Question

Which of the following statement/s about the business environment are correct?

i. The business environment includes both internal and external factors that influence an organization's operations.
ii. External factors such as government regulations and economic conditions can be directly controlled by the business.
iii. The business environment is dynamic and requires continuous monitoring and adaptation to remain competitive.
iv. Company values and human resources are part of the external environment.

• A. i and iii
• B. i, ii and iii
• C. ii, iii and iv
• D. i, iii and iv

Answer 1

Answer:

A. i and iii

• The business environment is a combination of internal and external factors, and it is constantly changing, thus requiring continuous analysis and adaptation.

• Statement ii is incorrect because external factors cannot be controlled by the business, only adapted to.

• Statement iv is wrong since company values and human resources are part of the internal environment.