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Class 12 Business Studies Case Study Questions

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In this article, we will discuss how to get CBSE class 12 Business Studies Case Study Questions from the myCBSEguide App and our Student Dashboard for free.

For the students appearing for class 12 board exams from the Commerce Stream, Business Studies is a core subject. Business Studies as a subject provides a way of perceiving and interacting with the business ecosystem . It well establishes the interdependence of business on various social, political, legal and economic forces and vice-versa. Business Studies is a purely theoretical and a relevantly easier subject for the Commerce students. Business Studies class 12 exam is a highly scoring subject and it facilitates the students to increase their percentile and excel in academics.

12 Business Studies Paper Design

The exam is divided into 2 parts:

• Part A generally contains questions from Principles and Functions of Management and carries 60 marks.
• Part B comprises questions from Business Finance and Marketing, it carries a total of 40 marks.

The syllabus of class 12 Business Studies comprises 12 chapters that are divided into 2 books

• Principles and Functions of Management
• Business Finance and Marketing

Business Studies Syllabus

CBSE has released the latest class 12 syllabus (2022-23) for Business Studies. 

Business Studies Case Study Questions

Case-based questions have always been an integral part of Business Studies class 12 question papers for the past many years. Students are required to focus more on case studies as they require the application of their knowledge of the key business concepts. In the year 2021-22 CBSE introduced a few changes in the question paper pattern to enhance and develop analytical and reasoning skills among students. Sanyam Bhardwaj, controller of examinations, CBSE quoted that case-based questions would be based on real-life situations encountered by the students.

The purpose was to drift from rote learning to competency and situation-based learning. He emphasized the fact that it was the need of the hour to move away from the old system and formulate new policies to enhance the critical reasoning skills of students. Introducing case study questions was a step toward achieving the goals of the National Education Policy (NEP) 2020.

What is a case study question? (Business Studies)

A case study in reference to Business Studies can be thought of as a real-world test of how the implementation works. It is predominantly a report of an organization’s implementation of something such as a practice, a product, a system, or a service. Case studies based on NCERT text form a substantial part of the Business Studies examination. Initially, they were confusing for both students and teachers but now there is a clarity that has made the question paper more student-friendly. A significant weightage has been given to case-based and application-based questions.

Critical and Analytical Thinking

These questions demand critical and analytical thinking on behalf of the students. The best part of these questions is that they provide conceptual hints and keys that point to the right answer. According to the new pattern implemented by CBSE, case-based questions would carry a significant weightage of more than 30% in the Business Studies question paper.

Case Study Passage

As part of these questions, the students would be provided with a comprehensive passage, based on which analytical questions will have to be answered by them. The students would be required to read the passage carefully before attempting the questions. In the coming examination cycle (2022-23), case-based questions have a weightage of around 30%.

Types of Case Study questions in Business Studies

CBSE plans to increase the weightage of such questions in the following years, so as to enhance the intellectual and analytical abilities of the students. Case study questions would be based on various topics and chapters in Business Studies. It is expected from the students to have complete knowledge of the concepts in their syllabus.

They will have to let go of the shortcut techniques and get to read their textbooks with full concentration, especially for solving case-based questions in Business Studies for the passages given are generally lengthy and require an in-depth study. The best part of having these questions is that the question itself projects a hint of its solution.

The questions asked could be :

• Direct and simple-such questions can easily be solved as the answers are either there in the given passage or the student can solve it at ease by reading and analyzing the passage carefully.
• Indirect and application-based- These are the ones that would require the student to have complete knowledge of the topic and could be answered by application of the concepts. The answers to such questions are slightly tricky and not visible in the given passage, though the passage would highlight the concept on which the questions would be asked by CBSE.

Class 12 Business Studies Case Study

Case study questions asked by CBSE were stated to be quite challenging by many students. It prominently focuses on real and present scenarios of the business world. Though the exam, on the whole, was quite direct and its difficulty level was termed out to be moderate. Around 30% of the question paper consisted of case-based questions that required high-order thinking and analytical skills from the students.

Content of Case Study Questions

The concept of case-based questions is not new since CBSE has always included questions based on Higher Order Thinking Skills (HOTs) and case-based questions. Though now we will have an increased percentage of such questions in the question paper. The student has to keep in mind that the concept-based questions can be attempted only with the proper understanding of the business concepts.

Benefits Of Case-based Questions

Class 12 Business Studies syllabus comprises two books and CBSE can ask Case study questions from any of them. Students must prepare themselves thoroughly for both the books. They must practice class 12 Business Studies case-based questions from the various options available to them.

• Enhance the intellectual capabilities of the students.
• Provide a complete and deeper understanding of the subject.
• Inculcate analytical reasoning and temperament in students.
• Help students retain knowledge for longer periods of time.
• Would definitely help to discard the concept of rote learning and cramming without understanding the core of the subject.
• The questions would facilitate bringing out the much-awaited change in the prevalent system of education in India that hinders the strengthening of practical learning.

Some Case-Study Questions (Business Studies) Class 12

Here are some case study questions for CBSE class 12 Business Studies. If you wish to get more case study questions and other related study material, download the myCBSEguide App now. You can also access it through our Student Dashboard .

Business Studies Case Study 1

Read the following text and answer the questions: ABLEX Ltd. is a big and well-reputed company. The biggest challenge for the company is managing many employees at the same time. As the company has various departments like human resources, marketing, finance,etc., it is very necessary for the company to maintain unity in different departments. All the employees work hard for the organisation. Despite their different interest, they all perform various activities together so as to achieve the objectives of the company. The career of employees is shown a developmental path through proper training modules and job enrichment. Ajay is a manager who assigns all duties and responsibilities to his employees in the department. He uses all sources to develop proper communication with them and leaves no attempt to motivate them.

• It integrates Group Efforts
• It is a Continuous process
• It ensures Unity of Action
• It is Pervasive
• Top Level Management
• Middle-Level Management
• Lower Level Management
• Supervisory Level Management
• Economic objectives
• Social Objectives
• Organisational Objectives
• Personal Objectives

Answer Key:

• (c) It ensures unity of action
• (b) Middle-level management
• (c) Personal objectives
• (a) Directing

Business Studies Case Study 2

Read the following text and answer the question: Mohan works in a bulb manufacturing company. Each bulb that is manufactured is of standard size and quality. Further, if there is any unrequited type of bulb manufactured then its production is stopped. Last month when the company came to know that 10-watt bulbs were no more liked by customers, their production was stopped. He works in the purchasing department. His job is to purchase the filaments required to make bulbs. This time when he purchases the filament he gets the instruction from the seller that some special care needs to be taken in the first hour of fixing the filaments inside the bulb. Mohan knows this information should be given immediately to the production department before the assembling process starts. However, he finds that his company’s policies only allow him to give the message to his immediate boss who will further pass this message to his boss. The passing of this message will continue until it reaches the desired person in the production department. Based on the passage answer the following questions:

• Method study
• Fatigue study
• Standardization and simplification
• None of these
• Scalar chain
• Departmentalization
• Division of Work
• None of the above
• Organization
• Authority and Responsibility
• All of these
• Division of work
• Scalar Chain
• (b) Fatigue study
• (a) Scalar chain
• (c) Gang plank
• (a) Division of work

Business Studies Case Study 3

Read the following passage carefully and answer the questions that follow: Two years ago Radhika completed her degree in food technology. She worked for some time in a company manufacturing chutneys, pickles and murabbas. She was not happy in the company and decided to have her own organic food processing unit for the same. She set the objectives and the targets and formulated an action plan to achieve the same. One of her objectives was to earn 10% profit on the amount invested in the first year. It was decided that raw materials like fruits, vegetables, spices, etc. will be purchased on three months’ credit form farmers cultivating organic crops only. She also decided to follow the steps required for the marketing of the products through her own outlets. She appointed Rakesh as a production manager who decides the exact manner in which the production activities are to be carried out. Rakesh also prepared a statement showing the number of workers that will be required in the factory throughout the year. Radhika informed Mohan about her sales target for different products, area wise for the forthcoming quarter. While working on the production table a penalty of 100 per day for not wearing the caps, gloves and apron was announced.

