CA Foundation BCK Chapter 2 MCQ with Answers – Business Environment

Students should practice CA Foundation BCK Chapter 2 MCQ with Answers Business Environment – CA Foundation BCK MCQ Questions based on the latest syllabus.

BCK CA Foundation Chapter 2 MCQ Questions – Business Environment

CA Foundation BCK Chapter 2 MCQ with Answers – Business Environment

Interaction:

1. Organizations depend upon which environment for Input:
(a) Technological Environment
(b) Social-Economic Environment
(c) External Environment
(d) Legal Environment
Answer:
(c) External Environment

2. What is the single word that can best describe today’s business?
(a) Technology
(b) Persistence
(c) Profit making
(d) Change
Answer:
(d) Change

3. A business is created to provide:
(a) Products to Customers
(b) Services to Customers
(c) Employment opportunities
(d) All of the above
Answer:
(d) All of the above

4. In order to survive over the long term, a company must have the:
(a) Ability to Prosper
(b) Ability to change
(c) Both (a) and (b)
(d) None of the above
Answer:
(c) Both (a) and (b)

5. As per Charles Darwin, who sur-vives?
(a) Strongest
(b) Most Intelligent
(c) Most responsive to change
(d) All of the above
Answer:
(c) Most responsive to change

6. Which one of the following is not true about business ?
(a) It is created to provide products or services to customers.
(b) It creates job opportunities.
(c) It is beneficial to Society.
(d) It always gives return on invest-ment.
Answer:
(d) It always gives return on invest-ment.

7. Read the following three statements:
(i) The environment is constantly changing in nature.
(ii) Various environmental constituents exist in isolation and do not interact with each other.
(iii) The environment has a far reaching impact on organizations.
From the combinations given below select an alternative that represents statements that are true:
(a) (i) and (ii).
(b) (ii) and (iii)
(c) (i) and (iii)
(d) (i), (ii) and (iii)
Answer:
(c) (i) and (iii)

8. Which one of following is not true about Business Environment?
(a) It represents all external forces, factors or conditions that exert same degree of impact on business decisions.
(b) The success of business is affected by business environment.
(c) The business must continuously monitor and adapt itself to the environment.
(d) It includes internal forces only.
Answer:
(d) It includes internal forces only.

CA Foundation BCK Chapter 2 MCQ with Answers – Business Environment

9. The integral elements of business environment include.
(a) Internal forces
(b) External Forces
(c) Both (a) and (b)
(d) Either (a) or (b)
Answer:
(c) Both (a) and (b)

10. As per Traditional authors, the integral elements of business environment include:
(a) Internal forces only
(b) External forces only
(c) Internal & External forces
(d) Internal or External Forces
Answer:
(b) External forces only

11. In order to Survive and proposer a business:
I. Must Continuously monitor
II. Must adapt itself to the environment
III. Must Concentrate on its weakness only
IV. Must Concentrate on its Strength only.
(a) I
(b) I and II
(c) II and III
(d) III and IV
Answer:
(b) I and II

12. What is not a characteristic of business environment?
(a) Static
(b) Complex
(c) Far reaching
(d) Multi-faced
Answer:
(a) Static

13. Which of the following are not characteristics of business environment:
(a) Complex
(b) Dynamic
(c) Single Faceted
(d) Far reaching impact
Answer:
(c) Single Faceted

14. Which is not a feature of business environment?
(a) Simple
(b) Complex
(c) Multi fact
(d) Dynamic
Answer:
(a) Simple

15. It is easy to understand the business environment in parts but difficult to grasp in totality. Therefore, Business Environment is _________.
(a) Complex
(b) Dynamic
(c) Multi-faceted
(d) Far Reaching impact.
Answer:
(a) Complex

16. Now-a-days, the film industry generates revenue from ring tones/caller tunes rather than sale of music C.D. It exhibits _________ feature of business environment.
(a) Complex
(b) Dynamic
(c) Multi-faceted
(d) Far Reaching impact
Answer:
(b) Dynamic

