Which statement best distinguishes a business environment from a business's internal environment?
Correct answer: B. The internal environment includes factors within the firm's influence
- A. The internal environment consists only of government regulations
- B. The internal environment includes factors within the firm's influence
- C. The business environment excludes customers and suppliers
- D. The business environment contains only financial variables
Explanation
The internal environment includes resources, employees, management and organisational capabilities that the firm can influence. Government regulations, customers and suppliers are generally external factors, and the environment includes non-financial forces as well.
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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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