• Standing Plan
• (a) Objectives
• (c) Procedure
• (b) Programme

Tips to Solve Case Study Questions in Business Studies

Let’s try to comprehend and solve case study questions of class 12 Business Studies. As mentioned earlier, the entire syllabus is divided into 2 books. It is expected from the students to rigorously follow the NCERT book as the language written is quite simple and crisp. The exam in spite of being totally theoretical is quite scoring.

• Read the passage in depth.
• Try to comprehend the situation and focus on the questions asked.
• Generally, the passage given in Business Studies is lengthy but the solutions are brief and simple.
• Can follow a reversal pattern, i.e read the questions before and then search for the answers. You will save time.
• Answer briefly and precisely.
• Focus on solidifying key Business Studies fundamentals for acing any case study. If your concepts are clear, you will hardly face any difficulty in answering them.
• While answering the case study, pick the keywords or any keyline based on which you are withdrawing your conclusion. You need to highlight the reason for your answer.

These simple points if kept in mind will definitely help the student to fetch good marks in case study-based questions in class 12 Business Studies.

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• MCQs – Nature & Significance of Management
• MCQs- Principles of Management
• MCQs – Chapter – Business Environment
• MCQs – Chapter Planning
• MCQs – Chapter – Organizing
• MCQs – Chapter Staffing
• MCQs – Chapter – Directing PART-1
• MCQs – Chapter – Directing – Part-2
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• MCQs – Chapter – Marketing Management Part-1
• MCQs- Chapter- Marketing Management -Part-2
• MCQs – Chapter- Marketing Management – Part-3
• Case Studies- Principles of Management
• Case Study – Business Environment
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• Case Study-Organizing
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• Case Study-Directing
• Case Study – Chapter Controlling
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• MCQs – Ch-2 – An Entrepreneur – Part-2
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• Download PDF| Unit-3 Marketing Strategies
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• Download PDF| UNIT-4 | Enterprise Growth Strategies

Case Study – Business Environment

Welcome to study research . This time all-important case studies inform of questions and answers.

CASE STUDY – BUSINESS ENVIRONMENT

For class 12 cbse students of business studies..

Q1:  Anil a marketing manager of a car manufacturing company is of the view that in case of construction companies and automobiles manufacturers , low longer term rates are beneficial because they results in increased spending by consumers for buying homes and cars on borrowed money. Identify and explain the component of business environment that Anil is referring in the above case.

Q2:  In an interview , an interviewer asked the interviewee regarding the need of considering the changes of environment . In reply one of the interviewee replied,” Every business should consider the changes going on in inflation rates before taking any financial decisions because inflation rates result in constraints on business enterprises as they increase the various costs of business such as the purchase of raw materials or machinery and payment of wages and salaries to employees.” Interviewer liked the answer . Interviewee has put emphasis on the understanding of only one of the element of business environment. Identify that Element of Business environment.

Q3:’  Atul has got tremendous feedback from public for his newly started Gym plus gym related goods store which is a one stop solution for health conscious people. When asked about his success story then Atul said that the health and fitness trend has become popular among large number of urban dwellers. This has created a demand for products like organic food, diet soft drinks, gyms, bottled water and food supplements. that is why I thought of starting this business. Identify the dimension of business environment whose understanding has helped Atul in garnering the success,

Q4: Asia who is working as a advertisement advisor with one of the consumer goods manufacturing company is of the view that nowadays in order to inform and persuade the potential buyers to buy the product new and modified ways should be adopted by the companies to advertise their products. That is like CD-ROM’s , computerised information kiosks and internet/ world wide web multimedia pages highlighting the virtues of products. Marketing team really appreciated her idea. Identify the element of business environment on which Ashia has put the emphasis.

Q5: Ananya ‘s grand father while telling her about the past of Indian economy told her that even after opening up of our economy in 1991, foreign companies found it very difficult to cut through the bureaucratic red tape to get permits for doing business in India. Sometimes it took months to process even their application in process. As a result these companies were discouraged from investing in India but the situation has improved overtime. Identify the Element of business environment which was the cause for discouragement to foreign companies based on above case.

Q6: While doing labelling of the products companies have to write down certain statutory warnings over it. Understanding of which environment helped them taking above action Identify.

Q7:Identify the importance of Understanding business environment in the following cases:

(a) Maruti Udyog became the leader in the small car market because it was the first to recognise the need for small cars in an environment of rising petrol prices and a large middle class population of India.

Answer: It enables the firm to identify opportunities and getting first mover advantage.

(b) If  an Indian firm  finds that a foreign multinational is is entering  the Indian market with new varieties. On the basis of above information the Indian firms can prepare themselves to meet the threat by adopting such measures as improving quality of the products , reducing cost of the production , engaging in aggressive advertising and so on.

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Class 12th Business Studies - Business Environment Case Study Questions and Answers 2022 - 2023

By QB365 on 08 Sep, 2022

QB365 provides a detailed and simple solution for every Possible Case Study Questions in Class 12 Business Studies Subject - Business Environment, CBSE. It will help Students to get more practice questions, Students can Practice these question papers in addition to score best marks.

QB365 - Question Bank Software

Business environment case study questions with answer key.

12th Standard CBSE

Final Semester - June 2015

Business Studies

The name and taste of Coca-Cola is known to almost each and every individual in India as well as throughout the world. This carbonated soft drink holds the most market share in the soft drink market and got itself a special seat in each and every gathering. The Coca-Cola Company has on occasion introduced other cola drinks under the Coke name. The most common of these are Diet Coke, along with others including Caffeine free Coca-Cola, Diet Coke Caffeine free, Coca-Cola Zero Sugar, Coca- Cola Cherry, Coca-Cola Vanilla and the list goes on. It has capitalized on each and every opportunity to market itself effectively and place itself in the middle of every gathering. The main reason for such an outstanding placement of product goes to the way they have established the connection between every occasion and the need for Coke to be present there, product design and creative advertising. 1. In the context of the above given case, identify one valid importance of Business Environment.

2. Identify the feature of Business Environment which The Coca-Cola Company managed to get in their favour.

3. Which business environment did Coca-Cola majorly tap into ?

4. Which of the following is not a product of COCA-COLA?

*****************************************

Business environment case study questions with answer key answer keys.

1. (a) Enables a firm to identify opportunities and getting first-mover advantage. 2. (b) Specific and general forces 3. (b) Social Environment  4. (c) Coca-Cola Avocado

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CBSE Class 12 Business Studies Exam on March 25: Important Case Study Based Questions for Practice and Revision

Cbse class 12 business studies important case study based questions: find here all important case study questions to practice before cbse class 12 business studies board examinations 2023 scheduled to be conducted on march 25, 2023. the answers have also been provided here..

Important Case Study Questions for CBSE Class 12 Business Studies Exam

Important links for cbse class 12 business studies exam 2023 preparation:.

• CBSE Class 12 Business Studies Syllabus 2022-23
• CBSE Class 12 Business Studies DELETED Syllabus 2022-23
• CBSE Class 12 Business Studies Sample Paper and Solution 2022-23
• CBSE Class 12 Business Studies Practice Paper 2023
• CBSE Class 12 Business Studies Previous Year Question Papers

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Get here latest School , CBSE and Govt Jobs notification in English and Hindi for Sarkari Naukari and Sarkari Result . Download the Jagran Josh Sarkari Naukri App . Check  Board Result 2024  for Class 10 and Class 12 like  CBSE Board Result ,  UP Board Result ,  Bihar Board Result ,  MP Board Result ,  Rajasthan Board Result  and Other States Boards.

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• results.gbshsegoa.net Result 2024
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Environment Class 12 Business Studies Notes and Questions

Please refer to Environment Class 12 Business Studies notes and questions with solutions below. These revision notes and important examination questions have been prepared based on the latest Business Studies books for  Class 12 . You can go through the questions and solutions below which will help you to get better marks in your examinations.