17. An organisation like Aditya Birla Group has moved from textile to cement, to retail and to financial services as well as telecom due to changing circumstances. This example is related with _________ feature of Business Environment.
(a) Complex
(b) Dynamic
(c) Multi-faceted
(d) Far Reaching impact
Answer:
(d) Far Reaching impact

18. There is a _________ interaction between Business and Business Environment.
(a) Close
(b) Close and continuous
(c) Close and static
(d) Continuous and Static
Answer:
(b) Close and continuous

CA Foundation BCK Chapter 2 MCQ with Answers – Business Environment

19. The interaction between Business and its Environment, helps the business in:
(a) Determining Opportunities and Threats
(b) Continuous learning
(c) Giving directions for growth
(d) All of the above.
Answer:
(d) All of the above.

20. In relation to solving the problem of shortage of Electricity, “CPP” means:
(a) Captive Power Plant
(b) Creative Power Plant
(c) Central Power Plant
(d) Controlled Power Plant
Answer:
(a) Captive Power Plant

21. The interaction between Business and Environment brings out:
(a) Opportunities for the business
(b) Threats to the business
(c) Opportunities for and Threats to the business
(d) Complex and Dynamic analysis.
Answer:
(c) Opportunities for and Threats to the business

22. Which one of the following is not an advantage of Business Environment to the business?
(a) Determination of Opportunities & Threats
(b) Meeting Competition
(c) Image Building
(d) Identification of financial needs.
Answer:
(d) Identification of financial needs.

23. Relationship between organisation and environment can be described through:
(a) Exchange of information
(b) Exchange of resources
(c) Exchange of influence and power
(d) All of the above
Answer:
(d) All of the above

24. Which one of the following is the major areas as regards interaction of organisation and its environment?
(a) Exchange of Information
(b) Exchange of Resources
(c) Exchange of influence power
(d) All of the above.
Answer:
(d) All of the above.

25. The nature of relationship between the organization and the Environment depends upon:
I. Size of organisation
II. Age of organisation
III. Nature of Business
IV. Nature of ownership
V. Degree of Professionalization of management.
(a) I and II
(b) I, II and III
(c) I, II, III & IV
(d) I, II, III, IV & V
Answer:
(d) I, II, III, IV & V

26. Which one of the following is not true about External Environment?
(a) It offers opportunities
(b) It offers limitations also.
(c) It creates pressures & threats
(d) It never affects small business.
Answer:
(d) It never affects small business.

27. Which one of the following Companies is affected by FMCG Company ‘Patanjali’ endorsed by Baba Ramdev?
(a) Hindustan Unilever Ltd.
(b) P&G Ltd.
(c) Dabur Ltd.
(d) Bajaj Auto Ltd.
Answer:
(d) Bajaj Auto Ltd.

28. In relation to resources, “5M” represents:
(a) Men, Money, Method, Machine and Material
(b) Management,Motivation,Money, Machine and Material
(c) Morale, Money, Method, Machine and Material
(d) Mobility, Method, Management, Machine and Material.
Answer:
(a) Men, Money, Method, Machine and Material

29. In the relationship between organizations and its environment, there is exchange of:
(a) Information
(b) Resources
(c) Influence and Power
(d) All of the above.
Answer:
(d) All of the above.

CA Foundation BCK Chapter 2 MCQ with Answers – Business Environment

30. Which one of the following Statement is incorrect?
(a) The organisation is dependent on the external environment for disposal of its output of products and services.
(b) The organisation scans the external environmental valuables.
(c) Apart from gathering in form ability, the organization itself transmits information to several external agencies.
(d) The external environment offers strengths and weakness.
Answer:
(d) The external environment offers strengths and weakness.

31. Which one of the following is organization’s response to its Environment?
(a) Administrative
(b) Competitive
(c) Collective
(d) All of the above.
Answer:
(d) All of the above.

