NCERT Solutions Class 12 Business Studies Chapter 3

NCERT Solutions Class 12 Business Studies Chapter 3- Business Environment

Extramarks Business Studies Chapter 3 NCERT Solutions Class 12 helps students understand every topic covered in the chapter Business Environment. Students get a thorough understanding of the chapter and the importance it holds in day-to-day business life. NCERT Solutions Class 12 Business Studies Chapter 3 allows students in Class 12 to understand and revise important concepts, definitions, and questions and answers. Furthermore, as they are exclusively created by experts, these study materials are considered to be credible. Students are encouraged to use NCERT Solutions even for last-minute test preparation and revision.

NCERT Solutions for Class 12 Business Studies Chapter 3- Business Environment are written in simple language with point-by-point explanations. Students can access a variety of additional study tools on the Extramarks website in addition to the NCERT solutions. They may access CBSE revision notes, CBSE sample papers, CBSE past years’ question papers, and so on Extramarks. 

Key Topics Covered In NCERT Solutions Class 12 Business Studies Chapter 3

Following are the key topics covered in NCERT Solutions Class 12 Business Studies Chapter 3- Business Environment:

Students should be able to grasp all the topics of Chapter 3- Business Environment to be able to get comprehensive knowledge of the chapter. Students may consider referring to NCERT Solutions Class 12 Business Studies Chapter 3 provided by Extramarks to help students prepare for their forthcoming examinations. The fundamentals are explored in great detail to help students understand the concepts. With the help of these answers, students will obtain a complete comprehension of all of the chapters.

Here’s the detailed information on each subtopic in NCERT Solutions Class 12 Business Studies Chapter 3 Business Environment.

Meaning of Business Environment

The term “business environment” refers to all external factors that have an impact on a company’s success. Such influences include economic, social, political, technical, and legal forces, to name a few. The business environment is influenced by individuals, consumers, the government, and legal concerns. Changes in client tastes and preferences, as well as changes in government policies, the political environment, and legal restrictions, all influence the business climate. Although such variables are beyond an organisation’s control, they positively or negatively impact its success. For example, a movement in customer preferences toward a company’s goods boosts demand for that company’s product. When a new technology is launched, the company’s present technology becomes obsolete, and its goods become inferior.

Importance of Business Environment

Extramarks NCERT Solutions Class 12 Business Studies Chapter 3 presents before you the importance of the Business Environment: 

• Gaining a competitive advantage and recognising opportunities: Opportunities are positive external trends or changes that help a firm enhance its performance. In the environment, there are various opportunities for commercial success.
• Early warning signals and threat identification: Threats are changes in the external environment that hamper a company’s performance. A study of the business environment helps an organisation detect hazards or negative signals that may negatively influence its operations, in addition to bright possibilities.
• Collecting helpful Resources: A company’s environment provides a range of resources or inputs, including raw materials, machinery, and labour. On the other hand, enterprises provide goods and services that benefit the environment.
• Adapting to changes: The corporate world is a fast-paced environment. Technology, client preferences, and government legislation are all constantly changing. A detailed examination and knowledge of the environment aid an organisation’s capacity to deal with these changes and take necessary action.
• Making Policies and Plans: A continual study of the environment aids an organisation’s capacity to detect possibilities and threats. As a result, the organisation is better able to adopt suitable plans and policies in light of the current circumstances.
• Improving Performance: Continuous environmental analysis aids organisations in developing suitable policies and programmes, which leads to increased performance. 

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Elements of Business Environment

Refer to Extramarks NCERT Solutions Class 12 Business Studies Chapter 3 to get a detailed explanation of Elements of Business Environment:

• Economic Environment: Interest rates, income, and stock market indexes are examples of economic factors that have an influence on how businesses run. For example, a rise in income has an effect on a company’s demand for goods and services.
• Social Environment: The social environment includes the social factors of conventions, traditions, social values, and social trends. Religious festivities, for example, give chances for a wide range of enterprises, including those that provide sweets, decorations, and other items.
• Technological Environment: The technical environment includes technological breakthroughs and advancements. For example, computers, the internet, and new telecommunications infrastructure all have an influence on organisations.
• Legal Environment: The Companies Act and the Trade Union Act are examples of government laws and guidelines. These rules govern how a business works and behaves. Businesses must understand these rules since noncompliance might put them in legal trouble.
• Political Environment: Political conditions such as peace and stability and law and order make up the political business environment. That confidence might be shattered by political turmoil. Similarly, the attitudes of government officials towards business may have a positive or negative influence on the economy. For example, a state of political unrest erodes investor confidence and makes it difficult for firms to function efficiently.

