Dr.G.R.Damodaran College of Science(Autonomous, affiliated to the Bharathiar University, recognized by the UGC)Re-accredited at the 'A' Grade Level by the NAAC and ISO 9001:2008 CertifiedCRISL rated 'A' (TN) for MBA and MIB ProgrammesI BCOM[2014-2017]SEMESTER- IIALLIED- BUSSINESS ENVIRONMENT202CMultiple Choice Questions.1. In which of the following basic categories can business environment be dividedA. . Local and RegionalB. Regional and NationalC. Internal and ExternalD. Financial and Non-FinancialANSWER: C2. ________ is a statement which derives the role that an organization plays in a societyA. GoalsB. MissionC. ObjectiveD. SuccessANSWER: B3. Economic Environment refers to all forces which have a _______impact on businessA. politicalB. naturalC. economicD. socialANSWER: C4. ________ environment is within the control of the businessA. InternalB. ExternalC. MicroD. MacroANSWER: A5. ________ environment is beyond the control of the businessA. InternalB. ExternalC. MicroD. MacroANSWER: Bhttp://172.16.2.20/printqp.php?heading=I BCOM,[2014-2017], SEMEST...1 of 22 2/9/2015 10:55 AM6. Micro environment is also called as_______A. general environmentB. operating environmentC. economic environmentD. political environmentANSWER: B7. Macro environment is also called as_______A. general environmentB. operating environmentC. economic environmentD. political environmentANSWER: A8. The environment which is close to business and affects its capacity to work is known as________environmentA. internalB. externalC. microD. macroANSWER: C9. Factors that create opportunities and threats to business units is known as____A. internal environmentB. external environmentC. micro environmentD. macro environmentANSWER: D10. Internal factors affecting a business environment also are referred to ____factorsA. controllableB. uncontrollable factorsC. relevantD. globalANSWER: A11. External factors affecting a business environment also be referred to ____factorsA. controllableB. uncontrollable factorsC. relevantD. globalANSWER: B12. Study of human population is called as _______ environmentA. politicalB. socialC. demographicD. economicANSWER: C13. In which year the essential commodities act introduced ---http://172.16.2.20/printqp.php?heading=I BCOM,[2014-2017], SEMEST...2 of 22 2/9/2015 10:55 AMA. 1954B. 1955C. 1956D. 1957ANSWER: B14. Which is the one not included in national cultureA. LanguageB. InternetC. BeliefD. AttitudeANSWER: B15. Culture spreads from one place to another and such transmission is called as____A. differenceB. reputationC. adoptionD. heritageANSWER: A16. An attitude composed of effect_______A. flextimeB. cognitionC. relationshipD. cultureANSWER: B17. What is the main occupation of kshatriyasA. engaged in cleaningB. engaged in tradeC. engaged in army workD. none of the aboveANSWER: C18. A systematic application of scientific knowledge to practical task is known as_A. technologyB. cultureC. demographicD. legalANSWER: A19. _________ is defined as systematic assessment of the social impact of the activities of a business firmA. Social auditB. Social responsibilityC. Social interactionD. Social benefitANSWER: A20. What are the elements of business ethicsA. Values rights and dutiesB. Attitudes pressure and environmenthttp://172.16.2.20/printqp.php?heading=I BCOM,[2014-2017], SEMEST...3 of 22 2/9/2015 10:55 AMC. Value environment and attitudeD. ResponsibilitiesANSWER: A21. Corporate values are the _______ of the corporate sectorA. shared valuesB. moral beliefsC. customer satisfactionD. goodwillANSWER: B22. The economic system in which business units or factors of production are privately owned andgoverned is called as _____A. capitalismB. socialismC. democraticD. republicANSWER: A23. Under ____ economic system, all the economic activities of the country are controlled and regulated bythe Government in the interest of the publicA. capitalismB. socialismC. democraticD. republicANSWER: B24. The economic