Which action best helps a firm respond to an unstable business environment?

Correct answer: A. Using flexible plans and regular reviews

  • A. Using flexible plans and regular reviews
  • B. Keeping one fixed plan permanently
  • C. Ignoring information from outside the firm
  • D. Reducing all contact with stakeholders

Explanation

Flexible plans and regular reviews allow a firm to adjust when external conditions change. A permanently fixed plan and limited information make adaptation more difficult.

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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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