Answer question based on following case study.

Mr. Rajan wants to start a new business. Before starting new business he made an analysis and found various external and uncontrollable forces which affect individual enterprise directly and indirectly. Because these forces keep on changing, it is difficult to predict future happenings. Some examples of these forces are growth rate of GDP, consumption habits, expansion of communication facilities etc.

Identify the concept which is pointed out in the phrase "Various external and uncontrollable forces which affect individual enterprise"?

Business Environment

The correct answer is Option (3) - Business Environment.

The term business environment means the totality of all individuals, institutions and other forces that are outside a business but that potentially affect its performance. Business environment includes both specific and general forces. Specific forces (such as investors, customers, competitors and suppliers) affect individual enterprises directly and immediately in their day-to-day working. 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.