system in which both public and private sectors co-exist is known as ____ economyA. capitalismB. socialismC. democraticD. mixedANSWER: D25. One Reserve Bank of India introduced certificates of deposit in ______A. 1964B. 1989C. 1986D. 1990ANSWER: B26. Fiscal policy refers to the policy of government regarding taxation, public expenditure and___A. public debtB. budgetsC. policiesD. depositsANSWER: B27. The sixth plan mentions 17 criteria for determining the prevalence of __A. poorB. academicianhttp://172.16.2.20/printqp.php?heading=I BCOM,[2014-2017], SEMEST...4 of 22 2/9/2015 10:55 AMC. backwardnessD. businessANSWER: C28. Fiscal policy is called as ________policyA. monetaryB. budgetaryC. industrialD. economicANSWER: B29. One concept of culture determines the ____________ of peopleA. experienceB. ethosC. educationD. wealthANSWER: B30. Self fulfillment and immediate gratification are ____________ cultural valuesA. decreasesB. risesC. diminishesD. corporateANSWER: B31. National stock exchange was set up as a joint stock company by all Indian financial institution andbanks on November 27 ______A. 1991B. 1992C. 1993D. 1994ANSWER: B32. The benefit of OCTEI is ____A. it offers complete transparency in dealingsB. it offers both liquidity and securityC. transactions are made fast and quickD. it is not investor friendlyANSWER: D33. Which can be a method of privatizationA. DenationalizationB. Purchasing sharesC. TakeoverD. MergerANSWER: A34. In India liberalization and privatization began from__A. 1991B. 1971C. 1981http://172.16.2.20/printqp.php?heading=I BCOM,[2014-2017], SEMEST...5 of 22 2/9/2015 10:55 AMD. 1947ANSWER: A35. Industrial policy of 1948 aimed at ____A. industrializationB. growth of agricultureC. development of infrastructureD. development of service sectorANSWER: A36. The industrial policy resolution was passed first in the year ___A. 1931B. 1947C. 1956D. 1999ANSWER: C37. Which can be possible restrictive trade practiceA. TakeoverB. MergerC. Price discriminationD. MonopolyANSWER: C38. ________% of economic growth of USA UK and Germany has come from technical progress achievedin these countriesA. 60B. 70C. 50D. 55ANSWER: A39. ________ change is a potent fame the reconfiguration of industrial boundariesA. TechnologicalB. EconomicalC. OrganizationalD. EnvironmentalANSWER: A40. Obsolesce scene means _____________of productsA. implementationB. outdatedC. assessmentD. qualityANSWER: B41. Corporate contribution to political parties are now been ____________ in our countryA. legalizedB. customizedC. introducedD. authorizedhttp://172.16.2.20/printqp.php?heading=I BCOM,[2014-2017], SEMEST...6 of 22 2/9/2015 10:55 AMANSWER: B42. The authority coats to settle ___A. family disputesB. legal disputesC. personal disputesD. business disputesANSWER: B43. The _____________ is an introduction to the constitution and contains its basic philosophy.A. preambleB. societyC. processD. serviceANSWER: A44. The term fraternity implies the spirit of _________________A. brotherhoodB. judiciaryC. justiceD. valueANSWER: A45. ________ signifies the absence of any arbitrary restraint on the freedom of individual action andcreations for the development of personality of the individualA. FraternityB. LibertyC. SecularismD. SocialismANSWER: B46. Secularism is understood to mean according equal encouragement to all ________A. countryB. ethicsC. valuesD. religionANSWER: D47. _______ state can have an elected or hereditary headA. DemocraticB. AutocraticC. SocializedD. RepublicANSWER: A48. Anzcert means Australia and ______________ closer economic relation and trade agreementA. new jerseyB. netherlandC. newzealandD. NepalANSWER: Chttp://172.16.2.20/printqp.php?heading=I BCOM,[2014-2017], SEMEST...7 of 22 2/9/2015 10:55 AM49. The era of deregulation liberalization begin in _A. 1950 - 51B. 1980C. 1991D. 1960ANSWER: A50. Identification of companies technological assets that may provide ___________ in new