CBSE-CLASS-XII SERIES Business-studies
Business Environment
36 previous year questions.
Volume: 36 Ques
Yield: High
High-Yield Trend
4
2026 16
2025 16
2024 Chapter Questions 36 MCQs
01
PYQ 2024
medium
business-studies ID: cbse-cla
Rajat was carrying on a business of manufacturing plastic disposables like plastic plates, plastic cups, and plastic straws. He heard about the upcoming ban on single-use plastics. He was able to identify this external environmental trend which could hinder his firm’s performance. So, he took action and shifted to manufacturing the plates, cups, and straws from bamboo and palm leaves. As a result, his business not only survived but was able to generate profit. The point of importance of Business Environment highlighted above is:
1
It enables the firm to identify opportunities and getting the first-mover advantage.
2
It helps the firm to identify threats and early warning signals.
3
It helps in tapping useful resources.
4
It helps in assisting in planning and policy formulation.
02
PYQ 2024
medium
business-studies ID: cbse-cla
Samaira and her friend, Sana wanted to watch a movie over the weekend. They booked the movie tickets online and chose the seats as per their preference at the click of a button at the desired movie hall. Now going to the theatre for booking of tickets is no longer required. The dimension of business environment reflected in the above para is:
1
Political environment
2
Social environment
3
Legal environment
4
Technological environment
03
PYQ 2024
medium
business-studies ID: cbse-cla
Which of the following is NOT a feature of demonetisation?
1
It leads to the creation of a less-cash or cashless economy by channeling more savings through the formal financial system and improving tax compliance.
2
It is interpreted as a shift on the part of the government indicating that tax evasion will no longer be tolerated or accepted.
3
It is viewed as a tax administration measure.
4
It led to tax administration channelising savings away from the formal financial system.
04
PYQ 2024
easy
business-studies ID: cbse-cla
Statement- I: Business Environment is dynamic as it differs from country to country. Statement II: Business Environment is largely uncertain as it is very difficult to predict future happenings. Choose the correct option from the following:
1
Statement I is true and Statement II is false.
2
Statement II is true and Statement I is false.
3
Both the statements are true.
4
Both the statements are false.
05
PYQ 2024
medium
business-studies ID: cbse-cla
Which of the following is an element of ‘Social Environment’?
1
Rates of saving and investment
2
Expectations from the workforce
3
The nature of relationship of our country with foreign countries
4
Planned outlay in public and private sectors
06
PYQ 2024
medium
business-studies ID: cbse-cla
‘Since business environment consists of numerous interrelated and dynamic conditions or forces which arise from different sources, it becomes difficult to comprehend at once what exactly constitutes a given environment'. Thus, it is relatively easier to understand the environment in parts but difficult to grasp in its totality. Identify the feature of business environment highlighted above:
1
Uncertainty
2
Complexity
3
Relativity
4
Dynamic Nature
07
PYQ 2024
medium
business-studies ID: cbse-cla
‘VBR Cinema', an Indian multiplex cinema hall was the first to recognize the change in consumption habits of people. It changed its food menu from burgers, pizza, soft drinks, etc., and switched over to healthier options like salads and smoothies, soups, and anjeer-based sweets. Within a month, the revenue of the multiplex from sale of food items doubled.
'VBR Cinema', by continuously monitoring the environment and adopting suitable business practices, was able to improve its revenues and profits and was hopeful that it will continue to succeed in the market in the long run too.
Identify and explain one dimension of business environment and one point of importance of understanding the business environment highlighted in the above case.
'VBR Cinema', by continuously monitoring the environment and adopting suitable business practices, was able to improve its revenues and profits and was hopeful that it will continue to succeed in the market in the long run too.
Identify and explain one dimension of business environment and one point of importance of understanding the business environment highlighted in the above case.
08
PYQ 2024
medium
business-studies ID: cbse-cla
Ashwin was a fashion designer. On losing his job, he decided to sell the designer clothes online under the brand name 'Kogue.' The garments were made of good quality fabric with intricate designs and skilled craftsmanship, making them expensive to produce. Realizing that the online market is very competitive, he decided to charge a reasonable price for the garments. The price would cover the cost of production and sale of garments as well as give him a 10\% margin over and above the cost.
Identify and explain two factors affecting the price determination discussed in the above case.
Identify and explain two factors affecting the price determination discussed in the above case.
09
PYQ 2024
medium
business-studies ID: cbse-cla
State any three features of 'Demonetization'.
10
PYQ 2024
medium
business-studies ID: cbse-cla
State any three features of business environment.
11
PYQ 2024
medium
business-studies ID: cbse-cla
‘SK Builders’ became the market leader in the designer house segment as it was the first to recognize the need of using Artificial Intelligence in designing houses in the changing environment of technological advancement. This highlights the following point of importance of business environment:
1
It helps to identify threats and early warning signals.
2
It enables the firm to identify opportunities and getting the first mover advantage.
3
It helps in tapping useful resources.
4
It helps in improving performance.
12
PYQ 2024
medium
business-studies ID: cbse-cla
Which of the following is not an element of the social environment?
