Class 12 Business Studies - BIHAR
Business Environment
The chapter 'Business Environment' in Class 12 Business Studies explores the total sum of all individuals, institutions, and forces outside the control of a business that affect its performance. For Bihar School Examination Board (BSEB) students, understanding this chapter is crucial as it forms the foundation of strategic management. You will learn about the five dimensions of the business environment—economic, social, technological, political, and legal—and the pivotal role of India's New Economic Policy of 1991, comprising Liberalisation, Privatisation, and Globalisation (LPG). Mastery of these topics is essential for answering high-scoring objective and subjective board questions.
Start Learning FreeKey Concepts
Business Environment
It refers to the sum total of all individuals, institutions and other forces that are outside the control of a business enterprise but that may affect its performance.
Dimensions of Business Environment
The external environment consists of five interrelated dimensions: Economic, Social, Technological, Political, and Legal environment.
Liberalisation
The process of releasing the business and industry from unnecessary government controls, restrictions, and licensing requirements.
Privatisation
The shedding of the ownership or management of a government-owned enterprise to the private sector.
Globalisation
Integrating the economy of a country with the world economy, allowing free flow of goods, services, capital, and technology across borders.
Demonetisation
The act of stripping a currency unit of its status as legal tender, notably implemented in India on November 8, 2016, to curb corruption and black money.
Important Formulas
Board Exam Info
In the Bihar (BSEB) Class 12 Business Studies board exams, this chapter typically carries around 6 to 8 marks. Questions usually include multiple-choice questions (MCQs), short answer type questions regarding the features or dimensions of the business environment, and long answer questions explaining the impact of LPG (Liberalisation, Privatisation, Globalisation) on Indian business and industry.
Frequently Asked Questions
What is the difference between specific and general forces in a business environment?
Specific forces (like customers, investors, and competitors) affect individual enterprises directly, whereas general forces (like social, political, and legal conditions) affect all enterprises in the industry indirectly.
Why is the business environment said to be dynamic?
It is called dynamic because it keeps changing continuously in terms of technological improvements, shifting consumer preferences, and new government policies.
What are the main objectives of the 1991 New Economic Policy?
The main objectives were to make the Indian economy more competitive, globalized, and efficient by reducing state control through Liberalisation, Privatisation, and Globalisation.
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