Chapter 3: Business Environment
Chapter 3 – Important Topics:
- Meaning and Features of Business Environment
- Importance of Business Environment
- Dimensions of Business Environment (Economic, Social, Technological, Political, Legal)
- Economic Environment in India
- New Economic Policy 1991 – Liberalisation, Privatisation, Globalisation (LPG)
- Disinvestment – Meaning and Objectives
- Demonetisation – Meaning, Features, Impact
- Impact of Government Policy Changes on Business
Meaning of Business Environment
According to Keith Davis, “Business environment is the aggregate of all conditions, events and influences that surround and affect it.”
Environment literally means surroundings in which a person or organisation operates. Business environment refers to all forces – economic, social, political, technological etc. and institutions like suppliers, consumers, competitors, financiers, government etc. which are external to business. Businessmen have very little control over these factors. The success of business depends on correctly forecasting the environmental factors.
Features of Business Environment
- Internal and External forces: The environment comprises internal factors (plans, policies, employees) and external factors. External factors are further divided into micro (customers, suppliers, competitors) and macro (social, economic, legal, technological).
- Uncertainty: Business environment is largely uncertain. It is very difficult to predict changes, especially in IT and fashion industries.
- Complexity: It is very complex as it is difficult to know the relative impact of social, economic, political, and technological factors on demand.
- Business lacks control over environment: Businesses cannot change their external environment; they can only adjust to it.
- Environment is dynamic: Business environment is constantly changing – government policies, consumer tastes, technology, etc. keep evolving.
- Relativity: Business environment is a relative concept; it differs from country to country and even region to region. For example, demand for sarees is high in India but almost nil in France.
Simple Hints: External factors like government laws, competitor actions, or customer tastes are independent; the business is just one player in a larger system.
Answer Structure: Uncertainty, complexity, dynamism – each with brief explanation.
Importance of Business Environment
- It enables the firm to identify opportunities and get the first mover advantage: Opportunities are positive trends that help firms grow. Good knowledge of the environment helps a manager identify such opportunities early and benefit before competitors.
- It helps the firm to identify threats and early warning signals: Threats are negative trends that hinder performance. Scanning the environment gives warning signals to deal with negative changes in time.
- It helps in tapping useful resources: Understanding the environment helps the firm convert resources into outputs required by society.
- It helps in coping with rapid changes: The environment changes fast due to market conditions, demanding customers, technology, and global competition. Managers must examine the environment and develop suitable actions.
- It assists in planning and helps in policy formulation: Since the environment is a source of both opportunities and threats, its analysis provides the base for planning and guides policy framing.
- It helps in improving performance: An enterprise that continuously monitors its environment can improve both its present and future performance.
Simple Hints: By identifying opportunities before competitors, preparing for threats early, and aligning products with what society wants.
Answer Structure: Any four points from above list.
Dimensions of Business Environment
Business environment consists of factors that influence many enterprises at the same time. These are called dimensions of business environment.
- Economic environment: Factors concerning means of production and distribution of wealth – interest rates, inflation, GDP, per capita income, tax rates, disposable income, etc.
- Social environment: Social and cultural forces – customs and traditions, values, social trends, lifestyle changes, etc.
- Technological environment: Changes in production methods, equipment, scientific improvements and innovations that provide new ways of producing goods and services.
- Political environment: Forces concerning management of public affairs – political conditions, government stability, attitude of government towards business.
- Legal environment: Acts passed by central and state legislatures, laws related to business, court judgments, etc.
Simple Hints: It depends on the business. For a tech company, technology is key. For a retailer, social trends matter. All are important.
Economic Environment in India
Economic environment in India consists of a number of macro-level factors which have an impact on business and industry. These are:
- Stage of economic development of the country.
- Economic structure (mixed economy).
- Economic policies of the government – monetary, fiscal, industrial policies.
- Economic planning (Five Year Plans, annual budgets).
- Economic aggregates – GNP, GDP, per capita income, savings, investments.
- Infrastructural factors – banking, transport, communication, energy, etc.
