BST CHAPTER 3

Question 1

What is business environment?

Answer 1

It means the the total of all individuals, inistituitions and other sources that are outside the control of a business enterprise, which affects the business’s performance.

Question 2

Features/ Characterstics of Business environment

Answer 2

1. Totality of external forces
2. Specific and general forces
3. Inter-relatedness
4. Dynamic Keeps on changing
5. Uncertainity
6. Complexity Study is hard, easy to understand in parts, difficult to grasp in totality
7. Relativity

Question 3

Importance of business env

Answer 3

1. Helps to identify opportunity and getting first mover advantage
2. Helps to identify threats competition Negative external trends
3. Helps on planning and policy formation
4. Tapping into useful resources
5. Helps in coping with rapid changes
6. Helps in improving performance

Question 4

FACTORS OF BUSINESS ENVIRONMENT

Answer 4

SLEPT

1. SOCIAL Customs nd traditions, values, social trends, societal expectations, equality, qualtiy of life
2. Political Political and general stability, peace in the country, attitude of govt towards business, constituition, political morality etc
3. Legal Orders by the govt, rules
4. Technological Scientific improvements, innovation
5. Economic Change in disposable income, inflation rate, value of rupee, Interest rate, Stock market indices

Question 5

Explain Demonitization

Answer 5

Demonitisation is the act of the govt to cancel the legal tender status of a currency unit in circulation.

Question 6

Features of Demonitization.

Answer 6

1. Tax administrations
2. Improved tax compliance
3. Creating a cash less economy
4. Increased savings through formal sectors.