What is meant by business environment? Explain ‘dynamic nature’ and ‘uncertainty’ as features of business environment
Business environment is the sum total of all factors and institutions which operate outside the business enterprise, but affect its performance. Features of business environment are:
(i) Dynamic Business environment is dynamic as it keeps on changing. These changes take place continuously in social, economic, political, legal and technological environment.
(ii) Uncertainty Business environment is uncertain because it is very difficult to predict the changes, especially when they occur very frequently.