Business Environment Class 12 MCQ Questions with Answers

Business Environment Class 12 MCQ Questions with Answers

Business Environment Class 12 MCQ Questions with Answers proved to be a great resource for those studying business at the secondary level.

It offered a comprehensive overview of important topics related to business, such as marketing, finance, economics, and management.

The questions and answers gave students the opportunity to test their understanding of the material. Ultimately, this resource can help students gain confidence in their ability to answer difficult questions on exams.

Business Environment

Business Environment Class 12 MCQ with Answers

Q1. A firm aims towards ___ allocation of resource-limited in supply with alternative uses.
A. worst
B. optimum
C. finest
D. None of the above
Ans: B

Q2.An economic unit transforms ___ into output.
A. Inputs
B. Raw materials
C. Money
D. None of the above
Ans: A

Q3. The ___ environment refers to the factors that affect the consumer’s purchasing power.
A. Cultural
B. Global
C. Economic
D. Political
Ans: C

Q4. Understanding a business in depth is the goal of ___.
A. External Analysis
B. Internal Analysis
C. Environmental Analysis
D. SWOT Analysis
Ans: B

Q5. The present and future viability of an enterprise are impacted by ___.
A. Environment
B. Culture
C. Time
D. None of the above
Ans: A

Q6. A country’s balance of payments is a record of its ___ with the rest of the world.
A. Non-economic transactions
B. Economic transactions
C. Both of these
D. None of these
Ans: B

Q7. GNI stands for-
A. Gross National Interest
B. Gross Nation Income
C. Gross National Income
D. Gross Nature Income
Ans: C

Q8. The ___ rate is charged by the Reserve Bank for giving loans to commercial banks.
Ans. Bank/Discount

Q9. This fiscal policy is used to cure the recession.
A. Contractionary
B. Expansionary
C. Both of these
D. None of these
Ans: B

Q10. An expansionary monetary policy will cause the interest rate to ___.
A. Fall
B. Increase
C. Decrease
D. None of the above
Ans: A

Q11. The energy crisis has led us to think in terms of modifying our energy policy and more research in alternative energy resources. This is a form of
A. Cultural transmission
B. Cultural shock
C. Organization of culture
D. Cultural adaptation
Ans: D

Q12.what people think of an organization’s actions is called:
A. Viability
B. Values
C. Public image
D. Public visibility
Ans: C

Q13. ___ developed the code of ethics which uses four questions for any ethical issue a business faces.
A. Rotary national
B. Rotary international
C. Rotate international
D. None of the above
Ans: B

Q14. Differentiation based on criteria as age, sex, caste, occupation, education is called ___.
A. Stratification

Q15. ___ is a preferred language of communication in Indian business.
A. Hindi
B. English
C. Marathi
D. All of the above
Ans: B

Q16. A political system is based on the ___ of the ruling government.
A. Ideology
B. Psychology
C. sociology
D. None of the above
Ans: A

Q17. India faced the balance of payment crisis in ___.
A. 1991
B. 1990
C. 1994
D. 1992
Ans: B

Q18. India has a ___ political system.
A. Multiple
B. Singular
C. Plural
D. None of the above
Ans: C

Q19. India embarked on a series of economic reforms in ___.
A. 1991
B. 1990
C. 1994
D. 1992
Ans: A

Q20. In a capitalist system, the consumer is regarded as ___.
A. Inferior
B. Sovereign
C. Submissive
D. None of the above
Ans: B

Q21. The extreme form of socialism is called ___.
A. Communistic
B. Capitalism
C. Communism
D. All of the above
Ans: C

Q22. Economic ___ has replaced the price mechanism under a socialist economy.
A. Stability
B. Inequality
C. Instability
D. Equality
Ans: B

Q23. The ___ is the chairman of the planning commission of India.
A. Prime Minister
B. Chief Minister
C. Home Minister
D. None of the above
Ans: A

Q24. Instead of competing, the private sector ___ the public sector in a mixed economy.
A. Add
B. Supplements
C. Extends
D. None of the above
Ans: B

