'The understanding of business enables the firm to identify opportunities'.What is meant by 'opportunities' here?

1

(a)

'Opportunities' in the given statement refer to the positive changes in external environment, which will help a firm to improve its performance.

Business environment includes both 'specific and general forces'.List any four specific forces.

1

(a)

The four specific forces are investors, customers, competitors, and suppliers.

As a foreign tourist visited India, he noticed that Indian markets, tastes, trends, and regulations were different from that of his country. Which feature of business environment is reflected here?

1

(a)

Business environment is 'relative'.

Do you think business environment is a relative concept?

1

(a)

Yes, business environment is a relative concept as it differs from country to country and from region to region.

Which environment describes characteristics of society in which the organization exists?

1

(a)

Social environment

Name the environment that prohibits the advertisement of alcoholic beverages.

1

(a)

Legal environment

Banking sector reforms have led to easier credit terms and better services. Identify, this example is associated to which component of business environment.

1

(a)

Economic environment

Write two economic factors influencing the business environment.

1

(a)

Two economic factors influencing business environment are:
(i) Changes in disposal income of people.
(ii) Stock market indices.

State some service industries for which competition has increased due to change in government policies.

1

(a)

Some service industries for which competition has increased due to New Industrial Policy (NIP) are telecommunications, airlines, banking, and insurance.

After the change in government policy is it necessary for firms to adapt the market orientation technique.Why?

 

1

(a)

It is so because due to increasing competition and more demanding customers it becomes necessary for firms to understand and analyze the market first and then produce goods according to the customers.

Does study of business environment help in maintaining image in market?

4

(a)

What are the negative effects of liberalisation and globalisation on business and industry in India?

4

(a)

Why is the understanding of business environment important for managers? Explain with the help of any four points.

6

(a)

Discuss any four components of business environment with examples.

6

(a)