Premises are the assumptions of the future environment on which plans are to be carried out. Premises are anticipated environment. It is to forecast sales volume, cost, political and legal environment, technological change, availability of labor. Premises are important because they give important information’s about future to managers. Establishment of premises is important step in planning. Premises are the forecast of future expectations about:
a) Demographic trend: - It is related with human population, its distribution, size, composition and migration.
b) Future economic business condition: - Related to business sycle. Condition of business cycle such as growth, prosperity, recession and recovery.
c) Forecast about political and legal of the country.
d) Technological change and innovations
e) Resource availability
f) Socio cultural forces
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