Question

Which of the following does not characterize the business environment?

• A. External forces
• B. Relativity
• C. Interrelatedness
• D. Formal hierarchy

Hint:

The business environment is shaped by external factors such as market conditions, competition, and technological developments, not by internal structures like formal hierarchies.

Answer 1

The Correct Option is D

The correct answer is Formal hierarchy. The business environment is characterized by external forces, relativity, and interrelatedness, all of which impact how a business operates. The business environment refers to the external conditions and factors that influence the operations of an organization, such as economic, technological, political, and social factors. On the other hand, a formal hierarchy is an internal organizational structure, not a characteristic of the business environment. It defines the chain of command within an organization, but does not affect the broader business environment.