Class 12 Business Studies Environment Notes and Questions

Case Studies – (Chapter- 3) Environment Q. 1. Mr. Ajay after completing MBA from USA comes to India to start a new business under the banner Ecom Creations Ltd. He launches a new product in a e-learning for senior Secondary School students in Commerce stream, which already has n established market in UK and USA but not in India. His business starts flourishing in India. Now more Indian companies entered into the market with other subjects also. Identify and quote the lines from above para which highlight the significance of understanding business environment.  Ans. ● “Comes to India to start a new business … launches a new product in e-learning for Senior secondary school students in Commerce stream.” 1. It helps in assisting in planning and policy formulation. 2. It helps the firm to identify opportunities and get the first mover advantage. ● “His business starts flourishing in India.” 1. It helps in improving performance. ● “Now more Indian companies entered into the market with different subjects also.” 1. It helps the firm to identify threats and early warning signals. Q. 2. Just after declaration of Lok Sabha Elections 2014 results, the Bombay stock exchange’s price index (Sensex) rose by 1000 points in a day. Identify the environmental factor which led to this rise giving reason. Also explain any two other dimensions of business environment.  Ans. Rise in stock market index (Sensex) is economic environment. But Political environment (declaration of Lok Sabha Elections 2014 results)) led to this rise. Two other dimensions of business environment: 1. Legal Environment: 2. Technological environment: Q. 3. The court passed an order that all schools must have water purifier for the school children as 1. Society in general is more concerned about quality of life. 2. Innovative techniques are being developed to manufacture water purifier at competitive rates. 3. Incomes are rising and children at home are also drinking purified water. The government is also showing positive attitude towards the water purifier business. Identify the different dimensions of business environment by quoting from the above details. Ans. 1. Legal environment: 2. Social environment: 3. Technological environment: 4. Economic environment: 5. Political environment: Q. 4. ‘It is common now to see CD-ROM’s, computerized information kiosks, and Internet/Word Wide Web multimedia pages highlighting the virtues of products.’ Name the dimension of the business environment highlighted by this stateme.  Ans. Technological environment Q. 5. Which component of business environment requires that advertisements of baby food must necessarily inform the potential buyers that mother’s milk is the best?  Ans. Legal environment. Q. 6. It is the process by which government control over the industry is being loosened. Give the term to which this statement is trying to indicate. Ans. Liberalization Q. 7. Due to entry of foreign firms, competition for Indian firms has increased, especially in service industries. Name such service industries. Ans. Telecommunications, airlines, banking, insurance, etc. Q. 8. The Court passed an order to ban polythene bags as 1. The bags are creating many environmental problems which affect the life of people in general. 2. Society in general is more concerned about quality of life. The Government decided to give subsidy to jute industry to promote this business. Innovative techniques are being developed to manufacture jute bags at low rates. Incomes are rising and people can afford to buy these bags. Identify the different dimensions of Business Environment by quoting the lines from the above particulars.  Ans. 1. Legal environment: 2. Social environment: 3. Political environment: 4. Technological environment: 5. Economic environment: Q. 9. The government of India is seriously thinking of allowing the oil-marketing public sector undertaking to fix their own prices for petrol and diesel. Which economic reform is the reason for this change in the government’s policy? Ans. Privatisation as a reform is the reason for this change in the government policy. Q. 10. Kapil Sharma is working as the Country Head of a company which owns a chain of malls under the name of ‘Virtuoso’ in the various parts of India. Through an analysis report of the business environment, it has been brought to his notice that in the coming years, shopping at a mall will not be a necessity for the buyers as purchases can be made online from anywhere and at any time with ease and at the consumer’s convenience. Hence, malls will have to provide much more than shopping to be able to attract customers. So, he recommends that ‘Virtuoso’ malls should to be restructured into recreation centres, offering more spaces to socialize, host events and concerts, and provide ample Food and Beverages options. Consequently the share of entertainment segment and Beverages segment in the overall mall space is increased by 20%. As a result, the company gains enormously by getting the first mover advantage. In context of the above case: 1. Define the term ‘Business Environment’. 2. Explain the terms ‘Threats’ and ‘Opportunities’ by quoting lines from the paragraph. Ans. 1. The term ‘Business Environment’ means the sum total of all individuals, institutions and other forces that are outside the control of a business enterprise but that may affect its performance. 2. The term ‘threats’ refers to the external environment, trends and changes that will hinder a firm’s performance. “Trough an analysis report of the business environment, it has been brought to his notice that in the coming years, shopping at a mall will not be a necessity for the buyers as purchases can be made online from anywhere and at any time with ease and at the consumer’s convenience.Hence, malls will have to provide much more than shopping to be able to attract customers.” The term ‘opportunities’ refers to the positive external or changes that will help a firm to improve its performance. “As a result, the company gains enormously by getting the first mover advantage.” Q. 11. “Zero Defect Zero Effect” (ZED) is a slogan coined by the Prime Minister of India, Narendra Modi with reference to the Make in India initiative launched by the government. The slogan reflects the efficiency of production processes, i.e. the products have no defects and the process through which the product is made has zero adverse environmental and ecological effects. The Zed model aims to make India the manufacturing hub of the world and prevent the products developed in India from being rejected by the global market. Moreover, before the initiative was launched, the limits of foreign direct investment in various sectors had been relaxed. The application for licences was made available online and the validity of licences was increased to three years. Various other norms and procedures were also relaxed by the government. In the light of the above paragraph, identify and explain the major component of New Economic Policy of 1991 that are being referred to by quoting lines from the paragraph. Ans. The major components of New Economic Policy of 1991 that are being referred to are as follows: ● Liberalization: The economic reforms signaled the end of the licence-permit-quota raj and were aimed at liberalizing the Indian business and industry from all unnecessary controls and restrictions. “Moreover, before the initiative was launched, the limits of foreign direct investment in various sectors has been relaxed.The application for licences was made available online and the validity of licences was increased to three years. Various other norms and procedures were also relaxed by the government.” ● Globalization: Globalization means the integration of the various economies of the world leading towards the emergence of a cohesive global economy. “The ZED model aims to make India the manufacturing hub of the world and prevent the products developed in India from being rejected by the global market.” Q. 12. Over the years, e-business in our country has witnessed tremendous growth due to several reasons. There is significant improvement in the Information Technology infrastructure over the last decade as the Government has taken important steps in high-speed Internet connectivity. As a result, the broadband networks have not only become better but also more affordable. Additionally, Government is trying to make rural India connected through broadband – a great possibility for e-business to expand the retail market by reaching out to the most remote rural customer. Another catalyst strengthening the e-business segment is the country’s favourable demography. It has more than 50% of its population below the age of 25 and more than 65% below the age of 35. It is expected that, in the year 2020, the average age of an Indian will be 29 years, compared to 37 for China and 48 for Japan, this promises for phenomenal increase in e-business. Moreover, the penetration of the smartphone in a large section of the population has aptly addressed the problem of compute illiteracy. Not with standing the fact that consumers also prefer e-business due to multiple factors like convenience, time etc. Identify and explain the various dimensions of business environment being referred to in the above case. Ans. The various dimensions of business environment being referred to in the above case are as follows: 1. Political Environment: 2. Technological Environment: 3. Social Environment: Q. 13. Beni, after completing her MBA, took up a job a multinational company named ‘Fortio’. The company was paying good salary and perks to its employees. The wages were within the paying capacity of the company that provided the employees a reasonable standard of living. The company also had a good work-culture and the behaviours of superiors was very good towards their subordinates. Beni was very happy in this organization, but due to long working hours she did not have time to cook her meals. She had to depend on outside found, which was deteriorating her health. She observed that this problem was faced by many of her colleagues, not only in her company but also in many other companies. This was because of increase in the number of working women and non-availability of hygienic home-cooked food. She identified this as a great opportunity and decided to give up her job to supply packaged home-cooked food to office goers at a reasonable price. At the end of the day she also distributing the left-over food in the nearby night-shelters. 1. State the dimension of business environment being discussed above. 2. State the principle of management being followed by ‘Fortio’. 3. Identify any two values being communicated by the company to the society in the above case. Ans. . Social environment which includes social forces like customs and traditions, values trends etc. ‘this was because of increase in the number of working women and non-availability of hygienic home-cooked food.’ 1. Remuneration of employees, which states that the overall pay and compensation should be fair to both employees and the organization. ‘The company was paying good salary and perks to its employees.The wages were within the paying capacity…standard of living.’ 1. Values being communicated by the company to the society are: (Any two) 1. Good work culture 2. Good behavior inhuman interaction 3. Concern for the employees 4. Respect for law Q. 14. Nakul, a manager of Zyco Ltd. always takes into account the changes taking place in business environment while determining plans. He accepts changes readily and gives useful suggestions to his superior, which results in reduction of costs. As a result, company’s profits increase. Nakul enjoys cordial relations with his co-workers and makes plans in consultation with his team to achieve organizational goals. 1. Which characteristic of management is highlighted in the above lines? 2. Identify and state any two principles of management followed by Zyco Ltd. 3. Give any two benefits which Zyco Ltd. get by taking into account the changes taking place in business environment, quoting the lines from the above para. 4. State any one value which Nakul wants to communicate to the society. Ans. 1. Management is a dynamic function. 2. 1. Initiative This principle indicates that the subordinates should be encouraged to give suggestions and make and execute plans within the prescribed limits of authority. 1. Spirit de corps This principle suggests that management should promote a team spirit of unity and harmony among the employees. 1. Benefits of business environment: It helps in assisting in planning and policy formulation. ‘… takes into account the changes taking place in business environment while determining plans.’ 1. It helps in improving performance. ‘He accepts changes readily and gives useful suggestions to his superior, which results in reduction of costs.As a result, company’s profits increase.’ 1. Value: ● Team work ● Adaptability Q. 15. It is interesting to know that the menu items of the multinational food chains are customized to suit the general palates of the local people in the region. When McDonald’s started its business in India in the year 1996, the company went through a complete localization strategy. McDonald’s changed its product menu to accommodate the vegetable burger given the large vegetarian population. It also altered its store design and even reduced the product price by close to fifteen per cent. Also, the “McAloo Tikki burger” is not available anywhere but in the Indian outlets of McDonalds. Identify the relevant feature of business environment being discussed above. Ans. Relativity is the relevant feature of business environment which is being discussed above. Q. 16. Eco-friendly products are gaining power as the consumers’ awareness about environmental issues has increased over the years and they are conscious about choosing products that do not have adverse effects on the environment. They are now more conscious about the carbon emission and climate change effects, and want themselves to be ‘seen’ as a green advocate among their peers. In such a scenario, it has become a challenge for the companies as they have to not only meet the needs of the consumers but also ensure that their products are safe and environment friendly. At a result, there is growing need for better and advanced technologies to works as a catalyst in this regard. 