3 1.3.How the local, national and global economic environment impacts on the business.4 TASK 2. Importance of accounting is as follows: Evaluation ofbusiness performances: The accounting process generates information regarding operations and financial position of company. Helps to be statutory compliant: Business accounting ensures recording of company liabilities like sales tax and income tax, etc which will help company to avoid any legal issues which could affect their performance in critical situations Further, timely payment of liabilities help business to be statutory complied and