{"id":18638,"date":"2021-02-15T09:57:03","date_gmt":"2021-02-15T04:27:03","guid":{"rendered":"https:\/\/mcq-questions.com\/?p=18638"},"modified":"2022-03-02T11:11:39","modified_gmt":"2022-03-02T05:41:39","slug":"ncert-solutions-for-class-12-business-studies-chapter-3","status":"publish","type":"post","link":"https:\/\/mcq-questions.com\/ncert-solutions-for-class-12-business-studies-chapter-3\/","title":{"rendered":"NCERT Solutions for Class 12 Business Studies Chapter 3 Business Environment"},"content":{"rendered":"

Detailed, Step-by-Step NCERT Solutions for 12 Business Studies<\/a> Chapter 3 Business Environment Questions and Answers were solved by Expert Teachers as per NCERT (CBSE) Book guidelines covering each topic in chapter to ensure complete preparation.<\/p>\n

Business Environment NCERT Solutions for Class 12 Business Studies Chapter 3<\/h2>\n

Business Environment Questions and Answers <\/span>Class 12 Business Studies Chapter 3<\/h3>\n

Multiple Choice Questions<\/span><\/p>\n

Question 1.
\nWhich of the following does not characterise the business environment?
\n(a) Uncertainty
\n(b) Employees
\n(c) Relativity
\n(d) Complexity
\nAnswer:
\n(b) Employees.<\/p>\n

\"NCERT<\/p>\n

Question 2.
\nWhich of the following best indicates the importance of business environment?
\n(a) Identification
\n(b) Improvement in performance
\n(c) Coping with rapid changes
\n(d) AI1 of them
\nAnswer:
\n(d) All of them.<\/p>\n

Question 3.
\nWhich of the following is an example of social environment?
\n(a) Money supply in the economy
\n(b) Consumer protection Act
\n(c) The constitution of the country
\n(d) Composition of family
\nAnswer:
\n(d) Composition of family.<\/p>\n

Question 4.
\nLiberalisation means ………….
\n(a) Integration among economies
\n(b) Reduced government controls and restrictions
\n(c) Policy of planned disinvestments
\n(d) none of them
\nAnswer:
\n(b) Reduced government controls and restrictions.<\/p>\n

\"NCERT<\/p>\n

Question 5.
\nWhich of the following does not explain the impact of government policy changes on business and industry?
\n(a) More demanding customers
\n(b) Increasing Competition
\n(c) Change in agricultural prices
\n(d) Market Orientation
\nAnswer:
\n(c) Change in agricultural prices.<\/p>\n

Short Answer Type Questions<\/span><\/p>\n

Question 1.
\nWhat do you understand by business environment?
\nAnswer:
\nDefinition and Meaning of Business Environment According to Arthur M. Weimer, “Business environment encompasses the \u2019Climate\u2019 or set of conditions, economic, social, political or institutional in which business operations are conducted.”<\/p>\n

The business environment is the collection of all conditions and forces surrounding the business enterprise. It is required of every manager to take steps to Understand, face and control all these conditions of the environment and bring about a change in the enterprise accordingly, otherwise it cannot survive and grow. Different components of business environment can be shown by means of the following diagram
\n\"NCERT<\/p>\n

Question 2.
\nWhy it is important for business enterprises to understand their environment? Explain briefly.
\nAnswer:
\nImportance or Benefits of study of Business Environment
\nBusiness environment is highly dynamic and uncontrollable. It keeps the entire business active and prudent. It is necessary that there should be congenial and harmonious social, economic and political environment around the business environment. Thus business environment has following benefits.<\/p>\n

(1) Helpful in Formulating Future Strategies
\nA study of changing business environment is helpful in formulating future strategies. .<\/p>\n

(2) Helpful in Adapting to Environment
\nA study of environment reveals various internal and external environment factors affecting the enterprise. Effect of each such factor can be separately identified and changes can.be made in the enterprise accordingly. . .<\/p>\n

(3) Helpful in-Recognising Opportunities
\nA study of business environment helps us to ascertain whether the change in environment will provide some good opportunities for business or not.<\/p>\n

(4) Helpful in Recognising Threats, Hostilities and Dangers
\nA study-of business environment helps to recognise the threats, challenges, risks and dangers likely to.be faced by at) enterprise. By getting a prior knowledge it can prepare itself to overcome the same.<\/p>\n

(5) Helpful in Providing Infomation Relating to Strong Points and Weak Points
\nA study of business environment reveals the strong points weak – points of the business to face the business environment. Management ( can then identify the areas which need immediate attention.<\/p>\n

(6) Helpful in Estimating the Expectations of Various Groups:-
\nMany groups both within and outside the enterprise, Contribute to the well-being of the enterprise. As such, they have various expectations also from the enterprise. These groups may be employees, customers, suppliers, financiers, shareholders, government and the society in general. A study of business environment helps to know the expectations of these groups so that they may be reasonably fulfilled.<\/p>\n

\"NCERT<\/p>\n

Question 3
\nMention the various dimensions of business environment.
\nAnswer:
\n\"NCERT
\nDimensions of Business Environment<\/p>\n

(i) Economic Environment
\nEconomic environment is of great significance to the business. It consists of macro-level factor related to the means of production and distributution of wealth. It includes all such forces of economic development which effect the marketing scope of the enterprise. The important constituents of the economic environment are
\n\"NCERT
\n(a) Economic Conditions Economic Conditions are those conditions which are related to the possibilities of the economic development of a country.<\/p>\n

(b) Economic PoliciesThe economic policies are laid down to provide direction to the economic activities.<\/p>\n

(c) Economic Systems Knowledge of economic system helps in understanding the economic environment of the country. Economic system is of three types.<\/p>\n