The following are the features of the business environment:
A. Totality of external forces
B. Inter-relatedness
C. Scientific in nature
D. Uncertainty
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) Totality of external forces — A feature (Correct). The environment is the sum total of everything outside the firm, so it is aggregative in nature.
(B) Inter-relatedness — A feature (Correct). Its parts are closely linked. A change in one part, such as a new government policy, sets off changes in the others.
(C) Scientific in nature — Not a feature (Incorrect). A science works by fixed laws whose results can be tested and predicted. The environment follows no such laws. It is dynamic and uncertain, which is the opposite of being exact.
(D) Uncertainty — A feature (Correct). Future changes are hard to predict, especially where change is fast, as in information technology or fashion.
NCERT (2026-27 Edition): “Meaning of 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 can be characterised in terms of (a) totality of external forces (b) specific and general forces (c) inter-relatedness (d) dynamic nature (e) uncertainty (f) complexity (g) relativity…” |