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🎯 Unit-1: Basics of Business Environment – 25 MCQs



Q1. Imagine a sweet shop 🍬. Customers, rules, festivals, and money affect it. What is this world around the shop called?
a) Only natural environment 🌳
b) Only financial environment 💰
c) Surrounding factors affecting business 🌍
d) Only government rules 🏛️
👉 Answer: c) Surrounding factors affecting business


Q2. A company buys a new machine ⚙️. Is it part of the environment?
a) Customers 👥
b) Technology 📱
c) Employees’ families 🏠
d) Company’s own machine 🏭
👉 Answer: d) Company’s own machine


Q3. Who decides tax, law and order?
a) Political environment 🏛️
b) Social environment 🎉
c) Economic environment 💵
d) Natural environment 🌦️
👉 Answer: a) Political environment


Q4. Bank increases loan interest rates 📈. Which environment is this?
a) Economic 💰
b) Social 👨‍👩‍👧
c) Natural 🌊
d) Political 🏛️
👉 Answer: a) Economic


Q5. People celebrate Diwali 🪔. Which environment is this?
a) Social
b) Economic
c) Political
d) Natural
👉 Answer: a) Social


Q6. India launches 5G mobile network 📡. Which environment?
a) Technological
b) Political
c) Social
d) Natural
👉 Answer: a) Technological


Q7. Govt passes Minimum Wages Act. Which environment?
a) Legal
b) Economic
c) Natural
d) Social
👉 Answer: a) Legal


Q8. Business environment is like the weather ⛅. Why?
a) It always changes
b) It never changes
c) It is stable
d) It is only natural
👉 Answer: a) It always changes


Q9. Forests 🌳, rivers 🏞️, minerals ⛏️ belong to which environment?
a) Political
b) Economic
c) Natural
d) Legal
👉 Answer: c) Natural


Q10. Pizza Hut worried about Domino’s 🍕. Which environment is this?
a) Competitors (Micro)
b) Inflation rate
c) National policy
d) Technology growth
👉 Answer: a) Competitors (Micro)


Q11. New government rules like GST affect all industries. Which environment?
a) Suppliers
b) Customers
c) Government policies (Macro)
d) Employees
👉 Answer: c) Government policies (Macro)


Q12. Which of these is NOT a feature of business environment?
a) Complexity
b) Uncertainty
c) Stability forever
d) Interrelatedness
👉 Answer: c) Stability forever


Q13. People’s values, habits, and lifestyle = ?
a) Social
b) Economic
c) Political
d) Technological
👉 Answer: a) Social


Q14. GST (Goods & Service Tax) belongs to:
a) Economic
b) Political/Legal
c) Social
d) Natural
👉 Answer: b) Political/Legal


Q15. “Make in India” 🦁 is which environment?
a) Political
b) Economic
c) Social
d) Technological
👉 Answer: a) Political


Q16. WTO (World Trade Organization) rules affect India too. Which environment?
a) Global environment 🌐
b) Legal environment
c) Local festival
d) RBI policy
👉 Answer: a) Global environment


Q17. Which is hardest to predict?
a) Technology
b) Laws
c) Economy
d) Competitors’ actions
👉 Answer: d) Competitors’ actions


Q18. Why should we study business environment?
a) To guess future changes 🔮
b) To ignore changes
c) To remove changes
d) To avoid business
👉 Answer: a) To guess future changes


Q19. Inflation & unemployment belong to which environment?
a) Economic
b) Social
c) Political
d) Legal
👉 Answer: a) Economic


Q20. Reserve Bank of India (RBI) controls money supply. Which environment?
a) Economic
b) Legal
c) Social
d) Natural
👉 Answer: a) Economic


Q21. Why is business environment uncertain?
a) Because it changes suddenly ⚡
b) Because it never changes
c) Because it is same everywhere
d) Because it depends only on nature
👉 Answer: a) Because it changes suddenly


Q22. Floods and droughts affect production. Which environment?
a) Natural 🌧️
b) Social
c) Legal
d) Political
👉 Answer: a) Natural


Q23. Micro environment includes:
a) Suppliers and customers 👥
b) Political parties
c) World Bank policies
d) Monsoon rainfall
👉 Answer: a) Suppliers and customers


Q24. Business environment is always:
a) Always positive
b) Always negative
c) Mixed influence (good & bad)
d) Always same
👉 Answer: c) Mixed influence (good & bad)


Q25. Culture, population, education = which environment?
a) Social 👩‍🏫
b) Economic
c) Political
d) Natural
👉 Answer: a) Social



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