businessesA. opportunitiesB. developmentC. failureD. authorityANSWER: A51. The _________ activities involved in bringing raw materials to the factory and end products from thereto the market constitute businessA. complexB. singleC. multitudinousD. variedANSWER: A52. ___________ occupies the central place in businessA. PeopleB. Raw materialC. LaborD. Finished goodsANSWER: B53. Businesses represent the organized efforts of enterprises to supply _______with goods and servicesA. producersB. consumersC. intermediariesD. suppliersANSWER: A54. India is good example for ________economyA. socialistB. mixedC. capitalistD. communistANSWER: B55. _______ are a primary mechanism for motivating business activitiesA. Social relationshipB. ProfitC. CustomersD. AssetsANSWER: Ahttp://172.16.2.20/printqp.php?heading=I BCOM,[2014-2017], SEMEST...8 of 22 2/9/2015 10:55 AM56. According to whom, business environment is defined as total of all things external to firms andindustries which effect their organization and operationsA. Arthur.m.welmerB. John wickC. Bayord.o.wheelerD. Mathew smithANSWER: A57. Business includes ___A. non-economic activitiesB. economic activitiesC. social activitiesD. production activitiesANSWER: B58. Is business a vast and fascinating subjectA. technologyB. profit makingC. changeD. peopleANSWER: A59. What is the single word that can best describe todays businessA. TechnologyB. Profit MakingC. ChangeD. PeopleANSWER: C60. How many main characteristics the todays businesses haveA. SixB. FourC. TenD. EightANSWER: D61. Which of the following modern business is dynamicA. mass productionB. mass marketingC. mass salesD. mass purchaseANSWER: A62. Which of the following is not an economic activityA. A doctor practicingB. A lawyer practicing lawC. A professional cricketer playing cricketD. A student playing cricketANSWER: D63. A valid definition of a business purpose is to __http://172.16.2.20/printqp.php?heading=I BCOM,[2014-2017], SEMEST...9 of 22 2/9/2015 10:55 AMA. create a customerB. maximize profitsC. serve the societyD. increase the wealth in the firmANSWER: A64. Is todays business is not characterized by diversificationA. Social relationshipB. ProfitC. CustomersD. AssetsANSWER: B65. Does internationalization of business is a mean of sustaining a strong domestic base in term oftechnology, product, market and capital over a longer periodA. sixB. fourC. tenD. eightANSWER: A66. Is interference of government in business is common in every countryA. 1960sB. 1970sC. 1980sD. 1990sANSWER: A67. 1s ties interference of government in business was on the ascendancyA. Mission objectivesB. Mission targetsC. Mission objectives targetD. TargetANSWER: C68. ____refers to the system of moral principles and rules of conduct applied to businessA. Business cultureB. Business ethicsC. BusinessD. SocietyANSWER: B69. Competition is beneficial to the competing firms besides benefiting the ___A. producersB. intermediariesC. financesD. consumersANSWER: D70. What are the main concepts concerning about business goals (or) objectivesA. Mission objectiveshttp://172.16.2.20/printqp.php?heading=I BCOM,[2014-2017], SEMEST...10 of 22 2/9/2015 10:55 AMB. Mission targetsC. Mission objectives targetD. Target objectivesANSWER: C71. Mission is a statement which defines the role that ______ plays in a societyA. peopleB. organizationC. labourD. marketANSWER: B72. Does the targets will have much longer time spanA. PeopleB. OrganizationC. LaborD. MarketANSWER: B73. Goals realization continuously will lead to ____A. mission fulfillmentB. maximize customersC. high revenueD. maximize suppliersANSWER: A74. _______is the primary motive for a business enterpriseA. ProfitB. Maximize customersC. Human objectiveD. Maximize suppliersANSWER: A75. The following statement with respect to culture is falseA. Culture is enduringB. Culture is changingC. Culture is evolved among the members of a societyD. Culture is determined by national boundariesANSWER: D76. ________is