Test: Business Environment - 1

Social environment because it is related to customs and traditions and because of it their is rapid increase in the market condition

Employees do not characterise business environment. Business environment refers to the external forces such as individuals, enterprises, situations, and other such forces that affect the performance of the organisation. Employees are integral to an organisation and does not characterise its environment.

The terms "mergers" and "acquisitions" are often used interchangeably, although in actuality, they hold slightly different meanings. When one company takes over another entity, and establishes itself as the new owner, the purchase is called an acquisition.

Liberalization means relaxation of various government restrictions in the areas of social and economic policies. Liberalizing trade policy by the government that is removal of tariff, subsidies and other restrictions on the flow of goods and services between countries is also termed as liberalization. 
Liberalization is the result of New Industrial Policy which abolished the "License system". All industries except six major industries were liberalized. As a result industries grew rapidly and therefore liberalization also means deregulation and delicensing of industries. 

Change in agricultural prices does not exotom the impact of Government policy changes on business and industry.

Economic Environment  consists of Gross Domestic product, Income at National level and per capita level. Profit earning rate, monetary and fiscal policy of the government etc. It helps to keep track of the economy affecting the business.

The trend of health and fitnness has created a demand for products is a social environment...... because these goods results in consumption by all the people in the society so it is generally related to social environment.