Chapter business-environment: Business Environment Assertion-Reason Questions | business studies Class 12 CBSE

Assertion-Reason

Easy difficulty • Check the statement and reason

Easy

Question 1

Logic Check

Assertion (A): Business environment includes both specific and general forces. Reason (R): Specific forces like investors, customers, competitors and suppliers affect individual enterprises directly and immediately, whereas general forces like social and political conditions have impact on all enterprises.

Reasoning Options

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Assertion-Reason

Easy difficulty • Check the statement and reason

Easy

Question 2

Logic Check

Assertion (A): Business environment is certain and fully predictable. Reason (R): Environmental changes occur in information technology and fashion industries at a very rapid pace.

Reasoning Options

ByteNotes

Assertion-Reason

Easy difficulty • Check the statement and reason

Easy

Question 3

Logic Check

Assertion (A): Business environment is dynamic in nature. Reason (R): The business environment keeps on changing in terms of technological improvements, shifts in consumer preferences and entry of new competition.

Reasoning Options

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Assertion-Reason

Medium difficulty • Check the statement and reason

Medium

Question 4

Logic Check

Assertion (A): Business environment is a relative concept. Reason (R): It is difficult to understand business environment in parts, but relatively easy to grasp in totality.

Reasoning Options

ByteNotes

Assertion-Reason

Easy difficulty • Check the statement and reason

Easy

Question 5

Logic Check

Assertion (A): Understanding business environment helps firms identify opportunities and gain first mover advantage. Reason (R): Early identification of opportunities helps an enterprise to be the first to exploit them instead of losing them to competitors.

Reasoning Options

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Assertion-Reason

Easy difficulty • Check the statement and reason

Easy

Question 6

Logic Check

Assertion (A): Environmental awareness can serve as an early warning signal for threats. Reason (R): If an Indian firm finds that a foreign multinational is entering the Indian market with new substitutes, it should act as a warning signal.

Reasoning Options

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Assertion-Reason

Medium difficulty • Check the statement and reason

Medium

Question 7

Logic Check

Assertion (A): Business enterprises do not need to adapt to environmental changes if they have efficient internal operations. Reason (R): A business firm exists, survives and grows within the context of the elements and forces of its environment.

Reasoning Options

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Assertion-Reason

Medium difficulty • Check the statement and reason

Medium

Question 8

Logic Check

Assertion (A): Economic environment includes factors like interest rates, inflation rates, changes in disposable income and stock market indices. Reason (R): High inflation rates generally result in constraints on business enterprises as they increase costs of raw materials and wages.

Reasoning Options

ByteNotes

Assertion-Reason

Easy difficulty • Check the statement and reason

Easy

Question 9

Logic Check

Assertion (A): Social trends present various opportunities and threats to business enterprises. Reason (R): The health-and-fitness trend has created demand for products like organic food, gyms and bottled water among urban dwellers.

Reasoning Options

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Assertion-Reason

Medium difficulty • Check the statement and reason

Medium

Question 10

Logic Check

Assertion (A): Technological environment only affects IT and computer-related businesses. Reason (R): Continuing innovations in lasers, robotics, biotechnology, food preservatives, medicine and synthetic fuels have provided opportunities and threats for many different enterprises.

Reasoning Options

ByteNotes

Assertion-Reason

Medium difficulty • Check the statement and reason

Medium

Question 11

Logic Check

Assertion (A): Political stability builds up confidence among business people to invest in long-term projects. Reason (R): Political instability creates uncertainty about business activities due to threats to law and order.

Reasoning Options

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Assertion-Reason

Easy difficulty • Check the statement and reason

Easy

Question 12

Logic Check

Assertion (A): It is imperative for every enterprise to obey the law of the land. Reason (R): Non-compliance of laws can land the business enterprise into legal problems.

Reasoning Options

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Assertion-Reason

Medium difficulty • Check the statement and reason

Medium

Question 13

Logic Check

Assertion (A): Before 1991, the Indian government imposed several restrictions on the private sector through the licensing system. Reason (R): India faced a serious foreign exchange crisis in 1991 which forced the government to announce the New Industrial Policy.

Reasoning Options

ByteNotes

Assertion-Reason

Easy difficulty • Check the statement and reason

Easy

Question 14

Logic Check

Assertion (A): Liberalisation signalled the end of the licence-permit-quota raj in India. Reason (R): Liberalisation included abolishing licensing in most industries, freedom in scale of business, removal of movement restrictions and freedom in price fixing.

Reasoning Options

ByteNotes

Assertion-Reason

Medium difficulty • Check the statement and reason

Medium

Question 15

Logic Check

Assertion (A): Privatisation gives greater role to the private sector and a reduced role to the public sector. Reason (R): Disinvestment means government increasing its investment in public sector enterprises.

Reasoning Options

ByteNotes

Assertion-Reason

Easy difficulty • Check the statement and reason

Easy

Question 16

Logic Check

Assertion (A): Globalisation means integration of various economies of the world leading towards a cohesive global economy. Reason (R): Physical geographical gaps or political boundaries no longer remain barriers for a business enterprise due to rapid technological advancement and liberal trade policies.