32. The formation or clarification of the organization’s mission; the development of objectives, polices and budgets, etc. are the examples of _________ response of organisation to environment:
(a) Administrative
(b) Competitive
(c) Collective
(d) None of the above
Answer:
(a) Administrative

33. The methods like bargaining, Contracting, Co-opting, creating joint ventures, etc. are related with _________ response of organisation to its environment.
(a) Administrative
(b) Competitive
(c) Collective
(d) Ministerial
Answer:
(c) Collective

34. In order to respond appropriately, the organizations must:
(a) Have the Capacity to monitor
(b) Make sense of their environment
(c) Identify and attend the environmental factors
(d) All of the above.
Answer:
(d) All of the above.

35. In order to sustain competitive advantage, organizations must achieve an external position vis-a-vis their competitors or perform internally in ways that is/are:
(a) Unique
(b) Valuable
(c) Difficult to imitate
(d) All of the above.
Answer:
(d) All of the above.

36. Which of the following statement is incorrect as regards organization’s response to its environment?
(a) Organizations must have the capacity to monitor and make sense of their environments.
(b) Organizations must identify and attend to the environmental factors and features that all closely related to goal achievement and performance.
(c) Organizations must have the interval capacity to develop effective responses.
(d) Organisation can function ignoring the environment.
Answer:
(d) Organisation can function ignoring the environment.

37. In relation to a popular cold drink “Pepsi”, which one of the following is not internal factor?
(a) Packaging
(b) Scheme & Promotion
(c) Distribution Networks
(d) Health Awareness
Answer:
(d) Health Awareness

38. Which one of the following statement is incorrect?
(a) Business does not function in an isolated Vacuum.
(b) Business function within a whole gambit of relevant environment.
(c) Businesses have to negotiate their ways through it.
(d) Business must monitor the environment periodically.
Answer:
(d) Business must monitor the environment periodically.

39. A Successful business has to _________ the various opportunities and threats in its environment.
(a) Identify
(b) Identify and appraise
(c) Identify, appraise and respond to
(d) Identify, appraise, suggest and respond to.
Answer:
(c) Identify, appraise and respond to

40. Apart from the natural environ-ment, environment of humans include:
(a) Family
(b) Friends and peers
(c) Neighbours and society
(d) All of the above.
Answer:
(d) All of the above.

41. Which of the following is/are in-cluded in man-made structures within an environment?
(a) Buildings and Roads
(b) Furniture
(c) Other Physical infrastructure
(d) All of the above
Answer:
(d) All of the above

CA Foundation BCK Chapter 2 MCQ with Answers – Business Environment

42. Different organizations use different inputs & produce different outputs. The input-output exchange activity is.
(a) Different for organizations
(b) A continuous process
(c) It calls for an active interaction with the external environment
(d) All of the above
Answer:
(d) All of the above

43. Business functions as a part of broader environment. Business converts resources through various processes. This exchange process may bring _________.
(a) Profits
(b) Reputation
(c) Good Piiblic Image
(d) Any of the above
Answer:
(d) Any of the above

44. In an attempt to identify a frame-work for understanding the environ-ment of organizations, various steps are required.
I. Explicit Consideration of immediate environment
II. To Check the nature (Static/ Simple/Complex)
III. Auditing of environmental influ-ences.
The Sequential steps are
(a) I, II & III
(b) I, III & II
(c) II, III and I
(d) III, II and I
Answer:
(c) II, III and I

45. Environmental Analysis helps in:
(a) Providing input for strategic decision making
(b) Turning threat’s to firms advantage
(c) Anticipate opportunities and to take optimal responses
(d) All of the above
Answer:
(d) All of the above

46. Business Environment analysis help in:
(a) Give directions for growth
(b) Determining opportunities and threats
(c) Image building
(d) All of the above.
Answer:
(d) All of the above.

