Question

The sum total of all individuals, institutions and other forces that are outside the control of a business firm, but that may affect its performance is known as:

• A. Business Management
• B. Business Environment
• C. Business Decision making
• D. Entrepreneurship Development

Hint:

Business environment is a key concept in business studies, encompassing the external forces that can impact a company's operations, including legal regulations, market conditions, and technological changes.

Answer 1

The Correct Option is B

Step 1: Understanding the question.
The question asks for the term that refers to all external factors influencing a business firm but are beyond its control.
Step 2: Analyzing the options.
- Business Management refers to the internal activities, processes, and systems used by a business to manage its operations.
- Business Environment includes all external factors like economic, social, legal, and technological forces that affect a business's performance, but are outside its control. - Business Decision Making is the process of making choices within the business, focusing on internal strategies and operations.
- Entrepreneurship Development refers to the creation and development of new businesses, particularly by entrepreneurs.
Step 3: Conclusion.
The correct term for external factors influencing a business is Business Environment.
Final Answer: \[ \boxed{\text{The correct answer is (2) Business Environment.}} \]