This set of Production Planning and Control Multiple Choice Questions & Answers (MCQs) focuses on “Sales and Operation Planning – Business Environment Issues”.
1. In which of the following basic categories can business environment be divided?
a) Local and regional
b) Regional and national+
c) Internal and external
d) Financial and nonfinancial
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Explanation: Business environment is divided into two categories which are internal and external. Internal business environment includes owners, workers and machine while external business environment deals with the sales or the task to be completed.
2. _____ is a statement which derives the role of an organization plays in a society.
a) Goal
b) Mission
c) Objective
d) Success
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Explanation: Mission is set by the organization to complete the requirements of the society so mission is the statement that derives the role of the organization.
3. _____ environment is within the control of the business.
a) Internal
b) External
c) Micro
d) Macro
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Explanation: Internal environment of the business is the culture of the organization, members of the organization, events and factors within an organization. So, all the things are in control of the business.
4. _____ environment is beyond the control of business.
a) Internal
b) External
c) Micro
d) Macro
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Explanation: External environment of the business includes competition, social changes and technological changes which is not in the control of the business.
5. Which environment is close to business and affects its capacity to work?
a) Internal
b) External
c) Micro
d) Macro
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Explanation: Micro environment include factors like competitors, customers, suppliers and general public. These factors affect the capacity to work as how to increase customers and be on the top in the increasing competition.
6. Which factors create opportunities and threats to business?
a) External environment
b) Internal environment
c) Micro environment
d) Macro environment
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Explanation: Macro environment includes factors like inflation, employment, spending and trends in gross domestic product. So, these factors can create opportunities as well as threats to the business.
7. What are the elements of business ethics?
a) Values rights and duties
b) Attitudes pressure and environment
c) Value environment and attitude
d) Responsibilities
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Explanation: Business ethics include keeping the trust of the client so that they are connected to the company, creating an open environment so that it values the rights of the people and complete its duties to fulfill their demands.
8. The economic system in which business units or factors of production are privately owned and governed is called as _______
a) Socialism
b) Capitalism
c) Democratic
d) Republic
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Explanation: Capitalism is the system in which business units or factors of production are owned and governed by private owners for profit, rather than by the state.
9. One concept of culture determines the _____ of people.
a) Experience
b) Ethos
c) Education
d) Wealth
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Explanation: Ethos is the set of beliefs or ideas about the social behavior which can determine the concept of culture of the people in some different era or community.
10. What are the main concepts concerning about business goals or objectives?
a) Mission, objective
b) Mission, target
c) Mission, objective, target
d) Target, objective
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Explanation: Business goals mainly consists of three concepts which are mission, which is a futuristic part made on the basis on some previous data, objective which is a set of things to be done in order to complete the mission and target is made to make sure the objective is completed in time.
11. What is the significance of business environment?
a) First mover advantage
b) Competition
c) Information
d) Globalization
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Explanation: The significance of business environment is first mover advantage which means it is an advantage gained by first-moving significant occupant of the market segment. It can be gained by early purchase of resources.
12. Which one of the following is an example of outsourcing of components?
a) Production
b) Marketing
c) Purchase
d) Production and marketing
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Explanation: In production, the raw materials are purchased from an outside source and several other things are done by some outside supplier which makes it an example of outsourcing of components.
13. What is known as the systematic application of scientific knowledge to practical task?
a) Technology
b) Culture
c) Demographic
d) Legal
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Explanation: Scientific knowledge is used to make systematic applications which can be used for different purposes and it is best used for practical task which is called as technology.
14. _____ occupies the central place in business.
a) People
b) Finished goods
c) Labour
d) Raw material
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Explanation: Raw material occupies the central place in business. Without raw material no further processes can be done and in order to complete the production, raw materials have to be used which makes it the central place in the business.
Sanfoundry Global Education & Learning Series – Production Planning and Control.
To practice all areas of Production Planning and Control, here is complete set of Multiple Choice Questions and Answers.
