Business Environment

Previous Years' CBSE Board Questions

3.1 Business Environment-Concept and Importance

MCQ

Column I Column II

1. Dynamic (i) Environment is a

nature phenomenon that is relatively

easier to understand in parts

but difficult to grasp in its

totality.

В. Complexity (iii) Business environment differs

from country to country and

even region to region.

1. Relativity (iii) Business environment keeps on changing, whether in terms of technological improvement or shifts in consumer preferences.

1. 'Cartoony Planet' is a well-known indoor playground for organising parties for children in Noida. It has many play-stations and it organises various activities for the kids to enjoy. Looking at the increasing number of children visiting 'Cartoony Planet', a new indoor playground in the name of 'Tiny-Tots House' came up with advanced swings, play stations and entertainment activities near 'Cartoony Planet'.

To compete with the newly opened indoor playground, 'Cartoony Planet' also added some advanced swings and entertainment activities to attract more children.

1. (c) A-(iii), B-(i), C-(ii) (d) A-(i), B-(ii), C-(iii) The above information highlights one of the features (2023) of 'Business Environment'. Identify the feature from the following:
2. Uncertainty
3. Dynamic Nature
4. Relativity
5. Interrelatedness (2023) (EV)

2 'Dolma' and 'Una' were gardeners with decades of hands-on experience. They were the first ones to recognise the need of indoor gardens specially for plant-lovers living in apartments. They took advantage of this opportunity and decided to offer beautiful designing ideas for indoor gardening through their innovative venture 'My Space'.

'My Space' offered creative ideas like 'Garden wall', 'Hanging Garden', 'Window Garden', 'Book- shelf garden' and many more. Since there were no competitors they soon became the market leaders in the field.

From the following points, identify the importance of Business environment highlighted above:

Which feature of business environment is highlighted

in the above case?

1. Complexity (b) Dynamic nature
2. Uncertainty (d) Relativity (Term-I, 2021-22) (Ap Business environment is said to be uncertain as:
3. (b) It differs from country to country.

1. Business environment helps the firm to identify threats and early warning signals.
2. Business environment helps in tapping useful resources.
3. Business environment enables the firm to identify opportunities and getting the first mover advantage.
4. Business environment helps in assisting in planning and policy formulation. (2023)

(Term-I, 2021-22)

1. Match the various characteristics of Business environment given in Column I with their respective explanations in Column II.

Indian ethnic wear like sarees are in great demand in

India but Italy does not have such a high demand for

the same. Which feature of business environment is reflected

from this statement?

ta) Inter-relatedness (b) Uncertainty

1. Complexity (d) Relativity (Term-I, 2021-22)

Sarvodaya Palace is a 40-year-old established

hotel in Udaipur. However, recently the travellers

started looking for free Wifi, early check in and pet

care facilities. The manager sensing the shifts in

consumers preferences upgraded the hotel and its

policies to accommodate all of these.

1. It is difficult to predict future happenings especially when environment changes are taking place too frequently.
2. It consists of numerous interrelated forces which arise from different sources.
3. Business environment consists of numerous inter- related and dynamic conditions or forces which arise

from different sources.' Identify the characteristic of business environment being highlighted here.

1. Inter-relatedness
2. Dynamic nature
3. Complexity
4. Relativity (2021 C)

1. Which of the following headings does not highlight the importance of business environment?
2. Tapping useful resources
3. Coping with rapid changes
4. Improving performance
5. Promoting innovative ideas (2021 C) R

VSA (1 mark)

1. What is meant by 'Business Environment'? (Delhi 2015)
2. Why is it said that Business Environment is uncertain? (AI 2015 C) (U)
3. Why is business environment called dynamic? (Delhi 2014 C)

SAI (3 marks)

1. What is meant by business environment? State any three points of its importance. (Delhi 2015)

1. Explain how does the understanding of business environment help the management in the following:
2. Tapping useful resources; and
3. Coping with rapid changes. (Delhi 2015 C)

SAII (4 marks)

In an environment of rising petroleum prices and a large middle class population in India, KV Motors Ltd. recognised the need for small cars in India. It created a product far superior than their competitors not only in terms of quality but also in terms of overall driving experience. It soon became the leader in the small car market. As the Indian government was encouraging foreign investment, MNCs having a big name in car manufacturing entered the Indian market. (c) KV Motors further expanded its service network and quality creating an entry barrier for the competitors. It depicted its strengths through various brand- building activities. As a result, the market share of KV Motors is refusing to go down in spite of all major automakers as its competitors.

1. Identify the economic reforms highlighted in the above case.
2. Quoting the lines, explain any two points of importance of Business Environment being highlighted in the above case (Foreign 2019)

How does the understanding of Business Environment help the management in the following:

1. Why is the understanding of Business Environment important for managers? Explain with the help of any four points. (Delhi 2014)
2. Explain the concept of 'Business Environment' and any three features of it. (Al 2014) R

LA (5 marks)

18. 'Konark Ltd.' is an electronic goods manufacturing

enterprise situated in shivpuri, Madhya Pradesh.

It is earning a very low revenue in comparison

to a competing electronic goods manufacturing

enterprise, 'Nova Ltd.' situated in Mumbai. Both

Konark's and Nova's operations are affected

directly by the investors, customers, competitors

and suppliers, which are unique to their respective

locations. In addition to this, individual firms of this

field are affected indirectly by the factors like the

money supply in the economy, composition of the

families, the technological changes, etc.

1. Identify and state the feature of the concept discussed in the above paragraph.
2. Also, state any four points of importance of this concept. (Al 2018)

3.2 Dimensions of Business

Environment-Economic, Social,

Technological, Political and Legal,

and Concept of Demonetisation

MCQ

1. Which of the following are the examples of Legal Environment?
2. Advertisement of alcoholic beverages is prohibited
3. Decrease in interest rate on loans
4. Increase in demand for organic foods
5. Digilockers for storing documents
6. In 1993, the Supreme Court passed an order to close the iron foundries around "Taj Mahal' at Agra

(a) 'Digilocker' is a flagship initiative of 'Ministry of

Electronics and IT', Government of India. It aims at

digital empowerment of the citizens by providing

access to authentic digital documents such as

academic certificates issued by different Examination

Boards, Driving Licenses, Vehicle registrations etc. in

a digital format.

The above para discusses a few dimensions

of Business Environment, Identify the correct

dimensions from the following. (a)

1. Identification of threats and early warning signals
2. Improving performance. (AI 2015 C)

(b) Social Environment and Economic Environment