Which of the following is not a feature of business environment:
Answer & explanation
Correct answer: option 4
The correct answer is Option (4) → Certainty
Option (1) Inter-relatedness — A feature of the business environment (Incorrect). Its forces are linked. A change in government policy, for example, can change consumer demand as well.
Option (2) Dynamic nature — A feature of the business environment (Incorrect). It keeps changing, with new technology, new competitors and changing tastes.
Option (3) Complexity — A feature of the business environment (Incorrect). It is made up of many forces from different sources, so it is hard to understand as a whole.
Option (4) Certainty — Not a feature of the business environment (Correct). The business environment means all the forces outside the business that can affect its working. It is largely uncertain, because future happenings are very hard to predict, especially where changes come quickly, as in information technology or fashion.
NCERT (2026-27 Edition): “Meaning of Business Environment … On the basis of the foregoing discussion, it can be said business environment, has the following features:” “(iii) Inter-relatedness: Different elements or parts of business environment are closely inter-related. …” “(iv) Dynamic nature: Business environment is dynamic in that it keeps on changing whether in terms of technological improvement, shifts in consumer preferences or entry of new competition in the market.” “(v) Uncertainty: Business environment is largely uncertain as it is very difficult to predict future happenings, especially when environment changes are taking place too frequently as in the case of information technology or fashion industries.” “…Complexity: Since business environment consists of numerous interrelated and dynamic conditions or forces which arise from different sources, it becomes difficult to comprehend at once what exactly constitutes a given environment. …” |