Which of the following statements does NOT represent the importance of business environment?

It helps in delegating authority in organisational structure

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:

• Helps in tapping useful resources,

• Assists in planning and policy formulation, and

• Improves organisational performance by enabling adaptation to external changes.