Module Title: Business Environment Analysis

Code: MGT 516

SECTION A
Multiple Choice Questions (1x30=30)
1. Computer replaced the typewriter is
a) Demographic environment
b) Political environment
c) Technological environment
d) Social environment
2. Globalization is beneficial for firms because:
a. It protects them against foreign competition.
b. It cushions them from the effects of events in other countries.
c. It opens up new market opportunities.
d. It increases the risk and uncertainty of operating in a globalizing world economy.
3. The internet facilitates globalization by:
a. Making it more difficult to contact potential customers abroad.
b. Cutting the cost for firms of communicating across borders.
c. Making it harder to send money from one country to another.
d. Making it easier for governments to censor the information received by their citizens
from abroad.
4. In this type of economic system, the Government intervention will be almost absent.
a) Free enterprise economy
b) Socialist economy
c) Mixed economy
d) None
5. Economic system of Nepal can be called as:
a) Free market economy
b) Centrally planned economy
c) Closed Market Economy
d) A mixed economy
6. The data and information about demographic composition is studied under
a) socio-cultural dimension
b) Situation dimension
c) Economic dimension
d) Industrial dimension
7. The economic environment of a business includes
a) Economic system
b) Economic policies
c) Economic conditions
d) All of these
8, Which of the followings does not fall under external environment?
a) Parliamentary system
b) Cultural practices of organization
c) Technological environment
d) Regulations of combinations
9. A company employs a consultant to regularly look through newspapers, trade journals and
internet forums to gather insights that may be of use to the company in understanding and
predicting the nature of its business environment. Which term is commonly used to describe
this process?
a) Environmental audit
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 b) Environmental scanning
c) Business audit
d) Historical log analysis
10. In SWOT analysis the 'O' stands for:
a) Obstacles
b) Opportunities
c) Openings
d) Objections
11. PESTLE is an analytical tool which helps to undertake:
a) An internal analysis
b) An external analysis
c) A competitor analysis
d) A strategic analysis
12. An analysis of the external environment enables a firm to identify:
a) Strengths and opportunities
b) Strengths and weaknesses
c) Weaknesses and threats
d) Opportunities and threats
13. Analyzing processes of change in the business environment involves conceptualizing it as:
a) Complex
b) Static
C) Dynamic
d) Diverse
14. Which of the following statements provides the strongest challenge to the idea that
commercial organizations necessarily aim to maximize their profits?
a) It is easy to identify all costs
b) It is easy to identify all revenues
c) Managers make do with a satisfactory level of profits
d) Shareholders are solely motivated by higher profits
15. Macroeconomics is concerned with which one of the following?
a) The study of the behavior of individual households and firms
b) The determination of the relative prices of particular goods and services
c) The knowledge and skills of workers in an economy
d) The study of the behavior and performance of the economy as a whole
16. Which of the following is typical example of a PRIMARY reference group?
a) Television star
b) School friends
c) Royal family
d) Rajesh Hamal
18. The economic environment of a business includes
a) Economic system
b) Economic policies
c) Economic conditions
d) All of these
19. Which of the followings does not fall under external environment?
A) Parliamentary system
b) Cultural practices of organization
c) Technological environment
d) Regulations of combinations
20. Which is/are not the characteristics of business environment? (Select more if
Applicable)
a) The business environment is static in nature
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 b) Business environment includes factors external as well as internal to business firm
c) The change in business environment are quite predictable
d) Business environment helps the firm to identify the opportunities for the business
21. Under which category suppliers fall?
a) Macro environment
b) Micro environment
c) Internal tangible environment
d) Internal intangible environment
22. ____________ is the process of analyzing the environment for the identification of
factors which have impact on or have implication for the business.
a) Forecasting
b) Assessment
c) Scanning
d) None of these
23. Technology is best defined as:
a) The use and application of computers
b) The hardware and software used in computing
c) The knowledge of how to process and accomplish tasks and goals
d) Any activity or function requiring the electronic storage and data
24. The economic environment of a business includes
a) Economic system
b) Economic policies
c) Economic conditions
d) All of these
25. Which of the followings does not fall under external environment?
a) Parliamentary system
b) Cultural practices of organization
c) Technological environment
d) Regulations of combinations
26. Analyzing processes of change in the business environment involves conceptualizing it
as:
a) Complex
b) Static
C) Dynamic
d) Diverse
27. In SWOT analysis the 'O' stands for:
a) Obstacles
b) Opportunities
c) Openings
d) Objections
28. The transfer of assets from the public sector to the private sector is referred to as:
a) Privatization
b) Deregulation
c) Nationalization
d) Individualism
29. The data and information about demographic composition is studied under
a) socio-cultural dimension
b) Situation dimension
c) Economic dimension
d) Industrial dimension
30. Analysts using Porter's Five Forces model would see which of the following as
substitutes for tourist flights to Pokhara offered by airlines such as Buddha Air or Tara Air?
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a) Flights provided by Agni Air and Yeti Air.
b) Flights offered by low cost airlines such as Nepal Airlines.
c) Travel on the Greenline Tourist Bus
d) Online ticket booking facilities.