Which factor is part of the micro-environment of a business?
Correct answer: C. Actions of the firm's suppliers
- A. Changes in national interest rates
- B. Changes in consumer price inflation
- C. Actions of the firm's suppliers
- D. Amendments to tax legislation
Explanation
Suppliers are close external participants that directly affect a firm's operations, so they belong to the micro-environment. Interest rates, inflation and tax laws are broader macro-environmental factors.
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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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