Which Environment Is NOT an Important Dimension of a Business

question 15

Multiple Choice

Which environment is NOT an important dimension of a business organization's external environment?

• A) the political-legal environment
• B) the sociocultural environment
• C) the technological environment
• D) the corporate cultural environment
• E) the global business environment

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Definitions:

Herfindahl-Hirschman Index

A measure used to determine the level of competition within a market, calculated based on the sum of the squares of market shares of all firms within the market.

Market

A place or system in which commercial transactions occur between buyers and sellers for goods, services, or financial assets.

Herfindahl-Hirschman Index

A measure of market concentration that is calculated by squaring the market share of each firm competing in the market and then summing the resulting numbers.

Squared Market Shares

A measure used in the analysis of market concentration, calculating each firm's market share squared and summing them to assess competitive environments.