Business Studies Unit 3 – Business Environment Notes

Business Studies Notes

Unit 3: Business Environment


1. Meaning of Business Environment

Business Environment refers to all external factors that influence a business.


2. Features

External, Dynamic, Complex, Uncertain


3. Components

Economic, Social, Political, Technological, Legal


4. Importance

Identifies opportunities, reduces risks, helps planning, improves growth



MCQs (Multiple Choice Questions)

1. Business Environment refers to: (a) Internal factors (b) External factors (c) Personal factors (d)
None Answer: (b)

2. Which is not a feature? (a) Dynamic (b) Static (c) Complex (d) Uncertain Answer: (b)

3. Economic environment includes: (a) Culture (b) Income level (c) Technology (d) Law Answer: (b)

4. Which environment includes laws? (a) Social (b) Legal (c) Political (d) Economic Answer: (b)

5. Business environment helps in: (a) Increasing risk (b) Ignoring changes (c) Identifying
opportunities (d) None Answer: (c)