Business Environment – EconomicsBy CACSMockTest / April 26, 2022 7 Business Environment – Economics 1 / 21 What significant impact do rankings for the ease of doing business have on countries? (a) They determine international trade agreements. (b) They affect the political stability of the country. (c) They lead to legislative reforms and improvements. (d) They control the exchange rate of the country's currency. 2 / 21 What is the main goal of the “Make in India” campaign regarding business in India? (a) Promoting foreign tourism (b) Reducing the manufacturing sector's GDP share (c) Focusing on 25 economic areas for growth (d) Encouraging businesses to operate abroad 3 / 21 Why is maintaining a positive relationship with the media essential for businesses? (a) To influence government decisions (b) To control the media's content (c) To avoid any negative press coverage (d) To reduce the need for advertising 4 / 21 Which of the following is NOT a component of the micro environment for a business? (a) Shareholders (b) Government regulations (c) Customers (d) Competitors 5 / 21 In the context of the business environment, what is the role of the environmental environment? (a) Promoting aggressive business practices (b) Minimizing the harm caused to the environment (c) Ignoring environmental concerns for profitability (d) Boosting agricultural businesses 6 / 21 What is the primary role of judicial decisions in influencing business activities? (a) Setting business regulations (b) Directly managing businesses (c) Ensuring compliance with the constitution (d) Influencing government policies 7 / 21 Why is the legal environment important for businesses? (a) It imposes restrictions that hinder business growth. (b) It ensures businesses follow ethical practices. (c) It provides opportunities for businesses to thrive. (d) It sets guidelines and regulations that businesses must comply with. 8 / 21 What key factors are included in the technological environment? (a) Tax regulations and government policies (b) Rate of technological change, new processes, and equipment (c) Demographic forces and educational systems (d) Monetary policy and fiscal policy 9 / 21 Which component of the external business environment primarily deals with societal elements, including norms, values, and beliefs? (a) Economic Environment (b) Technological Environment (c) Legal Environment (d) Socio-cultural Environment 10 / 21 What impact does the political environment have on businesses and their strategies? (a) It has no influence on business operations. (b) It shapes government policies but does not affect businesses. (c) It influences business tactics, government relations, and stability. (d) It solely affects large corporations. 11 / 21 In the context of business, who is considered the most important microeconomic factor? a) Supplier b) Employee c) Competitor d) Customer 12 / 21 Which component of business environment requires that advertisements of baby food must necessarily inform potential buyers that mother’s milk is the best? a) Economic Environment b) Natural Environment c) Social Environment d) Regulatory Environment 13 / 21 What does the acronym “PESTLE” represent, as mentioned in the text? (a) A type of business environment (b) A method for analyzing the business environment (c) A specific government agency (d) A global trade agreement 14 / 21 Which of the following is NOT one of the dimensions of business environment identified in the text? (a) Economic conditions (b) Social trends (c) Regulatory processes (d) Government actions 15 / 21 What is the significance of the improvement in India’s recovery rate under resolving insolvency, as mentioned in the text? (a) It signifies that insolvency cases take longer to resolve. (b) It indicates that insolvency cases have become more complex. (c) It reflects a positive change in resolving insolvency cases. (d) It has no relevance to the business environment. 16 / 21 According to the case study, what resources are made readily available to the relationship managers to enhance their performance? (a) Legal documents (b) Marketing materials (c) Account opening forms (d) Office furniture 17 / 21 In the context of the provided case study, what concept is reflected in the statement, “He has created an internal environment which is conducive to effective and efficient performance of his team”? (a) Economic Environment (b) Micro Environment (c) Business Environment (d) Regulatory Environment 18 / 21 What does the State/Union Goods and Services Tax (SGST/UTGST) aim to achieve? (a) Subsuming state-level indirect taxes (b) Introducing complex taxation systems (c) Increasing compliance difficulties for businesses (d) Discouraging foreign investments 19 / 21 Which factor is NOT a focus area of the exercise for improving the business regulatory environment in India? (a) Rationalization of licenses and certificates (b) Minimizing display requirements (c) Increasing regulatory burden (d) Simplification of manual forms and records 20 / 21 What is the objective of the Business Reforms Action Plan (BRAP) in India? (a) Reducing transparency in business regulations (b) Streamlining regulatory structures for businesses (c) Increasing government red tape for investors (d) Eliminating the need for investor-friendly climate 21 / 21 Which initiative contributed to India’s improved ranking in the World Bank’s Ease of Doing Business Index? (a) Introduction of higher taxes (b) Implementation of complex regulations (c) Promotion of paperless transactions (d) Elimination of foreign investments Your score is LinkedIn Facebook Twitter VKontakte
