Learn about Business Environment

Business Environment

In today’s world, environment plays a very important role in manager’s success in any organization he works. Manager has work and takes decisions while taking care of the environment in which he is a working.  Business Environment has a combination of two words. First word is “Business and Second word is Environment
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QUE  DEFINE BUSINESS IN TERMS OF ECONOMY?</span>

ANS Business can be expressed in three terms.
1) Business is an economic activity
2) Business  firm is an economic unit
3) Business decision making is an economic  process

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QUE  WHAT IS ENVIRONMENT?</span>
 ANS – Environment consist of all the external factors in the world which affect the business and they are not in the control of the individual. It includes factors outside the firm which are in the form of threats and opportunities.

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QUE  WHAT ARE THE SUBSETS OF ENVIRONMENT?</span>
 ANS There are 4 subsets of environment –
 1) Economic environment
 2) Social –cultural environment
 3) Political -legal environment
 4) Technological environment

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QUE – DESCRIBE THE ELEMENT OF BUSINESS ENVIRONMENT?</span>
  ANS – There are two types of business environment -
1) Internal Environment
2) External Environment

Internal Environment –it consist of all the internal factors of the organization which are in the form of strengths and weakness.

External Environment – it consist of all the external factors in form of the threats and opportunities to the organization.
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QUE-  WHAT IS AN ECONOMIC ACTIVITY?</span>
ANS - An activity which is performed between the people only
           for the financial motives is called as Economic activity                                                       
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QUE   WHAT IS A DECISION MAKING?</span>
  ANS- It is a process of making a choice between the options available is known as Decision making        
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QUE- HOW MANY TYPES OF ENVIRONMENT ARE THERE? </span>
 ANS Environment can be classified on 4 different criteria.
1) Space- local , regional , national and international environment
2) Time – past, present and future environment.
3)  Forces – market and non -market environment
4)  Factors – Economic and non- economic environment

Label: business environment, cultural environment Business decision making, Economic environment, environment in business, market environment