Question : Case Study 1:
ABC Ltd. is a well-established manufacturing company that has been operating for several years. Recently, the company faced a decline in sales due to the economic recession in the country.
Q:- What does the term "business environment" refer to?
Option 1: The internal factors affecting a business
Option 2: The external factors influencing business operations
Option 3: The core values and mission of a company
Option 4: The strategic decisions made by the management
Correct Answer: The external factors influencing business operations
Solution : The correct answer is (B) The external factors influencing business operations
The term "business environment" refers to the external factors that influence and impact a business's operations, such as economic conditions, legal regulations, market trends, competition, and other external forces. It's the broader context in which a business operates, and it includes factors that are beyond the company's direct control.
