Business Environment Test

Result

Business Environment Test - 17

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Weekly Quiz Competition

Question 1
1 / -0

Industrial investment in backward areas can be induced under delicensing system by

A
Providing infrastructural facilities

B
The use of tax-subsidy mechanism

C
Both (A) and (B)

D
None of these
Question 2
1 / -0

In the New Industrial Policy 1991, the number of industries reserved for public sector is ___________.

A
5

B
8

C
10

D
15

Solution

In the New Industrial Policy 1991, the number of industries reserved for public sector is 8. New Industrial Policy was adopted by the Government of India in the year 1991. It was adopted in order to create a more free and competitive economy. The main objective of any industrial policy is to augment the industrial production and thereby enhance industrial growth.
Hence, option (B) is the correct answer.
Question 3
1 / -0

Which Statement had given the preference to Indianisation of ownership of Industry?

A
1948 Policy Statement

B
1956 Policy Statement

C
1970 Policy Statement

D
1980 Policy Statement

Solution

1948 Policy Statement had given the preference to Indianisation of ownership of Industry. This policy statement helps to harmonize industrial relations. In 1948 policy, Government of India identified the high priority industries where investment from large industrial sector was needed.Hence, option (A) is the correct answer.
Question 4
1 / -0

Which one is not an element of internal environment?

A
Marketing capability

B
Operational capability

C
Money and Capital market

D
Personal capability

Solution

Forces or conditions or surroundings within the boundary of the organization are the elements of the internal environment of the organization. The internal environment consists mainly of the organization’s owners, the board of directors, employees and culture.
Marketing capability, operational capability, and personal capability are part of internal environment. Money and capital market are part of external environment.
Question 5
1 / -0

Important feature of 1991 Industrial policy is __________.

A
Industrial licensing

B
Liberalisation in licensing

C
Compulsory licensing

D
Reducing the investment limit of small scale units

Solution

Important feature of the 1991 Industrial policy is liberalization in licensing. New Industrial Policy was adopted by the Government of India in the year of 1991. It was adopted in order to create a more free and competitive economy. The main objective of any industrial policy is to augment the industrial production and thereby enhance industrial growth.
Hence, option (B) is the correct answer.
Question 6
1 / -0

The first New Small Scale Industrial Policy was announced on ________.

A
August 6, 1989

B
May 5, 1990

C
August 6, 1991

D
December, 1996

Solution

The first New Small Scale Industrial Policy was announced on August 6, 1991. Small Scale Industrial Policy has helped in the overall development of industrial sector of the economy. It was well realized that small-scale industries are particularly suited for the utilization of local resources and for the creation of employment opportunities.
Hence, option (C) is the correct answer.

Question 7

1 / -0

	List 1		List 2
1.	Dutt Committee	a)	Industrial sickness
2.	Abid Hussain Committee	b)	Small scale industries
3.	Omkar Goswami Committee	c)	Industrial licensing
4.	Rangarajan Committee	d)	Public Sector units disinvestment

1-a, 2,-c, 3-d, 4-b

1-c, 2,-b, 3-a, 4-d

1-c, 2,-a, 3-b, 4-d

1-a, 2,-b, 3-d, 4-c

Solution

List 1	List 2
Dutt Committee	Industrial licensing
Abid Hussain Committee	Small scale industries
Omkar Goswami Committee	Industrial sickness
Rangarajan Committee	Public Sector units disinvestment

Hence, option (B) is the correct answer.

Question 8
1 / -0

Relaxing the restrictions and control imposed on business and industry means ______.

A
liberalization

B
privatisation

C
globalisation

D
none of these

Solution

Liberalization refers to relaxation of government restrictions usually in areas of social and economic policies. It refers to the process of eliminating unnecessary controls and restrictions on the smooth functioning of business enterprises.
Question 9
1 / -0

Match the following components of Business Environment.
a) Economic Environment i) Exim Policy
b) Social Environment ii) Customs
c) Political Environment iii) Social Values
d) Legal Environment iv) Business Law and Banking Act

A
(a)-(i), (b)-(ii), (c)-(iii), (d)-(iv)

B
(a)-(iii), (b)-(iv), (c)-(ii), (d)-(i)

C
(a)-(iii), (b)-(i), (c)-(ii), (d)-(iv)

D
(a)-(i), (b)-(ii), (c)-(iv), (d)-(iii)
Solution
- EXIM policy is a part of external environment of a business which involves in Export and Import.
- Socio-cultural environment: A set of beliefs, customs, practices and behavior that exists within a population.
- Political Environment analyzes the social values and justification of business, defining its rights, obligations and purposes.
- Legal Environment deals with the legal formalities which a business have to follow and includes various Laws and Acts.
Question 10
1 / -0

Which one is not an element of legal environment?

A
Act of Parliamentarians in Lok Sabha

B
Indian Contract Act, 1872

C
Indian Partnership Act, 1932

D
Negotiable instruments Act, 1881

Solution

Act of Parliamentarians in Lok Sabha is not an element of legal environment since legal environment constitutes the laws and various legislations passed in the parliament. Legal environment cannot be overlooked as the businessman has to perform the business transactions within the framework of legal environment.

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Re-Attempt Weekly Quiz Competition

a) Economic Environment	i) Exim Policy
b) Social Environment	ii) Customs
c) Political Environment	iii) Social Values
d) Legal Environment	iv) Business Law and Banking Act

Business Environment Test - 17

Result

Business Environment Test - 17

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SHARING IS CARING

Question 1

Providing infrastructural facilities

The use of tax-subsidy mechanism

Both (A) and (B)

None of these

Question 2

5

8

10

15

Solution

Question 3

1948 Policy Statement

1956 Policy Statement

1970 Policy Statement

1980 Policy Statement

Solution

Question 4

Marketing capability

Operational capability

Money and Capital market

Personal capability

Solution

Question 5

Industrial licensing

Liberalisation in licensing

Compulsory licensing

Reducing the investment limit of small scale units

Solution

Question 6

August 6, 1989

May 5, 1990

August 6, 1991

December, 1996

Solution

Question 7

1-a, 2,-c, 3-d, 4-b

1-c, 2,-b, 3-a, 4-d

1-c, 2,-a, 3-b, 4-d

1-a, 2,-b, 3-d, 4-c

Solution

Question 8

liberalization

privatisation

globalisation

none of these

Solution

Question 9

(a)-(i), (b)-(ii), (c)-(iii), (d)-(iv)

(a)-(iii), (b)-(iv), (c)-(ii), (d)-(i)

(a)-(iii), (b)-(i), (c)-(ii), (d)-(iv)

(a)-(i), (b)-(ii), (c)-(iv), (d)-(iii)

Solution

Question 10

Act of Parliamentarians in Lok Sabha

Indian Contract Act, 1872

Indian Partnership Act, 1932

Negotiable instruments Act, 1881

Solution

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