Question

The two major types of business environment are _________ and _________.

• A. Good and Bad
• B. Positive and Negative
• C. Allowable and Unallowable
• D. Internal and External

Hint:

Remember: Business environment = Internal + External factors.

Answer 1

The Correct Option is D

Concept: Business environment refers to all factors that influence business operations.
Step 1: Types of business environment.
There are two main types:

• Internal environment – factors within the organization (employees, management, resources)
• External environment – factors outside the organization (economic, social, political, technological)

Step 2: Evaluate options.

• Good and Bad $\rightarrow$ Not classification (incorrect)
• Positive and Negative $\rightarrow$ Not standard classification (incorrect)
• Allowable and Unallowable $\rightarrow$ Incorrect
• Internal and External $\rightarrow$ Correct classification

Step 3: Conclusion.
Thus, the two major types of business environment are internal and external.