MBA Business Environment — practice questions
110 free MCQs with worked solutions. Tap any question for the answer + explanation, or practice them all in the app.
Practice MBA Business Environment in the app →Business environment means the sum total of all individuals, institutions and forces that are:Take the universe, subtract the organisation, and the remainder is the:Because business environment is the sum of everything external to a firm, it is called a:Investors, customers, competitors and suppliers, who affect a firm directly, are:Social, political, legal and technological conditions affecting all firms are:Longer life expectancy raised demand for health foods, which then changed lifestyles. This shows environment iBecause technology, tastes and competition keep changing, business environment is:It is hard to predict future happenings in fashion or information technology, so environment is:Environment is easier to understand in parts than as a whole, which shows it is:Demand for sarees is high in India but almost nil in France. This feature of environment is:Positive external trends that will help a firm improve performance are:Which company became the small car leader by spotting the need early?External trends and changes that will hinder a firm's performance are:Awareness of the environment lets managers spot dangers in time, acting as an:Finance, machines, raw materials, power and labour drawn from the environment are the firm's:Turbulent markets, weaker brand loyalty and intense global competition mean firms must be able to:Understanding opportunities and threats becomes the basis for deciding future courses of action, that is:The dimensions of business environment include economic, social, technological, legal and:Interest rates, inflation rates and the value of the rupee belong to which environment?A bulb that lasts twenty times as long as a standard bulb is an example of change in which environment?Low long-term interest rates help construction and automobile firms because they raise:Dharamveer Kamboj obtained funding of how much for his processing machine project?The word business is derived from which everyday word?A boy helping an old man cross the road is performing:Economic activities are divided into which three categories?Cooking food at home for the family is not business, but cooking and selling it in a restaurant is, because buA person who sells his own old radio once at a profit is not in business because business needs dealings that Not knowing how much money the firm will earn this year is called:Risk in business is best described as the uncertainty associated with:Which of these is a cause of business risk?The reward earned in a profession is called a:A doctor must hold membership of a professional body and a certificate of:Transfer of interest to another person is possible in which of the three economic activities?Business activities are broadly classified into which two categories?A firm that mines iron ore belongs to which kind of industry?A poultry farm that breeds birds for further reproduction is an example of a:Manufacturing steel from raw iron is which kind of industry?An oil refinery that separates different elements from the same material is a:A cement plant that combines various ingredients into a new product is a:Sugar and paper are made through successive stages, which makes them examples of a:A plant that joins component parts to make televisions and cars is an:Building dams, bridges and roads falls under which industry?Transport, banking, insurance and warehousing belong to which industry group?Commerce is made up of trade together with:The ability to spot international opportunities and threats and adjust to them is called:Selling goods made at home to buyers in another country is:The difference between the value of a country's exports and its imports is the:A country imports more than it exports. The result is a:A country exports more than it imports. The result is a:A summary of all of a country's international financial transactions is its:A country that can make and sell a product at a lower cost than anyone else has:The idea that each country should specialise where it is relatively most efficient is the principle of:A tax imposed on imported goods is a:A tariff set lower for some nations than for others is called:A limit on the quantity of a certain good that may be brought in is an:A total ban on imports or exports of a product is an:Shielding home industries from outside competition with artificial barriers is:Letting people and businesses buy and sell where they please without barriers is:Selling a product abroad at a lower price than at home is called:Lowering the value of a nation's currency against other currencies is:A system where currency prices move up and down with demand and supply uses:A firm lets another company use its manufacturing process for a fee. This is:A foreign firm makes private-label goods under contract for a domestic company. This is:A domestic firm buys part of a foreign firm and shares the risks. This is a:Active ownership of a foreign company or of plants abroad is:Part or all of the payment for goods is made in other goods rather than cash. This is:The study of how a society uses scarce resources to produce and distribute goods is:The resources used to create goods and services are called the:A branch of economics that looks at the whole economy rather than single households is:The branch focusing on individual parts such as households or single firms is:A system built on marketplace competition and private ownership of resources is:A system where the government owns virtually all resources is:A system where basic industries are state-owned or under strong state control is:Economies that combine several systems, part private and part state, are:The quantity of a good people are willing to buy at various prices is:The point at which the quantity demanded equals the quantity supplied is:The total market value of all final goods and services produced within a country is:A decline in that measure lasting at least two consecutive quarters is a:A situation in which the average of all prices is rising is:The value of what money can actually buy is called:The index tracking prices of a market basket of goods bought by households is the:The government's use of taxation and spending to affect the economy is:Government programmes controlling the amount of money circulating make up:The amount of goods and services one worker can produce is:A market where a single firm accounts for all sales and entry is blocked is a:A market where a few firms produce most or all of the output is an:Many firms selling close but not identical substitutes describes:A country's output of goods and services that people can buy with their money is its:The tool whose name stands for strengths, weaknesses, opportunities and threats is:A SWOT analysis is only as good as:The tool reminding managers to scan distinct categories of the macro environment is:The Harvard professor who developed the five forces tool is:The force placed at the centre of that five forces diagram is:Firms already competing in an industry are described as:A growing or very profitable industry is likely to attract:Factors that stop new firms from competing successfully in an industry are:Which of these can act as such a barrier?Any other product that satisfies the same customer need as the industry's offering is a:When using the five forces model, an analyst decides whether each force has an impact that is:Equipment, facilities, raw materials and employees a firm has to work with are its:The set of activities through which a firm turns inputs into something customers value is its:The tool used to assess whether a resource can give lasting advantage is:Under that tool, a resource gives competitive advantage when the answer to every question is:A firm offering a wide variety of products at prices below rivals is following:The strategy that is the exact opposite of that low-price approach is:Trying to combine those two strategies at once, Porter suggests, can leave a firm:A firm adding value that only a few customers will pay highly for is following a:The innermost circle of a firm's environment, holding its own members and investors, is the:Compared with the macro environment tool, the five forces tool examines the firm's:A car maker losing sales because young city dwellers stop buying cars faces a change in its: