Business Environment Online MCQ Set 16

QN01. The cultural web is a ______________.

  1. Representation of the taken-for-granted assumptions, or paradigm, of an organisation and the physical manifestations of the organisation culture
  2. Representation of the taken-for-granted assumptions, or paradigm, of an organisation and its competitors
  3. Representation of the power in an organisation
  4. Representation of the politics in an organisation
Answer

(A)Representation of the taken-for-granted assumptions, or paradigm, of an organisation and the physical manifestations of the organisation culture

QN02. Which countries has been reluctant to agree to reduction in Greenhouse gas emission?

  1. Russia
  2. Great Britain
  3. France
  4. China
Answer

(B)Great Britain

QN03. The trend seen in the economic systems of the countries is that.

  1. command economies are moving towards mixed economies
  2. mixed economies are moving towards command economies
  3. mixed economies are moving towards market economies
  4. market economies are moving towards command economies
Answer

(C)mixed economies are moving towards market economies

QN04. In which of the following basic categories can business environment be

  1. Local and Regional
  2. Regional and National
  3. Internal and External
  4. Financial and Non financial
Answer

(C)Internal and External

QN05. By entering into international business, a firm expects improvement in

  1. Marketing
  2. All spheres of marketing, operation and finance simultaneously
  3. Any or all spheres of marketing, operation and finance
  4. Finance only
Answer

(C)Any or all spheres of marketing, operation and finance

QN06. The essential feature of FDI is

  1. Investment of a very high value
  2. Investment in shares
  3. Investors influence on the management of the enterprise
  4. Investment of low value
Answer

(C)Investors influence on the management of the enterprise

QN07. The following is not a component of culture

  1. Attitudes
  2. Beliefs
  3. Education
  4. Life expectancy
Answer

(D)Life expectancy

QN08. The role of women is restricted in

  1. Eastern countries
  2. Middle East countries
  3. Traditional Islamic countries
  4. India
Answer

(C)Traditional Islamic countries

QN09. The stage indicating highest level of economic growth is

  1. age of mass consumption
  2. age of mass production
  3. maturity
  4. drive to maturity
Answer

(A)age of mass consumption

QN10. In the Five Forces framework, threat of entrants means

  1. The possibility of an existing competitor capturing the entire market
  2. The possibility of an existing competitor withdrawing from the market
  3. The possibility of a new competitor entering the market
  4. The possibility of a potential competitor entering a different market
Answer

(C)The possibility of a new competitor entering the market

QN11. PEST is an acronym which stands for

  1. duct, Economy, Society, Technology
  2. Political, Economic, Societal, Technological
  3. Political, Economic, Social, Technological
  4. People, Economy, Standards, Transport
Answer

(C)Political, Economic, Social, Technological

QN12. An increase in the general level of prices, as measured against some baseline of purchasing power is also known as

  1. inflation
  2. recession
  3. deflation
  4. depression
Answer

(A)inflation

QN13. Transfer of assets of a foreign firm to a domestic firm effected by the government with payment of compensation is

  1. Expropriation
  2. Appropriation
  3. Confiscation
  4. Domestication
Answer

(A)Expropriation

QN14. A contract drafted under civil law differs from that drafted under common law in the following respect

  1. It will be detailed
  2. It will be shorter and less specific
  3. It will provide less severe damages
  4. It will be in detail
Answer

(B)It will be shorter and less specific

QN15. Non- tariff trade barriers do not include

  1. administrative regulations
  2. export subsidiaries
  3. fiscal barriers
  4. quota
Answer

(B)export subsidiaries

QN16. In India, the patent available for pharmaceuticals is

  1. for product only
  2. for process only
  3. both for product and process
  4. neither product nor process
Answer

(C)both for product and process

QN17. To what extent of the world population is collectivist?

  1. 10- 20 per cent
  2. 40-50 per cent
  3. 70-80 per cent
  4. 90-95 per cent
Answer

(C)70-80 per cent

QN18. Which economic factors should be analysed by organizations wishing to expand in international markets?