Q25. The ___ motive which is an integral part of the capitalist economy motivates the producers to undertake production.
A. Loss
B. Beating
C. Profit
D. None of the above
Ans: C

Q26. A financial system provides a mechanism by which savings are transformed into ___.
C. Investment

Q27. Finance represents the ___ from where funds for a particular purpose can be drawn.
A. resources

Q28. FEMA is the foreign exchange ___.
A. Regulation Act
B. Management Act.
C. Economical Act
D. None of the above
Ans: B

Q29. All proposals which are not eligible for the RBI’s automatic approval are required to get the government’s approval through the ___ and foreign investment promotion board.
Ans: A

Q30. SEBI was founded in 1992 to protect the interest of ___.
A. Financial intermediaries
B. Investor
C. Borrowers
D. Supplier
Ans: B

Q31. In a capitalistic economy, there is ___ interference by the government in economic activities.
A. Minimum
B. Least
C. Both A & B
D. None of the above
Ans: C

Q32. Non-profitable or sick units are referred to ___.
Ans: B

Q33. ___ is India’s largest trading partner.
A. U.K
B. U.S
C. Russia
D. Japan
Ans: B

Q34. IFFCO is related to the manufacturing of ___.
A. Fertilizers
B. Agriculture
C. Farmers
D. None of the above
Ans: A

Q35. The third sector of the economy is the ___ sector.
A. Public
B. Private
C. Service
D. government
Ans: C

Q36. ___ examines the functions of public sector enterprises.
A. Promotional and developmental undertaking
B. Committee on public undertakings
C. Industrial and manufacturing undertaking
D. None of the above
Ans: B

Q37. Inflation is a ___ in the general level of ___ of goods and services in an economy over a period of time.
A. Rise, prices

Q38.Aggregate demand (AD) is the total demand for final ____ and ____ in the economy at a given time and price level.
C. Goods, services
Q39.Rostow produced a ___ stage model of economics ___.
B. Five, takeoff

Q40. A policy mix that consists of a ____ in government spending and an
___ in money supply would favour investment spending over government spending.
A. Decrease, Increase factors such as the ___ and ___ affect the business environment.
C. Exchange rate, foreign income

Q41. A mixed economy combines the elements of both the ___ and the ___ economies.
A. Capitalist, specialist
B. Industrialist, socialist
C. Capitalist, socialist
D. Industrialist, specialist
Ans: C

Q42. In mixed economy the ___ sector regulates the ___ sector.
A. Private, public
B. Public, private
C. Government, public
D. Government, private
Ans: B

Q43. The two most important credit rating agencies in India are ____ and ___.

Q44. Whereas more than ____ of the country’s population depends on the agriculture sector, it produced only ___ of the GDP.
A. 65%, 25%
B. 63%, 23%
C. 65%, 23%
D. 63%, 35%
Ans: C
Q45. One of the important objectives of the Co-operative Sector is eradication of ___ and ___.
A. Employment, Poverty
B. Unemployment, Poverty
C. Employment, Education
D. Unemployment, Education
Ans: B

46. WTO stands for
a) World Trade Organisation.
b) World Transport Organisation.
c) World Tariff Organisation.
d) Women Teachers Organisation.
Ans. (a)

47. ___means integrating the domestic economy with the world economy.
a) Privatization.
b) Liberalization.
c) Globalization.
d) Disinvestment.
Ans. (c)

48. Globalization has brought to the Indian Economy,
a) More Foreign Direct Investment
b) More growth in the GDP.
c) Progress in communication, transportation and information technology.
d) All of the above.
Ans. (d)

49. Globalization involves no risk. (True/ False)
Ans. False

50. When competition levels become higher, there is an apprehension that inefficient units may close down. (True/ False)
Ans. True

Conclusion Points

The business environment Class 12 MCQ questions with answers are a useful tool for those studying to gain a better understanding of the subject.

Furthermore, they help students improve their exam results by preparing them for the type of questions they can expect in the actual examination. Thanks for reading our blogs, if you like the post on Business Environment Class 12 MCQ, please share it on social media with your friends.

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