The Three Parts of the External Environment That Affect a Firm's

question 59

Multiple Choice

The three parts of the external environment that affect a firm's strategic actions are:

• A) economic, political, and legal.
• B) general, industry, and competitor.
• C) industry, business, and product.
• D) local, national, and global.

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Definitions:

Stock Market

A public market for buying and selling equity securities and derivatives, where companies can raise capital and investors can trade shares.

Capital Gains

The profit earned from the sale of an asset, such as stock or real estate, which has increased in value over the time it was held.

Interest Rates

The cost of borrowing money or the reward for saving money, expressed as a percentage of the amount borrowed or saved.

Corporate Profits

The earnings of corporations after expenses and taxes have been deducted.