Business Environment | 3, Which Factor is not included in natural environment? (a) Weather and climate conditions (b) Port facilities (c) Educational Level (ae (d) Locational aspects | 2. The micro environment of a business includes: (a) Suppliers (b) Economic environment (c) Political environment Qa (d) Natural environment The factors included in the total environment of business: (a) Political-legal = * (b) Social culture Ad (c) Economic (d) All of the above 4. Which among the following is a factor affecting business environment? (a) Human resources (b) Management structure (c) Suppliers (d) All of the above a 5. Competitors, Customers and Public are the part of (b) Micro environment ‘ (a) Macro environment (c) Business necessities (d) None of these b 6. Demographic factors include (a) Size, growth rate, age and sex composition of population (b) Education level n (c) Caste and religion a d (d) All of these The business environment presents the challenge to (a) Combat environment threats wy (b) Exploit business opportunities a (c) Both (a) and (b) cq , (d) None of the above . : 8. Natural environment does not have an important impact on the business of a country concerned (a) True (b) False (d) Partiaily False (c) Partially Truee cq a McQ’ atatements describes how the des, 4 | BBA Ist Semester - nses help explain strategy developm” Which of the follow’ experience and ideas 9. "en lens, The experience lens and ideas are not relev (b) The way in which organisational polities contributes t0 strate 7 d through the experience lens, ine is best understood in terms of the idea, development is e (©) Logical incrementalism lens: . (d) All three lenses help explain different strategy developmen, processes that are observable in organisations 10. In relation to the PESTEL framework which of the following statement is correct : (a) It assists in the assessment of organisational strengths ang weaknesses. , (b) It allows 2 detailed analysis of the structure of an industry (c) It can be used as a checklist to understand the differen environment influences in the macro environment. (d) Take an historical perspective on the main political, economic, sociocultural, technological, environment and legal factors. 11. Porter suggests the following reasons for one nation being more competitive than another : (a) Ability to speak English; developed network of supporting industries; absence of competition and low labour cost. (b) Abundant natural resources; skilled labour force; temperate climate; and democracy. (c) Factor conditions; demand conditions; related and supporting industries; and firm strategy, industry strategy and rivalry. (d) Strong sporting ethos; emphasis on individual achievement, strong national party in power; large home market. 12, The five forces that affect the level of competition in an industry are: (a) Threat of entrants; power of buyers; power of suppliers; threat of substitutes; competitive rivalry. (b) Threat of buyers; power of entry; power of substitutes; threa of suppliers; threat of recession. (c) Threat of recession; power of buyers; power of suppliers; threa of management failure; competitive rivalry. (4) Threat of entry; power of buyers; power of suppliers; threat c substitutes; government action.1 Business Environment \5 | 13, Which of the following statements in relation to the Five Forces framework is correct? (a) The framework assists in developing a broad perspective on the environment within which an organisation is operating. (b) [tis not appropriate in public sector management. (c) The framework is a means of identifying the forces which affect the level of competition in an industry or sector. (d) The framework identifies the major stakeholders of an c organization. 14. In the Five Forces framework, the term “threat of entrants” means: (a) The possibility of an existing competitor capturing the entire market. (b) The possibility of an existing competitor withdrawing from (~ the market. (c) The possibility of a new competitor entering the market. (d) The possibility of a potential competitor entering a different market. 15. Which of the following could NOT be effective in preventing a potential competitor from entering the market? (a) High capital costs. (b) Differentiation. (c) Retaliation (d) Low switching costs for buyers. 16. The threat of substitutes may be high if: d _ (a) Switching costs are of concern to the customer. | (b) The substitute product provides a higher perceived value or benefit. (c) The substitute product does not provide enhanced functionality, reduced cost and better quality. (d) Customers have strong existing brand loyalty. ; 7, Buyers cannot exercise high bargaining power over their suppliers / (a) The volume they buy accounts for a large percentage of their suppliers sales. ; (b) There are few buyers in the market r (c) They have many suppliers to choose from. (d) There is a high concentration of suppliers.rivalry does NOT incluge a 1 6 | BRA In Semester -MCO™ seasment of competitive 18. As re in balance, understanding of sore m (a) The extent to which competite (b) Market growth rates «toms (c) fixed costs, exit barriers and operatio ns 7 Miciency (d) The management structure of an organi: 4 9S ic Groups are: er ayearoi competing in the same industry, (a) A group of companies © the si / vjustry with similar characteris, (b) Organisations in the same iN and following similar strategi (c) Strategic Business Units (SBUs) ; ‘oliowing similar strategies are competing with trains & by (d) Organisations f 20. Domestic Airlines companies i ample of which type gy for transportation services are an ex jes. competition? a) Direct Competition b) Indirect Competition c) Differentiation b d) Cost Leadership 2 21. A company is having a competitive advantage over its rivals than the average when its profitability is profitability of all other companies competing for the set of customers. a) equal, different b) greater, same 4 c) less, great d) less, different 22. Identify the incorrect competitive force of Porter’s Five Forces Model from the following: 1) Threat of new customers 2) Threat