Dear Readers, Here we have given Practice English Reading Comprehension quiz and questions for IBPS/Indian Bank PO Prelims 2018 Exams with detailed explanation. Candidates those who are preparing for Upcoming Bank Exams can make use of it.[WpProQuiz 3892]
Direction (1-10): Read the passage carefully and answer the following questions.
All living creatures including human beings live within an environment. Apart from the natural environment, environment of humans include family, friends peers and neighbors. It also includes man-made structures such as buildings, furniture, roads and other physical infrastructure. The individuals do not live in a vacuum. They continuously interact with their environment to live their lives.
Just like human beings, business also does not function in an isolated vacuum. Businesses function within a whole gambit of relevant environment and have to negotiate their way through it. The extent to which the business thrives depends on the manner in which it interacts with its environment. A business, which continually remains passive to the relevant changes in the environment, is destined to gradually fade-away in oblivion. To be successful business not only recognize different elements of the environment but also respect, adapt to or have to manage and influence them. The business must continuously monitor and adapt to the environment if it is to survive and prosper.
Business Environment means a collection of all individuals, entities and other factors, which may or may not be under the control of the organisation, but can affect its performance, profitability, growth and even survival. Every business organisation operates in a distinctive environment, as it cannot exist in isolation. Such an environment influence business and also gets affected by its activities.
The environment in which the business operates changes continuously because there is a wide variety of factors that exist in the environment, causing it to change its shape and character. There are many forces, events and conditions that constitute business environment, arising from various sources. So, it is a bit difficult to understand the relative influence of a particular factor, on the operation of the organisation.
Uncertainty is an inherent characteristic of business environment because it is unpredictable and nobody can tell what is going to happen in future.A single change in the business environment, can be viewed differently by different observers because their perceptions vary.
On the basis of extent of intimacy with the firm, the environmental factors may be classified into different levels or types. There are broadly two types of environment, the internal environment, i.e. factors internal to the firm and the external environment i.e. factors external to the firm which have relevance to it. The internal factors are generally regarded as controllable factors because the company has control over these factors, it can alter or modify such factors.
The microenvironment is the business environment in which the corporations are directly in contact, and it has a direct influence on the business entity. The microenvironment is also known as the internal environment, it comprises of the elements like competitors, organization suppliers, marketing intermediaries and customers. It has more specific implication as it has a direct effect on the specific business entity. The factors or the elements of the microenvironment are also specific in nature, following that they can be easily controlled. In other words, we can say that microenvironment is the type of business environment that a company is surrounded off, this type of environment has a direct and regular effect on the business entity. The study or analysis done on the microenvironment is called the COSMIC analysis (acronym derived from the name of elements of microenvironment). The suppliers, in this case, are those who provide the raw products and other commodities to the firm so that they can manufacture the useful products.
The macro environment is the business environment which is not surrounding the business enterprises, but it has a direct influence on each of the entity. In this type of business environment the factors and elements are studied on a global scale or larger scale, which doesn’t affect the specific business but all the businesses. In a more compact way, we can say that in this case, it can happen that one business entity might have a positive effect and the other might suffer. The macro environment is also called the external environment. Population & Demographic, Economic, Socio-Cultural, Technological, Legal & Political and Environmental are the elements of this business environment, and the study of the environment on this basis is called the PESTLE Analysis.
The analysis of the internal environment helps to identify strength of the firm. The analysis of the internal environment indicates not only strengths but also the weakness of the firm. A firm may be strong in certain areas, where as it may be weak in some other areas.
An analysis of the external environment helps the business firm to identify the opportunities in the market. The business firm should make every possible effort to grab the opportunities as and when they come. Business may be subject to threats from competitors and others. Therefore environmental analysis helps to identify threats from the environment identification of threats at an earlier date is always beneficial to the firm as it helps to defuse the same.
