BUSINESS ADMINISTRATION
BUSINESS ENVIRONMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Economic environment
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Political environment
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Legal environment
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Social environment
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Detailed explanation-1: -Taxes are considered under the economic environment aspect and are one of the macroeconomic factors.
Detailed explanation-2: -The economic environment consists of an economic system, economic policies and economic conditions prevailing in a country. Interest Rates, Taxes, Inflation, Stock Market Indices, Value of Rupee, Personal Disposable Income, Unemployment rate etc. are the factors which affect the economic environment.
Detailed explanation-3: -Economic environment examples For example, if another greengrocer opened on the next street and was able to sell their products cheaper because of lower rent or other factors, this would create competition for Bert’s Greengrocer and affect the company’s profit. This is an example of a microeconomic factor.
Detailed explanation-4: -The term economic environment refers to all the external economic factors that influence buying habits of consumers and businesses and therefore affect the performance of a company. These factors are often beyond a company’s control, and may be either large-scale (macro) or small-scale (micro).
Detailed explanation-5: -Answer: B. Rates of saving and investment.