Practicing Success

Target Exam

CUET

Subject

Business Studies

Chapter

Business Environment

Question:

Many companies have planned for significant investments in organized retailing in India. Several factors have prompted their decisions in this regard. Customer income is rising. People have developed a taste for better quality products even though they may have to pay more. The aspiration levels have increased. The government has also liberalized its economic policies in this regard and permitted even cent percent foreign direct investment in some sectors of retailing.

Which type of forces are highlighted in the above passage?

Options:

Specific

General

Internal

External

Correct Answer:

General

Explanation:

General forces (such as social, political, legal and technological condition have impact on all business enterprises and thus may affect an individual firm only indirectly.

(i) Economic Change: 'Customer income is rising'
(ii) Social Change: 'The aspiration levels have increased
(iii) Technological Change: 'People have developed a taste for better quality products even though they may have to pay more
(iv) Political Change: 'The government has also liberalised its economic policies.
(v) Legal Change: 'Cent percent foreign direct investment in some sectors of retailing has been now permitted'.

Thus, all are general forces.