Business Studies Class 12 Worksheet on Chapter - 3 Business Environment

Chapter- 3, Business Environment

Worksheet

1. Fill in the blanks:

1. ________ refers to positive external trends that is likely to help a firm to improve its performance.

2. ________ refers to negative external trends and changes that is likely to hinder a firm’s performance.

3. Three economic reforms are L_____, P______ and G_______.

4. Various dimensions of business environment are _____, _____, ______, ______ and ______. 

5. Demonetisation of two largest denomination notes, Rs 500 and Rs 1,000, was announced by the Government of India on ___________.

2. Identify the feature of business environment in the following statements:

1. It differs from country to country and even region to region.

2. Different elements of business environment are closely related to each other.

3. It is very difficult to predict future happenings.

4. Business environment is relatively easier to understand in parts but difficult to grasp in its totality.

5. It keeps on changing.

3. Identify the point of importance of business environment in the following statements:

1. The enterprises that continuously monitor their environment and adopt suitable business practices are the ones which not only improve their present performance but also continue to succeed in the market for a longer period.

2. It only makes sense that the enterprise designs policies that allow it to get the resources that it needs so that it can convert those resources into outputs that the environment desires.

3. Environment provides numerous opportunities for business success.

4. Understanding and analysis of environment can be the basis for deciding the future course of action. 

5. If an Indian firm finds that a foreign multinational is entering the Indian market with new substitutes, it should act as a warning signal. On the basis of this information, the Indian firms can prepare themselves to meet the threat by adopting such measures as improving the quality of the product, reducing cost of the production, engaging in aggressive advertising, and so on.

6.  In order to effectively cope with the changes, managers must understand and examine the environment and develop suitable courses of action.

4. Identify dimension of business environment in the following statements:

1. court judgments-

2. inflation rates-

3. specific attitudes that elected government representatives hold toward business-

4. changes in disposable income of people-

5. scientific improvements and innovations-

6. traditions-

7. decisions rendered by various commissions and agencies at every level of the government-

8. new ways of producing goods and services-

5. Identify the economic reforms from the following initiatives taken by the government:

1. Integration of the various economies of the world leading towards the emergence of a cohesive global economy.

2. No restrictions on expansion or contraction of business activities.

3. An increased level of interaction and interdependence among the various nations of the global economy.

4. Refer the loss making and sick enterprises to the Board of Industrial and Financial Reconstruction.

5.  Freedom in fixing the prices of goods services.

6. Disinvestment.

6. Identify the points of impact of government policy changes in business and industry from

following statements:

1. The firms have to study and analyse the market first and produce goods accordingly.

2. After 1991, the market forces have become turbulent as a result of which the enterprises have to continuously modify their operations.

3. Increased competition forces the firms to develop new ways to survive and grow in the market. 

4. New technologies make it possible to improve machines, process, products and services.

5. The public sector undertakings have realised that, in order to survive and grow, they will have to be more efficient and generate their own resources for the purpose.

6. The new market conditions require people with higher competence and greater commitment.

7. Increased competition in the market gives the customers wider choice in purchasing better quality of goods and services.