Question

Fill in the blank
Different elements of business environment are _______.

Answer 1

internal and external environment.

Internal environment refers to the factors that influence the business and are present within the business itself. The internal factors include the objectives and policies of the business, production methods, composition of the board of directors, managerial attitude, organizational structure, etc.

The external environment refers to all the external factors or forces i.e. the factors that are outside the business and on which the business has no control. The forces constituting the business environment are suppliers, consumers, media, government, competitors, investors, market trends, technology, etc.