MBA 1st Year Objectives of Business Environment Sample Model Practice Question Answer Papers

MBA 1st Year Objectives of Business Environment Sample Model Practice Question Answer Papers

MBA 1st Year Objectives of Business Environment Sample Model Practice Question Answer Papers

MBA 1st Year Objectives Business Environment Question Answer Model Practice Set

MBA 1st Year Objectives Business Environment Question Answer Model Practice Set

Introduction:: Business Meaning, Definition, Noture 6 Scope, Objectives of Business: Economic and Social, Types of business organisations Business Environment. Meaning, Characteristics, Scope and Significance, Components of business environment production of Micro-environment: Internal Environment Value system, Mission, Objectives, Organisational structure, Organisational resources, Company image, Brand equity. External Environment: Firm, Customers, Suppliers, Distributors, Competitors, Society. Introduction to Macro Components: Demographic, Natural, Political, social, Cultural, Economic, Technological, International and legal, Difference between macro and Micro-environment.

Section A

VERY SHORT ANSWER QUESTIONS

Qus.1. What is meant by business?

Ans. business means ‘being busy. It comprises all profit seeking activities and enterprises that provide goods and services necessary to an economic system. It is the economic pulse to a nation, striving to increase society’s standards of living, Profit is a mechanism for motivating these activities.

Qus.2. Define business. 

Ans. Business is an association involved in the trading of goods and services to customers with the intention of earning profits.

According to Urwick and Hunt, ‘Business is any enterprise which makes, distributes or provides any article or service, which other members of the community are able and willing to pay for!

According to Alfred Marshall, ‘Business includes all provisions for the want of others which are made in the expectations of payment directly or indirectly from those who are to be benefitted!

Qus.3. Give two features of modern business. 

Ans. The two features of modern business are:

1. It is dynamic and not static.

 2. It is characterised by mass production and mass marketing, fetching economies of scale to the manufacturers and passing the benefits to the final buyers. 

Qus.4. What do you understand by business organisations?

Ans. Business organisation can be understood as an efficient coordination between various elements of business enterprise, including planning and controlling of production activities, managing of human resources, distributing products and other managerial activities.

Qus.5. What is the importance of business organisation? 

Ans. Business organisation is important for the following reasons:

1. It directs the owner towards various modes of fulfilling the business financial requirements.

2. It helps to minimise the wastage of raw materials and other expenditures facilitating increase

of profit rate. 

3. It helps to ensure efficient utilisation of various production factors.

4. It enables the selection of transportation mode thus increasing the volume of product sales. 

Qus.6. Define the term business environment.

Or What do you understand by business environment?

Ans. Business environment is a set of factors that influence the functioning and effectiveness of a business.

According to A. M. Weimer, ‘Business environment is the climate or set of conditions: economic, social, political or institutional in which business operations are conducted’

According to William Glueck and Jauch, ‘In environment, there are external factors which constantly spins out opportunities and threats to the business firm.’

Q.7. What are the objectives of environmental study?

 Ans. The objectives of environmental study are as follows: 

1. It provides knowledge on current position and potential changes taking place, which helps one to frame long-term strategy for planning new technologies.

2. It provides inputs for making strategic decisions. But mere collection of data is not enough, the data and information collected must be interpreted and used. 

3. It stimulates strategic thinking

Qus.8. Give any two significance of the study of business environment. 

Ans. The two significances of the study of business environment are as follows:

1. It helps in developing broad strategies and long-term policies of the firm.

2. It is essential for the development of action plans to deal with technological advancements. Qus.9. Define micro and macro-environment.

Ans. Micro-environment consists of the actors in the company’s immediate environment that affect the performance of the company. These include the suppliers, competitors, marketing intermediaries, customers and publics,

Macro-environment consists of large societal forces that affect all the actors in the company’s micro-environment. These include the economic, natural, demographic, technological, political and cultural forces 

Qus.10. Give the four Internal factors that affect  business environment. 

Ans. Following are the four internal factors that affect business environment:

1. Value system, business policies, laws and regulations. 

2. Mission and objectives, aims and targets. 

3. Company image and brand equity.

4. Management structure and nature. 

Qus.11. What are marketing intermediaries?

Ans. Marketing intermediaries are the firms that help the company in promoting, selling and distributing its goods to the final buyers. They are vital links between the company and the final consumers. Market intermediaries include middlemen (wholesalers, retailers, etc.), marketing agencies (advertising agencies, media firms, etc.), financial intermediaries (banks, insurance companies, etc.) and physical intermediaries (warehouses, transport agencies, etc.) 

Q.12. What do you mean by multi-dimensional environment?

Ans. To speed up the business, it is very necessary to have a multi-dimensional environment. It is a process when each and every angle is put on the priority. The multi-dimensional activities give the platform for developing useful strategies and long-term policies in favour of the business and firm. It helps directly and indirectly to make beneficial arrangements for any enterprise. 

Qus.13. What is demographic environment?

Demographic environment refers to the application of demographic concepts, data and techniques to the practical concerns of business decision-makers. It includes factors of business decision-makers. It includes factors like population composition, density and its distribution, rural-urban mobility and income distribution tion, rural-urban mobility and income distribution, etc. Companies demographic environments to identify target markets for specific products or services. 

Qus.14. Explain the cultural environment.

Ans. A cultural environment   refers to the cultural and social aspect of a given society from its very nature. The people of different cultures might use the same product but the mode of the consumption, conditions  of use, or the purpose of use, etc, might differ among them prompting the company to change the product attributes, presentation methods. promotion methods, which may be more suitable to changing character of market. 

Qus.15. What factors make up the total economic environment?

AlsIndustrial and agricultural production planning, economic set up. infrastructure, national and per capita income, money supply, general price level, saving rent of growth and economic conditions make up the total economic environment. 

Qus.16. What do you understand by social environment?

Ans. Social environment refers to all factors that affect the business socially. These refer to the nature of social organisation and development of social institutions like caste, religion, customs and socio-economic factors like class structure, social mobility, women employment, etc.

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