Business Environmet Quiz with Answers

1. Liberalization means

A. Reducing number of reserved industries from 17 to 8

B.Liberating the industry, trade and economy from unwanted restrictions

C.Opening up of economy to the world by attaining international competitiveness

D.Free determination of interest rates

2. When a company taken over another one and clearly becomes the new owner, the action is
called

A.Merger

B. Acquisition

C.Strategic Alliance

D.None of the above

3. When a company taken over another one and clearly becomes the new owner, the action is
called

A.Merger

B. Acquisition

C.Strategic Alliance

D.None of the above

4. Relaxing the restrictions and controls imposed on Business and industry means

A.Liberalisation

B. Privatisation

C.Globalisation

D.None of the above

5. Company images and brand equity is factor affecting business

A.Externally

B. Internally
C.Government Policy

D.None of these

6. Which among the following is not opened for private sector participation

A.Power sector

B. Telecommunication sector

C.Education sector

D.Railways

7. ________ is an economic system based on the principal of free enterprise.

A.Capitalism

B. Socialism

C.Mixed Economy

D.Marxism

8. A monopolistic trade practice is deemed to be prejudicial to public interest except when

A.Authorized by Central Government

B. Authorized by State Government

C.Authorized by Supreme Court

D.None of the above

9. Which among these is monopolistic trade practice?

A.Unreasonably limiting competition

B. Manufacturing only one product

C.Limiting technical Development

D.Selling only one product

10. The use of taxes and government spending to affect the economy
A. Monetary Policy
B. Fiscal Policy
C. Contractionary Policy
D. Expansionary Policy
11. a plan to reduce aggregate demand and slow the economy:

A. Contractionary Fiscal Policy

B. Expansionary Fiscal Policy
C. Contractionary Monetary Policy
D. Expansionary Monetary Policy

12. If the unemployment rate is rising and GDP is falling, the fiscal policy action that the
federal government should MOST likely follow is

A. decreasing taxes.
B. decreasing spending.
C. decreasing the money supply.
D. decreasing the reserve requirement.

13. A budget deficit occurs when...

A. The government brings in more revenue than it spends for a given year
B. The government spends more money than it brings in for a fiscal year

14. During a recession, which of the following is likely to occur?

A. an increase in real wages

B. an increase in production
C. and increase in the GDP growth rate
D. an increase in the unemployment rate

15. Which of these is NOT a monetary policy tool?

A. Discount rate
B. Balance Accounts
C. Open Market Operation
D. Reserved Requirements

16. Selling bonds

A. increases money supply

B. decreases money supply

17. Buying bonds

A. increases money supply

B. decreases money supply
18. High reserve requirements

A. lower the money supply

B. increase the money supply

19. The Fed" refers to the....

A. Federal Bureau of Investigation
B. Federal Government
C. Federal Reserve System
D. Federal Income Tax

20. What is an action of monetary policy?

A. reduce taxes
B. changing reserve requirements
C. increase spending
D. borrow money for deficit

21. Which of the following scenarios would cause the nation’s money supply to increase?

A. Decreasing government spending

B. Lowering interest rates
C. Raising interest rates
D. Selling bonds to investors

22. The surrounding conditions in which the business operates are called....

A. Environments
B. Business contacts
C. Business Environments
D. Business Conditions

23. A stakeholder is ....

A. someone who has a stake in the business

B. someone who has an interest in the business and has different demands on the
business
C. someone who holds a steak
D. someone who owns the business

24. Influences that come from within the business are in the

A. macro environment
B. external environment
C. operating environment
D. internal environment

25. Factors over which the business has little control over is called the

A. internal environment
B. operating environment
C. macro environment
D. external environment

26. Political and legal influences, societal influences, economic conditions, technological
issues, CSR and global issues are all part of which environment?
A. internal
B. external
C. macro
D. operating

27. What three factors can influence the decision of the business location?

A. Proximity to cost, visibility & customers

B. Proximity to visibility cost
C. Proximity to customers, visibility & cost

28. _____________________________ expresses a long-term goal that the organisation

hopes to reach sometime in the future in order to inspire everyone involved with the firm.
It is somewhat idealistic.

A. Mission statement
B. Vision statement
C. Aims
D. Strategies

29. A ______________________ is any individual or group that affects an organisation or is

affected by it.

A. CEO
B. Shareholder
C. Stakeholder
D. Customer

30. What is the Cash Reserve Ratio (CRR)?

A. the fraction of the deposits that commercial banks lend to the customers
B. the fraction of the deposits that RBI must keep with commercial banks
C. the fraction of the deposits that commercial banks must keep with RBI

31. What is the name of Central Bank in India?

A. SBI
B. RBI
C. PNB

32. Deposits which are payable after the expiry of a fixed period are called –

A. time deposits.
B. demand deposits.
C. NONE

33. What is the ratio of deposits which commercial banks are required to keep with
themselves called?
A. CRR
B. SLR
C. Both

34. The rate at which central bank lends to commercial banks is called?

A. SLR
B. CRR
C. bank rate

35. Buying and selling of government securities by the central bank from/to banks is called?

A. open market operations

B. margin
C. banking

36. What is inflation?

A. rise in all prices

B. rise in most prices
C. rise in some prices
D. rise in general prices