Master Chapter 3 – Business Environment with Our MCQ-Based Mock Test!

Do you understand how changing government policies, social trends, and global factors affect businesses?
Find out with this MCQ-Based Mock Test on “Business Environment”, designed specially for Class 12 Business Studies students as per the latest CBSE syllabus (2025–26).

This test covers every important concept — from the meaning and importance of business environment to the dimensions (economic, social, technological, political, and legal) and the impact of government policy changes like LPG (Liberalisation, Privatisation, and Globalisation) on business.

Why Attempt This Mock Test?
Includes conceptual, competency, and case-based MCQs
Covers all NCERT-based and exam-relevant topics
Enhances understanding of real-world business scenarios
Provides instant feedback for self-evaluation
Ideal for revision before class tests and board exams

Practice effectively, gain clarity, and stay ahead of the competition!
Start your Chapter 3: Business Environment MCQ Mock Test now and take your BST preparation to the next level.

1. Which of the following does not come under the dimensions of business environment?

 
 
 
 

2. Subsidy to cotton textile industry is an example of__________.

 
 
 
 

3. Match the various dimensions of environment in given in Column I with their respective statements in Column II and choose the correct alternative:

Column I Column II
A. Economic Environment (i) Companies Act 2013
B. Political Environment (ii) Disposable income of
C. Legal Environment (iii) Ideology and Practices of the ruling party
 
 
 
 

4. Which of the following is a component of economic environment ?

 
 
 
 

5. Which of the following is not an example of legal environment?

 
 
 
 

6. Which of the following is not an example of social environment?

 
 
 
 

7.

Statement I: Business Environment is largely uncertain.
Statement II: It is very difficult to predict future happenings.
 
 
 
 

8.

Hitesh and Reena are entrepreneurs. They noticed that every year in the months of November and December, Delhi, the capital city of India, witnesses poor air quality and rise in pollution levels. They also observed that nowa- days people are more concerned about quality of life. Sensing the need, they were the first to bring into the market a new ‘Anti-Pollution W-98 Mask’ which was not only helpful in combating the  pollution but also in increasing the life expectancy of people. Their venture saw a massive success as there was no competitor.
From the following, identify the importance of Business Environment highlighted above:
 
 
 
 

9.

Statement I: Business environment is a simple phenomenon.
Statement II: It is easy to understand in parts but difficult to grasp in its totality.
 
 
 
 

10. Which environment prohibits the advertisement of alcoholic beverages?

 
 
 
 

11. Terrorism in Jammu and Kashmir has badly affected tourism industry in the state. Name the environment highlighted in above statement.

 
 
 
 

12.

Identify the dimension of business environment illustrated by the picture given below in which the shift of consumers towards ready-to-eat foods is highlighted.
 
 
 
 

13. Statement I: Social, political, legal and technological conditions are the specific forces of business environment.

Statement II: They have impact on all business enterprises and thus may affect an individual firm only indirectly.
 
 
 
 

14. Identify the dimension of business environment illustrated by the picture given below.

 
 
 
 

15. Booking of railway tickets through internet from home is an example of _________.

 
 
 
 

16. An economy is truly global, where there is:

 
 
 
 

17. The positive effects of liberalisation and globalisation on business and industry are:

 
 
 
 

18. Statement I: Those enterprises which rarely monitor their environment succeed in the market for a longer period.

Statement II: The business firms assemble various inputs from its environment and give its output for sale to the environment.
 
 
 
 

19. The impact of changes in government policy on business and industry is/are:

 
 
 
 

20. Identify the dimension of business environment illustrated by the picture given below.

 
 
 
 

21. Identify the dimensions of the business environment illustrated by the picture given below in which Sapna who has joined the workforce recently is working on an accounting software.

 
 
 
 

22. Demand for reservation in jobs for minorities refers to the ________ component of general environment of business.

 
 
 
 

23. The importance of business environment is:

 
 
 
 

24. Identify the dimension of business environment depicted in the picture given below:

 
 
 
 

25. _________ reduces the control of government and encourages private participation.

 
 
 
 

26. The economic reforms of 1991 or New Economic Policy aimed at:

 
 
 
 

27. ________ is the process of analysing the environment for the identification of factors which have impact on or have implication for the business.

 
 
 
 

28. Identify the dimension of business environment illustrated by the picture given below in which the important notice given at the bottom of the baby food must be mentioned by all advertisers.

 
 
 
 

29. Which of the following is an element of political environment ?

 
 
 
 

30. Globalisation means:

 
 
 
 

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