Question

Which of the following are the characteristics of business environment?

Options

• Aggregate of External Forces

• Interrelation

• Ever Changing

• All of the above

Answer 1

All of the above

Explanation - 

1. Aggregate of External Forces: The business environment is the sum of all external forces such as individuals, consumers, government, and legal issues that affect an organization's performance either positively or negatively.
2. Interrelationship: Different forces in the business environment are inextricably linked. For example, an increase in consumer income increases demand for consumer durables such as televisions, refrigerators and so on.
3. Ever Changing : Business environment is dynamic and ever changing in nature. For example,. consumer tastes and preferences, technology, government rules and policies keep changing continuously.
4. Uncertainty : The business environment is unpredictable. Changes in the environment's various forces are difficult to predict. Furthermore, the dynamism of the forces makes it even more uncertain.