CBSE CLASS 12 BUSINESS STUDIES CHAPTER – 3 BUSINESS ENVIRONMENT

A collection of vocabulary flashcards summarizing key concepts from Chapter 3 on Business Environment.

Business environment

The sum total of all individuals, institutions, and other forces outside a business that may affect its performance.

Totality of external forces

The concept that business environment includes all forces and factors external to a business firm.

Specific forces

Forces that influence a business directly, such as investors, competitors, and customers.

General forces

Forces that affect a business indirectly, including social, political, economic, legal, and technological conditions.

Dynamic environment

The characteristic of business environment being constantly changing due to shifts in technology and consumer preferences.

Uncertainty in business environment

The difficulty of predicting future happenings, influenced by rapid changes in technology and market conditions.

Complexity of business environment

The phenomenon that it is easier to understand parts of the business environment rather than the whole.

Relativity of business environment

The idea that the impact of business environment varies from country to country, region to region, and firm to firm.

Opportunities in business environment

Conditions that allow firms to exploit advantageous situations before competitors.

Threats in business environment

Potential challenges or dangers that can harm a firm's success, identifiable through environmental awareness.

Economic Environment

The immediate and direct factors such as interest rates and inflation that impact a business.

Social Environment

The various social forces like customs and values that present both opportunities and threats to business.

Technological Environment

Forces related to scientific advancements that provide new methods of production and business operations.

Political Environment

The political conditions, stability, and government attitudes that influence business operations.

Legal Environment

The body of laws and regulations that businesses must adhere to in their operations.

Demonetisation

The government's act of invalidating currency notes to combat corruption, black money and illegal activities.

Features of Demonetisation

Aspects including its role in tax administration, tax compliance, and promotion of a less cash economy.