47. Which of the following is not the basic goal of environmental Analysis?
(a) Understanding of Current and potential changes taking place in the environment.
(b) Provide inputs for strategic decision making.
(c) Facilitate and foster strategic thinking in organization.
(d) Provide the internal strengths of the organisation.
Answer:
(d) Provide the internal strengths of the organisation.

48. When the company does not react to the demands of the environment by changing its Strategy, the result is :
(a) Declining performance of the Company
(b) Forgoing of opportunities avail-able
(c) Ignoring the treats to the firm.
(d) All of the above
Answer:
(d) All of the above

49. Which of the following signifies the utility of Environmental analysis?
(a) It gives the time to strategists to anticipate the opportunities
(b) The strategists can plan to take optional response to the opportunities.
(c) Strategists can develop an early warning system to prevent threats.
(d) All of the above
Answer:
(d) All of the above

50. Select the correct statement out of the following:
(a) Environmental factors are totally beyond the control of a single industrial enterprise.
(b) Environmental factors are largely beyond the control of a single industrial enterprise.
(c) Environmental factors are totally within the control of a single industrial enterprise.
(d) None of the above.
Answer:
(b) Environmental factors are largely beyond the control of a single industrial enterprise.

CA Foundation BCK Chapter 2 MCQ with Answers – Business Environment

51. Analyzing process of change in the business environment involves conceptualizing its as:
(a) Complex
(b) Static
(c) Dynamic
(d) Diverse
Answer:
(a) Complex

52. _________ is the process by which organizations monitor their relevant environment to identify opportunities and threats affecting their business for the purpose of taking strategic decisions.
(a) Forecasting
(b) Assessment
(c) Scanning
(d) None of the above
Answer:
(c) Scanning

53. Environmental Scanning must identify.
(a) Threats existing in the environ-ment
(b) Opportunities existing in the en-vironment
(c) Threats and opportunities exist-ing in the environment
(d) Threats, Opportunities, Strengths and Weaknesses.
Answer:
(c) Threats and opportunities exist-ing in the environment

54. In environmental scanning, the factor _________ represents certain happening in the internal or external organizational environment which can be observed and tracked.
(a) Events
(b) Trends
(c) Issues
(d) Expectations
Answer:
(a) Events

55. _________ is important and specific occurrence taking place in different environmental sectors.
(a) Events
(b) Trends
(c) Issues
(d) Expectations
Answer:
(a) Events

56. Trends relate to:
(a) Happening of events in internal Environment
(b) Grouping of similar or related events
(c) Demands made by Interested group
(d) None of the above
Answer:
(b) Grouping of similar or related events

57. _________ are the general tendencies or the causes of action along which events take place.
(a) Events
(b) Probability
(c) Trends
(d) Directions
Answer:
(c) Trends

58. The demands made by interested groups in the light of their concern for issues that arise in response to events and trends is called as _________.
(a) Appraisal
(b) Evaluation
(c) Observation
(d) Expectations
Answer:
(d) Expectations

59. The businesses should continu-ously _________ and _________ to the environment if it is to service and prosper.
(a) Identify, appraise
(b) Monitor, adapt
(c) Identify, monitor
(d) Monitor, appraise
Answer:
(b) Monitor, adapt

60. Which one of the following is not a factor which need to be considered for environmental scanning?
(a) Events
(b) Trends
(c) Issues
(d) Strategy
Answer:
(d) Strategy

CA Foundation BCK Chapter 2 MCQ with Answers – Business Environment

61. Perceiving the needs of the external environment and catering to them, satisfying the expectations and demands of the clientele groups is:
(a) Reciprocal agreement
(b) Interdependent process
(c) Management process
(d) Interaction process
Answer:
(d) Interaction process

62. Which of the following is a part of process of Environmental Scanning?
(a) Scanning Strategic
(b) Perceived Environment Change
(c) Strategic change
(d) All of the above.
Answer:
(d) All of the above.

