Question

State any three features of business environment.

Answer 1

Features of business environment are: (i) Business environment is the sum total of all factors/things external to business firms and, as such, is aggregative in nature.
(ii) Business environment includes both specific such as customers, investors, etc and general forces such as political, social, etc. (iii) Different elements or parts of business environment are closely inter-related. (iv) Dynamic nature: Business environment is dynamic and keeps on changing whether in terms of technological improvement, shifts in consumer preferences, etc. (v) Business environment is uncertain as it is very difficult to predict future happenings, especially when environment changes are taking place too frequently. (vi) Business environment is complex as it consists of numerous interrelated and dynamic conditions or forces that are relatively easier to understand in parts but difficult to grasp in its totality. (vii) Business environment is a relative concept since it differs from country to country and even region to region.