New Economic Policy 1991 – Liberalisation, Privatisation, Globalisation
The New Economic Policy, implemented in 1991, included a number of reforms categorised as LPG (Liberalisation, Privatisation, Globalisation).
Liberalisation
Liberalisation means liberating the economy from regulations and restrictions on economic growth. The old policy of licenses, permits, quotas, and controls discouraged private enterprise. Key steps:
- Abolishing licensing in most industries.
- Freedom in deciding the scale of business (no restrictions on expansion or contraction).
- Removal of restrictions on movement of goods and services.
- Freedom in fixing prices.
- Reduction in tax rates and simplification of procedures.
Privatisation
Privatisation means inducting private ownership, management, and control into public sector undertakings. It is the opposite of nationalisation. The role of the private sector is encouraged.
Disinvestment
Disinvestment means selling of Government’s share in a public sector enterprise to the private sector. If the government sells less than 50% of its stake, control remains with the government. If more than 50% is sold, it leads to privatisation.
Objectives of Disinvestment:
- To reduce the financial burden of the government.
- To introduce competition and market discipline.
- To increase growth of the firm.
- To increase efficiency of management.
Globalisation
Globalisation means free movement of goods, capital, and labour across the globe. For a country, it means integrating its economy with the global economy. This involves reduction of import duties, encouragement of foreign investment, and outward orientation.
Key features:
- Abolishing licensing of imports.
- Removal of tariff restrictions.
- Sharing of knowledge and technologies.
Simple Hints: To reduce government expenditure, bring in private efficiency, and raise funds for other development needs.
Demonetisation
Demonetisation is an act of cancelling the legal tender status of a currency unit in circulation. The aim of demonetisation was to control corruption, use of high denomination notes for illegal activities; and especially the accumulation of ‘black money’ generated by income that has not been declared to the tax authorities.
On November 8, 2016, the Indian government ‘demonetised’ the two largest denomination notes, ₹500 and ₹1000. This led to eighty-six per cent of the money in circulation becoming invalid. People had to deposit the invalid currency in banks, with restrictions on cash withdrawals.
Features of Demonetisation:
- It is a tax administration measure – cash from declared income could be deposited; those with black money had to declare and pay penalty.
- It is a method to check tax evasion – signalling that tax evasion will no longer be tolerated.
- It helps channelize savings into the formal financial system, providing a base for loans at lower interest rates.
- It has been used as a tool to stabilize currency and fight inflation.
- It is an effective method to create a less-cash or cash-lite economy, encouraging digital transactions.
- It pushes informal economic activity into more transparency and away from black markets.
Simple Hints: People had to deposit their old notes and get new ones, and there were limits on withdrawals, leading to rush.
Impact of Government Policy Changes on Business
The policy of liberalisation, privatisation, and globalisation has made a significant impact on the working of enterprises in business and industry:
- Increasing competition: With the entry of foreign and private players, competition has intensified.
- More demanding customers: Customers now have more choices and are more aware, demanding better quality and service.
- Rapidly changing technological environment: Businesses must keep up with fast-changing technology to survive.
- Necessity for change: Organisations have to continuously adapt and innovate.
- Need for developing human resources: With competition, skilled manpower becomes crucial.
- Loss of budgetary support to the public sector: Public sector units can no longer rely on government funds and must perform or perish.
Simple Hints: They face competition from big retail chains and online stores, but also have opportunities to sell online.