1. Identify the relevant feature of business environment being discussed above. 2. Describe briefly any three points which highlight the importance of business environment and its understanding by managers. Ans. 1. Inter-relatedness is the relevant feature of business environment which is being discussed above. 2. The three points which highlighted the importance of business environment and its understanding by managers are described below: 1. It enables the firm to identify opportunities and getting the first mover advantage: The dynamic business environment provides numerous opportunities for a business to evolve as per the changing needs. Therefore, early identification of the forthcoming opportunities helps an enterprise to be the first to exploit them instead of losing them to the competitors. 2. It helps the firm to identify threats and early warning signals: sometimes the changes in the external environment may pose as a threat and hinder a firm’s performance. An awareness about the business environment helps the managers to identify such threats on time and take necessary decisions and action. 3. It helps in tapping useful resources as the enterprise designs policies that allow it to get the resources that it needs so that it can convert those resources into outputs that the environment desires. Q. 17. Ultra Paint Co. which is manufacturing paints has been enjoying a prominent market position as it manufactured best quality paints, made timely payment of taxes to government. It assembled various inputs like finance, machines, raw materials, etc. from its environment. But since last year it has been dumping its untreated poisonous waste on the river bank which has created many health problems for the people. As a result, the court passed an order to seal the manufacturing unit of the company. 1. State the importance of business environment highlighted quoting the line from the above case. 2. Identify any two dimensions of business environment mentioned in the above case by quoting lines from it. 3. State any two values which have been overlooked by the company? Ans. ( a) Business environment helps in tapping useful resources. ‘It assembled various inputs like finance, machines, raw materials, etc. from its environment.’ (b) (i) Social environment ‘…it has been dumping its untreated poisonous waste on the river bank which has created many health problems for the people.’ (ii) Legal environment …the court passed an order to seal the manufacturing unit of the company.’ 1. Value overlooked. ● Environment protection ● Concern for human life ● Respect for law and order ● Social responsibility Q. 18. Philips, a company manufacturing light bulbs incurred heavy expenditure on scientific Research and Development and discovered a technology that made it possible to produce an energy efficient light bulb that lasts at least twenty times as long as a standard bulb. It resulted in growth and profitability of the company. 1. Identify and state the dimension of business environment mentioned above. 2. State the importance of business environment mentioned above by quoting the lines. 3. State any one value which the company wants to communicate to the society. Ans. 1. Technological environment It includes forces relating to scientific improvements and innovations which provide new ways of producing goods and services, and new methods and techniques of operating a business. 2. Business environment helps a firm to improve its performance. ‘It resulted in growth and profitability of the company.’ 3. Value conservation of energy Q. 19. Disco Ltd. manufactures fashionable and designer clothes. Recently it finds that the demand for its products has been declining. After market research it was discovered that fashion and tastes of the consumers is changing at a fast pace. Customers’ demand is increasing. New competitors have entered the market with new designs. It is very difficult for the company to predict future happenings. Also, it is difficult to know the extent of the relative impact of the social, economic, political, technological or legal factors on decrease in demand of its products in the market. A meeting was held in which managers from different functional levels heading Production, Marketing, Finance, etc., for example, Chief Operating Officer, Chief Finance Officer, Vice President (Marketing) were present to discuss how to deal with the situation. After a long discussion, it was decided that they would study and analyze the market first to identify customer tastes and fashion and then manufacture garments accordingly. It was also decided to increase expenditure on advertising, after-sales services, etc. 1. Identify any two features of business environment by quoting the lines from the above case. 2. At which level of management the meeting of managers of Disco Ltd. was held? 3. Identify any two impact of government policy changes on business, quoting lines from the above case. 4. State the importance of understanding of environment by business managers in the light of the above para.  Ans. 1. Features of business environment: 1. Dynamic nature: ‘fashion and taste of the consumers is changing at a fast pace.’ 2. Uncertainty: ‘It is very difficult for the company to predict future happening.’ 3. Complexity: ‘It is difficult to know the extent of the relative impact of the social, economic, political, technological or legal factors on decrease in demand of its products in the market. 1. Top level management 2. Impact of government policy changes on business: 1. Increasing competition: ‘New competitors have entered the market with new designs.’ 2. More demanding customers: ‘Customers’ demand is increasing.’ 3. Market orientation: ‘it was decided that they would study and analyze the market first to identify customer tastes and fashion and then manufacture garments accordingly. It was also decided to increase expenditure on advertising, after-sales services, etc.’ 1. Business environment helps the manager in coping with rapid changes. Q. 20. The organic food market in India is grow at 25-30 per cent which reflects a clear shift in consumer tastes and preferences. The current growth in the organic food market is driven by multiplicity of factors like rising health consciousness, changing lifestyles, increase in disposable income and growing availability of organic food products in shopping malls, retail outlets and online. In context of the above case: 1. Identify and explain the features of business environment being referred to here. 2. By quoting phrases from the paragraph identify the various components of general forces which have led to a growth in the organic food market. Ans. 1. The features of business environment being referred to in the above case are as follows: ● Dynamic nature: It is dynamic in nature and keeps on changing due to technological up gradations, shifts in consumer preferences or increase in competition in the market. ● Inter-relatedness: All the elements of business environment are closely interrelated. Therefore, any change is one element may necessitate corresponding changes in the other elements as well. 2. The various components of general forces which have led to a growth in the organic food market are as follows: 1. Social: “rising health consciousness, changing lifestyles” 2. Economic: “increase in disposable income” 3. Technological: “growing availability of organic food products in shopping malls, retail outlets and on line.” Q. 21. Anurag, aspires to work with a socially and environmentally committed company as he does not want to work just for monetary benefits but also the brand value of the company he works for in the society matters a lot to him. Therefore, he has joined Cerebra Integrated Technologies a Bengaluru-based Infotech company. The company has built India’s largest e-waste recycling plant. The company strives to be one of the leading players in this business which has huge potential not only in terms of generating huge revenues and profits but also wants to contribute to the environment issues that have become crucial worldwide. The company sees big business in the mountains of e-waste in Bengaluru which produces 2,00,000 tonnes of e-waste a year. The company plans to make its millions by extracting metals such as gold and platinum from the e-waste piling up in the city. As a mobile phone, for example, is made up of a combination of rare earth and precious metals: it contains 250 mg of silver, 24 mg of gold and nine mg of palladium while a laptop has 1,000 mg of silver, 220 mg of gold and 500 grams of copper. To start the business, the company has obtained a licence from KSPCB (Karnataka State Pollution Control Board). In context of the above case: 1. Identify the various dimensions of business environment being referred to by quoting lines form the paragraph. 2. List any two values which the company wants to convey to the society. Ans. 1. The various dimensions of business environment being referred to the in the above case are as follows: ● Technological environment: Technological environment includes forces relating to  scientific improvements and innovations which provide new ways of producing goods and services and new methods and techniques of operating a business. ● Legal environment: Legal environment includes various legislations passed by the Government administrative orders issued by government authorities, court judgments as well as the decisions rendered by various commissions and agencies at every level of the government – centre, state or local. ● Social Environment: Social environment includes the social forces like customs and traditions, values, social trends, society’s expectations from business, etc. 1. The two values which the Cerebra Integrated Technologies wants to convey through this initiative are: 1. Sustainable development 2. Concern for environment. Q. 22. After competing his education, Arun joins his father in their family business of manufacturing cookware. As a businessman, his father is rigid in his approach and has fixed ideas about various issues. He tends to maintain a distance from the factory workers. However, Arun is more receptive to the needs of the workers and doesn’t seem to believe in any class-differences. He believes that the prosperity of their business greatly depends upon the prosperity of their workers and vice versa. At the same time, he has a good understanding of the business environment. Therefore, he introduces a new range of green pans that provide a healthy cooking surface, as they are manufactured with all ceramic or silicon coating and are considered safer than the traditional petroleum based nonstick surfaces which may contain toxic substances. Although, the new cookware range is highly prices, he expects a ready market for it as both the purchasing power of people and their preference for better quality products has increased over the years. In context of the above case: 1. Identify the nature of management which is being reflected in the different styles of management in practice adopted by Arun and his father. 2. Name and explain the related principle of scientific management. 3. State the related dimensions of business environment. Ans. 1. The different styles of management in practice adopted by Arun and his father reflect that management is an art. 2. ‘Harmony, Not Discord’ is the related principle of scientific management. 3. The related dimensions of the business environment are: ● Economic Environment: ● Social Environment: ● Technological Environment: Q. 23. Continuous and comprehensive evaluation is a process of assessment, mandated by the right to Education Act, of India. This approach to assessment has been introduced by state governments in India, as well as by the Central Board of Secondary Education in India. With the introduction of (CCE) system in education there is greater focus on project based learning. As a result, besides time and effort the students are willing to invest money to enhance the visual appeal of their project files so as to score higher marks. In order to cash on the opportunity Rishabh has started a small business unit to manufacture different kinds of decorative materials for the project files. He has employed a team of four creative designers for developing the innovative material with the help of latest technology. However, he has a prejudice against women and therefore pays less salary to them as compared to the male staff for equal work. In the context of the above case: 1. Name any two functions of management that Rishabh will have to perform in order to manage his business successfully. 2. Name and explain the principle of management which is being violated by Rishabh. 3. Identify the related dimensions of the business environment. Ans. 1. The two functions of management that Rishabh will have to perform in order to manage his business successfully are Planning and Orgnising. 2. The principle of management which is being violated by Rishabh is Equity. 3. The related dimensions of the business environment are: 1. Legal Environment 2. Political Environment 3. Economic Environment 4. Social Environment 5. Technological Environment Q. 24. Government of India is seriously thinking to allow oil marketing public sector, undertaking to fix their own price for petrol and diesel. 