1
Composition of family
2
Consumption habits
3
Rates of saving and investment
4
Educational system and literacy rates
13
PYQ 2024
medium
business-studies ID: cbse-cla
As per the Plastic Waste Management Rule 2022, single-use plastic items were prohibited in Delhi from 1 July, 2022. The dimension of the business environment referred to here is:
1
Economic environment
2
Legal environment
3
Technological environment
4
Political environment
14
PYQ 2024
medium
business-studies ID: cbse-cla
Choose the incorrect statement with respect to demonetization:
1
The two largest denomination notes of ₹500 and ₹1,000 were demonetized with immediate effect, ceasing to be legal tender except for buying properties.
2
The aim of this step was to curb corruption and accumulation of black money.
3
It led to the tax administration channelizing savings into the formal financial system.
4
Restrictions were placed on the convertibility of domestic money and bank deposits.
15
PYQ 2024
medium
business-studies ID: cbse-cla
Raunaq, while studying at the university, felt that there should be a food joint in the university campus to provide food to students round the clock. After passing out of college, he set up 'Hunger Point,' a food joint with a varied menu ranging from burgers, pizzas, street food, and much more, in the university campus. For this, he obtained necessary permissions from the university administration. Since he was the first one to recognize the need for a food joint for all the students in an environment where students study day and night, it soon became a popular eating joint. Within six months, 'Hunger Point' started earning good profits.
Identify the point of importance of business environment discussed in the above case:
Identify the point of importance of business environment discussed in the above case:
1
It enables the firm to identify opportunities and get the first mover advantage.
2
It helps the firm to identify threats and early warning signals.
3
It helps in assisting in planning and policy formulation.
4
It helps in improving performance.
16
PYQ 2024
medium
business-studies ID: cbse-cla
Due to increasing presence of women in the workforce, 'Kisan Mart' comes out every Friday with big discount offers on daily use items to attract office-going women to shop on weekends. Which dimension of business environment is being highlighted in the above case?
1
Social environment
2
Legal environment
3
Political environment
4
Technological environment
17
PYQ 2025
medium
business-studies ID: cbse-cla
As per Plastic Waste Management Rule 2022, single use plastic items were prohibited in Delhi from 1st July, 2022. The dimension of business environment referred to here is _______.
1
Economic environment
2
Legal environment
3
Technological environment
4
Political environment
18
PYQ 2025
medium
business-studies ID: cbse-cla
'Since business environment consists of numerous interrelated and dynamic conditions or forces which arise from different sources, it becomes difficult to comprehend at once what exactly constitutes a given environment'. Thus it is relatively easier to understand the environment in parts but difficult to grasp in its totality. Identify the feature of business environment highlighted above:
1
Uncertainty
2
Complexity
3
Relativity
4
Dynamic nature
19
PYQ 2025
medium
business-studies ID: cbse-cla
Which of the following is not an element of social environment ?
1
Composition of family
2
Consumption habits
3
Rates of saving and investment
4
Educational system and literacy rates
20
PYQ 2025
medium
business-studies ID: cbse-cla
Choose the incorrect statement with respect to demonetization:
1
₹500 and ₹1000 notes were demonetized, ceasing to be legal tender except for buying properties.
2
It aimed to curb corruption and black money.
3
It helped channel savings into the formal financial system.
4
Restrictions were placed on convertibility of domestic money and bank deposits.
21
PYQ 2025
medium
business-studies ID: cbse-cla
Raunaq, while studying at the university, felt that there should be a food joint in the university campus to provide food to students round the clock. After passing out of college, he set up ‘Hunger Point’ in the university campus. Since he was the first one to recognize this need, it soon became popular and profitable. Identify the point of importance of business environment discussed in the case:
1
It enables the firm to identify opportunities and get the first mover advantage.
2
It helps the firm to identify threats and early warning signals.
3
It helps in assisting in planning and policy formulation.
4
It helps in improving performance.
22
PYQ 2025
medium
business-studies ID: cbse-cla
Due to increasing presence of women in the workforce, ‘Kisan Mart’ comes out every Friday with big discount offers on daily use items to attract office-going women to shop on weekends. Which dimension of business environment is being highlighted in the above case?
1
Social environment
2
Legal environment
3
Political environment
4
Technological environment
23
PYQ 2025
medium
business-studies ID: cbse-cla
Choose the incorrect statement with respect to demonetization:
1
The two largest denomination notes of ₹ 500 and ₹ 1000 were demonetized with immediate effect, ceasing to be legal tender except for buying properties.
2
The aim of this step was to curb corruption and accumulation of black money.
3
It led to the tax administration channelizing savings into the formal financial system.
4
Restrictions were placed on the convertibility of domestic money and bank deposits.
24
PYQ 2025
medium
business-studies ID: cbse-cla
Which of the following is not an element of social environment?
