Explanation:
Importance of the Study of Business Environment:
A study of business environment is highly significant for business management for the following reasons:
(i) To Ensure Smooth Functioning of Business Cycle:
Smooth functioning of business cycle depends on availability of inputs and disposal of output.
Business enterprises obtain inputs like raw-materials, machines, technology, manpower etc. from the society (which is part of business environment); and dispose of output i.e. finished goods to society.
Hence, business managements must study business environmental factors so as to be aware of changes in input supplies, changes in social factors like consumer behaviour, state of competition in industry etc. to ensure smooth functioning of their business cycles.
A study of business environment is essential to take full advantage of opportunities for gain hidden in the business environment.
PLEASE MARK ME A BRAINLIST AND ❤
