CUET UG Categorised PYQ Business Studies Unit 3

(Detailed) → Economic environment includes factors such as money supply, savings, investment, public debt, imports, exports, interest rates, and income levels. → These factors influence business decisions, purchasing power, demand, and cost of production. → The question mentions financial and economy-related indicators. → Therefore, these components belong to the Economic dimension of business environment. → Hence, Economic is the correct answer.

(Detailed) → Business environment has features such as totality of external forces, specific and general forces, inter-relatedness, dynamic nature, uncertainty, complexity, and relativity. → "Innovative" may be a quality of a business or manager, but it is not a standard feature of business environment. → Since the question asks which statement does not refer to the feature, the odd one is Innovative. → Hence, Innovative is the correct answer.

(Detailed) → The Economic Survey and tax compliance are connected with the economic environment because taxation affects income, profits, savings, and business decisions. → Tax compliance is also connected with the legal environment because taxes are governed by laws and legal rules. → The statement refers to improving tax compliance, which means following tax-related legal obligations. → Therefore, the related dimensions are Economic and Legal. → Hence, (A) and (D) only is the correct answer.

(Detailed) → (A) Legal Environment matches with (III) Statutory warning such as "cigarette smoking is injurious to health" because statutory warnings are required by law. → (B) Political Environment matches with (IV) Practices of the ruling party because government ideology and ruling party practices affect business. → (C) Economic Environment matches with (I) Rate of savings and investment because savings and investment are economic factors. → (D) Technological Environment matches with (II) Innovations and Inventions because technological environment includes scientific improvements and innovations. → Hence, (A)-(III), (B)-(IV), (C)-(I), (D)-(II) is the correct answer.

(Detailed) → Dynamic nature of business environment means that the environment keeps changing. → Changes may occur in customer preferences, technology, fashion, government policies and market conditions. → In the case, RS Infotech is planning to enter the organic cosmetics market due to changing tastes and preferences of customers. → This clearly shows that the business environment is dynamic. → Hence, Dynamic is the correct answer.

(Detailed) → LPG Model refers to the major economic reforms introduced in India. → It stands for Liberalisation, Privatisation and Globalisation. → Liberalisation means reducing restrictions and controls. → Privatisation means increasing the role of the private sector. → Globalisation means integrating the Indian economy with the world economy. → Hence, Liberalisation, Privatisation and Globalisation is the correct answer.

(Detailed) → Globalisation means the integration of various economies of the world. → It leads to greater movement of goods, services, capital, technology and information across countries. → The statement mentions integration of economies and emergence of a cohesive global economy. → This directly defines Globalisation. → Hence, Globalisation is the correct answer.

(Detailed) → (A) General stability and peace in country matches with (IV) Political environment because political stability affects business operations. → (B) Legislations passed by the government matches with (III) Legal environment because laws and regulations form the legal environment. → (C) Inflation rates, changes in income matches with (I) Economic environment because these are economic factors. → (D) Custom, traditions, values matches with (II) Social environment because social environment includes customs, traditions and values. → Hence, (A)-(IV), (B)-(III), (C)-(I), (D)-(II) is the correct answer.

(Detailed) → Globalisation means integration of the economy of a country with the world economy. → It encourages free movement of goods, services, capital and technology across national boundaries. → It increases interaction and interdependence among nations. → Restrictions on import reduce international trade and create barriers. → Therefore, Restrictions on import is not a part of Globalisation. → Hence, Restrictions on import is the correct answer.

(Detailed) → India has become the second largest manufacturer of mobile phones in the world. → This growth has been supported by domestic manufacturing initiatives, investment in electronics manufacturing and schemes such as Production Linked Incentive. → The question specifically asks the product in which India has achieved the second largest manufacturing position. → Hence, Mobile phones is the correct answer.

(Detailed) → Business environment includes specific forces and general forces. → General forces include economic, social, political, legal and technological conditions. → These forces affect business enterprises broadly and indirectly. → Political and Social Environment are both general forces of business environment. → Hence, Political and Social Environment is the correct answer.

(Detailed) → Production Linked Incentive is a government measure that encourages production and investment. → It helps boost domestic manufacturing and improves economic activity. → Since it directly relates to production, investment, industry and growth, it belongs to the economic dimension of business environment. → Hence, Economic is the correct answer.

