Business Studies 3 Marks Question

The term 'business environment' means the sum total of all individuals, institutions and other forces that are outside the control of a business enterprise but that may affect its performance.Features of business environment: (any three)(i) Totality of external forces(ii) Specific and general forces(iii) Inter relatedness(iv) Uncertainty(v) Complexity(vi) Relativity(vii) Dynamic nature.

1. "Comes to India to start a new business. launches a new product in e-learning for senior secondary school students in Commerce stream it helps in".(a) Assisting in planning and policy formulisation.(b) It enables the firm to identify opportunities and getting the first mover advantage.2. "His business starts flourishing in India"(c) It helps in improving performance.3. Now more Indian companies entered into the market with different subjects also.(d) It helps the firm to identify threats and early warning signals.

The main reasons to adopt new economic policy of 1991 were the following crises which Indian economy had to face:(i) Fiscal crisis.(ii) Rise in internal debt.(iii) Fall in growth rate of GNP.(iv) Negative growth in agriculture sector.(v) Rise in inflation rate.(vi) Shrinking of foreign trade.(vii) Fall in foreign reserve.(viii) Fall in credit-worthiness of financial institutions from AAA to BBP.(ix) Pledge of gold by RBI and SBI.

(i) Banks reduces the interest rate on house loans.(ii) No. of working women is increasing.(iii) Reservation of Tickets by Internet.(iv) Prohibition of alcohol beverages to be advertised.(v) Winning of Aam Admi Party has built up confidence in economically weaker section people.(i) Economic environment(ii) Social environment(iii) Technological environment(iv) Legal environment(v) Political environment.