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.
Q:- Which feature of the business environment is evident from the scenario?
Option 1: External and dynamic nature
Option 2: Specific and controllable
Option 3: Independent of business decisions
Option 4: Stable and unchanging
Q :- Why is understanding the business environment important for ABC Ltd.?
Option 1: To ensure complete control over external factors
Option 2: To analyze the internal structure of the company
Option 3: To identify potential opportunities and threats in the market
Option 4: To determine the pricing strategy for existing products
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