Question

State any 2 charactersticsof business environment?

Answer 1

Following are the chief characteristics of the business environment:

(1) Totality of External Forces:

Business environment is the sum totals of all those factors/forces which are available outside the business and over which the business has no control. It is the group of many such forces that is why, its nature is of totality.


(2) Specific and General Forces:

The forces present outside the business can be divided into two parts – specific and general.

(i) Specific:

These forces affect the firms of an industry separately, e.g., customers, suppliers, competitive firms, investors, etc.

(ii) General:

These forces affect all the firms of an industry equally, e.g., social, political, legal and technical situations.