BUSINESS ADMINISTRATION
BUSINESS ENVIRONMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Customs and Traditions
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Technological changes
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Easy finance schemes
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Rates of savings and investments
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Detailed explanation-1: -Economic Environment includes interest rates, inflation rates, changes in disposable income of people, stock market indices and the value of rupee are some of the economic factors that can affect management practices in a business enterprise.
Detailed explanation-2: -Accordingly, total economic environment is consisting of agriculture, industrial production, infrastructure, planning, basic economic philosophy, stages of economic development, trade cycles, national income, per capita income, savings, money supply, price level and population.
Detailed explanation-3: -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-4: -Volume of imports and exports, money supply in the economy and budgetary policy are all economic factors that affect business environment.
Detailed explanation-5: -Any 3 elements of the economic environment are Interest rate, income, and stock market value.