Practicing Success

Target Exam

CUET

Subject

Business Studies

Chapter

Business Environment

Question:

Match the following-

LIST 1
LIST 2
(A) Technological Environment (I) Includes forces relating to scientific improvements and innovations
(B) Social Environment (II) Includes forces like customs, values, traditions etc
(C) Economic Environment (III) Include the economic factors that can affect management practices
(D) Political Environment (IV) Reflect specific attitudes that elected government representatives hold towards business

 Choose the correct answer from the options given below:

Options:

A-IV, B-II, C-III, D-I

A-I, B-II, C-III, D-IV

A-I, B-IV, C-III, D-I

A-IV, B-II, C-I, D-III

Correct Answer:

A-I, B-II, C-III, D-IV

Explanation:

* Technological environment includes forces relating to scientific improvements and innovations which provide new ways of producing goods and services and new methods and techniques of operating a business.

* Social environment includes social forces like traditions, values, social trends, society’s expectations of business, and so on.

* Economic environment includes Interest rates, inflation rates, changes in disposable income of people, stock market indices and the value of rupee are some of the economic factors that can affect management practices in a business enterprise. Short and long term interest rates significantly affect the demand for product and services.

* Political environment includes political conditions such as general stability and peace in the country and specific attitudes that elected government representatives hold toward business.