Students get through the TN Board 12th Commerce Important Questions Chapter 19 Environmental Factors which is useful for their exam preparation.
TN State Board 12th Commerce Important Questions Chapter 19 Environmental Factors
Very short answer questions
Question 1.
Mention the types of the business environment.
Answer:
The business environment can be classified as follows:
(i) Internal environment
(ii) External environment
(iii) Micro environment
(iv) Macro environment
Question 2.
What is the external environment?
Answer:
Factors outside the business which have a bearing on the working of a business can be termed as the external environment.
Question 3.
Mention the international environmental factors which affect a business.
Answer:
- Differences in language and cultural
- Differences in currencies
- Differences in norms and practices
- Differences in tastes and preferences of people
- The tax structure relating to import and export
- Differences in the degree of adoption of technology
Question 4.
In what way management structure will function?
Answer:
The structure of management/board and their style of functioning the level of professionalism of management the composition of the board are the various factors that affect the decision making. The board is the highest decision-making authority and it plays a very critical role in the growth and development of an organization.
Question 5.
The image of an organization plays an important role – explain.
Answer:
- Introducing a new product.
- Select agents and dealers for distribution.
- Forgiving alliances with suppliers.
- Expanding and entering new markets both domestic and international.
- Raising finance.
Question 6.
Explain the types of taxes under GST.
Answer:
There are three taxes applicable under their system CGST – collected by the Central Government on an intra-state sale SGST – collected by the State Government on an intra-state sale IGST – collected by the Central Government for inter-state sale.
Question 7.
What is the value system practiced by an organization?
Answer:
External business associates like suppliers and distributors consider the value system practiced by an organization with a strong culture of ethical standards and values.
Question 8.
What is environmental scanning?
Answer:
It helps the firms to identify threats that may affect the business measures that can be taken by the firm to overcome the threats. Environmental scanning is the gathering of information from an organization’s Internal and External environments and careful monitoring of this environment to identify future threats and opportunities.
Short answer questions
Question 1.
Write about the Geophysical environment.
Answer:
The natural, geographical and ecological factors have bearing on the business.
These are as follows.
- The availability of natural resources like mineral oil etc. Since setting up of industries requires the availability of raw materials.
- The weather and climatic conditions and availability of water and other natural resources are essential for the agricultural sector.
- Topographical factors like the terrain impact type of business since the demand and consumption pattern may vary in these regions.
- Ecological factors are now gaining momentum since Governments across the globe are farming stringent policies for ecological conservation and prevention of pollution.
- The location of certain industries is influenced by geographical conditions.
Question 2.
Discuss global environment.
Answer:
With the rapid growth of technology, the physical boundaries are fast disappearing and the new global market is emerging. The international environmental factors which affect a business are as follows:
- Differences in language and culture.
- Differences in currencies.
- Differences in norms and practices.
- The tax structure relating to Import and Export.
- Differences in the degree of adoption of technology.
- Differences in taste and preferences of people.
Long answer questions
Question 1.
Explain the channel members of marketing.
Answer:
- The marketing intermediaries serve as a connecting link between the business and its customers.
- The middlemen like dealers, wholesalers, and retailers ensure the transfer of products to customers.
- Physical distribution is facilitated by transporters and warehouses help in storing goods.
- Marketing research agencies help the firm to understand the needs of the customers while advertising agencies help in promoting the products and services. The insurance firm is another marketing intermediary which provides coverage for risk in business.
Question 2.
Explain the recommendation to the union and state under the goods and service tax council.
Answer:
- The taxes, cesses, and surcharges levied by the union, the states, and local bodies may be subsumed in the goods and service tax.
- The goods and service tax that may be subjected to or exempted from the goods and service tax.
- Model goods and service tax laws, principles of levy, apportionment of goods and services tax levied on supplies in the course of inter-state trade or commerce under article 269A, and the principles that govern the place of supply.
- The rates including floor rates with bands of goods and service tax.
- Any special rate or rates for a specified period to raise additional resources during any natural calamity or disaster.
- Any other matter relating to the goods and services tax as the council may decide.
- Special provision with the respect to states of Arunachal Pradesh, Assam, Jammu and Kashmir, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, Tripura, Himachal Pradesh, and Uttarkhand.
Multiple-choice questions
1. ……….. is an integral part of the social system.
(a) Business
(b) Environment
(c) Technology
(d) Factors
Answer:
(a) Business
2. ………. is essential for taking important decisions and ensuring success.
(a) Business environment
(b) Organization
(c) Business aid
(d) None
Answer:
(a) Business environment
3. It is quickly responding to the changing environment and needs of people:
(a) Business aid
(b) Scanning
(c) Public image
(d) Plan
Answer:
(c) Public image
4. Mention the internal factors affecting the business environment.
(a) Value system
(b) Marketing
(c) Financiers
(d) Competitions
Answer:
(a) Value system
5. ……….. agencies help the firm to understand the needs of the customer.
(a) Market research
(b) Customers
(c) Competitors
(d) None
Answer:
(a) Market research
6. Find out the macro-environmental factor:
(a) Technological environment
(b) Goods and services tax
(c) Company image
(d) Value system
Answer:
(a) Technological environment
7. The success of a business is dependent on its ability to adopt:
(a) Microenvironment
(b) Macro environment
(c) Goods and service tax
(d) None
Answer:
(b) Macro environment
8. ……… is a free enterprise market where individual ownership of wealth.
(a) Socialist
(b) Mixed
(c) Capitalist
(d) Political
Answer:
(c) Capitalist
9. …….. refers to the sum total of factors of the society in which the business is located.
(a) Business environment
(b) Legal
(c) Political environment
(d) Social environment
Answer:
(d) Social environment
10. Find out the Demographic factors.
(a) literacy level
(b) composition
(c) size
(d) all the above
Answer:
(d) all the above
11. The natural geographical and ecological factors that have a bearing on the business is known as:
(a) Political environment
(b) Legal environment
(c) Economic environment
(d) Geophysical environment
Answer:
(d) Geophysical environment
12. …….. has created a global market:
(a) Information
(b) Telecommunication
(c) Both (a) and (b)
(d) None
Answer:
(c) Both (a) and (b)
13. Which is used in managing inventory, storing goods in a warehouse?
(a) Technology
(b) Competitors
(c) Location
(d) All the above
Answer:
(a) Technology
14. It is a set of rules and policies which governs a company:
(a) Corporate governance
(b) Tax structure
(c) Geographical
(d) Research
Answer:
(a) Corporate governance
15. ……… is the indirect tax levied on goods and services across the country.
(a) Policies
(b) VUCA
(c) Incentives
(d) Goods and services tax
Answer:
(d) Goods and services tax