Which of the following statements does NOT represent the importance of business environment?
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → It helps in delegating authority in organisational structure
Delegation of authority is an internal management function, not related to the business environment.
The business environment is important because it:
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Helps in tapping useful resources,
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Assists in planning and policy formulation, and
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Improves organisational performance by enabling adaptation to external changes.