63. A threat is _________.
(a) An unfavourable condition in organization environment which creates risk or damage to the Environment
(b) An inherent limitation or con-straint
(c) An unfavourable condition in organization environment which consolidates its strength
(d) None of the above
Answer:
(a) An unfavourable condition in organization environment which creates risk or damage to the Environment

64. Internal Environment includes _________.
(a) Demography
(b) Customer
(c) Economic
(d) Mission and Objective
Answer:
(d) Mission and Objective

65. Opportunity is _________.
(a) Inherent Capacity
(b) Strategic disadvantage
(c) Favourable condition
(d) None of the above
Answer:
(c) Favourable condition

66. SWOT stands for;
(a) Strength, Weakness, Opportunity, Threats
(b) Strong, Weak, occurring, Things
(c) Strong, Weak, Occurring, Things
(d) Strength, Weak, Opportunity, Things
Answer:
(a) Strength, Weakness, Opportunity, Threats

67. Through SWOT analysis:
(a) Strengths and weakness existing within the environment can be matched with opportunities and threats in the organisation.
(b) Strengths and weakness existing outside the organisation can be matched with opportunities and threats with the internal environment.
(c) Strengths and weakness existing outside the organisation can be matched with opportunities and threats with the external environment.
(d) Strengths and weakness existing within an organisation can be matched with opportunities and threats in the environment.
Answer:
(c) Strengths and weakness existing outside the organisation can be matched with opportunities and threats with the external environment.

68. Which one of the following is not a part of interval Environment?
(a) Value System
(b) Mission and objectives
(c) Customers
(d) Labour Union
Answer:
(a) Value System

69. The Micro Environment of external Environment includes:
(a) Market
(b) Technological
(c) Demographic
(d) Economic
Answer:
(a) Market

CA Foundation BCK Chapter 2 MCQ with Answers – Business Environment

70. The interval environment of business organisation is composed of multiple elements existing within the organisation. It includes:
(d) Management
(b) Current Employees
(c) Corporate Culture
(d) All of the above
Answer:
(d) All of the above

71. The Micro and Macro environment are the major types of :
(a) Interval Environment
(b) External Environment
(c) Both Internal and External envi-ronment
(d) Business Environment.
Answer:
(b) External Environment

72. The growing demand for the products or services, that a company provides, may be regarded as:
(a) Opportunity
(b) Strength
(c) Weakness
(d) Threat
Answer:
(a) Opportunity

73. The emergence of strong new competitors who are likely to offer stiff competition to the existing Companies in an industry is an example of :
(a) Threat
(b) Weakness
(c) Problem
(d) Hurdle
Answer:
(a) Threat

74. A Company is having superior re-search and development skills which can be used for new product develop-ment so that the Company gains com-petitive advantage. It is an example of:
(a) Potential
(b) Strength
(c) Competitive advantage
(d) Strong Capabilities.
Answer:
(b) Strength

75. Process of strategy formulation starts with:
(a) Appraisal of external and internal environment of the of an organization
(b) Performance analysis
(c) Choice of strategy
(d) None of the above
Answer:
(a) Appraisal of external and internal environment of the of an organization

76. A _________ is inherent capacity which an organisation can use to gain strategic advantage over it’s competitors.
(a) Strength
(b) Opportunities
(c) Threat
(d) Weakness
Answer:
(a) Strength

77. An understanding of the external and internal environment is crucial for the _________ of any organisation.
(a) Existence
(b) Growth
(c) Profitability
(d) All of the above
Answer:
(d) All of the above

78. The opportunities and threats operate in _________ environment.
(a) Internal
(b) External
(c) Internal and External
(d) Micro
Answer:
(b) External

79. An organization should use it’s _________ to minimize impact of _________.
(a) Strengths, weakness
(b) Opportunities, weakness
(c) Strengths, Threats
(d) Opportunities, Threats.
Answer:
(a) Strengths, weakness

80. According to _________, the aim of the business is to create and retain customer.
(a) Peter Drucker
(b) Adam Smith
(c) Henry Ford
(d) Schumpeter
Answer:
(a) Peter Drucker

