BUSINESS AND ITS ENVIRONMENT
After reading this chapter, you will understand the environment within which business operates and how it interacts and transacts its activities within this environment. This chapter gives you a bird's-eye. view of the subject and enables you to understand and appreciate the complexities involved in doing business and making business decisions.
A business firm does not operate in a vacuum but in a given environment, and has to interact and transact its business within this environment. A business organization is a microeconomic unit influenced by its environment—both economic and non-economic, internal and external; the value system prevalent in the society in which it operates; the laws enacted by the government—both ...