Business has ---------- capacity to influence its environment.
a) Limited
b) Unlimited
c) No
d) Equited
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Explanation:
Business has -----limited----- capacity to influence its environment.
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- A business firm has Limited capacity to influence its environment.
- Business environment refers to the sum total of all the internal and external factors that affect the working of the business organization.
- This includes the inherent management and the policies of the business as well as the external factors like the customer's suppliers investors etc.
- A business form cannot influence the environment completely.
- It can modify the policies for the goals according to the upcoming opportunities or plan to reduce the effect of the upcoming threat.
- It can increase the demand for a particular product by reducing the price or by launching some new offer but this doesn't mean that it would completely change the total dynamics of the business environment.
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