Question

Explain any three features of the business environment.

Answer 1

All the external forces: Business Environment includes all the forces, institutions and factors which directly or indirectly affect the business organizations.

Specific and general forces: Business environment includes specific forces such as investors, customers, competitors, and suppliers. Non-human or general forces are Social, Legal, Technological. Political, etc. which affect the business indirectly.

Inter-relation: All the forces and factors of the business environment are inter-related to each other. For example with the inclination of youth towards western culture, the demand for fast food is increasing.

Uncertainty: It is very difficult to predict the changes in the business environment. As the environment is changing very fast for example in IT. fashion industry frequent and fast changes are taking place.