മലയാà´³ം à´µിà´ാà´—ം
à´ª്à´°à´§ാà´¨ à´ªാà´ à´ാà´—à´™്ങൾ:
- à´¬ിà´¸ിനസ് പരിതസ്à´¥ിà´¤ിà´¯ുà´Ÿെ അർത്ഥവും സവിà´¶േഷതകളും
- à´¬ിà´¸ിനസ് പരിതസ്à´¥ിà´¤ിà´¯ുà´Ÿെ à´ª്à´°ാà´§ാà´¨്à´¯ം
- à´¬ിà´¸ിനസ് പരിതസ്à´¥ിà´¤ിà´¯ുà´Ÿെ വശങ്ങൾ (à´¸ാà´®്പത്à´¤ിà´•, à´¸ാà´®ൂà´¹ിà´•, à´¸ാà´™്à´•േà´¤ിà´•, à´°ാà´·്à´Ÿ്à´°ീà´¯, à´¨ിയമപരം)
- ഇന്à´¤്യൻ à´¸ാà´®്പത്à´¤ിà´• പരിതസ്à´¥ിà´¤ി
- à´ªുà´¤ിà´¯ à´¸ാà´®്പത്à´¤ിà´• നയം 1991 – ഉദാരവൽക്à´•à´°à´£ം, à´¸്വകാà´°്യവൽക്à´•à´°à´£ം, ആഗോളവൽക്à´•à´°à´£ം (LPG)
- ഓഹരി à´µിà´±്റഴിà´•്കൽ – അർത്ഥവും ലക്à´·്യങ്ങളും
- à´¡െà´®ോà´£ിà´±്à´±ൈà´¸േഷൻ – അർത്à´¥ം, സവിà´¶േഷതകൾ, ആഘാà´¤ം
- ഗവൺമെà´¨്à´±് നയമാà´±്റങ്ങളുà´Ÿെ à´¬ിà´¸ിനസ്à´¸ിà´²ുà´£്à´Ÿാà´•്à´•ിà´¯ à´ª്à´°à´¤്à´¯ാà´˜ാതങ്ങൾ
à´¬ിà´¸ിനസ് പരിതസ്à´¥ിà´¤ിà´¯ുà´Ÿെ അർത്ഥവും സവിà´¶േഷതകളും
à´•ീà´¤്à´¤് à´¡േà´µിà´¸് à´¨ിർവചിà´š്à´šിà´°ിà´•്à´•ുà´¨്നത് “à´¬ിà´¸ിനസ്à´¸് à´ª്രവർത്തനത്à´¤െ à´šുà´±്à´±ി à´¨ിൽക്à´•ുà´¨്à´¨, à´…à´¤ിà´¨െ à´¬ാà´§ിà´•്à´•ുà´¨്à´¨ à´¸ാഹചര്യങ്ങൾ, à´¸ംà´à´µà´™്ങൾ, à´¸്à´µാà´§ീനങ്ങൾ à´Žà´¨്à´¨ിവയുà´Ÿെ ആകെà´¤്à´¤ുà´•à´¯ാà´£് à´¬ിà´¸ിനസ്à´¸് പരിതസ്à´¥ിà´¤ി à´Žà´¨്à´¨ാà´£്.”
à´’à´°ു à´µ്യക്à´¤ിà´•്à´•് à´…à´²്à´²െà´™്à´•ിൽ à´¸ംഘടനയ്à´•്à´•് à´ª്രവർത്à´¤ിà´š്à´šു വരുà´¨്à´¨ à´šുà´±്à´±ുà´ªാà´Ÿുകൾ അഥവാ à´¸ാഹചര്യങ്ങളെà´¯ാà´£് പരിതസ്à´¥ിà´¤ി à´Žà´¨്à´¨ു പറയുà´¨്നത്. à´’à´°ു à´¬ിà´¸ിനസ്à´¸് à´¸്à´¥ാപനത്à´¤ിà´¨് ഇടപെà´Ÿേà´£്à´Ÿിവരുà´¨്à´¨ à´°ാà´·്à´Ÿ്à´°ീയവും à´¸ാà´®ൂà´¹ിà´•à´µും à´¸ാà´®്പത്à´¤ിà´•à´µും, à´¸ാà´™്à´•േà´¤ിà´•à´µും à´¸ാംà´¸്à´•ാà´°ിà´•à´µുà´®ാà´¯ ശക്à´¤ിà´•à´³െà´¯ാà´£് à´¬ിà´¸ിനസ്à´¸് പരിതസ്à´¥ിà´¤ി à´Žà´¨്നതുà´•ൊà´£്à´Ÿ് അർത്ഥമാà´•്à´•ുà´¨്നത്.
സവിà´¶േഷതകൾ:
- ആന്തരിà´•à´µും à´¬ാà´¹്യവുà´®ാà´¯ ശക്à´¤ികൾ: ആന്തരിà´• പരിതസ്à´¥ിà´¤ിà´¯ിൽ പദ്ധതിà´•à´³ും നയങ്ങളും à´œീവനക്à´•ാർ, à´¬ിà´¸ിനസ്à´¸് ലക്à´·്യങ്ങൾ à´Žà´¨്à´¨ിà´µ ഉൾപ്à´ªെà´Ÿുà´¨്à´¨ു. à´¬ാà´¹്à´¯ പരിതസ്à´¥ിà´¤ിà´¯െ à´®ൈà´•്à´°ോ à´«ാà´•്ടർ (ഉപà´ോà´•്à´¤ാà´•്കൾ, à´µിതരണക്à´•ാർ, മത്സരാർത്à´¥ികൾ) , à´®ാà´•്à´°ോ à´«ാà´•്ടർ (à´¸ാà´®ൂà´¹ിà´•, à´¸ാà´®്പത്à´¤ിà´•, à´¨ിയമ, à´¸ാà´™്à´•േà´¤ിà´•) à´Žà´¨്à´¨ിà´™്ങനെ à´µിà´à´œിà´•്à´•ാം.
- à´…à´¨ിà´¶്à´šിതത്à´µം: à´¬ിà´¸ിനസ്à´¸് à´…à´¨്തരീà´•്à´·ം à´®ിà´•്à´•à´µാà´±ും à´…à´¨ിà´¶്à´šിതത്വത്à´¤ിà´²ാà´£്. à´®ാà´±്റങ്ങൾ à´ª്രവചിà´•്à´•ാൻ à´ª്à´°à´¯ാസമാà´£്.
- സങ്à´•ീർണ്ണത: à´µിà´µിà´§ ഘടകങ്ങളുà´Ÿെ ആപേà´•്à´·ിà´• à´¸്à´µാà´§ീà´¨ം മനസ്à´¸ിà´²ാà´•്à´•ാൻ à´¬ുà´¦്à´§ിà´®ുà´Ÿ്à´Ÿാà´£്.
- à´¬ിà´¸ിനസ്à´¸ിà´¨് à´¨ിയന്à´¤്രണമിà´²്à´²: à´¬ാà´¹്à´¯ പരിതസ്à´¥ിà´¤ി à´®ാà´±്à´±ാà´¨ാà´µിà´²്à´²; à´…à´¤ിà´¨ോà´Ÿ് à´ªൊà´°ുà´¤്തപ്à´ªെà´Ÿുà´• à´®ാà´¤്à´°à´®േ à´•à´´ിà´¯ൂ.
- പരിà´¸്à´¥ിà´¤ി ചലനാà´¤്മകമാà´£്: à´¨ിà´°à´¨്തരം à´®ാà´±ിà´•്à´•ൊà´£്à´Ÿിà´°ിà´•്à´•ുà´¨്à´¨ു.
- ആപേà´•്à´·ിà´•à´¤: à´°ാà´œ്യത്à´¤ിà´¨ും à´ª്à´°à´¦േശത്à´¤ിà´¨ും à´…à´¨ുസരിà´š്à´š് à´µ്യത്à´¯ാസപ്à´ªെà´Ÿുà´¨്à´¨ു.
à´¬ിà´¸ിനസ് പരിതസ്à´¥ിà´¤ിà´¯ുà´Ÿെ à´ª്à´°ാà´§ാà´¨്à´¯ം
- à´ªുà´¤ിà´¯ അവസരങ്ങളിൽ à´¨ിà´¨്à´¨് ആദ്à´¯ം à´®ുതലെà´Ÿുà´•്à´•ാൻ സഹാà´¯ിà´•്à´•ുà´¨്à´¨ു: പരിതസ്à´¥ിà´¤ി à´µിശകലനം വഴി അവസരങ്ങൾ à´¨േà´°à´¤്à´¤െ à´¤ിà´°ിà´š്à´šà´±ിà´¯ാം.