of substitutes b 3) Bargaining power of Government 4) Bargaining power of buyers a) 2&3 b) 1&3 c) 3&4 d) 1&4 23. Identify the three generic strategies suggested by Michael Porter for achieving above average performance in an industt); a) Cost Advantage, Differentiation, Focus b) Time Advantage, Differentiation, Flexibilit c) Cost Advantage, Quality, Profitabili % d) Cost Disadvantage, Time, Focus ¥ _Business Environment \7 secking activities and 4, Business comprises all * (nterprises that provides goods and services necessary to an | economic system. i a) Profit b) Loss ) Production d) None of these s, The main objective of society and business is____— a a) economic and social objective b) cultural objective c) technological objective a d) non objective 26. Competition is ben benefiting the a a) producers b) intermediaries d) consumers d ficial to the competing firms besides ¢) finances 27. Micro environment is also known as - a) Direct b) Indirect c) Same 4) Fine a 28. Political environments refer to the influence exerted by the political institutions? a) 2 b) 3 b c) 4 d) 5 29. plays the watch dog in order to ensure that both function in public interest and within the boundaries of constitution. a) Legislature _ b) Executive c) Judiciary d) None of the above Cc . is a statement which derives the role that an | organization plays in a society. a) Goals b) Mission b c) Objective d) Success — 1. is a primary mechanism for motivating business activities. L a) Social relationship i fon c) Customers sad ), Profit making is the goal of any business el 3 : ae b) secondary O d) non fixed c) fixedSemester - MCQ's 8 | BBA Ist - » Stable and dynamic political environment is indis; te a growth, Pemaable iness b) human siness na S nnd d) politics a clement of BE comes under the category ,, 34, Customers the a) macro environment b) micro environment interna c) internal Environment d) none of the above is a statement, which defines the role thy 35. an organisation plays in a society? | a) Vision b) Mission c) Goal d) Function a 36. Natural environment comes under —_-——_______ environment category. a) micro b) macro b | c) semi micro d) de micro 37. With ‘the advent of technology, jobs tend to become a) degraded b) upgraded is d) slight slow c) slow 38. Environment refers to all bearing on the functioning of business. a) Internal forces b) External forces c) Mutual forces d) Economic forces which have a 39. The modern business is said to be and fast. a) slow b) bright c) dynamic d) feeble c 40. Mission is a statement which defines the role that plays in a society. a) people b) organization ¢) Jabour d) market b 41. What does micro environment consists of? @) Economic b) Political & legal c) ‘Competitors d) Natural Cc 42."Identification of company’s technological assets that may provide in new businesses. a) opportunities b) development c) failure d) none of the above ~e ;Business Environment |9 43. The most fundamental effect of technology is greater in terms of both quality and quantity. b) productivity \y a) profitable d) none of the above ©) change 44. Growth strategy which was based on which gave control role to the state. a) legal planning b). super planning d ¢) government planning 4) soviet planning 45. Of the 4, which is the most powerful politi institution? a) Preamble b) Legislature a c) Executive d) Judicial 46. An element of business environment comes under the condition of. . a) macro environment and micro environment a model b) internal environment c) externa! environment d) local environment 47. Technology is the systematic application of : a) art b) physics c) science d) zoology 7 48. Which environment refers to all forces which have a technological impact on business? a) Economic environment — b) Political environment c cc)’ Technological environment d) Physical environment 49. refers to the intensity of competition among firms. b) Competitiveness Qa a) Intensity of rivalry c) Absolute competition 50. The main concepts concerning al objectives are : : a) Mission, objectives b) Mission, targets c c) Mission, objectives, target d) Target, objectives 51, Porters model represent the relationship between d) Non competence bout business goals or cee : a) organizational and environm' b) society and environment c) organization and society d)_ society and industry " ‘: 4 entaiw? could be effective in prey, 10 | BBA Int Semester ~ ing the market? owing 52. Which of the foll fiat competitor 1 High capital costs “Dting a peri pot a bh) Differentiation a ©) Retaliation ' Cc fi ers d) Low switching costs for buyers pn are (wo variables that can be y, in Inco.2¢ and popula' Le a) Demographic segmentation b) Behavioural segmentation ¢) Lifestyle segmentation E d) Psychographic segmentation 54, Which of the following statements in relation to the Five Force, framework is correct? a) The framework assists in developing @ broad perspective on the environment within which an organisation is operating b) It is not appropriate in public sector management c) The framework is a means of | identifying the forces which affect the level of competition in an industry or sector The framework identifies the major stakeholders of an d) organisation 55. The purpose of a SWOT analysis is to analyse . a) The business environment in which an organisation operates b) The strategic capability of an organisation c) The business environment and the strategic capability of an organisation relative to its competitors d) External and organisational environments c 56. In which of the following basic categories can business environment be a) Local and Regional b) Regional and National c) Internal and External d) Financial and Non financial © Which types of organizational knowledge is a source of competitive advantage? a) Explicit knowledge which is classified and formalized in a planned and systematic way b) Personal knowledge which is hard to communicate and 57. formalize ©) Customer databases, market research reports, management reports d) Collective and shared experience accumulated through systems, routines and activities of sharing across the organization a