Worksheet-1 (PYQ)

Chapter-3 Business Environment

1. Salim and Karim are good friends. They started a business of selling high quality seeds for growing organic vegetables.
They are offering 200 varieties of vegetable seeds suitable for terrace gardens, balconies and backyards. Due to the
growing trend towards healthy consumption habits, there is a huge demand for their seeds. The dimension of
business. environment being discussed above is: (A) Economic Environment (B) Political Environment (C) Social
Environment (D) Legal Environment (1 mark CBSE 2025)
2. Alfa Graphics Ltd. was a reputed Indian company which had been in business for many years. The Chief Executive
Officer of the company, Rohit Gupta always believed in understanding the business environment as well as
responding and adapting to it. When he found that a foreign multinational company, Leno Graphics, is entering the
Indian market with new substitutes, he prepared to meet this threat by reducing cost and creating good quality and
aesthetically appealing layouts, advertisements, logos etc. As a result, Alfa Graphics Ltd. was not only able to retain
its own customers, but also started getting new projects: The point of importance of Business Environment
discussed above is: (A) Tapping useful resources. (B) Identifying threats and early warning signals (C) Improving
performance (D) Identifying opportunities and getting first mover advantage. (1 mark 2025)
3. 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 and payment of wages and salaries to employees etc. The dimension
of business environment referred to above is: (A) Political Environment (B) Technological Environment (C) Social
Environment (D) Economic Environment (1 mark CBSE 2025)
4. Identify and explain the dimension of business environment in each of the following situations: (6 marks CBSE
2025)
I. 'Alexa pay my electricity bill' is the latest feature of Alexa App which enables Amazon customers to pay
their utility bills with 'Amazon Pay' just by speaking to Alexa.
II. Monika is working in a multi-national company. As an impact of work-from-home regime, she is now in a
better position to inculcate moral values and healthy food habits in her children.
III. Atisha purchased a home and for this she took a loan from the bank. Monthly instalment on her loan
increased as the banks increased the interest rate on loans.
IV. 'Mother's milk is best for babies' is printed on the pack of 'First Bite' baby milk powder, produced by 'MQP
Baby Food Ltd. By doing this, the company is not only protecting the consumers' interests, but also
necessarily informing its potential buyers about the importance of mother's milk.
5. Sweets has been the mainstay for several large homegrown restaurant brands. Increased life expectancy of people
and increased awareness for health care amongst consumers has increased the demand for healthy food options.
Young consumers are moving away from consuming traditional sweets to buying more western style premium
products which are baked or steamed. With this shift in consumer preferences, ‘Shree Restaurants’, a well known
restaurant brand, is gearing itself up for playing a greater role in the healthy packaged foods market. In addition to
traditional sweets, the company is also planning to expand to healthy savoury and sweet items and some ready-to-
eat items. These new healthy products are expected to change people's lifestyles. Identify and explain the two
features of Business Environment highlighted in the above case. (3 marks CBSE 2025)
6. The Go-Vegan Movement has been an integral part of western nations owing to its numerous health and
environmental benefits. India too has witnessed a propelling vegan food market. Concerned with the quality of life,
 people have shifted to a variety of plant-based food alternatives that offer great taste and health benefits and
strengthen the immune system. The dimension of business environment discussed above is: (1 mark CBSE 2025)
(A) Economic environment (B) Social environment (C) Technological environment (D) Political environment
7. Assertion (A): Increased life expectancy of people and increased awareness for health care have increased the
demand for many health products and services.
Reason (R): Different elements of business environment are not inter-related. Choose the correct alternative from
the options given below: (1 mark CBSE 2025)
(A) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A).
(B) Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A).
(C) Assertion (A) is true, but Reason (R) is false.
(D) Assertion (A) is false, but Reason (R) is true.
8. Due to increasing presence of women in the workforce, ‘Kisan Mart' comes out every Friday with big discount offers
on daily use items to attract office-going women to shop on weekends. Which dimension of business environment is
being highlighted in the above case? (1 mark CBSE 2024)
(A) Social environment (B) Legal environment (C) Political environment (D) Technological environment
9. Raunaq, while studying at the university, felt that there should be a food joint in the university campus to provide
food to students round the clock After passing out of college, he set up 'Hunger Point', a food joint with a varied
menu ranging from burgers, pizzas, street food and much more, in the university campus. For this, he obtained
necessary permissions from the university administration. Since he was the first one to recognize the need for a food
joint for all the students in an environment where students study day and night, it soon became a popular eating
joint. Within six months, 'Hunger Point' started earning good profits. Identify the point of importance of business
environment discussed in the above case. (1 mark CBSE 2024)
10. Statement - I: Business Environment is dynamic as it differs from country to country.
Statement II: Business Environment is largely uncertain as it is very difficult to predict future happenings. Choose the
correct option from the following: (1 mark CBSE 2024)
(A) Statement I is true and Statement II is false.
(B) Statement II is true and Statement I is false.
(C) Both the statements are true.
(D) Both the statements are false.
11. Samaira and her friend, Sana wanted to watch a movie over the weekend. They booked the movie tickets online and
chose the seats as per their preference at the click of a button at the desired movie hall. Now going to theatre for
booking of tickets is no longer required. The dimension of business environment reflected in the above para is:
(1mark CBSE 2024)
(A) Political environment (B) Social environment (C) Legal environment (D) Technological environment
12. Rajat was carrying on a business of manufacturing plastic disposables like plastic plates, plastic cups and plastic straws.
He heard about the upcoming ban on single use plastics. He was able to identify this external enviornmental trend
which could hinder his firm's performance. So he took action and shifted to manufacturing the plates, cups and
straws from bamboo and palm leaves. As a result, his business not only survived but was able to generate profit. The
point of importance of Business Environment highlighted above is: (1 mark CBSE 2024)
(A) It enables the firm to identify opportunities and getting the first mover advantage.
(B) It helps the firm to identify threats and early warning signals.
 (C) It helps in tapping useful resources.
(D) It helps in assisting in planning and policy formulation.
13. ‘Since business environment consists of numerous interrelated and dynamic conditions or forces which arise from
different sources, it becomes difficult to comprehend at once what exactly constitutes a given environment'. Thus it
is relatively easier to understand the environment in parts but difficult to grasp in its totality. Identify the feature of
business environment highlighted above (1 mark CBSE 2024)
(A) Uncertainty (B) Complexity (C) Relativity (D) Dynamic nature

14. As per Plastic Waste Management Rule 2022, single use plastic items were prohibited in Delhi from 1 July, 2022.
The dimension of business environment referred to here is- (1 mark CBSE 2024)
(A) Economic environment (B) Legal environment (C) Technological environment (D) Political environment