1
Composition of family
2
Consumption habits
3
Educational system and literacy rates
4
Policies of taxation and investment
25
PYQ 2025
medium
business-studies ID: cbse-cla
Rajat was carrying on a business of manufacturing plastic disposables like plastic plates, plastic cups and plastic straws. He heard about the upcoming ban on single use plastics. He was able to identify this external environmental trend which could hinder his firm’s performance. So he took action and shifted to manufacturing the plates, cups and straws from bamboo and palm leaves. As a result, his business not only survived but was able to generate profit.
The point of importance of Business Environment highlighted above is :
The point of importance of Business Environment highlighted above is :
1
It enables the firm to identify opportunities and getting the first mover advantage.
2
It helps the firm to identify threats and early warning signals.
3
It helps in tapping useful resources.
4
It helps in assisting in planning and policy formulation.
26
PYQ 2025
medium
business-studies ID: cbse-cla
The dimension of business environment reflected in the above para is:
1
Political environment
2
Social environment
3
Legal environment
4
Technological environment
27
PYQ 2025
medium
business-studies ID: cbse-cla
Which of the following is NOT a feature of demonetisation ?
1
It leads to creation of a less-cash or cash-less (free) economy i.e. channeling more savings through the formal financial system and improving tax compliance.
2
It is interpreted as a shift on the part of the government indicating that tax evasion will no longer be tolerated or accepted.
3
It is viewed as a tax administration measure.
4
It led to tax administration channelising savings away from the formal financial system.
28
PYQ 2025
medium
business-studies ID: cbse-cla
Statement – I : Business Environment is dynamic as it differs from country to country.
Statement – II : Business Environment is largely uncertain as it is very difficult to predict future happenings.
Choose the correct option from the following :
Statement – II : Business Environment is largely uncertain as it is very difficult to predict future happenings.
Choose the correct option from the following :
1
Statement I is true and Statement II is false.
2
Statement II is true and Statement I is false.
3
Both the statements are true.
4
Both the statements are false.
29
PYQ 2025
medium
business-studies ID: cbse-cla
VBR Cinema an Indian multiplex cinema hall was the first to recognize the change in consumption habits of people. It changed its food menu from burgers, pizza, soft drinks, etc. and switched over to healthier options like salads and smoothies, soups and anjeer-based sweets. Within a month, the revenue of the multiplex from sale of food items doubled. VBR Cinema, by continuously monitoring the environment and adopting suitable business practices, was able to improve its revenues and profits and was hopeful that it will continue to succeed in the market in the long run too. Identify and explain one dimension of business environment and one point of importance of understanding the business environment highlighted in the above case.
30
PYQ 2025
easy
business-studies ID: cbse-cla
The risk related to inability to meet fixed financial charges like interest payment and other repayment obligations is known as:
1
Operating risk
2
Financial risk
3
Business risk
4
None of the above
31
PYQ 2025
easy
business-studies ID: cbse-cla
Statement-I: Regulation of takeover bids by companies is one of the Regulatory functions of the Securities and Exchange Board of India. Statement-II: Training of intermediaries of the securities market is one of the Development functions of the Securities and Exchange Board of India. Choose the correct option from the following:
1
Statement I is correct and Statement II is incorrect.
2
Statement II is correct and Statement I is incorrect.
3
Both Statement I and Statement II are correct.
4
Both Statement I and Statement II are incorrect.
32
PYQ 2025
easy
business-studies ID: cbse-cla
Organising provides a clear description of jobs and related duties. This helps to avoid confusion and duplication. The point of importance of organizing described above is:
33
PYQ 2026
medium
business-studies ID: cbse-cla
State any four features of demonetisation.
34
PYQ 2026
medium
business-studies ID: cbse-cla
Explain the following points of importance of business environment: (i) Helps in tapping useful resources (ii) Helps in coping with rapid changes.
35
PYQ 2026
medium
business-studies ID: cbse-cla
Read the following statements : Assertion (A) and Reason (R).
Assertion (A) : General forces such as social, political, legal and technological conditions affect an individual firm only indirectly.
Reason (R) : General forces have an impact on all business enterprises, in contrast to, specific forces that affect individual firms directly and immediately in their day-to-day working.
Choose the correct alternative from the following :
Assertion (A) : General forces such as social, political, legal and technological conditions affect an individual firm only indirectly.
Reason (R) : General forces have an impact on all business enterprises, in contrast to, specific forces that affect individual firms directly and immediately in their day-to-day working.
Choose the correct alternative from the following :
1
Both Assertion (A) and Reason (R) are correct and Reason (R) is the correct explanation of Assertion (A).
2
Both Assertion (A) and Reason (R) are correct, but Reason (R) is not the correct explanation of Assertion (A).
3
Both Assertion (A) and Reason (R) are incorrect.
4
Assertion (A) is correct, but Reason (R) is incorrect.
36
PYQ 2026
medium
business-studies ID: cbse-cla
The top management of a smartphone manufacturing company recently observed that the government has ordered new safety standards for batteries used in smartphones to prevent overheating. It also noticed that the government announced a reduction in import duties on components used in mobile phones. The dimensions of business environment highlighted in the above case are :
1
Technological and legal environments
2
Political and technological environments
3
Legal and social environments
4
Political and legal environments