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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. Tells the purpose of business existence.

 (a) Vision (b) Mission

 (c) Both (a) and (b) (d) None of the above. 

5. Both Vision and Mission statements are commonly used to:

(a) define measurement standards

(b) create wider linkages with customers, suppliers and alliance partners (c) guide managements thinking on strategic issues.

   (d) enlist internal support

6. “Where you can visualize your business in 10 years time”. This is a :

(a) Mission Statement (b) Vision Statement

    (c) Business Statement (d) Statement of purpose.

7. “To be a global leader in promoting good corporate governance” is a………………. of ICSI.

(a) Vision (b) Mission

    (c) None of the above (d) Both (a) and (b) above

8. Types of Business Environment includes the following :

   (a) Internal (b) External

   (c) Both (a) and (b) (d) None of the above

9. Internal business environment does not includes :

(a) Man (b) Money

    (c) Marketing Resources (d) Government Policies.

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

(a) Micro factors (b) Internal factors

       (c) Macro factors (d) External factors

11. …………………… a type of external environment.

(a) Operating (b) General

       (c) Remote (d) All of the above.

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

(a) True (b) False

 (c) Party True (d) None of the above

13. 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

14. Macro environment is also known as :

(a) Task environment (b) Remote environment

      (c) Global environment (d) Operating environment

15. …………………………….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

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

(a) Internal (b)External

      (c) Both (a) and (d) None of the above

17. Fiscal policy, EXIM policy, Industrial policy etc. are types of policies.

(a) Private (b) Business

     (c) Government (d) Semi – Government

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

(a) Capitalistic economy (b) Socialistic economy (c) Mixed economy (d) All of the above

19. . ……………… a. process of eliminating unnecessary controls and resstrictions oh the smooth functioning of business

(a) Privatisation (b) Globalksation

      (c) Liberalisation (d) None of the above.

20 Liberalisation does not includes

(a) Abolishing industrial licensing requirement in most of the industries

(b) Freedom in fixing prices of goods and services (c) Restriction in deciding the scale of business activities (d) Simplifying the procedure for imports and exports.


21. Following is not an objective of privatisation :

(a) Improving the performance of Psu

(b) Decreasing the sizeof private sector

     (c) Reducing administrative burden (d) Revenue Generation.

22 Routes of privatisation include :

    (a) Divestiture (b) Contracting

    (c)Nationalisation (d) Both (a) and (b)

 23. NAFTA stands for :

  (a) New American Free Trade Agreement (b)NorthAfricanFree Trade Agreement

  (c) North American Free Trade Agreement (d)NorthAmericanFullTrade acceptance.

24. NAFTA was signed among following countries :

(a) US, Canada, Mexico (b) India, US, Pakistan (c) US, Canada, UK (d) None of the above.

25. ___________describes the desired future position of the company.

(a) Internal Environment (b) Mission Statement (c) Vision Statement (d) External Environment.


26. A Business has absolute control on the__________

(a) Internal Environment (b) External Environment (c) Both (a) & (b) (d) None of these.

27. Micro and Macro Environment is the part of __________

(a) Business Environment (b) Internal Environment (c) External Environment (d) Both (b) & (c).

28. Micro Environment is also known as

(a) Operating Environment (b) Task Environment (c) Both (a) and (b) (d) Either (a) or (b).

29. Financial Factors, Human Resource, Marketing Resource and

Miscellaneous Factors are ____________factors.

(a) Micro (b) Macro

      (c) Internal (d) External

30. GDP, Per capital income, foreign exchange are the example of

(a) Economic Policy (b) Economic System (c) Economic Conditions (d) Both (a) and (b).

31. When did Government of India introduced a change in Economic Policy

(a) 1892 (b) 1991

      (c) 1895 (d) 1781.

32 Through the ___________________ Process, Indian economy has opened up and started interacting with the world.

    (a) Liberalisation (b) Privatisation

     (c) Globalisation (d) None of these.

33. Which process of development became a vital measure of economic rejuvenation in the communist countries

    (a) Liberalisation (b) Privatisation

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

34. ______________has become universal trend.

(a) Liberalisation (b) Privatisation

 (c) Globalisation (d) None of these.

35. High growth rate, easy availability of goods at competitive rate, high foreign exchange reserve can be achieved by

     (a) Liberalisation (b) Privatisation

     (c) Globalisatton (d) All of the above.

36._________means transferring something from state ownership to private ownership.

     (a) Decentralisation (b) Denationalisation (c) Divestiture (d) None of these.

