question_answer 8)

Mention the various dimensions of business environment.

Answer:

(i) Economic Environment Interest rates, inflation rates, value of rupee and many more are the economic factors that can affect management practices in a business enterprise. (ii) Social Environment The social environment of business includes the social forces like customs and traditions, values, social etc. (iii) Technological Environment This includes forces relating In scientific improvements and innovations, which provide new ways of producing goods and services and new methods and techniques of operating a business. (iv) Political Environment This includes political conditions such as general stability and peace in the country and specific attitudes that elected government representatives hold towards business. (v) Legal Environment This includes various legislations passed by government authorities and court judgments. It is important for the management of every enterprise to obey the law of land and for this, enough of knowledge of rules and regulations framed by the government is a pre-requisite for better performance.