Question

Business has ---------- capacity to influence its environment.

a) Limited

b) Unlimited

c) No

d) Equited

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Answer 1

Explanation:

Business has -----limited----- capacity to influence its environment.

Answer 2

• 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.