Which condition indicates that a business environment has high uncertainty?
Correct answer: B. Rapid change combined with many interacting forces
- A. Stable demand and predictable regulations
- B. Rapid change combined with many interacting forces
- C. Few competitors and fixed customer preferences
- D. Regular sales patterns and constant technology
Explanation
Uncertainty is high when environmental forces change quickly and their effects are difficult to predict. A simple, stable environment creates less uncertainty for managers.
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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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