PDF Notes: BusinessEnvironmentnotespdf__2026_02_20_12_03_26

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    What defines business?

    Continuous production of goods and services to satisfy human wants.

    What is the business environment?

    Aggregate of forces and factors affecting a business organization.

    How do internal and external factors differ in business?

    Internal factors are controllable; external factors are not.

    What characterizes the business environment?

    It is complex, dynamic, uncertain, and multi-dimensional.

    Why is understanding the business environment important?

    It helps identify opportunities and adapt business policies.

    What is SWOT analysis?

    A tool to match internal strengths and weaknesses with external opportunities and threats.

    What constitutes the internal environment of a business?

    Factors within the organization that influence its performance.

    What is included in the external environment?

    Factors outside the organization that provide opportunities or threats.

    What is the micro environment?

    Immediate factors affecting a company's performance, like suppliers and customers.

    How does the macro environment differ from the micro environment?

    Macro includes broader forces like economic and political factors.

    What is the significance of the economic environment?

    It influences business operations through economic conditions and policies.

    What role does the political-legal environment play in business?

    It affects business through government policies and regulations.

    What is social responsibility in business?

    Obligation to consider the welfare of society in business decisions.

    What are the four dimensions of corporate responsibilities?

    Economic, legal, ethical, and philanthropic responsibilities.

    Why is social responsibility important for businesses?

    It leads to increased productivity, customer loyalty, and improved performance.

    What is the responsibility of businesses towards shareholders?

    Maximizing investment value and keeping them informed about financial health.

    What should businesses provide for their employees?

    Fair wages, good working conditions, and benefits.

    How should businesses cater to customers?

    By producing quality goods that meet diverse needs and preferences.