1. Yes. The business environment refers to the totality of all factors which are external and beyond the control of business enterprise.

2. The importance of Business Environment are:

a. Identification of opportunities:

Environment provides numerous opportunities for business success. Early identification of opportunities helps an enterprise to be the first to exploit them.

b. Identification of threats:

Environmental awareness help managers to identify various threats on time and serves as an early warning signal.

c. Tapping useful resources:

Business environment helps to know the availability of resources and making them available on time.

d. Coping with rapid changes: Environmental. scanning enables the firms to adapt themselves to the changes in the market.

e. Assistance in planning and policy formulation:

Environmental understanding and analysis is the basis for planning and policy making.

f. Improving performance:

Environment scanning helps an organisation in improving its performance