Question

When a manager analyzes the effects that an increase in the minimum wage will have on costs, employees, consumers, and the economy as a whole, this manager is taking into account the nature of the business environment. True or False.

Answer 1

Answer: True.

Explanation:

The business environment is the totality of all the factors that influence the smooth running of a business. The business environment comprises of both the internal and external factors that determines if a business is going to succeed. An increase in the minimum wage is an external factor that also alters the internal structure of a business, therefore it causes a change in business environment.