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Question : Advance understanding of business environment will help in:

Option 1: Planning and policy formation 

Option 2: Privatisation

Option 3: Developing new principle of management

Option 4: Liberalisation


Team Careers360 9th Jan, 2024
Answer (1)
Team Careers360 14th Jan, 2024

Correct Answer: Planning and policy formation 


Solution : The major strategies or plan and policies in the organisation are formed keeping in mind business environment because the policies and strategies have to be implemented in the presence of environmental forces.

Since environment is a source of both opportunities and threats for a business enterprise, its understanding and analysis can be the basis for deciding the future course of action (planning) or training guidelines for decision making (policy).
Hence, option 1 is the correct answer.

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