1. Name the economic reform related to this decision of government. 2. Name other two reforms recommended in new economic policy. Ans. 1. Liberalization 2. Other two reforms: Privatization and Globalization. Q. 25. Recently many companies have planned for significant investment in organizes retailing in India. Various factors which have encouraged companies to take these decisions are customer income is increasing, rise in standard of living of people. People are ready to pay high price for quality goods, government policy of liberalization regarding MNC entry and FDI, etc. 1. Explain briefly changes in business environment under different heads that have facilitated the companies’ decision to plan significant investment in retailing. 2. What has been the impact of these changes with regards to globalization and privatization? Ans. 1. Explain recent changes in various environment heads, i.e., economic, social, political, legal and technological. 2. Explain the topic, impact of change in government policy/economic policy. Q. 26. Two big banner movies were scheduled to be released on the same date. On the last movement release of one of the movies has to be postponed due to opposition of a group of people due to some unethical contents related to their religion was shown in the that movie. The other movie released on time and made huge profit as there was no competition and movie which was postponed suffered loss.  1. Which feature of business environment is highlighted here. 2. Identify the dimension of business environment, which delayed the release of movie. Ans. 1. Feature highlighted in ………’relativity’. 2. The dimension is ……..’social environment’. Q. 27. After winning the election, Prime Minister Mr. Narender Modi launched a Campaign of ‘Swachh Brarat’ and invited various celebrities to be a part of this Abhiyaan. This spread awareness among the people in society and in general, people started becoming more careful and aware about the cleanliness around their area. To continue its impact, a new service tax for Swachh Bharat was also started. The government is planning to import new and better technology to adopt new methods of treating the garbage and waste. State the various dimension of business environment mentioned in the above para quoting the lines from the above para. Ans. 1. “After wining election ….. campaign of Swachh Bharat.” Political Environment 1. “People in society ….. around their area.” 2. Social Environment 3. “A new service tax ….. started.” Economic Environment 1. “Import new technology …. Garbage.” Technological Environment Q. 28. Even after opening up of Indian Economy, foreign companies found it extremely difficult to cut through the bureaucratic and red tapism in government offices. This discourages them from investing in India. Identify the dimension of environment mention in above para. Ans. Political Environment. Q. 29. Just after the declaration of Lok Sabha Elections in 2014, the Bombay Stock Exchange Index rose by 1000 points. Identify the dimension of business environment. Ans. Political Environment. Q. 30. ‘Mamta Rice Food Ltd’ is a well know rice producing company. The sales have been falling down from the beginning of the year. The managing director MR. Bhuvan is worried about this situation. With a view to find out the solution of this problem he made a team to find but the reasons for downfall of sales. The team conducted the survey and gave following four reasons for the downfall of company’s sale. 1. On account of increase in export duty made by the government, the foreign demand has gone down. 2. Due to availability of other eatable substitute the taste of people is diverted from rice. 3. The competitor’s imported new technology machine and are producing better quality rice. 4. Due to strain with neighbouring country’s government and our country’s government export is effected. Identify the dimension of Business Environment discussed in the above case. Ans. 1. Economic Environment 2. Social Environment 3. Technological Environment 4. Political Environment. Q. 31. With changes in the consumption habits of people, Neelesh, who was running a sweet shop, shifted to the chocolate business. On the eve of Diwali, he offered chocolates in attractive packages at reasonable prices. He anticipated huge demand and created a website chocolove.com for taking orders online. He got a lot of orders online and earned huge profits by selling the chocolate. Identify and explain the dimensions of business environment discussed in the above case. Ans. The various dimensions of business environment being referred to in the above cased are as follows: 1. Social environment: 2. Technological environment: Q. 32. A recent rate cut in the interest on loans announced by the banks encouraged Amit, a science student of Progressive School, to take a loan from State Bank of India to experiment and develop cars to be powered by fuel produced form garbage. He developed such a car and exhibited it in the Science Fair organized by the Directorate of Education. He was awarded the first prize for his invention. Identify and explain the dimensions of business environment discussed in the above case. Ans. The various dimensions of business environment being referred to in the above case are as follows: 1. Economic Environment: 2. Technological Environment: Q. 33. ‘Accent electronics Ltd.’ was operating its business in Malaysia. The company started exporting its products to India when the Prime Minister announced relaxation in import duties on electronic items. The company appointed retailers in India who had direct online links with the suppliers to replenish stocks when needed. Identify and explain the dimensions of business environment discussed in the above case. Ans. The various dimensions of business environment being referred to in the above case are as follows: 1. Political Environment: 2. Technological Environment: Q. 34. As per the directions issued by the Supreme Court, the government passed an order to ban the sale of tobacco products within the area of 200 meters of all educational institutions as: 1. Its consumptions injurious to health. 2. People are becoming more conscious about health and fitness. This indicates the government’s attitude towards this business. Identify the business environment under three different dimensions by quoting from above paragraph. Ans. The various dimensions of business environment being referred to the in the above case are as follows: 1. Legal Environment: ”As per the directions issued by the Supreme Court.’ 2. Political Environment: “The government passed an order to ban the sale of tobacco products within the area of 200 meters of all educational institutions.” 3. Social Environment: “Its consumption is injurious to health and people are becoming more conscious about health and fitness.” Q. 35. Make in India is an initiative launched by the Government of India to encourage national and multinational companies to manufacture their products in India. It focuses on job creation and skill enhancement and is in twenty five sectors of the economy. Under the initiative, brochures on these sectors and a web portal were released. The initiative aims at high quality standards and minimizing the impact on the environment. It also seeks to attract foreign capital investment in India. In context of the above case: 1. Identify the various dimensions of business environment being referred to by quoting lines from the paragraph. 2. List any two values which the Government of India wants to convey through this initiative. Ans. 1. The various dimensions of business environment being referred to in the above case are as follows: 1. Political Environment: 2. Technological Environment: 3. Economic Environment: 1. The two values which the Government of India wants to convey through this initiative are: 1. High quality standards 2. Concern for environment Q. 36. India’s retail sector has been undergoing structural changes for the last two decades. On one hand, the ‘mall culture’ has gradually become a way of life, especially in the metros and mini-metros. On the other hand, there is accelerated growth in e-business as customers also prefer to buy products and services via the Interest, telephone and television. However, operating in either of the segments is marked by the presence of strong competitors. Identify the components of specific forces and general forces being discussed in the above paragraph. Ans. The components of specific forces discussed in the above paragraph are the customers and competitors. The components of general forces discussed in the above paragraph is the social and technological conditions. Q. 37. To mark the celebrations of International Family Day on 16 th may 2016, Kurkure flagged off India’s first family food train – Kurkure Family Express at New Delhi. The traintook forty families ona fun culinary experience of a lifetime through an eight-day journey across fourteen states in India. A whole lot of fun activities were hosted on the train by the travel and food anchors Rocky and mayor. The families were selected through an online campaign, ‘Chatpata family photos’. The contest attracted approximately 1,000 entries, of which 40 entries that gelled with the brand’s image were selected. The core idea of the campaign was to bring families from across India together over a journey like this. As in today’s time, everyone is busy with their life the family members may feel disconnected with each other. Identify and explain the various dimensions of business environment being referred to the in the above case by quoting lines from the paragraph. Ans. The various dimensions of business environment being referred to in the above case are as follows: 1. Technological environment: 2. Social environment: Q. 38. In the year 2016,the State Government of Kerala had made it mandatory for anganwadis hostels and canteens in educational institutions to secure the Food Safety and standards Authority of India (FSSAI) licence to ensure food safety. As the educational institutions also get categorized as food business operators in the event of the annual turnover of the hostels, they run exceeding Rs. 12 lakh per annum. In context of the above case: 1. Identify and explain the various dimensions of business environment being referred to here. 2. List any two values which the State Government of Kerala wants to convey through this initiative. Ans. 1. The various dimensions of business environment being referred to in the above case are as follows: 1. Political Environment: 2. Legal environment: 1. The two values which the State Government of Kerala wants to convey through this initiative are: 1. High quality standards 2. Good health Q. 39. Postage stamps have been unveiled to commemorate 140 years of existence of the country’s first stock exchange the Bombay Stock Exchange (BSE). The setting up of BSE is considered to be the greatest revolution that took place in the financial markets in India as it acts as a key driver for economic growth of a country. This is due to the fact that there exists a strong correlation between economic growth and capital accumulation. In the context of the above case: 1. Identify the dimension of business environment of India being referred here. 2. State any three factors which broadly affected the dimension of business environment of India as identified in part (a) of the question. Ans . 1. Economic environment is the dimension of business environment of India being referred here. 2. The three factors which broadly affect the economic environment of India are stated below; 1. Stage of economic development of the country. 2. The economic structure in the form of mixed economy which recognizes the role of both public and private sectors. 3. Economic planning, including five year plans, annual budgets, and so on Q. 40. In May 2016, the government had launched a web-based application which will provide as opportunity to all the industries dealing in hazardous waste to apply online and get online permissions for import and export of certain categories of waste, which is for reuse, recycling or recovery while it will also help authorities in web-based processing, generation and grant of various types of permissions to the entrepreneurs and industries. It is also aimed at implementing the concept of paperless and green office and provide information regarding number authorizations or consent order granted by the State Pollution control Boards (SPCBs). Identify the various dimensions of business environment being referred in the above case. Ans. 1. The various dimensions of business environment being referred to the in the above case are as follows: 1. Political Environment: 2. Technological Environment: 3. Legal Environment: 4. Social Environment: 5. Economic Environment: Q. 41. Bharat is running an ice cream parlour in a local market. Keeping in mind the changing perceptions about health among the people, one of his employee Abhiraj suggests to him that they should introduce a range a flavoured yogurt. Bharat accepts his suggestion as a result both the image and the profitability of his business increases. In the context of the above case: 1. Identify the feature of management which is being highlighted. 2. State the related dimension of the business environment. 3. Name and explain the related principle of general management. Ans. 1. The feature of management which is being highlighted is Dynamic. 2. The related dimension of the business environment is Social. 3. The related principle of general management is Initiative. Initiative means taking the first step with self-motivation. The workers should be encouraged to develop and carry out their plans for improvement. Suggestion system should be adopted in the organization. 

