Chapter 12 Business Environment

May 23, 2024 chinu

business environment

1. Select the correct alternative and write answer to the following questions :

1. In which year the Industrial Development and Regulation Act came into force?
(A) 1951
(B)1955
(C)1969
(D)1986

2. In which year did Essential Commodities Act come into existence?
(A) 1951
(B)1955
(C)1969
(D)1986

3. In which year did Trade Mark Act came into existence?
(A) 1951
(B)1955
(C)1969
(D)1986

4. In which year Standardized Weights and Measures Act came into existence?
(A) 1951
(B)1955
(C)1969
(D)1986

5. In which year did Consumer Protection Act came into force?
(A)1951
(B)1955
(C)1969
(D)1986

6. In which year did liberalization privatization and globalization start in India?
(A) 1951
(B) 1991
(C) 2001
(D)2011

7. How is India’s currency symbolized?
(A) Rupees
(B) Rs.
(C) ₹
(D) SI

8. At present, which act is prevalent for foreign exchange in India?
(A) FERA
(B) FECA
(C) FESA
(D) FEMA

9. Which of the following is not the benefit of privatization?
(A) Increase in productivity
(B) Absence of political interference
(C) Exploitation of employees
(D) Use of modern technology

10. Which of the following options is benefit of privatization?
(A) Misuse of power by the top bureaucrats
(B) Unequal distribution of income and wealth
(C) Exploitation of consumers
(D) Production of quality goods and services

Chapter 12 Business Environment

2. Answer the following questions in one sentence each :

1. Give only names of factors related to business environment.
Answer:
Economic, social, cultural, technological, political and legal factors.

2. Give name of groups related to business environment.
Answer:
Business environment includes many groups like consumers, competitors, suppliers of raw materials, employees, etc.

3. Which are the two main classification of factors of business environment?
Answer:
Internal factors and external factors

4. Give only names of internal factors affecting business environement.
Answer:
Business objectives,
Employees and
Managerial systems i.e. organizational structure.

5. When can there be an increase in per capita income?
Answer:
When the rate of income is higher than the population, the per capita income increases.

6. Which aspects are included in monetary policy?
Answer:
Monetary policy includes changes in interest rates, inflation rate, credit creation, credit availability, etc.

7. Which aspects are included in fiscal policy?
Answer:
Tax structure and government expenditure.

8. Which aspects are included in cultural factors?
Answer:
Traditions, customs, beliefs, lifestyle, etc.

9. What initiative have the banks taken to simplify banking operations and understand the procedure?
Answer:
Banks have started e-banking i.e. internet banking and m-banking i.e. mobile banking.

10. What is essential to get benefits of “E-banking” and ‘M-banking’?
Answer:
In order to use the facilities of e-banking, the person should have a computer with an internet connection and for mobile banking, a smart phone with an internet connection.

Chapter 12 Business Environment

3. Answer the following questions in short :

1. Give the meaning of business environment and list out the factors affecting business environment.

Answer :-

Meaning of Business Environment:

Many surrounding factors affect business. The group of such factors is called business environment.
The economic, social, cultural, technological, political and legal factors are included in business environment.
Over and above these certain groups like, consumers, employees, competitors. suppliers of raw material, etc. are also included in business environment.
Business environment is a combination of various environments which creates new challenges and new opportunities.
While taking any decision in business activity such factors have to be taken into consideration
There are so many factors and obstacles involved in business environment, which are not in any way under the control institution. of any individual or entrepreneur or
A firm or manager will have to work in the existing business environment.
These factors keep on changing with the change in the situation of respective country and accordingly policy is formulated.
Thus the group of factors which have direct or indirect effect over business keeps on changing, which are called business environment.
The list of factors affecting business environment are as under:

(A) Internal factors :

Business Objective
Employees
Managerial Systems , etc

(B) External Factors :
(1)Economic factors
(a) Economic systems
(b) Degree of economic development
(c) Regional development and international integration
(d) National and per capita income
(e) Distribution of national income
(f) Monetary policy
(g) Fiscal policy
(h) Other factors
(2) Social factors
(3) Cultural factors
(4) Technological factors
(5) Political factors
(6) Legal factors