Tag: meaning and factors of business environment

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Questions Related to meaning and factors of business environment

Multiple choice business organisation and correspondence meaning and factors of business environment dimensions of business environment business environment and its dimensions business environment

Out of the following which is not classify as a political-legal factor in the external environment?

  1. European Union's directive on working hours

  2. Government policy on corporate taxes

  3. Regulatory requirements for the telecommunication industry

  4. Consumers' attitude towards the competition in the gas and electricity industries
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

The consumer attitude and buying behavior are the marketing and promotional factors that play role in the external environment and will not classify as a legal-political external environment.

Multiple choice business organisation and correspondence meaning and factors of business environment dimensions of business environment business environment and its dimensions business environment

What does the acronym STEEP mean?

  1. Socio-cultural and demographics, Technology, Economic conditions, Ecology and physical environment, Political and legal

  2. Suppliers, Technology conditions, Ecology and physical environment, Political and legal

  3. Employees and Political legal

  4. Shareholders
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

STEEP is an acronym that means socio-cultural and demographics, Technology, Economic conditions, Ecology and physical environment, Political and legal

Multiple choice business organisation and correspondence meaning and factors of business environment dimensions of business environment business environment and its dimensions business environment

Which of the following is not an example of social environment?

  1. Composition of family

  2. Literacy rate

  3. Money supply in the economy

  4. Technology
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

The social environment includes composition of family, number of households, literacy rate of a certain population, money supply in the economy and per capita income of a family.

Multiple choice business organisation and correspondence meaning and factors of business environment dimensions of business environment business environment and its dimensions business environment

A society's basic values, lifestyles, culture, preferences are all parts of its _____ environment.

  1. cultural-economic

  2. physical environment

  3. natural

  4. socio-cultural
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

A society's basic values, lifestyles, culture, preferences are all parts of its socio-cultural environment.

Multiple choice business organisation and correspondence meaning and factors of business environment dimensions of business environment business environment and its dimensions business environment

Macro factors of business environment are generally _______.

  1. as controllable as micro factors

  2. less controllable than micro factors

  3. more controllable than micro factors

  4. none of the above
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

The macro-environment includes those things that may impact businesses but which are outside of their control. It is the larger, external environment within which businesses operate from an industry or economic standpoint. It is also known as General or Remote environment. Macro factors include inflation, government budget, etc. 

Multiple choice business organisation and correspondence meaning and factors of business environment dimensions of business environment business environment and its dimensions business environment

Recruitment of public relations consultants are a part of _______.

  1. operating environment

  2. general environment

  3. macro-environment

  4. competitive environment
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Recruitment of public relations consultants is a strategic decision made by a firm to manage its image within the competitive environment, as it directly influences how the firm is perceived relative to its rivals.

Multiple choice business organisation and correspondence meaning and factors of business environment dimensions of business environment business environment and its dimensions business environment

State whether the statement is true or false.
Macro-environment is concerned with major issues and upcoming changes in the environment.

  1. True

  2. False

  3. Partly True

  4. Partly False
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Macro-environment is concerned with major issues and upcoming changes in the environment as the macro-environment affects the functioning of the business much more than the micro-environment.

Multiple choice business organisation and correspondence meaning and factors of business environment dimensions of business environment business environment and its dimensions business environment

Which of the following factor is not included in micro-environment?

  1. Customers

  2. Employees

  3. Suppliers

  4. Technology
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

The micro-environment consists of factors close to the company that affect its ability to serve its customers (e.g., suppliers, employees, competitors). Technology is considered a macro-environmental factor because it affects the entire industry or society at large.

Multiple choice business organisation and correspondence meaning and factors of business environment dimensions of business environment business environment and its dimensions business environment

Which of the following affects an individual enterprise?

  1. General forces

  2. Specific forces

  3. Both (a) and (b)

  4. None of these
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Specific forces affects an individual enterprise. Specific forces affect a particular business. Specific forces of business environment includes investors, customers, competitors and suppliers.

Multiple choice business organisation and correspondence meaning and factors of business environment dimensions of business environment business environment and its dimensions business environment

The term "threat of entrants" as per Porters approach to industry analysis is ___________.

  1. the possibility of an existing competitor capturing the entire market

  2. the possibility of an existing competitor withdrawing from the market

  3. the framework is a means of identifying the forces, which affect the level of competition in an industry or sector

  4. none of the above
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

The term " threat of entrants" as per Porters approach to industry analysis is the framework is a means of identifying the forces, which affect the level of competition in an industry or sector. Porter classifies 5 competitive force in the business environment. Porter's five forces can be defined as a simple but powerful tool which help to understand the competitiveness. It also helps to formulate business strategy.