From the following, the business environment doesn’t help a firm to:
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → Ensure that it is not affected at all by the changes
Option (1) Identify opportunities — A way the environment helps (Incorrect). Watching the environment shows new chances early, so the firm can use them before its rivals.
Option (2) Ensure that it is not affected at all by the changes — Not a way the environment helps (Correct). Changes in the environment are outside the firm’s control. Understanding them helps the firm cope with them and respond in time. No firm can make itself untouched by them.
Option (3) Identify threats — A way the environment helps (Incorrect). Early warning signals, such as a new rival or a change in law, let the firm prepare in time.
Option (4) Tap useful resources — A way the environment helps (Incorrect). Finance, machines, raw materials and people all come from the environment, and the firm must know where to get them.
NCERT (2026-27 Edition): “Importance of Business Environment … While an individual firm is able to do little to change or control these forces, it has no alternative to responding or adapting according to them. A good understanding of environment by business managers enables them not only to identify and evaluate, but also to react to the forces external to their firms. …” “(iii) It helps in tapping useful resources: Environment is a source of various resources for running a business. …” |