Samacheer Kalvi 12th Commerce Solutions Chapter 19 Environmental Factors

Students can Download Commerce Chapter 19 Environmental Factors Questions and Answers, Notes Pdf, Samacheer Kalvi 12th Commerce Book Solutions Guide Pdf helps you to revise the complete Tamilnadu State Board New Syllabus and score more marks in your examinations.

Tamilnadu Samacheer Kalvi 12th Commerce Solutions Chapter 19 Environmental Factors

Samacheer Kalvi 12th Commerce Environmental Factors Textbook Exercise Questions and Answers

I. Fill in the blanks

  1. VUCA stands for ________, ________, ________, ________.
  2. GST stands for ________, ________, ________.
  3. Factors within an organisation constitutes ________ environment.
  4. Macro Environment of business is an ________ factor.
  5. The two major types of business environment are ________ and ________.
  6. ________ environment includes weather and climatic conditions.
  7. The size and composition of the population is part of ________ environment.

Answer:

  1. volatility, uncertainty, complexity, ambiguity
  2. Goods and Service Tax
  3. Internal
  4. Economical
  5. Internal, External
  6. Geo-Physical
  7. Socio-Cultural

II. Very Short Answer Questions

Question 1.
Define Business environment.
Answer:
According to Bayard O Wheeler, Business environment is “the total of all things external to firms and industries which affect their organisation and operations”.

Samacheer Kalvi 12th Commerce Solutions Chapter 19 Environmental Factors

Question 2.
What is internal environment?
Answer:
Internal environment refers to those factors within an organisation e.g. Policies and programmes, organisational structure, employees, financial and physical resources.

Question 3.
Give the meaning of corporate governance.
Answer:
Corporate governance is a set of rules and policies which governs a company. It provides a frame work for managing a company and achieving its objectives.

Question 4.
What is GST?
Answer:
GST is the indirect tax levied on goods and services across the country. It is a comprehensive, multi-stage, destination-based tax that is levied on every value addition.

Question 5.
Expand VUCA.
Answer:
VUCA-volatility, uncertainty, complexity and ambiguity.

Question 6.
What is mixed economy?
Answer:
Mixed economy is a combination of both state owned and private sector ownership.

III. Short Answer Questions

Question 1.
Explain the natural environment of business.
Answer:
Geo-physical environment – The natural, geographical and ecological factors have a bearing on the business. These are as follows:

  1. The availability of natural resources like minerals oil .etc, since setting up of industries requires availability of raw materials.
  2. The weather and climatic conditions and availability of water and other natural resources is essential for the agricultural sector.
  3. Topographical factors like the terrain impacts type of business since the demand and consumption pattern may vary in these regions.
  4. Location of certain industries is influenced by the geographical conditions.
  5. Availability of natural harbors and port facilities for transporting goods

Question 2.
What are the political environment factors?
Answer:
Political and Legal environment – The framework for running a business is given by the political and legal environment.

  1. Political stability is reflected by the following parameters like the election system, the law and order situation.
  2. The image of the leader and the country in the international arena.
  3. The constitution of the nation.

Samacheer Kalvi 12th Commerce Solutions Chapter 19 Environmental Factors

Question 3.
Write about any three internal environmental factors of business.
Answer:
The major internal factors affecting business decisions are:

  1. Values system: The values of the founder/owner of the business, percolates down to the entire organisation and has a profound effect on the organisation.
  2. Vision and objectives: The vision and objectives of a business guides its operations and strategic decisions.
  3. Management structure: 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 which affect the decision making.

Question 4.
State the framework of Corporate Governance in India.
Answer:
The Indian Corporate Governance framework requires listed companies:

  1. to have independent directors on the board. At least one third of the directors have to be independent directors.
  2. to have at least one independent woman director.
  3. to disclose all deals and payments to related parties.
  4. to disclose details of managerial compensation.

Question 5.
What are the functions of the GST council?
Answer:
The functions of GST Council:

  1. The GST council can recommend to the Central and State Government oh issues relating to GST.
  2. The Goods and Services that may be subjected to or exempted from the Goods and Services Tax.
  3. Model GST laws, principles of levy are framed by the GST council.
  4. The rates including floor rates with bands of Goods and Services Tax.

Question 6.
Write a note on future environment of business.
Answer:
The future environment of business in this age of rapid technological advancement has been captured aptly. It is now important for every business to meet the challenges posed by the environment in order to remain competitive.The presence of complex variables impacting business should be understood apd alternative measures for solving the issues should be developed.