Important Notes for NCERT Class 12 Business Studies Chapter Environment

Business environment can be defined as those forces, individuals and institutions who have the ability to influence the working of an organisation. IMPORTANCE OF BUSINESS ENVIRONMENT 1. Identification of opportunities to get first mover advantage:  Understanding of business environment help an organisation in identifying advantageous opportunities and getting their benefits prior to competitors. 2. Identification of threats:  Correct knowledge of business environment help an organisation to identify those threats which may adversely affect its operations. 3. Tapping useful resources:  Business environment made available various resources such as capital, labour, machines, raw material etc to a business firm. In order to know the availability of resources and making them available on time knowledge of business environment is necessary. 4. Coping with Rapid changes:  Continuous study/scanning of business environment help in knowing the changes which are taking place and thus they can be faced effectively. 5. Assistance in planning and policy formulation:  Understanding and analysis of business environment help an organisation in planning & policy formulation. 6. helps in Improving Performance:  Correct and continuous monitoring of business environment help an organisation in improving its performance. DIMENSIONS / COMPONENTS OF BUSINESS ENVIRONMENT 1. Economic Environment:  It has immediate and direct impact on a business. Rate of interest, inflation rate, change in the income of people etc. are some economic factors which could affect business firms. Economic environment offers opportunities to a firm or it may put constraints. 2. Social Environment:  It includes various social forces such as customs, beliefs, literacy rate, educational levels, lifestyle, values etc. Changes in social environment affect an organisation in the long run. Example: now a days people are paying more attention towards their health as a result of which demand for mineral water, diet coke etc has increased while demand of tobacco, fatty food products has decreased. 3. Technological Environment:  It provides new and advance ways/ techniques of production. A businessman must closely monitor the technological changes taking place in the industry as it helps in facing competition and improving quality of the product. 4. Political Environment:  Changes in political situation also affect business organisations. Political stability builds confidence among business community white political instability and bad law & order situation, may bring uncertainly in business activities. Political environment has immediate and great impact on the business transactions, so the businessman must scan the environment carefully so that necessary changes can be made in the organisation as per requirements. 5. Legal Environment:  It constitutes the laws and legislation passed by the Government, administrative orders, court judgements & decisions of various commissions and agencies. Businessman had to act according to various legislations and so their knowledge is very necessary. Economic Reforms: As a part of Economic reforms, the Government of India announces new Industrial Policy in 1991, whose main features are as follows: 1. Only six industries were kept under licencing scheme. 2. The role of public sector was limited only to four industries. 3. Disinvestment was carried out in many public sector enterprises. 4. Foreign capital/investment policy was liberalised and in many sectors 100% direct foreign investment was allowed. 5. Automatic permission was given for signing technology agreements with foreign companies. 6. Foreign investment promotion board (FIPB) was setup to promote & bring foreign investment in India. 

