Theory question 106
Business Environment and Social Responsibility(a) Define business management.
(b) Explain the following terms: (i) economic environment; (ii) social environment
(c) List and explain four resources of a business.
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(a) Business management is the process of planning, organising, directing (leading), coordinating and controlling the resources of a business to achieve its goals.
(b)(i) Economic environment: economic conditions that affect a business, e.g. inflation, interest rates, exchange rates, income levels, taxes and unemployment.
(ii) Social environment: the people and culture around the business, e.g. population, customs, beliefs, tastes, education and lifestyle.
(c) Any four, explained: human resources (workers and their skills); financial resources (money/capital); physical/material resources (land, buildings, machines, raw materials); information resources (data and knowledge); technology; entrepreneurship/time.
The four Ms: men, money, materials, machines.