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•Describe the basic environments (legal, social, economic) in which a business operates.
Business, now-a-days is vitally affected by the economic, social, legal, technological and political factors. These factors collectively form business environment. [ Business environment, as such, is the total of all external forces, which affect the organisation and operations of business. The environment of an organisation has got internal, operational and general lives managers must be aware
of these three environmental levels and their relationship and importance. The term 'business environment implies those external forces, factors and institutions that are beyond the control of individual business organisations and their management and affect the business enterprise. It implies all external forces within which a business enterprise operates. Business environment influence the functioning of the business system. Thus, business environment may be defined as all those conditions and forces which are external to the business and are beyond the individual business unit, but it operates within it. These forces are customer, creditors, competitors, government, socio-cultural organisations, political parties national and international organisations etc. some of those forces affect the business directly which some others have indirect effect on the business. ............ ]
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Asked 10/6/2012 1:21:00 PM
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