OCM 1 Marks Each

Banks have started e-banking i.e. internet banking and m-banking i.e. mobile banking.

Cultural factor includes tradition, customs, belief, lifestyle habits etc.

Tax structure and government expenditure.

Monetary policy includes changes in interest rates, inflation rate, credit creation, credit availability, etc.

When the rate of income is higher than the population, the per capita income increases.

Internal factors of business environment are

• Objectives of business.
• Employees.
• Managerial structure.

Business environment is classified into:

• Internal factors.
• External factors.

Customers, employees, material suppliers are related to business environment.

Business environment include economic, social, cultural, technological political factors.

In order to use the facilities of e-banking, the person should have a computer with an internet connection and for mobile banking, a smart phone with an internet connection.

Banks have started e-banking and m banking so that customers can understand and operate easily.

After independence non-profit making sector was not preferred for investment. The sector in which expected return was not gained and there were many risks was not preferred for investment.

When public sector unit offers public some part of its capital to buy is called "Disinvestment."

Research and development or direct import from foreign countries is responsible for speedy changes in technology.

Changes of cultural factors are constant, stage wise and steady.

The class which is free or aloof from social bondage is more developed than other classes of society.

Society is a group of human being. It is social traditions.

Economic system in which most of the decisions are taken by the government and individual incentive is almost nil is known as socialist economic system.

Free trade policy means the policy in which government interference is less and all economic decisions are taken by manufacturers.

Economic system plays important role in determining economic structure and direction of the country.

External factors of business environment means the factors on which mostly there is no control of management. Accordingly certain changes have to be made in business.

Due to business environment the managers have become more sensitive to managerial work.

Group of business factors continuously create new opportunities in business.

The world trade organization is active in removing obstacles in the way of globalization, for its member countries.

Due to globalization banking, insurance, transport, communication insurance sectors have crossed the boundaries of the nation.

When any country permits foreign companies to do business in its country and allows its companies to do business in foreign countries is called Globalization.

Part of equity capital of public some part of its capital to buy is called disinvestment.

It was expected that public sector would play vital role in attaining certain objectives of economy.

Business activity takes form in society with an objective of social welfare.

In India at one stage the concept of more employment creation in place least use of machines was accepted.

Internal factors of business environment means business factors on which normally management has control and according to need they make certain changes too.