Question

State any five features of 'Business Environment'.

Answer 1

Features of Business Environment

• Dynamic: The environment in which the business operates changes continuously because there is a wide variety of factors that exist in the environment, causing it to change its shape and character.
  
• Complex: There are many forces, events and conditions that constitute business environment, arising from various sources. So, it is a bit difficult to understand the relative influence of a particular factor, on the operation of the organisation.
  
• Uncertain: Uncertainty is an inherent characteristic of business environment because no one can predict what is going to happen in future.
  
• Multi-faceted: A single change in the business environment, can be viewed differently by different observers because their perceptions vary.
  
• Far-reaching Impact: The survival, growth and profitability, of a business enterprise, depends largely on the environment in which it exists. A small change in the environment has a far-reaching impact on the organisation in different ways.