Free Business Studies - Class 12th (CBSE) - Worksheet - W3a - Business Environment
Welcome to our another blog to discuss a worksheet on the Business Environment (Class 12th CBSE) with only one motive: you can score the best in your class 12th board exams.
What Can You Expect in This Blog?
- Key definitions and quiz-style questions to check your understanding of the business environment.
- Case-based practice questions that reflect real-world business situations.
- Concise explanations and highlights to help you prepare for your board exams.
Benefits for Class 12 Board Exam (CBSE) Students
- Boosts Exam Readiness: Practicing these questions helps in revising concepts and identifying strong and weak areas.
- Improves Analytical Thinking: Case-based questions strengthen your ability to relate theory to real-life scenarios.
- Clarifies Key Concepts: Concise answers and explanations ensure clear understanding.
- Saves Revision Time: Structured content makes last-minute revision more efficient and less stressful.
The worksheet begins from here.
Business Studies Worksheet of Class 12th (CBSE) for Chapter 3: Business Environment
Q1. 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 is known as __________.
(a) Business environment
(b) Social environment
(c) Political environment
(d) Economic environment
Q2. __________ is the process of analysing the environment for the identification of factors which have impact on or have implication for the business.
(a) Environment forecasting
(b) Environment assessment
(c) Environment scanning
(d) None of these
Q3. Which of the following is not an element of the social environment?
(a) Composition of the family
(b) Consumption habits
(c) Rates of saving and investment
(d) Educational system and literacy rates
Q4. Since the business environment consists of numerous interrelated and dynamic conditions or forces which arise from different sources, it becomes difficult to comprehend at once what exactly constitutes a given environment.'
Thus, it is relatively easier to understand the environment in parts but difficult to grasp in its totality.
Identify the feature of the business environment highlighted above.
(a) Uncertainty
(b) Complexity
(c) Relativity
(d) Dynamic nature
Q5. Plastic utensils are often used as a low-cost, convenient option for business or personal use. These utensils are lightweight, easy to transport, and can be disposed of easily instead of being cleaned and reused.
But plastic utensils are harmful from a health point of view and create various environmental issues.
Nowadays, the health and fitness trend is becoming popular. People are looking for different alternatives and have started opting for paper-made, steel, or glass utensils, which has tremendously increased the demand for these products.
The above paragraph discusses an important dimension of the Business Environment, which is:
(a) Economic Environment
(b) Social Environment
(c) Technological Environment
(d) Political Environment
Q6. Alfa Graphics Ltd. was a reputed Indian company that had been in business for many years. The Chief Executive Officer of the company, Rohit Gupta, always believed in understanding the business environment as well as responding and adapting to it.
When he found that a foreign multinational company, Leno Graphics, was entering the Indian market with new substitutes, he prepared to meet this threat by reducing costs and creating good-quality and aesthetically appealing layouts, advertisements, logos, etc.
As a result, Alfa Graphics Ltd. was not only able to retain its own customers but also started getting new projects.
The point of importance of the Business Environment discussed above is:
(a) Tapping useful resources
(b) Identifying threats and early warning signals
(c) Improving performance
(d) Identifying opportunities and being a first mover
Q7. Aiming to revive Jammu and Kashmir's attraction as a top location for film shooting, the J&K film policy, 2021 offers a host of incentives to filmmakers, such as subsidies and low long-term interest rates, for films with patriotic and certain other themes shot in J&K, to give work opportunities to local artists, etc.
This will have an impact on business enterprises in the state. Which component of the business environment is highlighted above?
(a) Specific and general forces
(b) Technological environment
(c) Economic environment
(d) Totality of external forces
Case-Based Questions
Q1. Express Tours Ltd. is a travel agency that books air tickets on a commission basis. It takes two days for Express Tours to get the tickets from the airport reservation counter and deliver them to customers.
During the last year, there has been a drastic decrease in its business as most of the customers have shifted to another travel agency, 'Shiva Tours and Travels', which provides tickets within half an hour through the internet.
(a) Name and explain the dimension of business environment that is being overlooked by 'Express Tours Ltd..' (2 Marks)
(b) Explain another dimension of the business environment other than that identified in (a) above. (2 Marks)
Q2. There are various retailers, such as Amazon, Flipkart, and Snapdeal, that generate maximum revenue from online orders.