81. _________ have a vested interest in the well-being of the company.
(a) Shareholder
(b) Directors
(c) Owner
(d) Employees
Answer:
(c) Owner

82. Cost structure of an industry is effected by _________ own bargaining power.
(a) Organizations
(b) Suppliers
(c) Consumer
(d) Intermediary
Answer:
(b) Suppliers

CA Foundation BCK Chapter 2 MCQ with Answers – Business Environment

83. All are elements of micro environment except:
(a) Consumer.
(b) Suppliers.
(c) Competitors.
(d) Society.
Answer:
(d) Society.

84. Competition brings direct benefit to _________.
(a) Customers
(b) Suppliers
(c) Government
(d) Intermediaries
Answer:
(a) Customers

85. Competition is beneficial to the competing firms besides benefiting the?
(a) Intermediaries
(b) Customers
(c) Producers
(d) Financiers
Answer:
(b) Customers

86. The market is larger than customers. The market is to be studied in terms of.
(a) Actual and potential size
(b) Growth prospect
(c) Attractiveness
(d) All of the above.
Answer:
(d) All of the above.

87. The price sensitivity of the market is an important factor of which element of Micro environment:
(a) Suppliers
(b) Market
(c) Intermediaries
(d) Customer
Answer:
(b) Market

88. _________ exert a considerable influence on the business organizations. They are the ones who act as a bridge between the manufacture and the marketer.
(a) Customers
(b) Intermediaries
(c) Suppliers
(d) Organisation.
Answer:
(b) Intermediaries

89. The performance of business in the private sector is measured by:
(a) Profitability
(b) Customer Satisfaction
(c) Number of employees
(d) The salary of BOD
Answer:
(b) Customer Satisfaction

90. Environment which is close to business and affect its capacity to work is known as _________ environment.
(a) Micro
(b) Macro
(c) Internal
(d) External
Answer:
(a) Micro

CA Foundation BCK Chapter 2 MCQ with Answers – Business Environment

91. _________ is also known as the task environment and affects business and marketing in the daily operating level.
(a) Micro Environment
(b) Macro Environment
(c) Mini Environment
(d) Internal Environment
Answer:
(a) Micro Environment

92. The non-specific elements of the organisations surroundings that may affect its activities are;
(a) Customers, suppliers and employees
(b) Suppliers, owners, employees
(c) Owners, Board of Directors and Employees
(d) Customers, Intermediaries, Suppliers.
Answer:
(c) Owners, Board of Directors and Employees

93. _________ with their own bargaining power affect the cost structure of the industry.
(a) Intermediaries
(b) Suppliers
(c) Consumer
(d) Government
Answer:
(b) Suppliers

94. Who has given the preposition, “we have met the enemy and he is us”?
(a) Pogo
(b) Drucker
(c) Kotler
(d) None of these
Answer:
(a) Pogo

95. All are elements of macro environ-ment except:
(a) Society.
(b) Government.
(c) Competitors.
(d) Technology.
Answer:
(a) Society.

96. Macro Environment includes _________.
(a) Strength
(b) Weakness
(c) Opportunity
(d) All of the above
Answer:
(c) Opportunity

97. Which of the following is not a part of the economic environment?
(a) Market and trade cycles
(b) Consumer buying patterns
(c) Strength of consumer spending
(d) Interest and exchange rates
Answer:
(b) Consumer buying patterns

98. Which of the following factor af-fects the economic environment?
(a) Economic System
(b) Economic Condition
(c) Economic Policies
(d) All of the above
Answer:
(d) All of the above

99. _________ of the government covers all those principles, polices, rules, regulations and procedures, which direct and control the industrial enterprises of the country and shape the pattern of industrial development.
(a) Industrial Policy
(b) Monetary Policy
(c) Investment Policy
(d) Generic Policy
Answer:
(a) Industrial Policy

100. Demographic environment re-lates to:
(a) Characteristics of population in an area, district, country or in the World.
(b) Influence almost all enterprises in a similar manner.
(c) Influence almost all enterprises in a similar manner.
(d) Positive and negative impact of significant international event.
Answer:
(a) Characteristics of population in an area, district, country or in the World.