We hope the above  Environment Class 12 Business Studies  are useful for you. If you have any questions then post them in the comments section below. Our teachers will provide you an answer. Also refer to  MCQ Questions for Class 12 Business Studies

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BUSINESS STUDIES FOR CLASS 12 CHAPTER 3 BUSINESS ENVIRONMENT MCQS ALONG WITH ANSWERS

Free CBSE Business Studies Multiple Choice Questions for Class 12 along with answers, Chapter 3: Business Environment. Business Studies MCQs for Class 12 chapter-wise with answers are prepared based on the current exam pattern. Students can tackle MCQs with answers to realise their spadework level.

1. A business has to offer a wider choice in purchasing enhanced quality of goods and services in order to maintain an edge over its competitors. The implementation of the new economic policy with liberalisation, privatisation, and globalisation has posed various challenges for the corporate sector. One of the important challenges is explained in the above lines. Identify it.

(a) Increasing competition

(b) More demanding customers

(c) Necessity for change

(d) Market orientation

Answer: (a) Increasing competition

2. Which of the following is a feature of demonetisation?

(a) Tax administration measure

(b) Channelising savings into the formal financial system

(c) Development of less-cash economy

(d) All of the above

Answer: (d) All of the above

3. On 8th November 2016, with the announcement from the Government of India, all the ₹500 and ₹1,000 banknotes of the Mahatma Gandhi series have ceased to be legal tender. The government also announced the issuance of new ₹500 and ₹2,000 banknotes in exchange for the demonetised banknotes. Identify the concept being described in the above lines.

(a) Globalisation

(b) Liberalisation

(c) Demonetisation

(d) Privatisation

Answer: (c) Demonetisation

4. In today’s world, the flow of goods and services is not only cheap and fast, but reliable and secure. You can order anything you wish from any part of the world. The Internet has been connecting people without any limitations or boundaries in the way of doing business. Identify the concept being described in the above lines.

(a) Liberalisation

(b) Globalisation

Answer: (b) Globalisation

5. The Government of India launched the “Make in India” initiative in September 2014 to increase foreign direct investment (FDI) in 25 sectors. As of April 2015, FDI inflow in India increased by 48% since the launch of the “Make in India” initiative.

Identify the concept being described in the above lines, with regard to an inflow of FDI.

(a) Demonetisation

(b) Privatisation

(c) Liberalisation

(d) Globalisation

Answer: (c) Liberalisation

6. The Union Cabinet has given an ‘in-principle’ nod to divest stakes in Air India, a wholly government-owned airline. This means the government is willing to shed a substantial portion of its stake and hand over the management of the ailing airline to the private sector. Identify the concept being described in the above lines.

(c) Globalisation

(d) Demonetisation

Answer: (b) Privatisation

7. According to a report by the India Staffing Federation (ISF), India has emerged as the

fifth largest market worldwide in Flexi-staffing in 2018, and the country would have a 6.1 million Flexi-workforce by 2021. It showed that Haryana, Gujarat, Karnataka, Madhya Pradesh, and Telangana are the states with high growth potential for Flexi-staffing, but Andhra Pradesh tops the list of states with favourable business environments. Identify the features of the business environment being discussed above.

(a) Relativity

(b) Dynamic nature

(c) Uncertainty

(d) Interrelatedness

Answer: (a) Relativity

8. India continues to be a lower-middle-income country along with 46 others, while Sri Lanka has climbed to the upper-middle-income group for the fiscal year (FY) 2020, according to the World Bank’s classification of countries by income levels, released on July 1, 2019. Identify the related dimensions of the business environment.

(a) Social dimension

(b) Technological dimension

(c) Economic dimension

(d) Political dimension

Answer: (c) Economic dimension

9. India’s population is expected to grow under 0.5 percent during 2031-41 due to a decline in fertility rate and an increase in life expectancy. These changes in India’s demography will also have implications such as the proportion of elementary school-going children will witness significant declines, lack of hospital beds, and an increase in retirement age. The related feature of the business environment is described in the above lines is________.

(a) Totality of external forces

(c) Interrelatedness

(d) Relativity

Answer: (c) Interrelatedness

10. According to the World Health Organisation, 39% of adults are overweight. Over the last 40 years, the prevalence of obesity has tripled around the world. With over half of consumers drinking at least one sugary drink on a given day, regulations towards the beverage sector are likely to become increasingly onerous. In the U.K., for example, a sugar tax was introduced in 2018 on beverages containing more than 5% sugar. Identify the related dimensions of the business environment.

(a) Legal dimension and Social dimension

(b) Social dimension and Technological dimension

(c) Technological dimension and Legal dimension

(d) Political dimension and Technological dimension

Answer: (a) Legal dimension and Social dimension

11. As a result of major government initiatives, more and more people are going ‘green’. In order to keep in line with the trend, ‘Clapaway’ a carpet cleaning company, has advertised that they only use natural cleaners that come from renewable resources and that all their service vehicles are hybrid vehicles that use both gas and electricity. Identify one of the points related to the importance of the business environment and its understanding by managers, which is being highlighted in the above case.

(a) It helps in assisting in planning and policy formulation

(b) It helps in coping with rapid changes

(c) It helps in improving performance

(d) It enables the firm to identify opportunities and get the first-mover advantage

Answer: (c) It helps in improving performance

12. ‘Yo Tummy’ began its business by offering the classic combo of hamburgers and fries. But over time, their customers wanted healthier foods, so ‘Yo Tummy’ responded and began offering healthy alternatives such as salads, fruits, wraps, and oatmeal. If ‘Yo Tummy’ hadn’t responded, they may have lost customers that wanted to eat healthier foods. The above case highlights one of the points related to the importance of the business environment and its understanding by managers. Identify it.

(a) It helps in coping with rapid changes

(b) It helps in improving performance

(c) It helps the firm to identify threats and early warning signals

Answer: (a) It helps in coping with rapid changes

13. Electric vehicles with zero tailpipe emissions are emerging as a good alternative to problems like climate change, surging pollution leading to ill health, crude import bill, and energy security. Identify the related dimensions of a business environment.

(a) Economic dimension, Legal dimension, and Social dimension

(b) Social dimension, Political dimension, and Economic dimension

(c) Economic dimension, Technological dimension, and Social dimension

(d) Social dimension, Political dimension, and Legal dimension

Answer: (c) Economic dimension, Technological dimension, and Social dimension

14. The Economic Survey 2019 suggests that psychological biases can be used in the realm of tax compliance. It is in favour of using religious norms such as “dying in debt is a sin” to improve tax compliance. Identify the related dimensions of the business environment.

(b) Social dimension and Economic dimension

(c) Technological dimension and Political dimension

(d) Political dimension and Economic dimension

Answer: (b) Social dimension and Economic dimension

15. In order to boost and double India’s export of goods and services to over USD 1,000 billion by 2025, it is important to lower effective corporate tax rates, bring down the cost of capital and simplify regulatory and tax frameworks. Identify the related dimension of a business environment.

