Match List-I (features of business environment) with List-II (situations):
| List-I | List-II |
|---|---|
| (A) Dynamic nature | (I) A fashion label cannot say which colours will sell next season, as fashions change too often. |
| (B) Relativity | (II) A sweet shop loses buyers the very next day after a nearby rival cuts its prices. |
| (C) Specific and general forces | (III) Buyers of a shoe company shift from leather shoes to sports shoes, and a few years later to slip-on shoes. |
| (D) Uncertainty | (IV) Rice is the main food in Tamil Nadu, while wheat is the main food in Punjab. |
Choose the correct answer from the options given below:
Answer & explanation
Correct answer: option 4
The correct answer is Option (4) → (A)-(III), (B)-(IV), (C)-(II), (D)-(I)
| List-I | List-II | Reason |
|---|---|---|
| (A) Dynamic nature | (III) Buyers of a shoe company shift from leather shoes to sports shoes, and a few years later to slip-on shoes. | The environment keeps on changing, here through shifts in consumer preferences. |
| (B) Relativity | (IV) Rice is the main food in Tamil Nadu, while wheat is the main food in Punjab. | The environment differs from region to region, like the demand for sarees in India and France. |
| (C) Specific and general forces | (II) A sweet shop loses buyers the very next day after a nearby rival cuts its prices. | A competitor is a specific force. It affects the shop directly and immediately. |
| (D) Uncertainty | (I) A fashion label cannot say which colours will sell next season, as fashions change too often. | It is very difficult to predict the future when changes come too often, as in fashion. |
NCERT (2026-27 Edition): “(ii) Specific and general forces: Business environment includes both specific and general forces. Specific forces (such as investors, customers, competitors and suppliers) affect individual enterprises directly and immediately in their day-to-day working. General forces (such as social, political, legal and technological conditions) have impact on all business enterprises and thus may affect an individual firm only indirectly.” “(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. …” “(vii) Relativity: Business environment is a relative concept since it differs from country to country and even region to region. Political conditions in the USA, for instance, differ from those in China or Pakistan. Similarly, demand for sarees may be fairly high in India whereas it may be almost non-existent in France.” |