Reasoning Options

ByteNotes

Assertion-Reason

Medium difficulty • Check the statement and reason

Medium

Question 17

Logic Check

Assertion (A): Demonetisation of ₹500 and ₹1,000 notes in November 2016 led to 86% of the money in circulation becoming invalid. Reason (R): These two denominations were the largest denomination notes in circulation and their demonetisation aimed to curb black money and corruption.

Reasoning Options

ByteNotes

Assertion-Reason

Hard difficulty • Check the statement and reason

Hard

Question 18

Logic Check

Assertion (A): Demonetisation resulted in an increase in real estate prices. Reason (R): Demonetisation was aimed at curbing the use of black money, which was widely used in real estate transactions.

Reasoning Options

ByteNotes

Assertion-Reason

Medium difficulty • Check the statement and reason

Medium

Question 19

Logic Check

Assertion (A): Inter-relatedness is a feature of business environment. Reason (R): Increased life expectancy and awareness for health care have increased demand for health products and services like soft drinks, fat-free cooking oil and health resorts.

Reasoning Options

ByteNotes

Assertion-Reason

Medium difficulty • Check the statement and reason

Medium

Question 20

Logic Check

Assertion (A): Business environment is complex because it consists of numerous interrelated and dynamic conditions. Reason (R): It may be difficult to know the relative impact of social, economic, political, technological or legal factors on change in demand of a product.

Reasoning Options

ByteNotes

Chapter sections

Chapter business-environment: Business Environment | Assertion-Reason

Assertion (A): Business environment is certain and fully predictable. Reason (R): Environmental changes occur in information technology and fashion industries at a very rapid pace.

Assertion (A): Business environment is dynamic in nature. Reason (R): The business environment keeps on changing in terms of technological improvements, shifts in consumer preferences and entry of new competition.

Assertion (A): Business environment is a relative concept. Reason (R): It is difficult to understand business environment in parts, but relatively easy to grasp in totality.

Assertion (A): Understanding business environment helps firms identify opportunities and gain first mover advantage. Reason (R): Early identification of opportunities helps an enterprise to be the first to exploit them instead of losing them to competitors.

Assertion (A): Environmental awareness can serve as an early warning signal for threats. Reason (R): If an Indian firm finds that a foreign multinational is entering the Indian market with new substitutes, it should act as a warning signal.

Assertion (A): Business enterprises do not need to adapt to environmental changes if they have efficient internal operations. Reason (R): A business firm exists, survives and grows within the context of the elements and forces of its environment.

Assertion (A): Economic environment includes factors like interest rates, inflation rates, changes in disposable income and stock market indices. Reason (R): High inflation rates generally result in constraints on business enterprises as they increase costs of raw materials and wages.

Assertion (A): Social trends present various opportunities and threats to business enterprises. Reason (R): The health-and-fitness trend has created demand for products like organic food, gyms and bottled water among urban dwellers.

Assertion (A): Technological environment only affects IT and computer-related businesses. Reason (R): Continuing innovations in lasers, robotics, biotechnology, food preservatives, medicine and synthetic fuels have provided opportunities and threats for many different enterprises.

Assertion (A): Political stability builds up confidence among business people to invest in long-term projects. Reason (R): Political instability creates uncertainty about business activities due to threats to law and order.

Assertion (A): It is imperative for every enterprise to obey the law of the land. Reason (R): Non-compliance of laws can land the business enterprise into legal problems.

Assertion (A): Before 1991, the Indian government imposed several restrictions on the private sector through the licensing system. Reason (R): India faced a serious foreign exchange crisis in 1991 which forced the government to announce the New Industrial Policy.

Assertion (A): Liberalisation signalled the end of the licence-permit-quota raj in India. Reason (R): Liberalisation included abolishing licensing in most industries, freedom in scale of business, removal of movement restrictions and freedom in price fixing.

Assertion (A): Privatisation gives greater role to the private sector and a reduced role to the public sector. Reason (R): Disinvestment means government increasing its investment in public sector enterprises.

Assertion (A): Demonetisation of ₹500 and ₹1,000 notes in November 2016 led to 86% of the money in circulation becoming invalid. Reason (R): These two denominations were the largest denomination notes in circulation and their demonetisation aimed to curb black money and corruption.

Assertion (A): Demonetisation resulted in an increase in real estate prices. Reason (R): Demonetisation was aimed at curbing the use of black money, which was widely used in real estate transactions.

Assertion (A): Inter-relatedness is a feature of business environment. Reason (R): Increased life expectancy and awareness for health care have increased demand for health products and services like soft drinks, fat-free cooking oil and health resorts.

Assertion (A): Business environment is complex because it consists of numerous interrelated and dynamic conditions. Reason (R): It may be difficult to know the relative impact of social, economic, political, technological or legal factors on change in demand of a product.

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