Tamilnadu Samacheer Kalvi 12th Commerce Notes Chapter 19 Environmental Factors Notes

→ The sum total of all factors both internal and external which has an impact on the functioning of a business can be termed as business environment.

→ The understanding of business environment is essential for taking important decisions,

→ According to Bayard O ‘Wheeler Business environment is “the total of all things external to firms and industries which affect their organisation and operations”.

→ The business environment can be classified as follows. (i) Internal environment (ii) External environment.

→ .Internal environment refers to those factors within an organisation e.g Policies and programmes, employees, financial and physical resources.

→ External environment refers to those factors outside the business, e.g., economic, political and socio-cultural factors.

→ The major internal factors affecting business decisions are (OValues system (ii) Vision and objectives (iii) Management structure (iv) Internal power relations (v) Company image

→ External environment is further subdivided into micro or task environment and macro or general environment.

→ The micro environment factors are (i) Suppliers (ii) Customers (iii) Competitors (iv) Financiers (v) Marketing Channel members (vi) Public

→ The macro environment factors are (i) Economic environment (ii) Socio-Cultural environment (iii) Political and Legal environment (iv) Geo-physical environment

→ Corporate governance is a set of rules and policies which governs a company. It provides a frame work for managing a company and achieving its objectives.

→ Goods and Services Tax (GST) is the indirect tax levied on goods and services across the country.

→ There are three types of GST. They are (i) CGST (ii) SGST (iii) IGST:

→ Goods and Services Tax Council is a constitutional body for making recommendations to the Union and State Government on issues related to Goods and Service Tax.

Samacheer Kalvi 12th Commerce Notes