What term describes the economic conditions that influence business operations?
Practice Questions
Q1
What term describes the economic conditions that influence business operations?
Market Environment
Economic Environment
Social Environment
Technological Environment
Questions & Step-by-Step Solutions
What term describes the economic conditions that influence business operations?
Correct Answer: Economic environment
Step 1: Understand that businesses operate in a larger economic system.
Step 2: Recognize that various factors affect how businesses function.
Step 3: Identify key economic conditions like inflation (rising prices), unemployment (people without jobs), and economic growth (how much the economy is expanding).
Step 4: Realize that these conditions together are called the 'economic environment'.
Step 5: Conclude that the term 'economic environment' describes the overall economic conditions that influence how businesses operate.
