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What does the term "Business Environment" refer to?

Solution

✅ Correct Option: 1

Business environment refers to the forces and factors that affect a firm's operations and performance. Among the given options, the one covering factors affecting business operations, both internal and external, is the most complete; the others are too narrow.

Note: NCERT defines business environment as external forces only; we have chosen the option closest to the intended broad meaning.

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