Tag: meaning and factors of business environment

Questions Related to meaning and factors of business environment

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

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

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Correct Option: D
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.

What does the acronym STEEP mean?

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

  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

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Correct Option: A
Explanation:

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

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

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

  1. Composition of family

  2. Literacy rate

  3. Money supply in the economy

  4. Technology

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Correct Option: D
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.

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

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

  1. cultural-economic

  2. physical environment

  3. natural

  4. socio-cultural

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Correct Option: D
Explanation:

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

Macro factors of business environment are generally _______.

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

  1. as controllable as micro factors

  2. less controllable than micro factors

  3. more controllable than micro factors

  4. none of the above

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Correct Option: B
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. 

Recruitment of public relations consultants are a part of _______.

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

  1. operating environment

  2. general environment

  3. macro-environment

  4. competitive environment

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Correct Option: D

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

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

  1. True

  2. False

  3. Partly True

  4. Partly False

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Correct Option: A
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.

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

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

  1. Customers

  2. Employees

  3. Suppliers

  4. Technology

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Correct Option: D

Which of the following affects an individual enterprise?

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

  1. General forces

  2. Specific forces

  3. Both (a) and (b)

  4. None of these

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Correct Option: B
Explanation:

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

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

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

  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

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Correct Option: C
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.