'The understanding of business environment helps the managers to identify threats'.What is meant by threats here?

1

(a)

'Threats' in the given statement refer to the negative trends in the external environment, which hinders the firm's 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.

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.

State the difference between general and specific forces.

1

(a)

Specific forces affect the individual enterprise directly, whereas general forces have indirect impact on all the business enterprises.

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

1

(a)

Social environment

What is included in 'political environment' of business?

 

1

(a)

The following components are included in political environment of business:
(i) Constitutional Framework.    
(ii) Political System.      
(iii) Political Structure.

Give an example of privatisation in India.

1

(a)

Sale of IPCL to Reliance Industries is an example of privatisation in India.

Define 'liberalisation' as a process of economic reforms in one sentence.

1

(a)

Liberalisation means liberating Indian business and industry from all unnecessary government controls and restrictions.

State any two impacts of change of government policy on business and industry.

1

(a)

(i) Rapidly changing technological environment
(ii) More demanding customers

What is the main reason behind the inefficiency of the public sector undertakings?

1

(a)

PSUs fail to adapt the changes as they were cautious and conservative in their approach.Lots of political interference, red tapism and bureaucracy further did not let PSUs perform to their full potential.

What do you understand by business environment?

4

(a)

'Environment provides both constraints and opportunities'. Comment.

4

(a)

Give one example of opportunity and one example of threat offered in Indian Economic environment.

4

(a)

Management of every enterprise can be benefited from being aware of different dimensions of business environment.Explain any four such dimensions.

4

(a)

Explain by giving any four points, why in the present day of competitive market, it is essential for a business to remain alerted and aware of its environment.

6

(a)

What role does external environment play in the business?

6

(a)

Economic, social, political and legal conditions have a considerable impact on the performance of the company. discuss them briefly.

6

(a)

What economic changes were initiated by the government under the industrial policy 1991? What impact have these changes made on business and industry.

6

(a)