Lecture Notes On Economics & Business Environment

3 NATIONAL OPEN UNIVERSITY OF NIGERIA ACC 320: ECONOMICS AND BUSINESS ENVIRONMENT COURSE GUIDE INTRODUCTION For long, business managers have been borrowing aspects of economics to enable them take good and rational decisions. The success of an organization or business depends to a large extent on managerial decisions that are based on the external and internal environments indices. Businesses will need to obtain a clear understanding of their environment before they can set about making the right decisions. How sound the decisions are, is based on how knowledgeable the managers are of the surrounding environment. This does not in any way suggest that all good managers have sound knowledge of Economics and the Environment. There are some managers who are capable of taking right decision owing to their practical experience in the job. Others are able to do so because of the knowledge they acquired in school. All in all, academic knowledge is not a waste as it provides reasons for decisions taken. Economics and Business Environment is that course that blends business decisions with economics and business realities. It brings out the economics management tools that could be used to enhance managerial decision-taking. Business flourishes most when managers are