Business Environment

Topics in this chapter

• Business Environment Concept and Features
• Specific and General Environmental Forces
• Dimensions of Business Environment
• Importance of Business Environment
• Dynamic and Uncertain Environment
• Economic Reforms and Globalisation

Cheat sheet

Practice questions

1. Question 1Q-4783FD

   Which of the following dimensions of the business environment includes the-rate of inflation, changes in disposable income of people, and stock market indices?

   1. A.Social environment
   2. B.Economic environment
   3. C.Political environment
   4. D.Technological environment
   See the answer and solution
2. Question 2Q-9A4A4B

   The introduction of online booking of railway tickets through IRCTC is an example of which dimension of the business environment?

   1. A.Technological environment
   2. B.Legal environment
   3. C.Social environment
   4. D.Political environment
   See the answer and solution
3. Question 3Q-AE5E01

   Which feature of the business environment highlights that various elements of the environment are closely interrelated?

   1. A.Totality of external forces
   2. B.Interrelatedness
   3. C.Dynamism
   4. D.Complexity
   See the answer and solution
4. Question 4Q-FF3E22

   Read the following statement: 'Business environment is a phenomenon that is relatively easy to understand in parts, but difficult to grasp in its totality.' Which characteristic of the business environment is highlighted here?

   1. A.Uncertainty
   2. B.Complexity
   3. C.Relativeness
   4. D.Dynamic nature
   See the answer and solution
5. Question 5Q-177246

   The statutory warnings required to be printed on the packaging of tobacco products ('Smoking is injurious to health') is a direct consequence of which component of the legal environment?

   1. A.Administrative orders issued by government authorities
   2. B.Court judgements and decisions of commissions
   3. C.Legislative enactments of the Parliament
   4. D.Political stability and ideology
   See the answer and solution