Environment opens new opportunities for the expansion of business activities. Study of environment is necessary in order to discover and exploit such opportunities fully.The interaction with the environment leads to opening up new frontiers of growth for the business firms. It enables the business to identify the areas for growth and expansion of their activities.
Environmental analysis of the business makes the task of managers easier in dealing with business challenges. The managers are motivated to continuously update their knowledge, understanding and skills to meet the predicted changes in realm of business.
1) According to the passage, which of the followings will not be counted as characteristic of business environment?
e) no government interference
2) According to the passage, which of the followings cannot be considered as a significance of business environment analysis?
a) it helps in identifying the strength of the business
b) it helps in identifying the threats to the business
c) it helps in improving the image of the organisation
d) it helps in identifying the area of expansion
e) it helps in dealing with challenges
3) According to the passage, in the COSMIC analysis ‘C’ stands for –
a) customers and cultures
b) competitors and customers
c) communication and customers
d) companies and communications
e) commodities and customers
4) According to the passage, which of the followings can be considered as a reason behind the success of the business?
a) its financial resources
b) its effective planning system
c) its employees
d) its responsiveness to its surroundings
e) its shareholders
5) Which of the following statements is true in the context of the passage?
a) Business, which continually remains passive to the relevant changes in the environment becomes successful easily.
b) Internal environment of the business is also called macro environment.
c) The elements of the external environment of the business include the population & demographic factors .
d) None of the above
e) All are true
6) Findthe incorrect statement on the basis of the given passage?
a) The study of the external environment on the business is called the PESTLE Analysis.
b) Every business organisation operates in a distinctive environment.
c) Uncertainty is an inherent characteristic of business environment.
d) The analysis of business environment is simple and easy process.
e) All are correct
7) Choose the word which as same meaning as the word isolation
8) Choose the word which as same meaning as the word passive
9) Choose the word which as opposite meaning as the word macro
10) Choose the word which as opposite meaning as the word unpredictable
1) Answer: e)
According to the passage ‘no government interference’ will not be considered as a characteristic of business environment as it is not mentioned in the passage.
2) Answer: c)
According to the passage, analysis of the business environment does not help in image building so it cannot be considered as significance of business environment analysis.
3) Answer: b)
It is mentioned in the passage that the microenvironment is also known as the internal environment, it comprises of the elements like competitors, organization suppliers, marketing intermediaries and customers and analysis done on the microenvironment is called the COSMIC analysis
4) Answer: d)
It is clearly mentioned in the passage, that to be successful, business not only recognize different elements of the environment but also respect, adapt to or have to manage and influence them.
5) Answer: c)
According to the passage, true statement is “the elements of the external environment of the business includes the population & demographic factors.”
6) Answer: d)
It is given in the passage that there are many forces, events and conditions that constitute business environment, arising from various sources and it is a bit difficult to understand the relative influence of a particular factor, on the operation of the organisation so study of business environment is not simple and easy process.
7) Answer: b)
The meaning of “isolation” is “separation / seclusion/severance.”
8) Answer: d)
The meaning of “passive” is “inactive / inert”.
9) Answer: b)
The meaning of “macro” is “large-scale / overall” and its opposite is “small/ elfin/ tiny”.
10) Answer: c)
The meaning of “unpredictable” is “random / volatile” and its opposite is “likely / projected/ anticipated”.
Daily Practice Test Schedule | Good Luck
|Topic||Daily Publishing Time|
|Daily News Papers & Editorials||8.00 AM|
|Current Affairs Quiz||9.00 AM|
|Quantitative Aptitude “20-20”||11.00 AM|
|Vocabulary (Based on The Hindu)||12.00 PM|
|General Awareness “20-20”||1.00 PM|
|English Language “20-20”||2.00 PM|
|Reasoning Puzzles & Seating||4.00 PM|
|Daily Current Affairs Updates||5.00 PM|
|Data Interpretation / Application Sums (Topic Wise)||6.00 PM|
|Reasoning Ability “20-20”||7.00 PM|
|English Language (New Pattern Questions)||8.00 PM|