Observation

The question was not attempted by most candidates. Those who did wrote the internal environments of a business (b) part of the question.

The expected responses to the question include:

(a) (i) The types of business resources are:

• Materials;

• Machines;

• Man/Human resources;

• Money/Financial resources;

• Opportunity/Goodwill.

(ii) Social Responsibilities of a Business to the Society

(a) (i) The types of business resources are:

• Provision of pipe borne water.

• Provision of health facilities.

• Award of scholarship to indigenes of where the business is located.

• Building of schools.

• Provision of good roads.

• Donation to organizations.

• Provision of support to the less privileged.

• Controlling pollution arising from activities of the company.

• Provision of electricity to communities.

(b) Components of a Business Environment

(i) Economic environment: This involves income distribution, inflation, level of employment, competition, credit facilities etc. These factors affect the ability of consumers to demand for goods and services and also determine the level of business activities.
(ii) Political environment: The policy of the existing government will affect the business operations.
(iii) Legal environment: This comprises all the laws and acts made by government to regulate business operations.
(iv) Social/Cultural environment: This involves the attitudes, needs, values and life styles of the people in their areas of operation.
(v) Technological environment: This deals with the level of innovation adopted to promote business activities. It includes innovations in production as well as merchandising of products.
(vi) Religious environment: This concerns the beliefs and creed of the people in their area of operation.
(vii) Ecological environment: This includes climatic changes in an environment such as drought, erosion, pollution, flood and water resources which affect the operations and performances of the business.
(viii) Demographic environment: This takes into consideration the composition of the population such as size and structures and how these affect performance of a business in areas of the quantity and types of goods to be produced.