Ch-3(Business Environment)

Chapter- 3 Business Environment 

Watch this video on Dimensions of environment of Business

Direct questions
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  1.  What is business environment?
  2.   Differentiate between general and specific environment.
  3.  What are the features or nature of business environment? 
  4.   Discuss the importance of business environment.
  5. What do you understand by the term ‘environment scanning’?
  6. What do you mean by threats and opportunities, give example also?     
  7. Discuss dimensions of Business Environment with 2 examples each.
  8.  What changes were made in the industrial policy in the recent past?
  9. What do you mean by disinvestment?
  10. Explain the terms liberalization, globalization and privatization.
  11. Discuss the impact of change in government policy on business and industry
  12. What is managerial responses to changes in Business Environment ?( For answer Click here )( for video on this topic CLICK HERE)
  13. What do you mean by Demonetization ? (Click here to check extract from new revised NCERT Book ) 

Indirect questions

  1.     Why is it important to understand the environment in shaping the future of business?
  2.     What are the benefits of understanding the business environment?
  3.      Shifts in the presence of women in the workforce come under which environment? Explain that environment.
  4.     "Business environment is is easy to understand in parts separately but it is difficult to understand in totality.” Identify feature of Business environment from this statement and explain other features.
  5.      Identify dimension of business environment related to following situations:
i)        It is common now to see CD-ROM’s, computerized information   kiosks, and Internet/ World Wide Web multimedia pages highlighting the virtues of products.
ii)      Demand to reserve jobs for minorities and women
iii)    Advertisements, including packets of cigarettes carry the statutory warning ‘Cigarette smoking is injurious to health’.
iv)    Money supply in the economy
v)      The  health-and-fitness trend has  harmed business in other industries like dairy processing, tobacco and liquor
vi)    High inflation rates generally result in constraints on business enterprises as they increase the various costs of business such as the purchase of raw materials or machinery and payment of wages and salaries
vii)  The government in Hyderabad is taking keen interest in boosting IT industry as a result the state is most commonly known as Cyberabad  instead of Hyderabad

6. Out of liberalization, privatization & globalization, which one is associated with .
(a) NDPL & BSES instead of Delhi Vidyut Board

(b) Easy movement of information and technology with rest of world

(c ) No restriction on expansion and contraction of business activities

(d) Free flow of goods and services across nations

7.Explain briefly five ways in which Indian managers are responding to changes in the business environment


Value based questions
1  1.Gamma Ltd is a chemical producing company. It has not set up its waste disposal unit. All the chemical waste is thrown in river. What kind of organisational values are ignored by the company?
2  2.   Manager of firm always take in account the business environment while determining the plans of business. What values are reflected in the manager’s behaviour?

3  3. A leading book publishing company identified the importance of ‘value based questions’ in CBSE and published book based on these types of questions. Book became popular .Seeing the demand ,few book sellers started charging high price. Identify the point of significance highlighted here. What value is shown by book publishing company and what value is ignored by book sellers

Identify the dimension of business environment applicable in different situations
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What are three major reforms covered under new industrial policy 1991?
Answer Click here 


What are broad features of new industrial policy 1991 ?

Answer   click here

Play LPG quiz  to check knowledge of 3 Major Economic reforms 

(Liberalisation, Privatisation and Globalisation )


  1. Wat is the ans to the 18,19,20,22 ques.

    1. Mention the dimension of business environment applicable in following situations:

      18.Vicks Vaporub is a popular pain balm. If it is used as a mosquito repellant in some tropical areas due to sheer ignorance, the adverse effects can be very severe.


       19.The slogan of Pepsi Cola “come alive” in some languages is translated as “come out of the grave”. Therefore due to this slogan, the product failed to pick up.
      Ans :Social

      20.Demand to reserve jobs for minorities and women.

       22.Equal pay to men and women for equal work performed.

  2. What is the ans to value based q.3

    1. Value is shown by book publishing company - Concern for students , Adaptability
      Value ignored by book sellers- Concern for students ,Empathy ,Honesty
      Always elaborate value and relate it to situation given

  3. Replies
    1. Q16 - The government has also liberalised its economic policies in this regard and permitted even 

      cent percent foreign direct investment in some sectors of retailing.-Economic environment
      Q29 The government in Hyderabad is taking keen interest in boosting IT industry as a result the 

      state is most commonly known as Cyberabad instead of Hyderabad - Political environment

  4. what are the answers to the value based questions?

  5. There is no fixed answer to value based question
    Check the top tab of value based questions and get an idea to write answer to value based questions
    Remember Always elaborate value and relate it to situation given and underline the value identified

  6. can u plz provide answers for questions 1-30 ???

  7. answer of 3rd indirct question ??

  8. Shifts in the presence of women in the workforce -Social environment

  9. congratulations to the commerce staff for preparing such an comprehensive bolg for the subject.Amazing work....thanks a lot ....with due regards......MRS. REKHA GARG(COMMERCE LECTURER)