GREENWOOD PUBLIC SCHOOL (2023-2024)
Sector-9, Gurugram
ASSIGNMENT - 2
Name: Subject: Business Studies (054)
Class: XII
Ch-3: Business Environment.
Ch-4: Planning.
A. Multiple Choice Questions:
1. Which of the following is an example of Social Environment?
a) Mobile phones have outdated telephones.
b) Chinese products are being freely sold in the Indian market.
c) Demand for new garments increase during festival seasons.
d) The Government of India has amended Companies Act.
2. Which of the following is true about Business Environment : –
a) It is dynamic ;
b) It is the area or condition in which the business operates ;
c) Different factors in the business environment can impact organization positively or negatively.
d) All of the above.
3. Business environment is different for each organization within the same and different industry. This
characteristic of the business environment is called : –
a) Dynamic b) Relativity
c) Unpredictable d) None of the above
4. ‘Airline companies have Internet and World Wide Web pages where customers can look for flight
times, destinations and fares and book their tickets online.’ This is an example of which business
environment?
a) Political Environment b) Technological Environment
c) Social Environment d) Legal Environment
5. The health-and-fitness trend has become popular among large number of urban dwellers. This has
created a demand for products like organic food.’ This is an example of
a) Customs and traditions b) Values
c) Social trends d) All of these
6. Which of the following is a benefit of planning?
(a) Helps in avoiding confusion and misunderstanding.
(b) Ensures clarity in thought and action.
(c) Useless and redundant activities are minimised or eliminated.
(d) All of the above.
7. According to the World Health Organization, 39% of adults are overweight. Consequently in the U.K.,
a sugar tax was introduced in 2018 on beverages containing more than 5% sugar to curb sugar intake.
Identify the type of plan being described in the above lines.
(a) Programme (b) Method
(c) Strategy (d) Rule
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8. Which of the following statements is not true with reference to planning?
(a) Planning is a pre-requisite for controlling.
(b) Planning does not lead to rigidity.
(c) Planning enables a manager to look ahead and anticipate changes.
(d) Planning facilitates co-ordination among departments and individuals in the organisation.
9. Name the type of budget which is prepared to determine the net cash position.
(a) Purchase budget (b) Sales budget
(c) Cash budget (d) Production budget
10. Deepak is striving to earn a profit of 30% in the current financial year. Identify the type of plan being
described in the above lines.
(a) Method (b) Objective
(c) Strategy (d) Programme
B. Assertion/Reason
There are two statements marked as Assertion (A) and Reason(R). Read the statements and choose
the appropriate option from the options given below;
(a) Both Assertion (A) and Reason (R) are true and Reason (R) is correct explanation of Assertion (A)
(b) Both Assertion (A) and Reason (R) are true but Reason (R) is not the correct explanation of (A)
(c) Assertion (A) is true but Reason (R) is false
(d) Assertion (A) is false but Reason (R) is true
11. Assertion (A): The various functions of planning are inter related, however planning provides the basis
of all other functions.
Reason (R) : Planning is a continuous activity.
12. Assertion(A) : Business environment is a complex phenomenon.
Reason(R): Business environment consists of various inter-related and dynamic forces.
C. True/False
13. The Reserve Bank of India is considered as the key regulator of a country’s economic development
(True/False). Explain it.
14. ‘Increase in sale by 10%’ is an example of a Policy (True/False) Explain it.
15. Strategy is general statement that guide thinking or channelise energies towards a particular
direction (True/False) Explain it.
D. Case Based Questions: Short Answer Type Questions:
16. Dheeraj is a very hard working manager. After working for the implementation of his well chalked out
plan he, from the start of July, decides to see in what ways and up to what accuracy has his plan been
implemented.
Which step of the planning process will be involved by Dheeraj from the starting of July?
17. The court passed an order that all schools must have water purifiers for the school children as:
(a) Society in general is more concerned about the quality of life. .
(b) Innovative techniques are being developed to manufacture water purifiers at competitive rates.
(c) Incomes are rising and children are drinking purified water at their homes as well.
(d) The Government is also showing a positive attitude towards the business of water purification.
Identify the different dimensions of business environment by quoting from the above details.
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18. A specific statement was given by an HR head. This statement had no scope for any flexibility. It was
the simplest type of plan. Identify the type of plan. Give one more characteristic of this plan. Which
plan is the widest type of plan?
E. Long Answer Type Questions:
19. On 8 November 2016, the Government of India announced the demonetisation making all ₹.500 and
₹. 1,000 banknotes of the Mahatma Gandhi Series invalid past midnight. The government claimed that
the action would curtail the use of illicit and counterfeit cash to fund illegal activity and terrorism. The
BSE SENSEX and NIFTY 50 stock indices fell over 6 percent on the day after the announcement. The
decision was heavily criticised by members of the opposition parties, leading to debates in both houses
of parliament and triggering organised protests against the government in several places across India.
People seeking to exchange their bank notes had to stand in lengthy queues, and several deaths were
linked to the inconveniences caused due to the rush to exchange cash. After demonetisation the
demand for point of sales (POS) or card swipe machines has increased. E-payment options like Paytm
has also seen a rise.
In context of the above case:
1. Identify and explain the various dimensions of business environment which relate to the above
mentioned case.
2. List any through two values that the government seeks to promote through demonetisation.
20. Rajender has been running a successful business of manufacturing traditional wedding wear for women
including sarees and lehengas. His friend Surinder who is engaged in the business of providing web
designing solutions to his clients, suggests him to explore the option of selling his products online.
Rajender agrees to his suggestion and decides to venture into online business, keeping in view the
various e-commerce regulations in order to avoid imposition of any penalty. In order to facilitate the
sale of his products, Rajender decides to offer multiple payment options such as cash on delivery, credit
or debit card transactions, net banking to the buyers etc.
In context of the above case:
1. Identify the two different types of plans mentioned in the above paragraph that relate to the
online portal that Rajinder intends to start by quoting lines from the paragraph.
2. Distinguish between the two types of plans as identified in part (a)
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