(Detailed) → India has developed its defence manufacturing capacity and has started exporting defence equipment to other countries. → This reflects improvement in domestic production, technology and strategic manufacturing capacity. → The question asks the product category in which India has recently become an exporter. → Hence, Defence equipments is the correct answer.

(Detailed) → Political environment includes political conditions, government policies, political stability and attitude of government towards business. → When the Government of India takes tough decisions to achieve high standards in different fields, it reflects the political dimension of business environment. → Government policy-making and decision-making are central parts of political environment. → Hence, Political is the correct answer.

(Detailed) → (A) Legal Environment matches with (III) Judgements because legal environment includes laws, court decisions and legal orders. → (B) Technological Environment matches with (IV) Advancements in computers because computers are part of technological development. → (C) Political Environment matches with (II) Political conditions because political stability and government attitude affect business. → (D) Social Environment matches with (I) Customs and Tradition because social environment includes customs, traditions, values and beliefs. → Hence, (A)-(III), (B)-(IV), (C)-(II), (D)-(I) is the correct answer.

(Detailed) → Business environment is complex because it consists of many interrelated forces. → These forces include social, economic, political, technological and legal factors. → It may be difficult to know the exact impact of each factor on the demand of a product. → The statement clearly highlights difficulty in understanding and analysing environmental forces. → Hence, Complexity is the correct answer.

(Detailed) → Political environment includes political conditions, government policies, political stability and attitude of government towards business. → The extent and nature of government intervention in business depends on political decisions and policy direction. → Therefore, the given statement refers to the political dimension of business environment. → Hence, Political is the correct answer.

(Detailed) → Economic environment includes economic factors that affect business activities. → These factors include money supply, public debt, income level, inflation rate, interest rate, savings and investment. → Money supply and public debt directly influence economic conditions and business decisions. → Hence, Economic Environment is the correct answer.

(Detailed) → Business environment includes various dimensions such as economic, social, technological, political and legal. → Online booking of air tickets is possible due to the use of internet, computers, software and digital platforms. → These developments are related to technology. → Therefore, online booking of air tickets is included under the technical or technological dimension of business environment. → Hence, Technical dimension is the correct answer.

(Detailed) → Economic environment refers to economic factors that affect business activities. → It includes factors such as money supply, inflation rate, interest rate, income level, public debt and economic policies. → "Money supply in economy" directly relates to economic conditions. → Hence, it is an example of economic environment. → Therefore, the correct answer is Money supply in economy.

(Detailed) → Legal environment consists of laws, rules, regulations and legal institutions that affect business operations. → Trade Union Act is a law related to trade unions and labour-management relations. → Since it is a legal provision, it comes under the legal environment. → Therefore, the correct answer is Trade Union Act.

(Detailed) → Business environment has features such as totality of external forces, inter-relatedness, dynamic nature, uncertainty, complexity and relativity. → "Market orientation and product" is not a characteristic of business environment. → It is related to marketing approach and product decisions. → Since the question asks what does not characterise business environment, the correct answer is Market orientation and product.

(Detailed) → Technological environment includes scientific improvements, innovations and digital systems affecting business. → UPI is a digital payment technology that changes the way transactions are made. → Its introduction across rural India reflects technological development and adoption. → Since the question focuses on UPI payments, the dimension is technological. → Hence, Technological Environment is the correct answer.

(Detailed) → Business environment refers to external forces that affect the performance of a business. → Its features include totality of external forces, specific and general forces, interrelatedness, dynamic nature, uncertainty, complexity and relativity. → Formal hierarchy refers to the internal authority structure of an organisation. → Since it is not a feature of business environment, Formal hierarchy is the correct answer.

(Detailed) → Legal environment consists of laws, rules, regulations, administrative orders and court judgments affecting business. → Trade policies, taxation rules and subsidies are part of the regulatory framework within which businesses operate. → These rules guide business activities and must be followed by organisations. → Since the question refers to rules and policies, it falls under Legal Environment. → Hence, Legal Environment is the correct answer.

(Detailed) → (A) Economic Environment matches with (IV) Interest rates, inflation, and GDP because these are economic indicators. → (B) Political Environment matches with (II) Government stability and policy attitude because politics affects government policies. → (C) Social Environment matches with (III) Traditions, values, and lifestyles because these are social factors. → (D) Legal Environment matches with (I) Laws, court decisions, and legal orders because these form the legal framework. → Hence, (A)-(IV), (B)-(II), (C)-(III), (D)-(I) is the correct answer.