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Business Environment Test - 19

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Business Environment Test - 19
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Weekly Quiz Competition
  • Question 1
    1 / -0
    Shweta Ltd. has retained earnings of Rs. 72 lakh and equity capital of Rs. 38 lakh. If the equity investors expect a rate of return of $$17\%$$ and the cost of issuing fresh equity is $$6\%$$, the cost of external equity is ___________.
    Solution
    Cost of external equity
    K'e = K$$_e$$/1-f
    Where K'e = Constant of external equity.
                K$$_e$$   = Required rate of return
    f = cost of issue
    K'e = 0.17/1-0.06 = $$18.10\%$$.
  • Question 2
    1 / -0
    Which of the following is an example of social environment?
    Solution
    Composition of family is an example of social environment. Social environment consists of the customs and traditions of the society in which business is existing. It includes the standard of living, taste, preference and education level of people living in the society where business exists.
  • Question 3
    1 / -0
    Globalisation means _______.
  • Question 4
    1 / -0
    The term Globalization means __________
  • Question 5
    1 / -0
    The key word that can be used to describe the basic environment problem that all societies face is ________.
    Solution
    In today's scenario, environment protection has become a necessity. It is because the resources are getting exploited on a large scale. The resources are getting scarce and scarce day-by-day. Hence, the key word that can be used to describe the basic environmental problem that all societies face is scarcity.
  • Question 6
    1 / -0
    When we analyze the processes of change in the business environment we are conceptualizing it as _______.
  • Question 7
    1 / -0
    General forces that affect business environment do not include _________.
    Solution
    The general forces that affect the business environment are the internal and external factors that are the social conditions in which the business operates, the customers that the business targets and the suppliers that supply the resources for the business to function.
  • Question 8
    1 / -0
    Out of the following, the main sets of forces mostly affecting organisations are ________.
    Solution
    The main sets of forces that affects an organizations are general environmental factors, competitive forces factor internal to the organization and interests of stakeholders. They influence the organisation more than any other factors.
  • Question 9
    1 / -0
    If there is a transfer of assets from the public sector to the private sector it is referred as __________.
  • Question 10
    1 / -0
    Globalisation leads to _________.
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