Samacheer Kalvi 12th Commerce Solutions Chapter 19 Environmental Factors

Question 7.
What do you know about Technological environment?
Answer:
The development in the IT and telecommunications has created a global market. Technology is widely used in conducting market research for understanding the special needs of the customer. This dynamic environment also includes the following:

  1. the level of technology available within the country
  2. rate of change in technology
  3. technology adopted by competitors
  4. technological obsolescence

IV. Long Answer Questions

Question 1.
Discuss the role of macro environment of business.
Answer:
This is the general or overall environment in which the business operates. The success of a business is dependent on its ability to adapt to the macro environment.
Role of Macro-environment:

  1. The business is an integral part of the economic system prevalent in a nation.
  2. Business is a part of the society. Social environment refers to the sum total of factors of the society in which the business is located.
  3. The success of a business lies in its ability to adapt and sustain to political and legal changes. The legislative, executive and judiciary are the three political institutions which directs, and influences a business.
  4. The natural, geographical and ecological factors have a bearing on the business.

Samacheer Kalvi 12th Commerce Solutions Chapter 19 Environmental Factors

Question 2.
Describe the economic and social-cultural environment of business.
Answer:
Economic Environment: The multiple variables in the macro environment system which has a bearing on a business include:

  1. The nature of economy is based on the stage of development. The countries across the globe can be categorized on the basis of growth and per capital income as developed nations, developing nations and under developed nations.
  2. The economic systems can be classified as Capitalistic, Socialistic and Mixed economy.
  3. The economic policies of a nation are: Monetary policy, Fiscal policy, Industrial policy, Foreign exchange policy and Export-import policy. Social -Cultural environment: Social environment refers to the sum total of factors of the society in which the business is located. It is dynamic and includes the behaviour of individuals, the role and importance of family, customs, religion and languages, the ethical values.

Question 3.
Explain the micro environmental factors of business.
Answer:
Micro environmental factors are those, which are in the immediate environment of a business affecting its performance. These include the following:

  1. Suppliers: In any organisation the suppliers of raw materials and other inputs play a vital role. Timely procurement of materials from suppliers enables continuity in production and reduces the cost of production.
  2. Customers: The aim of any business is to satisfy the needs of its customers. The customer is the king of the business.
  3. Competitors: All organisations face competition at all levels local, national and global. Competitors may be for the same product or for similar products.
  4. Financiers: The financiers of a business includes the debenture holders and financial
    institutions.
  5. Marketing Channel members: The marketing inter-mediaries serve as a connecting link between the business and its customers. The middlemen like dealers, wholesalers and retailers ensure transfer of product to customers.

Samacheer Kalvi 12th Commerce Solutions Chapter 19 Environmental Factors

Question 4.
Discuss the significance of understanding business environment and the internal factors affecting business.
Answer:
A business in order to remain successful and competitive has to adapt to the constantly changing environment. The significance of understanding the business environment is as follows:

  1. Helps in formulating strategy and future planning.
  2. The analysis of business environment helps a business to identify new opportunities.
  3. Environment scanning helps the firms to identify threats which affect the business.

Internal factors of environment:

  1. Value system: The success of an organisation depends upon the sharing of value systems by all members.
  2. Vision and objectives: The vision and objectives of a business guides its operations and strategic decisions.
  3. Management structure: The structure of management/board and their style of functioning, the composition of the board.
  4. Internal power relations: This refers to the internal power relations that exist in an organisation. The relations among board members, and the CEO and employees, shareholders are the factors affecting in taking decisions.

Samacheer Kalvi 12th Commerce Environmental Factors Additional Questions and Answers

I. Fill in the blanks

  1. Internal factors can be changed or altered and are known as______ factors.
  2. ______ lays down the rules and responsibilities of stakeholders of a company.

Answers:

  1. controllable
  2. corporate governance

II. Very Short Answer Questions

Question 1.
What is Social – Cultural environment?
Answer:
Business is a part of the society. Social environment refers to the sum total of factors of the society in which the business is located. It affects the business.

Samacheer Kalvi 12th Commerce Solutions Chapter 19 Environmental Factors

III. Short Answer Questions

Question 1.
What are the micro environment factors?
Answer:
Micro environment factors refers to those factors which are in the immediate environment of a business affecting its performance.
It includes:

  • Suppliers
  • Customers
  • Competitors
  • Financiers
  • Marketing Channel members
  • Public

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