Solution of Chapter 3. Business Environment (NCERT - Business Studies Part-I Book)

What is meant by business environment?

How does understanding of business environment help in improving the performance of a business?

Give an example to show that a business firm operates within numerous interrelated factors constituting the business environment.(Hint: an example highlighting the interrelatedness of dimensions of the business environment).

Krishna Furnishers Mart started its operations in the year 1954 and emerged as the market leader in the industry because of their original designs and efficiency in operations. They had a steady demand for their products but over the years, they found their market share declining because of new entrants in the field. The firm decided to review their operations and decided that in order to meet the competition, they need to study and analyze the market trends and then design and develop their products accordingly. List any two impacts of changes in the business environment on Krishna Furnishers Mart’s operations. (Hint: an increase in competition and Market orientation).

Name any two Specific forces of business environment affecting business.

Why it is important for business enterprises to understand their environment? Explain.

Explain the following terms:

a. Liberalisation

b. Privatization

c. Globalization

Briefly discuss the impact of Government policy changes on business and industry.

National Digital Library of India (NDL India) is a pilot project initiated by the HRD ministry. It works towards developing a framework of virtual repository of learning resources with a single-window search facility. It provides support to all academic levels including researchers, life-long learners and differently-abled learners free of cost. State the dimensions of business environment highlighted above.

State the impact of demonetization on interest rates, private wealth and real estate.

How would you characterize the business environment? Explain with examples, the difference between general and specific environment.

How would you argue that the success of a business enterprise is significantly influenced by its environment?

Explain, with examples, the various dimensions of business environment.

The government of India announced Demonetization of ₹ 500 and ₹ 1,000 currency notes with effect from the midnight of November 8, 2016. As a result, the existing ₹ 500 and ₹ 1,000 currency notes ceased to be legal tender from that date. New currency notes of the denomination of ₹ 500 and ₹ 2,000 were issued by Reserve Bank of India after the announcement.

This step resulted in a substantial increase in the awareness about and use of Point of Sale machines, e-wallets, digital cash and other modes of cashless transactions. Also, increased transparency in monetary transactions and disclosure led to a rise in government revenue in the form of tax collection.

a. Enumerate the dimensions of business environment highlighted above.

b. State the features of Demonetization.

What economic changes were initiated by the Government under the Industrial Policy, 1991? What impact have these changes made on business and industry?

What are the essential features of:

a. Liberalisation,

b. Privatization and

c. Globalization?