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Economic Environment in India

The Indian economic environment is made up of a number of macro-level elements that affect business and industry, such as the means of production and wealth distribution. Since independence, the business climate in India has been continuously evolving, owing primarily to government policy. To address our country’s economic issues at the time of independence, the government adopted a number of initiatives, including state ownership of major sectors, central planning, and a reduction in the influence of the private sector. These measures yielded mixed results until 1991, when the Indian economy was hit by a severe foreign exchange crisis, a large government deficit, and an upward price trend despite bountiful harvests. Refer to Extramarks NCERT Solutions Class 12 Business Studies Chapter 3 for more knowledge on the subject.

Liberalisation

The term “liberalisation” refers to eliminating unnecessary rules and restrictions like licences, permits, and quotas by the government. The following is a diagram of India’s industrial liberalisation.

• Starting a business no longer requires a licence.
• Companies regained control over the scope and scale of their manufacturing, as well as the pricing of their goods.
• Trade restrictions on products and services were lifted.

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Privatisation

Privatisation implies giving the private sector a more significant role while restricting the role of the public sector. The following is how privatisation in India proceeded.

• Public-sector businesses are being disinvested.
• Creating an Industrial and Financial Reconstruction Board to assist ailing and losing enterprises in regaining their footing.
• Reducing the government’s ownership of public-sector companies.

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Globalisation

Globalisation is the procedure through which different economies around the world come together to become one. It requires removing barriers to import and export, such as licensing and taxes. India adopted the following policies in terms of globalisation.

• Import restrictions are lifted.
• Abolition of the export tax.
• Import tax reduction

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Impact of Government Policy Changes on Business and Industry

Liberalisation, privatisation, and globalisation policies of the government have an influence on how firms function. The following points emphasise the implications of government policy changes on business and industry. NCERT Solutions Class 12 Business Studies Chapter 3 by Extramarkspresent point wise explanation of the subject.

• Increased Competition: Domestic enterprises face increasing competition due to efforts such as reducing licencing requirements and cutting import tariffs.
• Increased Demand: As the quantity of goods and services accessible to customers expands, so does competition. As a result, consumers have access to higher-quality products and a more comprehensive range of options.
• Policy Changes: Government policies have a direct influence on how firms run. As a result, they’ll have to change their policies.
• Changes in Technology: As the market grows more competitive, companies must find new and innovative methods to stay afloat. Technical breakthroughs are essential in this case.
• The Need for Trained Staff: Product innovation and improvement, as well as the implementation of new technologies, demand the use of skilled and trained personnel. Human resource development becomes important as a result.
• Increased Market Orientation: As competition has grown, manufacturing has become more market-oriented.

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NCERT Solutions Class 12 Business Studies Chapter 3 Business Environment NCERT Solutions

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Business Studies Class 12 Chapter 3: Very Short Answer Type Questions

Business Studies Class 12 Chapter 3: Short Answer Type Questions

Business Studies Class 12 Chapter 3: Long Answer Type Questions

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By referring to Extramarks NCERT Solutions Class 12 Business Studies Chapter 3, students can easily understand the Nature and Significance of Management.

Key Features of NCERT Solutions Class 12 Business Studies Chapter 3

Students must study all vital topics in order to do well in the exam. Practicing is the best way to beat exam stress. Hence, NCERT Solutions Class 12 Business Studies Chapter 3 providea detailed solution to all questions. Students must choose Extramarks for all their learning needs due to the following reasons:

• It covers all the chapter end questions along with their comprehensive answers explained in detailed with appropriate examples.
• All solutions are given in a comprehensive and easy to understand  way which gives students an idea of how to attempt a question in the board exam in the right manner
• By laying a foundation and explaining the chapter’s fundamental principles, the answers help in eliminating the student’s doubts and confusion.
• The solutions are prepared by experts in the field of Business Studies.