Business Environment Test - 48

Social environment refers to the broad characteristics of the society in which a business enterprise operates.

composition of family comes under social environment , the other options are reference to legal environment and economic environment.

The Economic Survey is prepared by the Economics Division of the Department of the Economic Affairs in the Finance Ministry under the full supervision of the chief economic adviser and is issued with the approval of the finance minister.

Social environment refers to all the characteristics of society in which business operates. It includes the customs and traditions of the society, standard of living, taste, preferences etc. The diwali increases the sale of sweets, crackers and clothes. Thus effects the business and comes under social environment.

Some activities of government are useful to business. They may provide rules that help moderate conflicts and make agreements more stable or may protect some enterprises from competition from others. However, the government’s positive and negative impacts on business are very different. The government’s impact on business is largely negative.

Increased competition may lead efficiency and effectiveness in utilization of resources. As well as it compelled the manufacturers to reduce their margin of profit. So that they can stay in competition for long period.

The major component of business ethics is a moral and ethical code of practice based on a moral stance on the world and business. It covers the responsibilities that individuals have to customers, workers, stockholders, and other stakeholders.

Liberalisation refers to end of license, quota, unnecessary restrictions and controls over industry and trade.

Increase in the tax rate means increase in tax on a specific commodity. Such a tax may raise the price of the commodity to the consumer and reduce the net price received by the producer. Thus being an expense it will raise the cost of production.

All enterprises engaged in production activities tend to be organised to allow exploitation or oppression of wage labour by capital. Workers are paid wages for their services, and resources may be bought through investment or taken from non-working people through plunder, rent or usury.

Market surveys estimate demand for specific products or services by tracking actual sales over time to see what the trends were in terms of identifying trends and evaluating the information obtained from this process.