Question

Which of the following best indicates the importance of the business environment?

(a) Identification

(b) Improvement in performance

(c) Coping with rapid changes

(d) All of them

Answer 1

All the options given above indicate the importance of business environment. Study of business environment helps in identifying the positive changes as well as threats or hindrances that affects the performance of an organisation. Thereby, it helps them in taking appropriate measures for improving the performance. In addition, a careful study of the continuously changing environment helps the organisation in coping with it in a better manner.