Question
What do you mean by external environment?
Solution
External environment includes all those factors which influence business and exist outside the business. Business has no control over these factors. The information about these factors is important for the study of the external environment. Some of these factors are those with which a particular company has very close relationship, e.g. customers, suppliers, competitors, etc. However, there are some other factors which influence the entire business community, e.g. political environment, economic environment, etc.