the business through which new ideas and innovations are given a sharp and are convertedinto useful products and servicesA. Market LeadershipB. ChallengeC. Joy of CreationD. GrowthANSWER: C77. Among the following, what is the nature of business environmentA. AggressionB. Relativehttp://172.16.2.20/printqp.php?heading=I BCOM,[2014-2017], SEMEST...11 of 22 2/9/2015 10:55 AMC. UncertainD. Aggression Relative and UncertainANSWER: D78. What is the significance of business environmentA. First Mover AdvantageB. CompetitionC. InformationD. GlobalizationANSWER: A79. What are the elements of business environmentA. Micro EnvironmentB. Macro EnvironmentC. Complex EnvironmentD. STEEPLE factorANSWER: D80. Macro environment is also known as ____A. direct environmentB. indirect environmentC. competitive environmentD. social environmentANSWER: B81. Is micro environment is also known as direct environmentA. EconomicB. Political & LegalC. CompetitorsD. SuppliersANSWER: A82. Macro environment consist of ___A. publicB. political & legalC. suppliersD. customersANSWER: B83. The macro environment consists of ___A. Economic Political &LegalB. consumer competitorsC. publicD. middlemenANSWER: A84. What does micro environment consists of ___A. economicB. political &legalC. consumers competitorsD. demographichttp://172.16.2.20/printqp.php?heading=I BCOM,[2014-2017], SEMEST...12 of 22 2/9/2015 10:55 AMANSWER: C85. The micro environment consists _A. Technological EnvironmentB. Political EnvironmentC. Economic EnvironmentD. Public middlemen consumers & competitorsANSWER: D86. _______ refers to all forces which have an economic impactA. Technological EnvironmentB. Political EnvironmentC. Economic EnvironmentD. Social EnvironmentANSWER: C87. Political environments refers to the influence excreted by the ______political InstitutionsA. 2B. 3C. 4D. 5ANSWER: B88. What are the bodies which political environment consists ofA. MiddlemenB. SuppliersC. CustomerD. Legislature Executive & JudiciaryANSWER: D89. _________ decides on a particular course of actionA. LegislatureB. ExecutiveC. JudiciaryD. PublicANSWER: A90. ________is also called government which implements whatever is decided by the parliamentA. LegislatureB. ExecutiveC. JudiciaryD. PublicANSWER: B91. _______plays the watch dog in order to ensure that both function in public interest and within theboundaries of constitutionA. LegislatureB. ExecutiveC. JudiciaryD. PublicANSWER: Chttp://172.16.2.20/printqp.php?heading=I BCOM,[2014-2017], SEMEST...13 of 22 2/9/2015 10:55 AM92. Is a stable and dynamic political environment is indispensable for business growthA. 2B. 3C. 4D. 5ANSWER: B93. How many goals do the environment analysis hasA. 2B. 3C. 4D. 5ANSWER: B94. ________should facilitate & enhance strategies thinking in organizationA. Strategic managementB. Environmental analysisC. Business environmentD. Business analysisANSWER: B95. The environment analysis that provides inputs for strategies decision making is _A. Strategic managementB. Environmental analysisC. Business environmentD. Business analysisANSWER: A96. The first MNC came to India in ___A. 1920B. 1921C. 1919D. 1923ANSWER: B97. An effective crisis management plan will __A. minimize the seriousness of the problemB. exaggerate minor incidentC. use the internet to convey the public affairs messageD. immediately apologize to the public and accept any liabilityANSWER: A98. Economic growth can be measured by ___________A. the CPIB. the CBIC. GDPD. MPCANSWER: C99. An increase in interest rates _http://172.16.2.20/printqp.php?heading=I BCOM,[2014-2017], SEMEST...14 of 22 2/9/2015 10:55 AMA. is likely to reduce savingsB. is likely to reduce the external value of the currencyC. leads to a shift in the mec scheduleD. leads to a movement along the MEC scheduleANSWER: D100. The accelerator assumes __A. the marginal propensity to consume is constantB. the economy is at full employmentC. there is a constant relationship