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Fiscal Policy Meaning

I have already explained fiscal policy. Today, I am trying to more simplify its meaning.



"Fiscal policy is that policy which is made by Govt. of any country. It is just like direction of Govt. about how will it collect revenue and how will it use this revenue. It is different from Govt. Budget. Govt. budget is just like estimation of one year expenditures and incomes but fiscal policy is planning to increase revenue of Govt. and decrease the expenditures. But one point is remembered that Govt. may not reduce all type of expenditures.So, paying important and necessary expenditures, it issues new currency notes. How much new notes will be issued? Its planning also includes in fiscal policy."

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Objective of Business Environment

Following are main objectives of business environment:
1. Knowledge of Information 
By studying the business environment, we can know the changes of business. This information is very useful for our business. Every businessman should aware current environment of business. With this, he can think the future of his business in such environment. 
2. Basis of Decisions 
One of main objective of the study of business environment that it can provide all the information which is needed for taking good decisions. Suppose, you completed your internal business environment study. With this study, you can take decision relating to purchase, sale, salary and price because you know your competitor, you know your suppliers and you know your customers. 
3. Helpful in making of Policies 
For making good business policies, we need to know and scan business through business environment. 
4. Technological Planning 
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Technological Environment

Definition of Technological Environment :-


“Technological Environment means the development in the field of technology which affects business by new inventions of productions and other improvements in techniques to perform the business
 work. "

Limitation of Business Environment Analysis

Following are main limitation of business environment analysis:

1. Unexpected and Unanticipated Events 

We can not tell unexpected and unanticipated events in business environment analysis. Sometime, business has to face unexpected happenings. So, there will no benefit of business environment in these cases.

2. No sufficient Guarantee

Business environment analyst does not give any guarantee whether all events will happen as per estimation in business environment.

3. Uncritical Faith 

Sometime data may be incorrect. So, decisions on basis of these analysis may be risky for business.

4. To much information

Sometime too much information relating to business environment analysis will create the doubt in businessmen.