- à´ാà´µിà´¯ിà´²െ à´ീà´·à´£ിà´•à´³െà´•്à´•ുà´±ിà´š്à´š് à´®ുൻകൂà´Ÿ്à´Ÿി à´®ുà´¨്നറിà´¯ിà´ª്à´ª് à´²à´ിà´•്à´•ുà´¨്à´¨ു: à´¨െà´—à´±്à´±ീà´µ് à´Ÿ്à´°െൻഡുകൾ à´®ുൻകൂà´Ÿ്à´Ÿി à´•ാà´£ാൻ à´•à´´ിà´¯ും.
- ഉൽപന്നങ്ങളുà´Ÿെ à´¨ിർമ്à´®ാണത്à´¤ിà´¨് ആവശ്യമാà´¯ à´µിà´à´µà´™്ങൾ à´’à´°ുà´•്à´•ാൻ സഹാà´¯ിà´•്à´•ുà´¨്à´¨ു.
- à´µിപണിà´¯ിà´²െ à´®ാà´±്റങ്ങൾക്à´•à´¨ുസരിà´š്à´š് à´ª്à´°à´¤ിà´•à´°ിà´•്à´•ാൻ സഹാà´¯ിà´•്à´•ുà´¨്à´¨ു: à´…à´¤ിà´µേà´— à´®ാà´±്റങ്ങളുà´®ാà´¯ി à´ªൊà´°ുà´¤്തപ്à´ªെà´Ÿാൻ à´•à´´ിà´¯ും.
- à´®ുൻകൂà´Ÿ്à´Ÿി à´¤ീà´°ുà´®ാനങ്ങൾ à´Žà´Ÿുà´•്à´•ുà´¨്നതിà´¨ും നയങ്ങൾ à´°ൂà´ªീà´•à´°ിà´•്à´•ുà´¨്നതിà´¨ും സഹാà´¯ിà´•്à´•ുà´¨്à´¨ു.
- à´¬ിà´¸ിനസ്à´¸ിà´¨്à´±െ à´•ാà´°്യക്ഷമത വർദ്à´§ിà´•്à´•ുà´¨്à´¨ു.
à´¬ിà´¸ിനസ് പരിതസ്à´¥ിà´¤ിà´¯ുà´Ÿെ വശങ്ങൾ
- à´¸ാà´®്പത്à´¤ിà´• പരിതസ്à´¥ിà´¤ി: പലിà´¶ à´¨ിà´°à´•്à´•്, പണപ്à´ªെà´°ുà´ª്à´ªം, à´œിà´¡ിà´ªി, ആളോഹരി വരുà´®ാà´¨ം, à´¨ിà´•ുà´¤ി à´¨ിà´°à´•്à´•ുകൾ à´¤ുà´Ÿà´™്à´™ിയവ.
- à´¸ാà´®ൂà´¹ിà´• പരിതസ്à´¥ിà´¤ി: ആചാà´°à´™്ങൾ, à´ªാà´°à´®്പര്യങ്ങൾ, à´®ൂà´²്യങ്ങൾ, à´¸ാà´®ൂà´¹ിà´• à´ª്രവണതകൾ.
- à´¸ാà´™്à´•േà´¤ിà´• പരിതസ്à´¥ിà´¤ി: ഉൽപാദന à´°ീà´¤ിà´•à´³ിà´²െ à´®ാà´±്à´±ം, à´ªുà´¤ിà´¯ à´¸ാà´™്à´•േà´¤ിà´•à´µിà´¦്യകൾ, നവീകരണങ്ങൾ.
- à´°ാà´·്à´Ÿ്à´°ീà´¯ പരിതസ്à´¥ിà´¤ി: à´°ാà´œ്യത്à´¤െ à´°ാà´·്à´Ÿ്à´°ീà´¯ à´¸്à´¥ിà´°à´¤, സർക്à´•ാà´°ിà´¨്à´±െ നയങ്ങൾ, à´¬ിà´¸ിനസിà´¨ോà´Ÿുà´³്à´³ മനോà´ാà´µം.
- à´¨ിയമപരമാà´¯ പരിതസ്à´¥ിà´¤ി: à´•േà´¨്à´¦്à´°-à´¸ംà´¸്à´¥ാà´¨ à´¨ിയമസà´à´•àµ¾ à´ªാà´¸ാà´•്à´•ിà´¯ à´¨ിയമങ്ങൾ, à´•ോà´Ÿà´¤ി à´µിà´§ികൾ.
à´ªുà´¤ിà´¯ à´¸ാà´®്പത്à´¤ിà´• നയം 1991 – LPG
ഉദാരവൽക്à´•à´°à´£ം (Liberalisation): à´¸ാà´®്പത്à´¤ിà´• വളർച്à´šà´¯ിà´²െ à´¨ിയന്à´¤്രണങ്ങളിൽ à´¨ിà´¨്à´¨് സമ്പദ്à´µ്യവസ്ഥയെ à´®ോà´šിà´ª്à´ªിà´•്à´•ുà´•. à´²ൈസൻസ്, à´ªെർമിà´±്à´±്, à´•ോà´Ÿ്à´Ÿ à´¤ുà´Ÿà´™്à´™ിയവ à´¨ീà´•്à´•ം à´šെà´¯്à´¤ു.
à´¸്വകാà´°്യവൽക്à´•à´°à´£ം (Privatisation): à´ªൊà´¤ുà´®േà´–à´²ാ à´¸്à´¥ാപനങ്ങളിൽ à´¸്വകാà´°്à´¯ ഉടമസ്ഥതയും à´®ാà´¨േà´œ്à´®െà´¨്à´±ും à´•ൊà´£്à´Ÿുവരിà´•.
ഓഹരി à´µിà´±്റഴിà´•്കൽ (Disinvestment): à´ªൊà´¤ുà´®േà´–à´²ാ à´¸്à´¥ാപനങ്ങളിà´²െ സർക്à´•ാർ ഓഹരികൾ à´¸്വകാà´°്യമേഖലയ്à´•്à´•് à´µിൽക്à´•ുà´•.
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à´¡െà´®ോà´£ിà´±്à´±ൈà´¸േഷൻ
à´ª്à´°à´šാà´°à´¤്à´¤ിà´²ുà´³്à´³ à´’à´°ു കറൻസി à´¯ൂà´£ിà´±്à´±ിà´¨്à´±െ à´¨ിയമപരമാà´¯ à´Ÿെà´£്ടർ à´¨ിà´² റദ്à´¦ാà´•്à´•ുà´¨്നതിà´¨ുà´³്à´³ à´ª്രവർത്തനമാà´£് à´¡െà´®ോà´£ിà´±്à´±ൈà´¸േഷൻ. 2016 നവംബർ 8-à´¨് 500, 1000 à´°ൂà´ª à´¨ോà´Ÿ്à´Ÿുകൾ à´…à´¸ാà´§ുà´µാà´•്à´•ി.
സവിà´¶േഷതകൾ:
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- കറൻസി à´¸്à´¥ിà´°à´ª്à´ªെà´Ÿുà´¤്à´¤ാà´¨ും പണപ്à´ªെà´°ുà´ª്à´ªം à´¨ിയന്à´¤്à´°ിà´•്à´•ാà´¨ും ഉപകരണം.
- à´¡ിà´œിà´±്റൽ ഇടപാà´Ÿുകൾ à´ª്à´°ോà´¤്à´¸ാà´¹ിà´ª്à´ªിà´•്à´•ുà´¨്à´¨ു.
- à´•à´°ിà´ž്à´šà´¨്à´¤ à´¨ിയന്à´¤്à´°ിà´•്à´•ാൻ സഹാà´¯ിà´•്à´•ുà´¨്à´¨ു.
