Question

The factors that constitute the business environment can be classified into which two broad categories?

Options

• Tangible and intangible

• Profitable and non-profitable

• Controllable and uncontrollable

• Domestic and international only

Answer 1

Business environment factors are divided into two categories based on the degree of control a business has over them: controllable factors (internal) and uncontrollable factors (external). This control-based distinction is the foundation for classifying environment dimensions.