CA Foundation BCK Chapter 2 MCQ with Answers – Business Environment

101. Which of the following statement is not a factor influencing sociocultural environment:
(a) Family structure and changes in it, attitude towards and within the family, and family values.
(b) Educational levels, awareness and consciousness of rights, and work ethics of members of soci-ety.
(c) Opportunities arising out of technological innovation.
(d) Role of women in society, position of children and adolescents in family and society.
Answer:
(d) Role of women in society, position of children and adolescents in family and society.

102. Business and technology are:
(a) Interrelated
(b) Interdependent
(c) Interrelated & Interdependent
(d) None of the above
Answer:
(c) Interrelated & Interdependent

103. Which of the following is not a factor of Demographic Environment?
(a) Ethnic Mix
(b) Legal
(c) Population size
(d) Geographic Distribution
Answer:
(b) Legal

104. The Fiscal Policy includes government policy in respect of :
(a) Public Expenditure
(b) Taxation
(c) Public Debt
(d) All of the above
Answer:
(d) All of the above

105. The important elements in polit-ical-legal environment are:
(a) Government, legal and economical.
(b) Government, legal and political.
(c) Technological, legal and economical.
(d) Government, technological and legal.
Answer:
(b) Government, legal and political.

106. The _________ environment refers to the nature and direction of the economy in which a company competes or may compete.
(a) Sociocultural
(b) Internal
(c) Micro
(d) Economic
Answer:
(c) Micro

107. The Central Government has introduced new GST law which has influenced most of the business. It is related with which of the following elements of Macro environment?
(a) Demographic
(b) Economic
(c) Political-Legal
(d) Sociocultural
Answer:
(c) Political-Legal

108. Study of human population is called as _________ environment.
(a) Political
(b) Demographic
(c) Global
(d) Economic
Answer:
(b) Demographic

109. Which of the following is a factor of Demographic Environment?
(a) Population size
(b) Geographic Distribution
(c) Ethnic Mix
(d) All of the above.
Answer:
(d) All of the above.

CA Foundation BCK Chapter 2 MCQ with Answers – Business Environment

110. Which one of the following Statement is incorrect?
(a) Customers are the people who pay money to acquire an orga-nization’s products.
(b) The organizations cannot survive without customers.
(c) Consumer is one who ultimately Consumes or uses the product or service.
(d) Customer is always a Consumer.
Answer:
(d) Customer is always a Consumer.

111. In the PEST framework for en-vironmental analysis what does the letter E stand for?
(a) Ecological
(b) Economic
(c) Ethical
(d) Educational
Answer:
(b) Economic

112. The two E’s in PESTLE stands for:
(a) Economic and Environment
(b) Endless and Economic
(c) Entry and Exist
(d) End and Exit
Answer:
(a) Economic and Environment

113. The term PESTLE analysis is used to describe a framework for analyzing:
(a) Macro Environment
(b) Micro Environment
(c) Both Macro and Micro Environ-ment
(d) None of above
Answer:
(a) Macro Environment

114. Which of the following factor is not included in Traditional model “PEST” available for environmental monitoring?
(a) Political and Legal
(b) Economic and Environmental
(c) Legal and environmental
(d) Economic and Legal.
Answer:
(c) Legal and environmental

CA Foundation BCK Chapter 2 MCQ with Answers – Business Environment

115. PESTLE analysis does not include _________.
(a) Legal
(b) Economic
(c) Technology
(d) Policy
Answer:
(d) Policy

116. Which environmental factors regulate the values and beliefs, tradi-tions and customs of society?
(a) Political-legal factors
(b) Technological factors
(c) Economic factors
(d) Sociocultural factors
Answer:
(d) Sociocultural factors

