Which of the following statements best describe the features of Business Environment?
(A) Business environment is largely uncertain.
(B) Business environment is a complex phenomenon that is relatively easier to understand in parts but difficult to grasp in its totality.
(C) Business environment includes only general forces.
(D) Business environment is a relative concept.
Choose the correct answer from the options given below:
Answer & explanation
Correct answer: option 1
The correct answer is Option (1) → (A), (B) and (D) only
(A) Business environment is largely uncertain. — Correct. It is very hard to predict what will happen, because conditions such as technology and fashion change quickly.
(B) Business environment is a complex phenomenon that is relatively easier to understand in parts but difficult to grasp in its totality. — Correct. Many forces act on a business at once, and each affects the others. One part can be studied easily; the whole is hard to take in.
(C) Business environment includes only general forces. — Incorrect. It includes both specific forces, such as investors, customers, competitors and suppliers, which affect a firm directly, and general forces, such as economic, social, political, legal and technological conditions, which affect all firms indirectly.
(D) Business environment is a relative concept. — Correct. The environment and its effect differ from country to country and from region to region. A change that helps a business in one place may hurt it in another.
NCERT (2026-27 Edition): “(ii) Specific and general forces: Business environment includes both specific and general forces. …” “(v) Uncertainty: Business environment is largely uncertain as it is very difficult to predict future happenings, especially when environment changes are taking place too frequently as in the case of information technology or fashion industries.” “(v i ) Complexity: Since business environment consists of numerous interrelated and dynamic conditions or forces which arise from different sources, it becomes difficult to comprehend at once what exactly constitutes a given environment. In other words, environment is a complex phenomenon that is relatively easier to understand in parts but difficult to grasp in its totality. …” “(vii) Relativity: Business environment is a relative concept since it differs from country to country and even region to region. …” |