(a) Social dimension and Legal dimension

(b) Technological dimension and Political dimension

(c) Political dimension and Social dimension

(d) Economic dimension and Legal dimension

Answer: (a) Social dimension and Legal dimension

We trust that the offered Business Studies MCQs for Class 12 with respect to Chapter 3: Business Environment will help you. Assuming you have any questions with respect to CBSE Class 12 Business Studies, Chapter 3: Business Environment MCQs, drop a remark underneath, and we will hit you up at the most punctual.

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• Business Studies Important Questions Class 12 PDF 2024-25

Business Studies Class 12 Important Questions Chapter Wise PDF FREE Download

Class 12 Business Studies comprises 12 important chapters that the students of Class 12 Commerce need to focus on more. These chapters cover the important topics included by the CBSE board for the conceptual development of the students. To practice answering such questions, download Class 12 Business Studies term 2 Important Questions with Solutions and check your skills. Evaluate your knowledge and preparation level with these questions and focus on how to complete your syllabus with precision.

The C la ss 12 business studies important questions are provided for the students to help them score better marks in the examination. By following and practising these important questions, students will already master the vital topics for their 12th board examinations. The question set of business studies consists of all the chapter-wise important questions which give them a proper guide of how to make the preparation properly. 

All the business studies class 12 important questions are made by the subject matter experts for utmost precision and accuracy. At Vedantu, students will get an in-depth understanding of all the chapters of class 12 business studies. Most importantly, all the questions are designed as per the CBSE guidelines . There are also NCERT solutions available for the students to give a better perspective about the subject.

Download CBSE Business Studies Class 12 Question Papers Chapter Wise PDF 

Also, check CBSE Business Studies Class 12 Question Papers Chapter wise for all the chapters:

Chapterwise Important Questions for CBSE Class 12 Business Studies

Business Studies Important Questions Class 12 - Chapter Wise Marks Distribution

Students need to attempt more questions from all the chapters if they want to excel in business studies. The important questions for class 12 business studies deal with every chapter in detail. It offers length-wise solutions to all the important questions of the chapters makes it reliable for exam preparation. 

Business Studies Class 12 Question Papers Chapter wise contains a total of 100 marks. Out of this, 80 marks are allocated to study papers while 20 marks are assigned to viva/ school project/ test that happens in school before the board examination. 

Why you should choose Business Studies Class 12 Question Papers Chapter Wise for Board Exam Preparation?

These questions have been formulated by the subject experts of Vedantu to offer a practice ground for the students. Once they complete preparing a chapter in the Class 12 Business Studies syllabus , they can solve these questions and check their answers by referring to the solutions.

This step will help them to find out the gaps in the preparation and make it better. The solutions have been compiled in a simpler tone so that the students can easily comprehend the context of the questions easily.

How to do Preparation with Business Studies Class 12 Important Questions Chapter Wise PDF?

Students preparing for class 12 business studies can download Important Questions for Class 12 Business Studies 2024-25 from Vedantu. Before that they should be familiar with all the chapters of business studies. This will help them to make decent preparation for the CBSE board examination . After reading the chapters, students should study all the important questions given at the end. Using these questions, they need to make notes and highlight them in their exercise books. It can also be used as a reference for the upcoming 12th boards. Students need to solve business studies class 12 important questions chapter wise pdf downloaded version. By understanding and analyzing the chapters properly, students can even solve difficult questions outlined in the chapters. 

Benefits of Solving the Important Questions for Class 12 Business Studies 2024-25?

We all know that by solving and practising more questions, students get a good understanding of all the chapters in business studies. Even, they will get class 12 business studies chapter 1 extra questions. Here are some of the benefits of solving business studies important questions. 

Students will get to know about the important questions that hold weightage in the examination. 

Students can prepare notes from the important questions and even highlight the essential parts. 

It will give them exposure to the question pattern in the examination.

By solving more and more important questions, they will be able to rectify all their mistakes. 

During the time of examination, they can easily solve and answer all the questions.  

Business Studies Class 12 Question Papers Chapter Wise

The important question of business studies class 12, mainly focuses on the chapters like directing, staffing, controlling that carries the maximum marks. Students should give more focus to these chapters, as it can help them to score higher marks. Next comes some topics in business studies like the principle of management, and the nature and significance of management. Another part is the business and finance marketing that adds weightage in the subject of business studies. 

Significance of Business Studies and Its Important Questions

Business studies is an interesting subject of commerce discipline. Students need to understand the concepts of business studies as it has real-life application in many fields. Most of these important questions are conceptually based and with a little effort students can even answer them in their own language. Students need to be acquainted with the numerical questions as well. With constant practice, they will become more adept in the subject. 

Download Important Questions for Class 12 Business Studies 2024-25

Find the important questions in PDF files and practice them. Focus on the sections you need to practice more and learn how to score more in the exams. Follow the solutions and develop your answering skills for Class 12 Business Studies accordingly.

Other Related Links

Other cbse class 12 important questions related links, cbse class 12 study materials.

The CBSE Class 12 Important Questions for Business Studies offer a valuable resource for students preparing for their board exams. With comprehensive coverage of key topics and concepts, along with insightful solutions, these resources enable students to enhance their understanding and prepare effectively. By utilizing these free PDF downloads, students can strengthen their grasp on important subjects, boost their confidence, and strive for academic excellence in their examinations.

FAQs on Business Studies Important Questions Class 12 PDF 2024-25

1. What are the advantages of preparing with Important Questions for Class 12 Business Studies 2024-25?

These important questions for CBSE Class 12 business studies will help students develop a solid grounding in all areas and guarantee that they are well-prepared for their upcoming Class 12 CBSE board exams.There is a high chance that some of these questions may be asked in the examination because these questions are designed as per the CBSE guidelines. By practicing these important questions, students would be able to tackle the tough as well as complex questions in the examination. At vedantu, students will get an in-depth explanation of all the chapters of class 12 business studies. 

2. How can we prepare better from the Business Studies Class 12 Question Papers Chapter wise pdf provided by vedantu?

With the help of these important questions, students should can on making notes and highlighting the important points. They should go through all the important questions and list out the topics in which they are lagging and which they feel are interesting and easy. After that, they should prepare for the tough questions accordingly. This would help them to increase their efficiency and solve difficult questions outlined in the chapters

3. On what basis, marks are allocated in the class 12 business studies exam?

The business studies paper comprises of 80 marks and 20 marks are allocated for project work

4. What are the most important topics for CBSE Class 12 Business Studies (2024-25)?

The most important topics of business studies class 12 are directing, staffing and controlling which carries the maximum marks. Students should focus on such topics for scoring higher marks. Next comes the topics such as types of entrepreneurship, marketing mix, branding, etc. The topics like principle of management and the nature and significance of management are also important. Another part of business studies i.e Business Finance and Marketing also adds weightage to this subject.

5. How can someone score good in business studies?

For scoring good in this subject, students should have conceptual clarity. Students should attend classes attentively and revise the same day. There should be a command over speed. They should know how many minutes are to be allotted to each answer. They should work on their weak topics to score higher marks. Students should analyse the questions completely and they should highlight the main points or key words within each question and read the question correctly and carefully.

6. How can I get full marks in Business Studies class 12?

To achieve full marks in Business Studies Class 12, it's essential to thoroughly understand the concepts, principles, and case studies provided in the textbook. Additionally, practicing previous year question papers, solving sample papers, and revising regularly can help in achieving maximum marks.

7. Which chapter is most important in Business Studies class 12?

While all chapters in Business Studies Class 12 are important, chapters like Principles of Management, Business Environment, Planning, and Marketing Management are often considered crucial due to their relevance and extensive coverage in exams.

8. Is Class 12 Business Studies hard?

The difficulty level of Class 12 Business Studies may vary from student to student. However, with proper understanding, consistent practice, and effective time management, students can overcome any challenges and perform well in the subject.

9. How to score 100 on 100 in Business Studies class 12?

Scoring 100 on 100 in Business Studies Class 12 requires diligent preparation and a deep understanding of the subject matter. Students should focus on mastering each concept, practicing with precision, and presenting their answers effectively in the examination to achieve a perfect score.

Important Questions for CBSE Class 12

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