Internal environment of a business includes : (i) Business ethics and moral standards (ii) Business and managerial policies (iii) Prospects of business development (iv) Government rules and regulations (v) Industrial relations Codes :
(i), (ii), (iii) and (v)
The internal environment consists of factors inside the firm that management can largely control: value system and ethics, mission and objectives, management structure and policies, human resources and labour relations, physical assets and company image.
(i) Business ethics and moral standards form the firm's own value system, so they are internal.
(ii) Business and managerial policies are framed by the firm's own management, so they are internal.
(iii) Prospects of business development depend on the firm's own resources, plans and capabilities, and are treated as part of the internal environment.
(iv) Government rules and regulations come from the political and legal environment. The firm must adapt to them but cannot control them, so they are external.
(v) Industrial relations are the relations between management and employees within the firm, so they are internal.
The internal elements are therefore (i), (ii), (iii) and (v).
Hence, (i), (ii), (iii) and (v).
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Important Questions from Concepts and elements of business environment
Which of the following is NOT an external factor acting as a barrier to entrepreneurship?
There are various impacts of government policy changes on business and industry. Out of the following options, which is NOT true about the given statement?
For the following two statements regarding infrastructural services in the country, choose the correct code for the statements being correct or incorrect.
Statement I: Most infrastructure services are provided by public monopolies which generally suffer with severe problems like lack of accountability, low productivity, poor financial performance and over-employment.
Statement II: There is a need now to induce more private sector investment and participation in sharing, accountability, monitoring and management of infrastructure sector.
Given below are two statements, one labelled as Assertion (A) and the other labelled as Reason (R). Read the statements and choose the correct answer using the code given below.
Assertion (A): The multilateral trading system is an attempt by governments to make the business environment stable and predictable.
Reason (R):Promising not to raise trade bathers can be as important as lowering one, because the promise gives businesses a clearer view of their future market opportunities.
Match List I with List II
List I
List II
(a)
Size of the market
(i)
Globalization of business
(b)
Demographic environment
(ii)
Foreign trade policy
(c)
Export-oriented units
(iii)
Macro - environment
d)
Multinational corporations
(iv)
Non - economic environment
Choose the correct option from those given below