ഗവൺമെà´¨്à´±് നയത്à´¤ിà´²െ à´®ാà´±്റങ്ങൾ à´¬ിà´¸ിà´¨െà´¸്à´¸ിà´²ുà´£്à´Ÿാà´•്à´•ിà´¯ à´ª്à´°à´¤്à´¯ാà´˜ാതങ്ങൾ
- മത്സരം വർദ്à´§ിà´š്à´šു.
- ഉപà´ോà´•്à´¤ാà´•്കൾ à´•ൂà´Ÿുതൽ ആവശ്യക്à´•ാà´°ാà´¯ി.
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- à´®ാà´±്റത്à´¤ിà´¨്à´±െ ആവശ്യകത വർദ്à´§ിà´š്à´šു.
- à´®ാà´¨ുà´·ിà´• à´µിà´à´µ à´µികസനം à´…à´¨ിà´µാà´°്യമാà´¯ി.
- à´ªൊà´¤ുà´®േഖലയ്à´•്à´•ുà´³്à´³ ബജറ്à´±് à´ªിà´¨്à´¤ുà´£ à´•ുറഞ്à´žു.
Important Exam Questions
- Which of the following is an example of social environment? (2019 Say - 1 Mark)
- Interaction of domestic economy with the rest of the world economy is termed as? (2020 Mar - 1 Mark)
- Change in lifestyle relates to which environment? (2022 Mar - 1 Mark)
- Change in fashion of people belongs to which dimension? (2022 Say - 1 Mark)
- L.P.G. stands for? (2025 Mar - 1 Mark)
- Identify the specific force of business environment from the following: a) Customer b) Laws prevailing c) Technological conditions d) Social environment. (2025 Say - 1 Mark)
- Classify the following items into appropriate elements: a) Literacy rate b) Public debt c) Rate of savings and investment d) Birth and death rate. (2019 Mar - 2 Marks)
- Business environment includes both specific and general forces. List any four specific forces. (2020 Say - 2 Marks)
- Complete the chart: (2023 Mar - 2 Marks)
- What is technological environment? (2024 Say - 2 Marks)
- Briefly explain any three challenges faced by Indian business firms due to changes in economic policy in 1991. (2020 Say - 3 Marks)
- Pick out the elements suitable to social environment: Life expectancy, Bureaucracy, Customs and traditions, Tax rate, Literacy rate, Market situation. (2024 Mar - 3 Marks)
- Fill appropriate as per hint: (a) Inflation rate – Economic Environment; (b) Stability of Government – ?; (c) Scientific Improvements – ?; (d) Change in life style – ?; (e) Customs and Traditions – ?. (2024 Say - 3 Marks)
- Describe any four dimensions of business environment with suitable examples. (2022 Mar - 4 Marks)
- Match the following: (a) Legal Environment – Consumer Protection Act; (b) Economic Environment – Liberalization; (c) Social Environment – Composition of family; (d) Political Environment – Stability of Government. (2019 Say - 4 Marks)
- State the importance of business environment. (2021 Mar - 4 Marks)
- Match the following: (a) Change in lifestyle – Social environment; (b) Companies Act – Legal environment; (c) Change in tax rate – Economic environment; (d) Ideology of Government – Political environment. (2023 Mar - 4 Marks)
- (i) What is meant by Business Environment? (ii) Why is it important for business enterprises to understand their environment? (any two). (2025 Mar - 4 Marks)
- What do you mean by social environment of business? Give two examples. (2025 Say - 4 Marks)
- Explain the following: a) Economic environment b) Legal environment. (2021 Mar - 5 Marks)
- Mention the various dimensions of Business Environment. (2021 Say - 5 Marks)
- Classify the following factors under economic, social, and legal environment: Tax rate, Labour laws, Level of education, Human Rights, Consumer Protection Act, Customs and beliefs, Trade mark, Liberalization, Foreign trade, Demographic composition. (2021 Say - 5 Marks)
