Business Environment - a lesson

This lesson is prepared for Distance learning Education

Q1 what do you understand by the term business?

Ans. Business is an economic activity with the object of earning an income i.e., profit and thereby accumulate wealth. Economic activity of any business must be regular and continuous. It involves

(a) Production of goods with a view to selling them at a profit and

(b) Merely purchase of goods to resell at a profit.

Q2 what are the characteristics of business?

Ans.

1. Business means providing goods and services at a price. These goods must be either produced or procured so that they can be sold and supplied at a price.

2. Business means dealing in goods and services. Goods may be either consumer goods or industrial goods.

3. Regularity and recurring nature of buying and selling is a characteristic of business. A single buying and selling transaction does not constitute business.

4. Profit motive is an important characteristic of business.

5. Risk means the possibility of loss. Economic activity is related with future and future is always uncertain and full of risks.

Q3 what is E-commerce?

Ans. Business through Internet in 21^st century means e-commerce. As the world becomes increasingly interconnected, particularly through internet, forward looking business men will be able to make their product available to a global market to create and maintain their sales for delivery and customer support.

Q4 what are the objectives of E-Commerce?

Ans.

1. Development of business relationship.

2. Better and faster customer services.

3. Getting more customers.

Q5 Why business economic environment need to be scanned?

Ans. business economic environment has to be scanned because organization and environment are mutually interdependent. The environment provides resources and opportunities to the organization in turn offer goods and services to the people living in its environment.

Q6 what are the different types of environment?

There are two types of environment:-

1. external

2. internal

Q7 what is internal environment?

Condition, entities, events and factors within an organization which influence its activities and choices particularly the behavior of the employee like current employees, managers etc.

Q8 what is external environment?

All outside factors that may affect an organization makeup the external environment. It has two parts:

1. Micro environment (suppliers, customers, labour, business partner, competitors etc.)

2. Macro environment (Like economic busineess environment, political environment, legal environment, social environment, technological environment and international environment).