Explain any four characteristics of business environment.

Characteristics of Business Environment:

(i) Totality of all external forces affecting a business.

(ii) Includes both general and specific forces.

(iii) Inter-relatedness

(iv) Dynamic nature

(v) Uncertainty

(vi) Complexity

(vii) Relativity

Detailed Answer:

(i) Totality of all external forces affecting a business: It is aggregate of all things external to the business firms.

(ii) Specific and general forces: Specific forces affects individual film directly, general forces effects indirectly.

(iii) Inter-relatedness: Different elements of business environment are closely inter-related.

(iv) Dynamic nature: It keeps on changing due to changes in its various components.

(v) Uncertainity: It is very difficult to predict future happenings in business environment with accuracy.

(vi) Complexity: It is relatively easier to understand in parts but difficult to grasp in totality.

(vii) Relativity: It differs from country to country & region to region.