Final answer:
The 'General environment' consists of broad conditions affecting organizations, similar to how the 'abiotic environment' affects organisms.
Step-by-step explanation:
The correct answer to the student's question, "The __________ consists of all the conditions in the external environment of an organization that forms a background context for managerial decision making", is B. General environment. This term refers to the broad conditions and trends in the society within which an organization operates that can influence its performance and strategies. This includes abiotic factors such as economic, technological, sociocultural, legal-political, international, and natural elements, much like the physical or abiotic environment affects biological organisms.