Which statement best describes environmental scanning in business management?
Correct answer: C. Systematically monitoring external trends and events
- A. Assigning daily duties to operational employees
- B. Preparing only the firm's annual financial statements
- C. Systematically monitoring external trends and events
- 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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