CHAPTER-3 BUSINESS ENVIRONMENT Flashcards
(25 cards)
What does the term ‘business environment’ mean?
The sum total of all individuals, institutions, and other forces outside the control of a business enterprise that may affect its performance.
What is the first feature of the business environment?
Totality of external forces.
What are specific forces in the business environment?
Forces such as investors, customers, competitors, and suppliers that affect individual enterprises directly.
What are general forces in the business environment?
Forces such as social, political, legal, and technological conditions that impact all business enterprises indirectly.
What does inter-relatedness in business environment mean?
Different elements of the business environment are closely inter-related.
What is meant by the dynamic nature of the business environment?
It keeps on changing due to changes in its various components.
True or False: It is easy to predict future happenings in the business environment with accuracy.
False.
What is the complexity of the business environment?
It is easier to understand in parts but difficult to grasp in totality.
What does relativity mean in the context of business environment?
It differs from country to country and region to region.
What is one importance of the business environment?
Enables the firm to identify opportunities and getting the first mover advantage.
How does the business environment help in identifying threats?
It helps in identifying threats and early warning signals.
Fill in the blank: The business environment helps in _______ useful resources.
[tapping]
What is a major social factor in the business environment?
Customs, traditions, social expectations, literacy rate, etc.
What does the economic environment include?
Factors such as inflation rates, interest rates, stock market indices, etc.
What is included in the technological environment?
Forces related to scientific improvements and innovations in production methods and business operations.
What are key components of the political environment?
General stability of the ruling party, government ideologies, values, and practices of the ruling party.
What does the legal environment encompass?
Various legislations passed by the Government, administrative orders, court judgments, etc.
What is demonetisation?
The act of stripping a currency unit of its status as legal tender.
What happens during demonetisation?
The current form of money is pulled from circulation and retired, often to be replaced with new notes or coins.
What is one feature of demonetisation?
It is viewed as a tax administration measure.
How is demonetisation interpreted in terms of tax compliance?
It is interpreted as a measure to improve tax compliance.
What effect did demonetisation have on savings?
It led to channelizing savings into the formal financial system.
What is the aim of demonetisation regarding cash usage?
To create a less-cash or cash-lite economy.
