Question
How business environment can be classified into different categories?

Answer

Business environment can be classified into two major categories
S.No.
Economic environment
Non-economic environment
1.
It is related to economy which consist of factors like fiscal policy, monetary policy, the industrial policy and nature of the economic system, the pace of economic development.
It refers to social, cultural, political, legal, technological factors, etc. As most of the business opportunities exist in the environment the environment provides both constraints. Constraints such as government regulations, labour force, etc. and opportunities.

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