between net investment and the rate of change of outputD. the multiplier is constantANSWER: C101. _______refers to the density of competition among firmsA. Intensity of realtyB. CompetitivenessC. Absolute competitionD. CompetitionANSWER: A102. ________ identifies the early signals of possible environment changesA. ScanningB. MonitoringC. ForecastingD. AssessingANSWER: A103. ________involves tracking environment trend, sequence of events (or) streams of activitiesA. ScanningB. MonitoringC. ForecastingD. AssessingANSWER: B104. ________ is concerned with developing projection of direction, scope, speed & intensity ofenvironmental changeA. ScanningB. MonitoringC. ForecastingD. AssessingANSWER: B105. Does the assessment involves identifying &evaluating how & why current & projected environmentchange which effect strategic management of the organizationA. U.S.AB. U.KC. RussiaD. AfricaANSWER: A106. The scholar made research in the food canning market is____http://172.16.2.20/printqp.php?heading=I BCOM,[2014-2017], SEMEST...15 of 22 2/9/2015 10:55 AMA. informal researchB. formal researchC. indirect viewingD. conditioned ViewingANSWER: B107. The relation between TRIPS and WIPO conventions is ____A. WIPO conventions are more validB. TRIPS agreement excludes subjects covered by WIPO conventionsC. TRIPS agreement is subordinate to WIPO conventionsD. TRIPS agreement incorporates substantive provisions of WIPO conventionsANSWER: D108. _______involves a degree of purposefulness by manager as he receives information inputsA. Informal researchB. Formal researchC. Indirect viewingD. Conditioned viewingANSWER: D109. _______ refers to the managers exposure & perception of information that has no specific purposeA. informal researchB. formal researchC. indirect viewingD. conditioned viewingANSWER: C110. Porters model represents the relationship between _____A. organizational and environmentB. society and environmentC. organization and societyD. society and industryANSWER: A111. ________environment refers to all economic factors which have a bearing on the functioning of abusinessA. EconomicB. TechnologicalC. NaturalD. SocialANSWER: A112. Free trade is based on the principle of ___A. comparative advantageB. comparative scaleC. economies of advantageD. production possibility advantageANSWER: A113. The first five year plan was given in which yearA. 1952http://172.16.2.20/printqp.php?heading=I BCOM,[2014-2017], SEMEST...16 of 22 2/9/2015 10:55 AMB. 1950C. 1951D. 1953ANSWER: C114. The second five year plan was given during 1956 regarding _A. legal planningB. soviet planningC. government planningD. agricultural planningANSWER: A115. Capitalism stresses the philosophy of individualism believing in private Ownership comes under _A. legal planningB. soviet planningC. government planningD. agricultural planningANSWER: A116. During which year Marxism was not followed in Russia and chinaA. 1952B. 1950C. 1951D. 1953ANSWER: B117. In which year socialism the tools production are not managed by governmentA. 1952B. 1950C. 1951D. 1953ANSWER: B118. In capitalism ____ losses assumed by the customersA. economicsB. technologicalC. naturalD. socialANSWER: B119. In capitalism profits and wages are in relation to ones abilityA. legal planningB. soviet planningC. government planningD. agricultural planningANSWER: D120. Depreciation is permitted in communismA. legal planningB. soviet planningC. government planninghttp://172.16.2.20/printqp.php?heading=I BCOM,[2014-2017], SEMEST...17 of 22 2/9/2015 10:55 AMD. agricultural planningANSWER: B121. Marxism is otherwise called as __A. socialismB. economicsC. communismD. capitalismANSWER: A122. In communism the state determines ones employer and employmentA. socialismB. economicsC. communismD. capitalismANSWER: A123. The October revolution of 1917 saw for the first time emergence of a state based on ________principlesA. marxistB. communistC. stateD. publicANSWER: A124. ____ weakness of