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AP Intermediate 2nd Year Business Environment — practice questions

Explore 30 free Business Environment questions in AP Intermediate 2nd Year Business Studies. Open each question or exercise to read its content, reference answers and available explanation.

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Business Environment questions and exercises with answers

Showing questions 1–30 of 30.

The money required to carry out business activities is called:Read the answer and worked solution →The primary objective of financial management is to:Read the answer and worked solution →Business environment means the sum total of all individuals, institutions and forces that are:Read the answer and worked solution →Take the universe, subtract the organisation, and the remainder is the:Read the answer and worked solution →Because business environment is the sum of everything external to a firm, it is called a:Read the answer and worked solution →Investors, customers, competitors and suppliers, who affect a firm directly, are:Read the answer and worked solution →Social, political, legal and technological conditions affecting all firms are:Read the answer and worked solution →Longer life expectancy raised demand for health foods, which then changed lifestyles. This shows environment is:Read the answer and worked solution →Because technology, tastes and competition keep changing, business environment is:Read the answer and worked solution →It is hard to predict future happenings in fashion or information technology, so environment is:Read the answer and worked solution →Environment is easier to understand in parts than as a whole, which shows it is:Read the answer and worked solution →Demand for sarees is high in India but almost nil in France. This feature of environment is:Read the answer and worked solution →Positive external trends that will help a firm improve performance are:Read the answer and worked solution →Which company became the small car leader by spotting the need early?Read the answer and worked solution →External trends and changes that will hinder a firm's performance are:Read the answer and worked solution →Awareness of the environment lets managers spot dangers in time, acting as an:Read the answer and worked solution →Finance, machines, raw materials, power and labour drawn from the environment are the firm's:Read the answer and worked solution →Turbulent markets, weaker brand loyalty and intense global competition mean firms must be able to:Read the answer and worked solution →Understanding opportunities and threats becomes the basis for deciding future courses of action, that is:Read the answer and worked solution →The dimensions of business environment include economic, social, technological, legal and:Read the answer and worked solution →Interest rates, inflation rates and the value of the rupee belong to which environment?Read the answer and worked solution →A bulb that lasts twenty times as long as a standard bulb is an example of change in which environment?Read the answer and worked solution →Low long-term interest rates help construction and automobile firms because they raise:Read the answer and worked solution →Dharamveer Kamboj obtained funding of how much for his processing machine project?Read the answer and worked solution →Catch the specific forcesRead the answer and worked solution →Pop the environment featuresRead the answer and worked solution →Run the environment dimensionsRead the answer and worked solution →Slice the environment wordsRead the answer and worked solution →Opportunity or threatRead the answer and worked solution →Sort feature, benefit and dimensionRead the answer and worked solution →

Worked practice questions

The money required to carry out business activities is called:

  1. business finance
  2. gross profit
  3. working capital
  4. capital structure
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Correct answer: A. business finance

Business finance is the money required to establish, run, modernise or expand a business and to buy assets.

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The primary objective of financial management is to:

  1. maximise sales volume
  2. maximise the shareholders' wealth
  3. minimise the number of employees
  4. maximise total assets
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Correct answer: B. maximise the shareholders' wealth

The primary aim of financial management is wealth maximisation — maximising the shareholders' wealth.

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Business environment means the sum total of all individuals, institutions and forces that are:

  1. Outside the firm's control
  2. Inside the firm's factory
  3. Owned by the firm alone
  4. Hired by the firm alone
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Correct answer: A. Outside the firm's control

1. They lie beyond the enterprise. 2. Yet they affect its performance. 3. So they are outside its control. _Source: syllabus Business Studies Part I, Chapter 3, Business Environment._

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More Business Studies topics

Principles & Functions of ManagementFinancial & Marketing ManagementControllingDirectingFinancial MarketsNature and Significance of ManagementStaffingPlanning