Which of the following is the best reason why the external environment that surrounds an organization is important? The environment often holds the answers to a firm s financial questions and issues. The environment is a source of opportunities and threats for an organization. "The environment contains information on your competition, which you can use to gain a competitive advantage." "The environment dictates the supply and demand of your product, helping you forecast future business ventures." Studying the environment can reveal shifting tides in the industry and culture surrounding your product