117. _________ describe a framework for analysis of macro environmental factor.
(a) SOCIAL
(b) PESTLE
(c) POLITICAL
(d) MIXED
Answer:
(b) PESTLE

118. In PESTLE Matrix, which of the following is not a part of Social Factor?
(a) Health and Safety law
(b) Demographics
(c) Religious
(d) Lifestyle trends
Answer:
(a) Health and Safety law

119. In PESTLE Analysis, _________ factors are how and to what extent the government intervenes in the economy and the activities of business firms.
(a) Political
(b) Economic
(c) Environmental
(d) Legal
Answer:
(a) Political

120. Environmental factors in PES-TLE Matrix include:
(a) Energy Consumption
(b) Waste disposal
(c) Environmental Hazards/legislation
(d) All of the above
Answer:
(d) All of the above

121. All of the following are the elements of Political factor except.
(a) Political Stability
(b) Market and Trade Cycles
(c) Current and future taxation policy
(d) Regulatory bodies and processes.
Answer:
(b) Market and Trade Cycles

122. Strategically, the businesses show make efforts to :
(a) Exploit the opportunities
(b) Overcome the threats
(c) Both (a) & (b)
(d) Either (a) or (b)
Answer:
(c) Both (a) & (b)

123. The following statement relates to which strategic response approach to the environment:
They seek to monitor the changes in that environment, analyse their impact on their own goals and activities and translate their assessment in terms of specific strategies for survival, stability and strength.
(a) Proceed with caution
(b) Least resistance
(c) Dynamic response
(d) Static Response
Answer:
(a) Proceed with caution

124. Which of the following is not a FMCG Company:
(a) Patanjali
(b) Colgate
(c) Bajaj
(d) Amul
Answer:
(c) Bajaj

CA Foundation BCK Chapter 2 MCQ with Answers – Business Environment

125. Which of the following is not a characteristic least resistance strategic response:
(a) Simple goal maintaining
(b) Passive approach
(c) Dynamic
(d) All of the above
Answer:
(c) Dynamic

126. Which of the following ap-proaches of strategic response to the environment is related with controlling the external environment?
(a) Least Resistance
(b) Proceed with caution
(c) Dynamic Response
(d) All of the above
Answer:
(c) Dynamic Response

127. _________ is the highest level response of business where they try to convert threats into opportunities.
(a) Resistance
(b) Caution
(c) Dynamic
(d) Complex
Answer:
(c) Dynamic

128. What is the kind of response that businesses should make efforts to exploit the opportunity and thought the threats:
(a) Strategic Responses
(b) Least resistance
(c) Diversify
(d) Simplify
Answer:
(a) Strategic Responses

129. The strategic approach to the environment followed by “Airtel” may be regarded as:
(a) Wait and watch
(b) Proceed with Caution
(c) Proceed with Dynamic response.
(d) Aggressive.
Answer:
(b) Proceed with Caution

130. In response to the changes in the environment organizations in general should:
(a) Understand the impact of chang-es on the strategy and make ap-propriate modifications.
(b) Make efforts that changes are reverted back so that organiza-tions can function smoothly.
(c) Ignore the changes.
(d) None of the above.
Answer:
(a) Understand the impact of chang-es on the strategy and make ap-propriate modifications.

131. The “Least Assistance approach” of Strategic response to the environ-ment has been followed by the Com-pany:
(a) Airtel
(b) BSNL
(c) Vodafone
(d) None of the above
Answer:
(b) BSNL

132. Which of the following is not true as regards dynamic response?
(a) They want to control external environment
(b) The feedback systems are highly dynamic & Powerful
(c) They Converts threats into op-portunities
(d) They just manage to survive by way of coping with their changing external environments.
Answer:
(d) They just manage to survive by way of coping with their changing external environments.

133. response not merely recognise and ward off threats but also covert threat into opportunities:
(a) Aggressive
(b) Dynamic
(c) Static
(d) Passive
Answer:
(b) Dynamic

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