Business Environment 15

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Objective Questions and Answers of MBA: Business Environment 15

Subject: Objective Questions and Answers of MBA: Business Environment 15

Part 15: Objective questions and answers of Business Environment


Q1. The legal system in India is based on

a) Common law

b) Civil law

c) Theocratic law

d) Hindu law


Q2. The cultural environment of a country is best defined by which characteristics?

a) Degree of nationalism and economic community membership

b) Production process and standards of measurement

c) Standard of living and stage of economic development

d) Values, attitudes, heroes, myths and symbols


Q3. Profit may be defined as

a) The difference between total wage costs and total sales revenue

b) Total revenue from sales

c) The difference between total production costs and total sales revenue

d) The amount of money paid to shareholders as dividends


Q4. The goods and the services produced, priced and distributed by the government is

a) Market economy

b) Secular economy

c) Command economy

d) Mixed economy


Q5. The focus on increasing profitability and profit growth by reaping the cost reduction that come from economies of scale is

a) Global standardization strategy

b) Localization strategy

c) Transnational strategy

d) International strategy


Q6. Terrorism in the host country is a ______________.

a) Ownership risk

b) Operating risk

c) Transfer risk

d) General risk


Q7. What are the important external factors that constitute the economic environment of business?

a) Economic condition

b) Economic policy

c) Economic system

d) Economic condition, policy and system


Q8. The cultural frames of reference include ______________.

a) National; organizational field; competitors

b) National; organizational; organizational field and functional/divisional

c) Unions; organizational; industrial

d) Organizational; colleagues; organizational field


Q9. The clean water act was passed in the year.

a) 1960

b) 1970

c) 1980

d) 1990


Q10. A firm investing in a foreign country to distribute the products there in creation of

a) Asset seeking fdi

b) Backward vertical fdi

c) Forward vertical fdi

d) Distribution fdi


Q11. The following benefit is not expected from globalisation

a) Reaping the benefits of free trade

b) Better quality of life through choice of product

c) Better knowledge through compulsory education

d) Dissemination of information through new information technology


Q12. Which of the following are positive reasons for internationalization?

a) Market diversification

b) Economies of scale

c) International competitiveness

d) All of the above


Q13. Which type of organization structure is characterized by departments or units dealing with specialized tasks?

a) Matrix

b) Divisional

c) Hierarchical

d) Functional


Q14. The transfer of the ownership of state property into the hands of the private individuals by the sale of state assets through auction is

a) Privatization

b) Liberalization

c) Globalization

d) Domestication


Q15. The entry modes that allow firms to export their process know- how to countries where fdi is prohibited, thereby enabling the firm earns greater return from this assets is ________.

a) Licensing

b) Consultancy exports

c) Project exports

d) Turnkey projects


Q16. A mixed economy is necessarily a ______________.

a) Controlled

b) Planned

c) Organized

d) Planned, organized and controlled


Q17. The purpose of a swot analysis is to analyse ______________.

a) The business environment in which an organization operates

b) The strategic capability of an organization

c) The business environment and the strategic capability of an organization relative to its competitors

d) External and organizational environments


Q18. The largest oil- exporting country in the world is ______________.

a) Norway

b) Saudi Arabia

c) Russia

d) Great Britain


Q19. Uneven distribution of natural resources

a) Is the only cause for international business

b) Is the major factor for international business

c) Is among the major factors for international business

d) Is not a cause for international business


Q20. Social mobility is measured by

a) The extent to which an individual can move the strata to which he/she belongs

b) The promptness with which an individual accepts foreign assignments

c) The extent to which inter- caste marriage is encouraged by the society

d) The extent to which the society as a whole shifts its habitat


Part 15: Objective questions and answers of Business Environment


Q1. Answer b


Q2. Answer d


Q3. Answer c


Q4. Answer c


Q5. Answer a


Q6. Answer b


Q7. Answer d


Q8. Answer b


Q9. Answer b


Q10. Answer c


Q11. Answer c


Q12. Answer d


Q13. Answer d


Q14. Answer a


Q15. Answer d


Q16. Answer d


Q17. Answer c


Q18. Answer b


Q19. Answer c


Q20. Answer a

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