Business Environment

Question 1

Define business environment

Answer 1

The term business environment refers to the sum total of all individuals, institutions and other forces that are outside the control of the business but may affect its performance.

Question 2

Features of business environment

Answer 2

1. Totality of external forces
2. Specific and general forces
3. Inter-relatedness
4. Dynamic nature
5. Uncertainty
6. Complexity
7. Relativity

Question 3

Importance or Significance of business environment

Answer 3

1. Enables the firm to identify opportunities and getting first mover advantage
2. It helps the firm to identify threats and early warning signals.
3. It helps in taping useful resources
4. It helps in coping with rapid changes
5. It helps in assisting planning and policy formulation
6. It helps improve performance

Question 4

What are the dimensions of business environment?

Answer 4

Political
Economic
Social
Technological
Legal

Question 5

Features of demonetisation

Answer 5

1. Tax administrative measure
2. Avoid tax evasion
3. As a policy for savings
4. Cashless or cash-lite economy