business environment

Which of the following is NOT an importance of the Business Environment?

• Enables identifying business opportunities

• Helps in tapping useful resources

• Increases uncertainty and confusion

• Helps in improving performance

What does understanding the Business Environment help businesses to do?

• Stay stagnant

• Cope with changes effectively

• Avoid planning for the future

• Eliminate external influences completely

Which of the following is an example of an external influence?

• Company policies

• Owner’s working style

• Government regulations

• Employee satisfaction

The term "Overarching Factors" in the context of Business Environment means

• Factors affecting only certain firms

• Factors impacting all firms regardless of size or industry

• Factors that can be ignored by businesses

• Factors that only affect multinational firms

Specific factors that affect a business environment include:

• Clients, suppliers, and competitors

• Political stability only

• General economic policies only

• Environmental movements only

The term “Uncertain Future” in the context of the business environment

• All factors can be precisely predicted

• The future is highly stable and predictable

• The future is elusive due to many differing forces at work

• The future has no impact on business decisions

An example of a Technological Factor in the Business Environment is:

• Population demographics

• Regulations by the government

• Impact of advances in technology

• Client satisfaction and emotional values

Political and Legal Factors affect businesses by:

• Helping businesses skip regulations

• Influencing how a business operates in a region

• Making businesses unaffected by taxes

• Limiting businesses to only certain customers