Which statement best describes environmental scanning in business management?

Correct answer: A. Systematically monitoring external trends and events

  • A. Systematically monitoring external trends and events
  • B. Preparing only the firm's annual financial statements
  • C. Assigning daily duties to operational employees
  • D. Recording past sales transactions for taxation

Explanation

Environmental scanning involves collecting and interpreting information about forces that may affect the business. It helps managers identify emerging opportunities and threats before making strategic decisions.

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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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