Business Studies Test - 32

Employees do not characterize the business environment. The business environment refers to external forces such as individuals, enterprises, situations, and other factors that affect the organization’s performance. Employees are internal to the organization and do not characterize its external environment.

The terms "mergers" and "acquisitions" are often used interchangeably, although in actuality, they hold slightly different meanings. When one company takes over another entity, and establishes itself as the new owner, the purchase is called an acquisition.

Change in agricultural prices does not directly explain the impact of government policy changes on business and industry. Government policy changes typically influence businesses through factors like increased competition, market orientation, or changing customer demands, whereas agricultural price changes are more specific to certain sectors.

The trend of health and fitness creating demand for products like gyms, bottled mineral water, and food supplements is an example of the social environment. This trend reflects changing societal preferences and behaviours, which influence market demand.

Liberalization refers to relaxation of government restrictions usually in areas of social and economic policies. It refers to the process of eliminating unnecessary controls and restrictions on the smooth functioning of business enterprises.

Liberalization means relaxation of various government restrictions in the areas of social and economic policies. Liberalizing trade policy by the government that is removal of tariff, subsidies and other restrictions on the flow of goods and services between countries is also termed as liberalization.

Liberalization is the result of New Industrial Policy which abolished the "License system". All industries except six major industries were liberalized. As a result industries grew rapidly and therefore liberalization also means deregulation and delicensing of industries. 

Economic Environment  consists of Gross Domestic product, Income at National level and per capita level. Profit earning rate, monetary and fiscal policy of the government etc. It helps to keep track of the economy affecting the business.

A subsidy to cotton textile businesses is an example of the political environment. Subsidies are government policies that support specific industries, reflecting political decisions to influence economic outcomes.

Greater flexibility and quicker decision-making Decentralization at Johnson & Johnson allows for flexibility and faster decision-making, as each smaller affiliate operates autonomously.

It allows for more agile responses to market needs Decentralization enables McNeil Consumer Healthcare to be more agile, responding quickly to market changes and customer demands.