Practicing Success

Target Exam

CUET

Subject

Business Studies

Chapter

Business Environment

Question:

Match the following-

LIST 1
LIST 2
(A) Positive external trends that will help a firm to improve its performance (I) General forces
(B) External environment trends & changes that will hinder a firm’s performance (II) Specific forces
(C) Impact on all business enterprises and may affect an individual firm only indirectly (III) Opportunities
(D) Affect individual enterprises directly and immediately in their day-to-day working (IV) Threats

 Choose the correct answer from the options given below:

Options:

 A-III, B-IV, C-I, D-II

 A-IV, B-III, C-I, D-II

 A-III, B-IV, C-II, D-I

 A-IV, B-III, C-II, D-I

Correct Answer:

 A-III, B-IV, C-I, D-II

Explanation:

* Positive external trends that will help a firm to improve its performance- Opportunities refer to the positive external trends or changes that will help a firm to improve its performance. Environment provides numerous opportunities for business success. Early identification of opportunities helps an enterprise to be the first to exploit them instead of losing them to competitors.

* External environment trends & changes that will hinder a firm’s performance- Threats refer to the external environment trends and changes that will hinder a firm’s performance. Besides opportunities, environment happens to be the source of many threats. Environmental awareness can help managers to identify various threats on time and serve as an early warning signal.

* Impact on all business enterprises and may affect an individual firm only indirectly- General forces (such as social, political, legal and technological conditions) have impact on all business enterprises and thus may affect an individual firm only indirectly.

* Affect individual enterprises directly and immediately in their day-to-day working- Specific forces (such as investors, customers, competitors and suppliers) affect individual enterprises directly and immediately in their day-to-day working.