1.What is business environment? Ans..

It refers to the sum total of all individuals, institution & other forces that are outside the control of business enterprise but that may affect its performance. 2. Give one importance of business environment ? Ans.. It enables the firm to identify opportunities & getting the first movers advantages. 3. Mention two element of political environment? Ans.. (a) Political ideology & practices of the ruling party. (b). Nature of relationship of our country with foreign countries. 4. Mention any two elements of social environment? Ans.. ( a.) Birth & death rates. ( b.) Concern with quality of life. 5. What does legal environment prescribe? Ans..:- It prescribes rules or laws that all members of business community must follow. 6. Give one impact of govt. policy changes on business industries? Ans.. Increasing competition from multinational. 7. Give two changes introduced in industrial policy of july 1991? Ans.. (a.) Abolition of industrial licensing. (b.) Dereservation of industries for public sector. 8. It is the process by which govt. control over the industry is being loosened. Give the term to which the statement is trying to indicate. Ans.. Liberalization. 9. What is privatization? Ans.. Privatization may be defined as the transfer of ownership & control from the public sector to Private sector. 10. What is Globalisation? Ans.. Globalisation means integrating our economy with world economy. 11. Name two component of economic environment? Ans.. 1.Volume of imports & exports of different items. 2.. rates of saving & investment. 12. Name two elements of technological environment? Ans.. 1.Recent technological.

2. Advances in computers & electronics. 13. Which environment describes characteristics of the society in which the organization exists. Ans.:- Social Environment 14.Which element / dimension of business environment involves improvement and innovations which provide new ways of producing goods and services and new methods and techniques of operating a business. Ans.:- Technological Environment 15. Which environment prohibits the advertisement of alcoholic beverages? Ans.:- legal Environment 16. Banking sector reforms have led to easier credit terms and better services. This is an example of a key component of the Business Environment name this component? Ans.:- Economic Environment 17. .Demand for reservation in jobs for minorities refers to an example of key component of general environment of business. Name this component. Ans.:- Social Environment 18 . Which process aims at giving greater role to the private sector role to the public sector? Ans.:- Privatisation. 19. State the component of business Environment. Ans.:- Components of Business Environment a. Internal Environment b. External Environment c. Micro Environment d. Macro Environment 1. Difference between economic & non economic environment. Ans.. The economic environment consist of factor like the fiscal policy, the monetary policy , the industrial policy, the pace of the economic development etc. The non-economic environment refer to social, cultural, political, legal, technological factor etc. 2. State the features of the industrial policy 1991. a) The government reduced members of industries under compulsory licensing to six. b) Disinvestment was carried out in case of many public sectors industrial enterprises.

c) Many of the industries reserved for the public sector under the earlier policy, were dereserved. d) Automatic permission was now granted for technology agreements with foreign component. 3. What is truly globalised economy? Ans.- A truly global economy implies a boundary less world where there is. i) Free flow of goods and services across nations. ii) Free flow of capital across nations. iii) Free flow of information and technology. iv) Free movement of people across border. v) A global governance perspective. 4. What is liberalisation? In which areas have liberalisation taken place. Ans.:- Liberalization of economy means. to free it from direct or physical control imposed by the government. In other words, it is the process by which government control over the industry is being loosened. It implies liberating the trade and industry from unwanted government control and restriction. Liberalization of the Indian industry has taken place with respect to:a) Abolishing licensing requirements in most of the industries except a short list. b) Freedom in deciding the scale of business activities. c) Freedom in fixing the prices of goods services. d) Removal of restriction on the movement of good and services. 4. What is economic environment? State the component of economic environment? Ans..- Economic environment consist of Grosse national product corporate profits, inflation rate productivity, employment rates, interest rates, debt and spending economic environment has stronger influence over organization policies and action. Components of economic environment are as follows a) Rates of saving and export of different items. b) Volume of import and export of different items. c) Money supply in the economic. d) Public debt. e) Agricultural & industrial product.

5. Business environment is a relative concept. Comment . Ans..- Business environment is a relative concept since it differ from country to country and even region political condition in the USA, for instance differ from those in china or Pakistan. Similarly demand for sarees may be fairly high in India whereas it may be almost nonexistent in france.