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  BUSINESS AND ITS ENVIRONMENT CHAPTER 2  INTRODUCTION Knowledge about management and organization is very useful especially in human endeavors like operating a business firm. This will be more significant, however, if such is supplemented by a basic knowledge of business and its environment. This chapter attempts to provide such requirements.  WHAT IS BUSINESS? Under the free enterprise system, the growth of the economy lies in the ability of private individuals to achieve economic objectives. The quest for profit is usually undertaken by engagement in business operations. Business firms and the government are expects to provide goods and services to the society.  The major part of this task, however, is assigned to the private business firms are free to compete with each other and competition leads to the offering of new and improved product and services to the society. The standard of living is raised or lowered depending to a large extent on the performance of the business firms.
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