Why is it important for the business enterprise to understand what the environment has to offer?
Answer & explanation
Correct answer: option 2
The correct answer is option 2- To design policies that allow it to get the resources it needs.
The business enterprise supplies the environment with its outputs such as goods and services for customers, payment of taxes to government, return on financial investment to investors and so on. Because the enterprise depends on the environment as a source of inputs or resources and as an outlet for outputs, it only makes sense that the enterprise designs policies that allow it to get the resources that it needs so that it can convert those resources into outputs that the environment desires. This can be done better by understanding what the environment has to offer.