answer:
a) Technological environment
b) Technological Environment : Technological environment consists of new products, new technologies, new approaches to product, new methods and equipments, etc.

Question 7.
What is your understanding about the terms (i) Glo-balization, (ii) Liberalization and (iii) Privatisation? (MAY-2016)
Answer:
a) Globalization : Globalisation means the inte-gration of the various economies of the world leading towards the emergence of a cohesive global economy.
b) Liberalisation : Liberalization of economy means, to free it from direct control imposed by the government.
c) Privatisation: Privatisation means transfer of the public sector enterprises to the private sector.

Question 8.
“Inspite of global economic crisis India is expected to achieve a growth rate of 6.8% in the F.Y. 2015-16.” In theHight of the above statement briefly explain the impact of Government policy changes in business and Industry.(MARCH-2017)
Answer:
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.

Question 9.
State the various grounds. Why understanding the importance of business environment is so vital for business managers? (MAY-2017)
Answer:
2 Importance of Business Environment
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 policy making.
6) Improving performance: Environment scanning helps an organisation in improving its performance

Plus Two Business Studies Business Environment 4 Marks Important Questions

Question 1.
Write a short note on any four factors affecting environment of a business. (MARCH-2010)
Answer:
Dimensions of Business Environment

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

Question 2.
Write down the contents you have to include in the seminar report on the topic business environment and its classifications. (MARCH-2014)
Answer:
Business Environment: The term ‘business environment’ means the sum total of all individuals, in-stitutions and other forces that are outside the control of a business enterprise but that may affect its performance.

Question 3.
The Industrial Policy 2003 formulated by the Govt, of India was to highlight some objectives. Name any four such objectives. (MARCH-2015)
Answer:
1) Encourage foreign direct investment
2) Abolition of industrial registration schemes
3) Delicencing of industries.
4) Strengthening the role of private sector
5) Increase in employment opportunities.

Plus Two Business Studies Business Environment 5 Marks Important Questions

Question 1.
Draw a chart showing the components of business environment.(FEBRUARY-2009)
Answer:
Dimensions of Business Environment

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 the 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 equipments, 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 Government.

Question 2.
Following is the headline of an article published in a business format. “Awareness of environment is a must for business success.” Do you agree with this statement? Justify your answer.(MAY-2012)
Answer:
(a) Yes
(b) 2 Importance of Business Environment
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 policy making.
6) Improving performance: Environment scanning helps an organisation in improving its performance.

Plus Two Business Studies Chapter Wise Previous Questions and Answers