BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -The statement is false. Generally, threats are negative external environment trends that might affect the performance of an organization negatively.

Detailed explanation-2: -The correct answer to the given question is True. Opportunities are positive external environmental trends or changes which may be leveraged by an organization to improve its performance. On the contrary, threats are negative external environmental trends or changes which should be avoided by the organization.

Detailed explanation-3: -Examples of external threats include new and existing regulations, new and existing competitors, new technologies that may make your products or services obsolete, unstable political and legal systems in foreign markets, and economic downturns.

Detailed explanation-4: -External environment factors are important because they can cause direct and indirect effects on business operations, personnel and revenue. The external environment of a company changes constantly in ways beyond the company’s control, but executives and managers can track these changes and minimize their consequences.

Detailed explanation-5: -Opportunities and threats are external-things that are going on outside your company, in the larger market. You can take advantage of opportunities and protect against threats, but you can’t change them. Examples include competitors, prices of raw materials, and customer shopping trends.