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Business Environment MCQ- CSEET

1. Profit is the only objective of all business firms

(a) True

(b) False

(c) Partly True

(d) Partly False

2. Modern business is .................

(a) Constant

(b) Profitable

(c) Dynamic

(d) Stable

3. Features of business environment does not include:

(a) Uncertainty

(b) Relativity

(c) Static Nature

(d) Specific and General forces

4. Types of Business Environment includes the following:

(a) Internal

(b) External

(c) Both (a) and (b)

(d) None of the above

5. Internal business environment does not include:

(a) Man

(b) Money

(c) Marketing Resources

(d) Government Policies.

6. Environment factors which are within the control of business are known as:

(a) Micro factors

(b) Internal factors

(c) Macro factors

(d) External factors

7 ................. is a type of external environment.

(a) Operating

(b) General

(c) Remote

(d) All of the above.

8. Micro factors are the factors that are in the company’s immediate environment.

(a) True

(b) False

(c) Partly True

(d) None of the above

9. Micro environmental factors can be described as ................. close to a business that have a direct impact on its strategy.

(a) External factors

(b) Internal factors

(c) Both (a) and (b)

(d) Competitive factors

10. Macro environment is also known as :

(a) Task environment

(b) Remote environment

(c) Global environment

(d) Operating environment

11 ................. factors affects the economy as a whole and are not particular to any organisation.

(a) Micro

(b) Macro

(c) Internal

(d) None of the above

12. Change in technology, economic conditions, political and legal factors are .................


(a) Internal

(b) External

(c) Both (a) and (b)

(d) None of the above

13. Which of the following is a type of economic system ?

(a) Capitalistic economy

(b) Socialistic economy

(c) Mixed economy

(d) All of the above

14. A Business has absolute control on the ................. .

(a) Internal Environment

(b) External Environment

(c) Both (a) & (b)

(d) None of these.

15. Micro and Macro Environment is the part of ................. .

(a) Business Environment

(b) Internal Environment

(c) External Environment

(d) Both (b) & (c).

16. Micro Environment is also known as

(a) Operating Environment

(b) Task Environment

(c) Both (a) and (b)

(d) Either (a) or (b).

17. Financial Factors, Human Resource, Marketing Resource and Miscellaneous Factors are

- Factors.

(a) Micro

(b) Macro

(c) Internal

(d) ExternaL

18. ................. means the flexibility and adaptability of law and other legal rule governing the


(a) Political Environment

(b) Legal Environment

(c) Technological Environment

(d) Both (a) and (b).

19. Legislature, executive and the judiciary comes under the

(a) Political Environment

(b) Physical Environment

(c) Legal Environment

(d) Both (aland (c).

20. The matters relating to creating close linkages and letter communication with customers,

suppliers and alliance partners given in a mission/ vision • Statement are

(a) Internal to organization

(b) External to organization

(c) Both (a) and (b)

(d) Neither (a) nor (b)

21. Which of the following is not covered by the organisation’s Internal Environment

(a) Human Resource

(b) R & D

(c) Media

(d) Management Structure

22. The forces which are external but still have a direct bearing on the operations of the firm

are called.

(a) Micro Environment

(b) Macro environment

(c) Internal Environment

(d) All of the above

23. Customers, shareholders, competitors, etc. are the elements of

(a) Micro Environment

(b) Internal environment

(c) Macro Environment

(d) None of the above

24. Technology, Culture, Demographics etc. are the elements of

(a) Internal Environment

(b) Micro Environment

(c) Macro Environment

(d) None of the above

’25. The size, density, distribution and growth rate of population is called

(a) Ecology

(b) Habitat

(c) Demographics

(d) None of the above

26. ................. was set up to channel foreiqn capital investment

(a) SEBI

(b) Foreign Investment Promotion Board

(c) Special Economic Zone

(d) International Trade Promotion Board

27. Which of the following is an element of Political environment?

(a) Legislature

(b) Judiciary

(c) Executive

(d) All of the Above

28. Which of the following is not true in relation to the business environment?

(a) It is beyond the organisational

(b) It is a sum total of internal and external control factors

(c) Organisation can remain insensitive to the business environment

(d) It is dynamic in nature

29. USP stands for

(a) Unique Selling Price

(b) Unique Strategic Price

(c) Unique Selling Point

(d) Ultimate Selling Price

30. Which of the following can be treated as characteristics of business organization?

(a) All business enterprise engage in operation on a continuous basis.

(b) Business undertakings are not exposed to any risk for uncertainty.

(c) A business firms are owned by one individual and not by a group of individuals jointly.

(d) All of the above.

31. in any organization must have characteristic like skills, quality,high morale, commitment towards the work, attitude etc.

(a) Marketing Resources

(b) Financial factors

(c) Human Resource

(d) All of the above


1 (b) 2 (c) 3 (C) 4 (c) 5 (d) 6 (a)&(b)

7 (d) 8 (a) 9 (b) 10 (b) 11 (b) 12 (b)

13 (d) 14 (a) 15 (c) 16 (c) 17 (c) 18 (b)

19 (a) 20 (b) 21 (c) 22 (a) 23 (a) 24 (c)

25 (c) 26 (b) 27 (d) 28 (c) 29 (c) 30 (a)

31 (c)

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