  1. Interest rates
  2. Employment
  3. Purchasing power
  4. All the above
Answer

(D)All the above

QN19. The concept of a firm’s ‘license to operate’ refers to

  1. a legal requirement for company registration
  2. the need for a firm to retain its legitimacy in the eyes of the public
  3. a qualification needed by company directors
  4. an agreement recognizing trade unions
Answer

(B)the need for a firm to retain its legitimacy in the eyes of the public

QN20. A multi-national corporation (MNC) is defined by

  1. carrying out production in more than one country
  2. having sales in more than one country
  3. having a multi-ethnic workforce
  4. having suppliers in more than one country
Answer

(A)carrying out production in more than one country

QN21. The political power monopolized by a party that governs according to religious principles is

  1. Communist totalitarianism
  2. Theocratic totalitarianism
  3. Secular totalitarianism
  4. Tribal totalitarianism
Answer

(B)Theocratic totalitarianism

QN22. The Paris Convention for the Protection of Industry Property was dated

  1. 1783
  2. 1883
  3. 1983
  4. 2003
Answer

(A)1783

QN23. An agreement whereby a person grants the other the rights to intangible property for a specified period for a return of royalty is ______________.

  1. franchising
  2. licensing
  3. joint venture
  4. strategic alliances
Answer

(B)licensing

QN24. The law system practices in Japan is ______________.

  1. Common law
  2. Code law
  3. Civil law
  4. Religious law
Answer

(B)Code law

QN25. Which law emphasized the importance of continuous development and expansion of export oriented production?

  1. Export Policy Resolution, 1970
  2. MRTP
  3. IRDA
  4. The Companies Act
Answer

(A)Export Policy Resolution, 1970

QN26. Competitors, Customers and Public are the part of ______________.

  1. macro environment
  2. micro environment
  3. business necessities
  4. internal environment
Answer

(B)micro environment

QN27. Environment is synonym with ______________.

  1. task
  2. relation
  3. people
  4. situational variables
Answer

(D)situational variables

QN28. Corporate Social Responsibilty concerns ______________.

  1. how an organisation meets the expectations of its stakeholders
  2. the behaviour of individual managers
  3. external stakeholder relationships
  4. the ways in which an organisation exceeds its minimum required obligations to stakeholders
Answer

(D)the ways in which an organisation exceeds its minimum required obligations to stakeholders

QN29. Which types of organizational knowledge is a source of competitive advantage?

  1. Explicit knowledge which is classified and formalized in a planned and systematic way
  2. Personal knowledge which is hard to communicate and formalize
  3. Customer databases, market research reports, management reports
  4. Collective and shared experience accumulated through systems, routines and activities of sharing across the organization
Answer

(D)Collective and shared experience accumulated through systems, routines and activities of sharing across the organization

QN30. Air and water pollution are typically ______________.

  1. Regional
  2. Multilateral
  3. Economic
  4. Gobal
Answer

(D)Gobal

QN31. The economic growth rate of a nation is not affected by.

  1. business cycle
  2. sporadic events
  3. government policies
  4. none of the above
Answer

(D)none of the above

QN32. The following factor does not differentiate international business from domestic business

  1. different currencies
  2. product quality
  3. product mobility
  4. trade policies.
Answer

(B)product quality

QN33. The disadvantages of Greenfield FDI as compared to acquisition is

  1. Profit will be less
  2. Size of investment will be high
  3. Lesser control in management
  4. Delay in establishment
Answer

(D)Delay in establishment

QN34. According to economic growth model of Rostow, passage of a country through the stages is

  1. in the order specified
  2. in any order
  3. in the order specified, but certain stages may be skipped
  4. automatic
Answer

(A)in the order specified

QN35. All societal factors that affect values, actions and beliefs of different groups of people are together called

  1. Expatriation
  2. Repatriation
  3. Culture
  4. Economy
Answer

(C)Culture

QN36. The threat of substitutes may be high if

  1. Switching costs are of concern to the customer
  2. The substitute product provides a higher perceived value or benefit
  3. The substitute product does not provide enhanced functionality, reduced cost and better quality
  4. Customers have strong existing brand loyalty
Answer

(B)The substitute product provides a higher perceived value or benefit

QN37. According to the World Bank classification which of the following is not a high income economy?

  1. Qatar
  2. Romania
  3. Austria
  4. Canada
Answer

(B)Romania

QN38. The European Union is an example of

  1. monetary union
  2. free trade area
  3. common market
  4. economic union
Answer

(D)economic union

QN39. The operating risk in the host country does not include the risk of

  1. Change in government policies
  2. Exchange control
  3. Price controls
  4. Sanctions
Answer

(D)Sanctions

QN40. Ownership of intellectual property is recognized in law by granting

  1. Licenses
  2. Patents
  3. Copyrights
  4. Patent, copyright or trademark as appropriate
Answer

(D)Patent, copyright or trademark as appropriate

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