Question

Which of the following would be considered part of a firm's general environment?
a. increased bargaining power of the firm's suppliers
b. higher unemployment rates
c. increased competitive intensity
d. decreased entry barriers

Answer 1

Answer:

b. higher unemployment rates

Explanation:

A firm's general environment relates to those factors that affect the entire industry or economy in which the firm operates. The general environment excludes those factors that are specific to a particular firm or organisation. Options a, c and d are firm specific and are therefore incorrect. Higher unemployment rates would affect the entire industry or economy and not just the firm in particular. Therefore, option b is the correct answer.