Marxism is the acceptances of individual freedomA. MarxistB. CommunistC. StateD. CommunitiesANSWER: B125. The _____ socialism seems to fall between capitalism and communismA. increasedB. decreasedC. mediumD. low levelANSWER: A126. One of the long term objectives of the five year plan is reducing inequalities of ___ wealth and incomeA. increasedB. decreasedC. mediumD. low levelANSWER: A127. Has the per capita income increased or decreased from 1980 to 2009A. IncreasedB. DecreasedC. MediumD. Narrowhttp://172.16.2.20/printqp.php?heading=I BCOM,[2014-2017], SEMEST...18 of 22 2/9/2015 10:55 AMANSWER: A128. Population is a component of the total ______environmentA. economicB. socialC. naturalD. technologyANSWER: A129. Which plan gives priority for family planningA. State PolicyB. Judicial PolicyC. IndustrialD. EnergyANSWER: A130. Governments policy towards industries is called as ____A. economic policyB. industrial policyC. monetary policyD. work policyANSWER: B131. Industrial policy was set up in the year __A. 1955B. 1956C. 1957D. 1958ANSWER: B132. One of the objectives of industrial policy is to accelerate the rate of economic Growth and speed upindustrializationA. 1955B. 1956C. 1957D. 1958ANSWER: A133. Announcement of a new industrial policy was done by Mr.P.V.NARASIMHA RAO in the year _A. 1989B. 1990C. 1991D. 1995ANSWER: C134. MRTP act was set up in the year __A. 1950B. 1951C. 1952D. 1953ANSWER: Ahttp://172.16.2.20/printqp.php?heading=I BCOM,[2014-2017], SEMEST...19 of 22 2/9/2015 10:55 AM135. The liberalization of the rules relating to FDI permitting _______% equity in wide range of IndustriesA. 50B. 51C. 53D. 52ANSWER: B136. A license is a ______ permission issued by the government to an industrial undertakingA. oralB. writtenC. verbalD. non verbalANSWER: B137. In some circles a multinational corporations is referred to ____________A. multinational collaborationB. multinational entityC. multinational enterprisesD. multinational developmentANSWER: C138. The legislative frame work for industrial licensing is provided by the _______development andRegulation actA. industriesB. small scaleC. laborD. ownerANSWER: A139. Multinational corporations is also referred to ____A. multinational collaborationB. multinational entityC. transnational corporationD. multinational developmentANSWER: C140. FERA is foreign exchange regulation act for __A. industriesB. small scaleC. laborD. ownerANSWER: A141. ICPE is Indian center for public enterprises for __A. IndustriesB. small scaleC. laborD. ownerANSWER: Bhttp://172.16.2.20/printqp.php?heading=I BCOM,[2014-2017], SEMEST...20 of 22 2/9/2015 10:55 AM142. GDP is _A. Gross Domestic ProductB. Gross Domestic PercentageC. Gross Domestic PersonnelD. Gross Domestic PublicANSWER: A143. PSUis ___A. Private Sector UnitB. Private Serious UnitC. Private Steel UnitD. Private Scale UnitANSWER: A144. SAOIL is ___A. Steel authority of India ltdB. School authority of India ltdC. State authority of India ltdD. Span authority of India ltdANSWER: A145. NDP is _A. Net Domestic ProductB. Net Domestic PercentageC. Net Domestic PersonnelD. Net Domestic PublicANSWER: A146. Who gave a practical shape to privatizationA. MARGARAT THATCHERB. LOUIS PETERC. WILLIAMSD. FAYOLANSWER: A147. In privatization SIP refers to ___A. Share issue privatizationB. Shares in privatizationC. Share industry privatizationD. Share institution privatizationANSWER: A148. The techniques of privatization are contract _______and concessionA. buildingB. freeC. leasesD. hire purchaseANSWER: C149. There are _____sins of privatizationA. 5http://172.16.2.20/printqp.php?heading=I BCOM,[2014-2017], SEMEST...21 of 22 2/9/2015 10:55 AMB. 6C. 7D. 8ANSWER: C150. In 1993 _______committee was appointed by the government to recommend few measures foreffective privatizationA. RangarajanB. SoundarajanC. ThangarajanD. Ramarajan.ANSWER: Ahttp://172.16.2.20/printqp.php?heading=I BCOM,[2014-2017], SEMEST...22 of 22 2/9/2015 10:55 AM