SUBJECT- BUSINESS STUDIES

Ch-3 Business Environment_( Assignment)________

Question 1: Celebration of Diwali is the example of
a)Legal environment (b) Social environment
(c) Political environment (d) Technological environment

Q2: Which of the following does not characterise the business environment?
(a) Uncertainty (b) Complexity (c) Employees (d) Relativity

Q3: The trend of health and fitness has created a demand for products like gyms,
bottled mineral water and food supplements, etc. These are examples of
(a) Economic environment (b) Legal environment
(c) Political environment (d) Social environment

Q4: Advertisement of alcoholic beverages is prohibited. This is an example of

(a) Political environment (b) Legal environment
(c) Economic environment (d) None of these

Q5: Which of the following is not a feature of business environment?

(a) Relativity (b) Uncertainty (c) Certainty (d) Dynamic nature

Q6: Naman and Govind after finishing their graduation under vocational stream
decided to start their own travel agency which will book Rail Tickets and Air
Tickets on commission basis. They also thought of providing tickets within ten
minutes through the use of internet. They discussed the idea with their Professor
Mr. Mehta who liked the idea and suggested them to first analyze the business
environment which consists of investors’, competitors and other forces like social,
political etc. that may affect their business directly or indirectly. He further told
them about the technological improvements and shifts in consumer preferences
that were taking place and hence they should be aware of the environmental trends
and changes which may hinder their business performance. He emphasized on
making plans keeping in mind the threat posed by the competitors, so that they can
deal with the situation effectively. This alignment of business operations with the
business environment will result in better performance.
Identify and state the component of business environment highlighted in the above
Para.State any two features of business environment as discussed by Professor
Mehta with Naman and Govind. Also state two points of importance of business
environment as stated by Professor Mehta in the above situation.
Q7: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.
Q8: 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 from
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.

Q9: ‘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.

Q10: After completing her MBA, Beni took up a job with a multinational company
named Fortio. The company paid good salaries and perks to its employees. The
wages were within the paying capacity of the company that provided the
employees with a reasonable standard of living. The company also had a good
work-culture and the behaviour 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 upon outside
food which deteriorating her health.She was 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 distributed the
leftover food to the nearby night-shelters. State the dimension of business
environment being discussed above. State the principle of management being
followed by Fortio.

Q11: After completing his MBA from the USA, Mr. Ajay came to India to start a
new business under the banner Ecom Creations Ltd. He launched a new product in
e-learning for senior secondary school students in the commerce stream which
already had an established market in the UK and the USA but not in India. His
business started flourishing in India. As a result, more Indian companies entered
into the market with other subject’s also. Identify and quote the lines from the
above paragraph which highlights the significance of understanding business
environment.

Q12: 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 consumption is injurious to health. 2People 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.

Q13: The court passed an order to ban polythene bags as:

These bags create many environmental problems which affect the life of people.
Society at large is more concerned about the quality of life. The government
decided to give a subsidy to the jute industry in order to promote this business. As
a result,—
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 lines from
the above particulars.

Q14: The court passed an order that all schools must have water purifiers for the
school children as:
Society in general is more concerned about the quality of life. .
Innovative techniques are being developed to manufacture water purifiers at
competitive rates.
Incomes are rising and children are drinking purified water at their homes as well.
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.

Q15:Just after the declaration of the results of the Lok Sabha Elections, 2009, the
Bombay Stock Exchange’s price index (Sensex) rose by 2100 points in a day.
Identify the environmental factor which led to this rise.
Q16: 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?

Q17: On 8 November 2016, the Government of India announced the

demonetization making all Rs.500 and Rs. 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 criticized by members of
the opposition parties, leading to debates in both houses of parliament and
triggering organized 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 demonetization the demand for point of sales (POS) or card
swipe machines has increased. E-payment options like PayTM have also seen a
rise.In context of the above case: identify and explain the various dimensions of
business environment which relate to the above mentioned case .

Q18: Post demonetization in a further push to cashless economy, the Central

cabinet has recently approved the ordinance for paying wages via electronic
means. Accordingly, the government approved to Amend Section 6 of the Payment
Of Wages Act 1936, to allow employers of certain industries to make payment
through the electronic mode and cheques . The new ordinance will be applicable to
the public sector. Identify the various dimensions of business environment which
relate to the above mentioned case.

Q19: 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: Identify the various dimensions of business
environment being referred to by quoting lines from the paragraph. List any two
values which the Government of India wants to convey through this initiative.