CSEET · Economic and Business Environment · Business Environment
Which of the following is generally regarded as a characteristic of the external business environment?
The external business environment is dynamic and uncertain, so firms need to scan and monitor it continuously. It lies outside management's control and comprises forces like markets, government, technology and society, not the firm's own employees or machinery.
- AIt is largely within the control of the firm's management
- BIt is dynamic and uncertain, so firms must continuously scan itCorrect
- CIt consists only of the firm's own employees and machinery
- DIt remains unchanged over the life of the business
Explanation
The external environment is made up of forces outside the firm, which change continually and are uncertain. Therefore firms scan it regularly. Management cannot control it, and it is not limited to internal resources.
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