In NCERT Class 12 Business Studies Chapter 3, titled "Business Environment", students examine the dynamic external and internal factors influencing business operations. The chapter highlights the significance of understanding the political, economic, social, technological, legal, and environmental dimensions of the business environment and their impact on decision-making and organizational success.
This article provides a comprehensive resource for exam preparation. It includes sample MCQs and subjective questions for CBSE and CUET, alongside downloadable PDFs of Class 12 Business Studies Chapter 3 MCQs and previous year questions for detailed practice of NCERT Class 12 Business Environment.
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NCERT Class 12 Business Studies Chapters
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CUET Free Master Classes:
Class 12 Business Studies Chapter 3 MCQs
This question bank includes previous years' CUET and CBSE MCQs, along with questions curated by subject experts. Below are 5 sample multiple-choice questions (MCQs) for Class 12 Business Studies Chapter 3: Business Environment. For the full set of 50 questions, download the PDF using the link provided below.
1- These days consumers are making eco-friendly and healthy choices and are saying no to all things made of plastic and replacing it with stainless steel and ceramic containers, thus forcing business to change as well. Identify the feature of business environment highlighted above:
(a) Totality of external sources (b) Specific and general forces
(c) Inter-relatedness (d) Dynamic nature
2. Cartoony Planet‘ is a well-known indoor playground for organising parties for children in Noida. It has many play-stations and it organises various activities for the kids to enjoy. Looking at the increasing number of children visiting Cartoony Planet‘, a new indoor playground in the name of
Tiny-Tots House‘ came up with advanced swings, play stations and entertainment activities near Cartoony Planet‘.
To compete with the newly opened indoor playground, Cartoony Planet‘ also added some advanced swings and entertainment activities to attract more children.
The above information highlights one of the features of Business Environment‘. Identify the feature from the following :
(a) Uncertainty (b) Dynamic Nature (c) Relativity (d) Interrelatedness
3. Business Environment consists of numerous interrelated and dynamic conditions or forces which arise from different sources that are difficult to comprehend. Identify the feature of Business Environment highlighted in the above lines.
(a) Uncertainty (b) Dynamic (c) Complexity (d) Relativity
4. “Dependence on technological gadgets is comparatively higher in America than in India‖. Which feature of business environment is highlighted by the statement?
(a) Relativity (b) Uncertainty (c) Complexity (d) Dynamic
5. The newly appointed Government of a country has created an atmosphere of uncertainty and fear in the country. As a result of which the price of dry fruits has risen. Which feature and dimension of Business Environment is related to above case?
(A) Complexity and Political Environment (B) Uncertainty and Social Environment
(C) Inter – relatedness and Political Environment (D) Uncertainty and Political Environment
Choose the correct answer from the options given below:
(a) (A) and (C) Only (b) (B) and (D) Only (c) (C) Only (d) (D) Only
Class 12 Business Studies Chapter 3 Subjective Questions Without Solutions
This question bank includes previous years' CBSE subjective questions (2 marks and above) without solutions, along with expert-curated questions. Below are 5 sample subjective questions for Class 12 Business Studies Chapter 3: Business Environment. To access all questions, download the PDF from the link provided below.
- Explain any four features of Business Environment.
(CBSE 2019, 4M)
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- Mahinder Agro Ltd. started a new venture for distribution of harmful and chemical-free vegetables. They conducted a survey to find out consumer preferences for such vegetables.
They found that most consumers were concerned about the harmful chemicals being used in growing vegetables. They found that 90% of households were searching for its alternatives. The company contacted a group of agriculture experts to lay down the procedure for growing chemical-free vegetables.
They decided to train farmers in new technology to grow vegetables using innovative methods. The experts also suggested soil management techniques through which farmers could create an abundant and lasting harvest.
Identify and explain the two dimensions of the business environment highlighted in the above paragraph.
(CBSE 2019, 4M)
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- The court passed an order that all schools must have water purifiers for school children due to the following reasons:
(i) Society, in general, is more concerned about quality of life.
(ii) Innovative techniques are being developed to manufacture water purifiers at competitive rates.
(iii) Incomes are rising, and children at home are also drinking purified water.
The Government is also showing a positive attitude towards the water purifier business.
Identify the different dimensions of the business environment by quoting from the above details.
(CBSE 2023, 5M)
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- India's craft heritage is surviving because of its customs and traditions. Craft products made by craftsmen of Rajasthan, Gujarat, Assam, etc., are not only used in the country but are also exported to the USA, Germany, UK, France, and other countries.
The volume of exports of these products gives India an advantage in balance of payments and the much-needed foreign exchange.
The Prime Minister desires that the handicraft industry should be expanded by linking it with technology.
Focus should be on changing the manufacturing process, ensuring durability, and adopting innovations.
Quoting the lines from the above paragraph, explain any four dimensions of the business environment.
(CBSE 2019, 6M)
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- Give the meaning of 'Business Environment'. Explain any three features of the Business Environment.
(CBSE 2019, 4M)
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Sub Areas of Chapter 3: Business Environment
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Chapter Name
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Sub Topics
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Business Environment
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3.1 Introduction
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3.2 Meaning and Importance of Business Environment
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3.3 Dimensions of Business Environment
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3.4 Features of Business Environment
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3.5 Impact of Government Policy Changes
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3.6 Liberalization, Privatization, and Globalization
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3.7 Challenges of Business Environment
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Review of NCERT Class 12 Business Studies Chapter 3
In NCERT Class 12 Business Studies Chapter 3, "Business Environment," students explore the external factors shaping business operations and strategic decisions. The chapter emphasizes the importance of understanding dynamic economic, political, social, and legal changes to ensure long-term success.
By mastering this chapter, students gain critical insights into the complexities of the business world. Practicing MCQs and subjective questions will help students prepare effectively for CBSE, CUET, and other competitive exams.
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