They have also developed mobile apps to receive online orders.
(a) Which dimension of Business Environment is being discussed here? (1 Mark)
(b) State the feature of the Business Environment listed above. (1 Mark)
(c) State any other two features of the Business Environment. (2 Marks)
Q3. Konark Ltd. is an electronic goods manufacturing enterprise situated in Shivpuri, Madhya Pradesh.
It is earning a very low revenue in comparison to a competing electronic goods manufacturing enterprise, 'Nova Ltd.' situated in Alumnai.
Both Konark's and Nova's operations are affected directly by the investors, customers, competitors, and suppliers, which are unique to their respective locations.
In addition to this, individual firms in this field are affected indirectly by factors such as the money supply in the economy, the composition of families, technological changes, etc.
(a) Identify and state the feature of the concept discussed in the above paragraph. (2 Marks)
(b) Also, state any four points of importance of this concept. (2 Marks)
Q4. Mahindra Agro Ltd. started a new venture for the distribution of harmful chemical fertilizers-free vegetables. They conducted a survey to find out consumer preferences for such vegetables.
They found that most of the consumers were concerned about the harmful chemicals being used in growing the vegetables.
They found that 90% of the households were searching for alternatives. The company contacted a group of agriculture experts to lay out the procedure for growing the vegetables by the farmers.
They decided to train the farmers in new technology to grow chemical-free vegetables according to new innovative methods. The experts also suggested soil management techniques through which farmers would be able to create an abundant and lasting harvest.
Identify and explain the two dimensions of business environment highlighted in the above paragraph. (4 Marks)
Q5. The Government of India has recently come up with an amendment to Section 6 of the Payment of Wages Act 1936, to allow employees of certain industries to make payments through various electronic modes of payment.
The amendment will be applicable to all the public sector undertakings for wage disbursement using e-payment options.
This is another milestone in the direction of further pushing towards a cashless economy.
Identify and explain 3 dimensions of the business environment that relate to the above-mentioned case. (6 Marks)
Q6. 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 minimising the impact on the environment. It also seeks to attract foreign capital investment in India.
By quoting lines, identify the 3 dimensions of business environment being referred to in the paragraph. (6 Marks)
Q7. Mr. Ajay comes to India after completing an MBA from the USA to start a new business under the banner New Creations Ltd.
He launches a new product in e-learning for Senior Secondary School students in the commerce stream, which already has an established market in the UK and the USA, but not in India.
His business starts flourishing in India.
Now, more Indian companies have entered the market with other subjects also.
Identify and quote the lines from the above paragraph that highlight the significance of understanding the Business environment. (6 Marks)
Q8. Mr. Bali, the Production Manager of Classic Ltd., is successful in running his department. He has created such an environment that no one becomes a hurdle in anybody's work. But all of them are ready to help each other.
Mr. Bali has been observing a change in the market for the last few days. In the past, they used to produce goods according to their need and with a little bit of effort could sell them.
But now they must produce goods as desired by the people.
When Mr. Bali investigated the reasons for this change, he came to know that on account of positive policies of the govt., running the business had become easy.
Due to this, several new people had entered the business.
Consequently, the competition has increased, and now the control of the market has slipped out of the hands of producers into the hands of customers.
(a) Identify the concept of management described here. (2 Marks)
(b) Give two points of its importance. (2 Marks)
(c) Identify the business environment dimension and the concept thereof. (2 Marks)
Q9. It is heartening that the implementation of compliance requirements of the Companies Act, 2013, has progressed substantially with NIFTY 500 companies.
Data show a significant increase in women's participation in the top management of Indian Companies from 5% few years ago to 13% now.
Even companies that are not in the NIFTY 500 have undertaken drives to increase women's participation across different areas of work. The government had also announced that it would support such companies.
Identify and explain the dimensions of the business environment discussed above that brought about the change. (3 Marks)
Q10. The organic food market in India is growing 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 a multiplicity of factors like rising health consciousness, changing lifestyles, an increase in disposable income, and growing availability of organic food products in shopping malls, retail outlets, and online.
Identify and explain the features of the business environment. (3 Marks)