Business Environment - IBS

What is the primary purpose of a for-profit business?

• Fulfill a charitable mission

• Provide goods or services to generate profit

• Educate customers

• Donate to social causes

What does the business environment refer to?

• Internal and external factors influencing a business

• Customer preferences

• Employee satisfaction

• Economic policies

Which of the following is part of the internal business environment?

• Customers

• Economic conditions

• Organizational culture

• Competitors

What are the two components of the external business environment?

• Internal and External

• Microenvironment and Macroenvironment

• Suppliers and Competitors

• SWOT Analysis

Which of the following is an example of a macroenvironment factor?

• Company suppliers

• Organizational culture

• Demographic trends

• Internal processes

The microenvironment directly affects a company’s ability to:

• compete in the market

• reduce production costs

• increase employee satisfaction

• expand globally

What is the primary goal of a business?

• Operate internationally

• Serve customers and generate profits

• Set government policies

• Innovate technology

What does SWOT stand for?

• Strengths, Weaknesses, Opportunities, Threats

• Strategy, Weakness, Opportunities, Techniques

• Solutions, Weaknesses, Objectives, Targets

• Strength, Willpower, Optimism, Techniques

Which of the following is a weakness in a SWOT analysis?

• Strong brand identity

• Lack of capital

• Expansion into new markets

• Advanced technology

What is the difference between micro and macro environment?

• Micro refers to broad societal factors; macro refers to internal factors.

• Micro involves external factors close to the business; macro involves broader external factors.

• Micro refers to competitors; macro refers to internal operations.

• Micro includes technology; macro excludes it.