In business analysis, environmental complexity refers mainly to the:

Correct answer: A. Number and variety of external factors affecting the firm

  • A. Number and variety of external factors affecting the firm
  • B. Speed at which a single competitor changes prices
  • C. Amount of profit earned by the business
  • D. Size of the firm's physical workplace

Explanation

Environmental complexity increases when a firm must monitor many different forces, groups, and institutions. The speed of change describes dynamism rather than complexity alone.

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About The Business Environment

Business environment includes the internal factors and external forces that affect business decisions, performance and survival. It covers customers, competitors, suppliers, government, technology, economic conditions, society, law and ecology, including the distinction between the microenvironment and the wider PESTLE environment.

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