37. Problems in Privatisation are

    (a) Growth of monopoly power (b) Loss making units are not bought (c) Lop-sided industrial development (d) All of the above.

38, ____________refers to integration of world into one huge market by removing the trade barriers among countries.

    (a) Privatisation (b) Liberalisation (c) Globalisation (d) None of these.

39. Benefits of Privatisation does not include

(a) Reducing fiscal burden

(b) Sick units reconstruction

(c) Reducing the size of administrative machinery (d) Law inflation rate.

40. ____________is the process by which government can obtain the certain fixed assets for which it may pay a series of payments.

(a) Franchising (b) Leasing in

    (c) Contracting in (d) Both (a) and (b)

41. ___________helps defining the company’s business, its objectives and its approach to reach those objective.

(a) Vision statement (b) Mission statement

    (c) Business statement (d) Statement of purpose.

42 __________means the flexibility and adaptability of law and other legal rule governing the business.

     (a) Political Environment (b) Legal Environment (c) Technological Environment (d) Both (a) and (b).

43 Economic Policies are framed by

(a) Private (b) Business

 (c) Government (d) Semi government.

44 Legislature, executive and the judiciary comes under the

     (a) Political Environment (b) Physical Environment

     (c) Legal Environment (d) Both (a) and (c)

45. A ___________statement s the question “why do we exist”?

(a) Vision (b) Mission

    (c) Both (a) and (b) (d) None of the above.

46. ____________Statement defines the company’s business, its objectives and its approach to reach these objectives.

(a) Vision (b) Mission

      (c) Profitability (d) Annual Report

47. In a mission /vision Statement, the matters relating to guiding employee use of decision making, establishing ethical behaviour, performance standards etc are.

(a) Internal to organisation (b) External to organisation (c) Both (a) and (b) (d) Neither (a) nor (b)

48. 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)

49. ____________is the future dream of a business.

(a) Balance Sheet (b) Vision Statement

      (c) Mission Statement (d) None of the above

50. The question like “Where do you exist”, “How does it do it” are covered by

(a) Vision Statement (b) Mission Statement

      (c) Both (a) and (b) (d) Neither (a) nor (b)

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

(a) Human Resource (b) R & D

     (c) Media (d) Management Structure

52. 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

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

(a) Micro Environment (b) Internal environment

      (c) Macro Environment (d) None of the above

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

(a) Internal Environment (b) Micro Environment

      (c) Macro Environment (d) None of the above

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

(a) Ecology (b) Habitat

     (c) Demographics (d) None of the above

56.____________was set up to channel foreign capital investment

    (a) SEBI (b) Foreign Investment Promotion Board

    (c) Special Economic Zone (d) International Trade Promotion Board

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

(a) Legislature (b) judiciary (c) Executive (d) All of the Above


58. Which of the following is a method of Privatisation

(a) Divestiture (b) Denationalization

      (c) Franchising (d) All of the above

59. The form of privatisation in which the government company retains its legal status Even though some or all of its operations are suspended is called.

(a) Controlling (b) Formal liquidation

     (c) Informal liquidation (d) Denationalisation

60. The method of Privatisation in which the government authorises the delivery of certain services in a designated area is called .

(a) Franchising (b) Leasing (c) Contracting (d) Divesture


61. Which of the following is not a use of Vision/Mission Statement

   (a) Inspiring the Employees (b) Defining Problems & Standards

   (c) Increasing the profits and revenue (d) Defining the Performance Standards I

62. 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

63. USP stands for

(a) Unique Selling Price (b) Unique Strategic Price (c) Unique Selling Point (d) Ultimate Selling Price

64. The partial or full disposal of an investment or asset through sale, exchange, closure or bankruptcy is called as

   (a) Divesture (b) Environment withdrawal

   (c) Denationalisation (d) Reprivatisation

65. The process of restoring to its former properties seized by the government is called

      (a) Divesture (b) Restoration

      (c) Reprivatisation (d) Liquidation


1 (b) 2 (C) 3 (c) 4 (b) 5 (c) 6 (b)

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

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

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

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

31 (b) 32 (c) 33 (b) 34 (b) 35 (a) 36 (b)

37 (d) 38 (c) 39 (d) 40 (b) 41 (b) 42 (b)

43 (c) 44 (a) 45 (b) 46 (b) 47 (a) 48 (b)

49 (b) 50 (b) 51 (c) 52 (a) 53 (a) 54 (c)

55 (c) 56 (b) 57 (d) 58 (d) 59 (c) 60 (a)

61 (c) 62 (c) 63 (c) 64 (a) 65 (c)

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