Chapter-3 ➤ Business Environment

1. State with reasons whether the following statements are True or False.
Business environment consists of factors which are certain by nature.

2. Legal rules and regulations relevant to business are included in ___ environment of business.

3. ___ is the integration of world economy into a single market through removal of trade barriers between countries.

4. Proper understanding of business environment is not a prerequisite for

5. The Government of India launched “Make in India” initiative in September, 2014 to increase foreign direct investment (FDI) in 25 sectors. As of April, 2015, FDI inflow in India increased by 48% since the launch of “Make in India” initiative.
Identify the concept being described in the above lines, with regard to inflow of FDI.

6. State with reasons whether the following statements are True or False.
Political environment consists of political system and its working.

7. As a result of major government initiatives, more and more people are going ‘green’. In order to keep in line with the trend, ‘Clapaway’ a carpet cleaning company has advertised that they only use natural cleaners that come from renewable resources and that all their service vehicles are hybrid vehicles that use both gas and electricity. Identify one of the points related to the importance of business environment and its understanding by managers which is being highlighted in the above case.

8. Which one of the following is the impact of Government policy changes on business and industry?

9. ___ feature of business environment states that various factors of business environment affect each other.

10. On 8th November 2016, with the announcement from Government of India, all the ₹500 and ₹1,000 banknotes of the Mahatma Gandhi series have ceased to be a legal tender. The givemment also announced the issuance of new ₹500 and ₹2,000 banknotes in exchange for the demonetised banknotes. Identify the concept being described in the above lines.