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Home/Practice questions/Business Studies
Business StudiesBusiness Environment

Given below are two statements: one is labelled as Assertion (A) and…

Given below are two statements: one is labelled as Assertion (A) and the other is labelled as Reason (R).

Assertion (A): Business environment is largely uncertain.

Reason (R): Business environment is relatively easier to grasp in its totality but difficult to understand in parts.

In the light of the above statements, choose the correct answer from the options given below:

Answer & explanation+

Correct answer: option 3

The correct answer is Option (3) → (A) is true but (R) is false.

Assertion (A): Business environment is largely uncertain. — True. It is very difficult to predict future happenings, more so where changes come too often, as in information technology or fashion.

Reason (R): Business environment is relatively easier to grasp in its totality but difficult to understand in parts. — False. R turns the feature of complexity the other way round. The environment has many linked forces from different sources, so it is easier to understand in parts but difficult to grasp in its totality.

Uncertainty is about predicting the future. Complexity is about seeing the whole picture at once.

NCERT (2026-27 Edition): “(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.
(vi) 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. In other words, environment is a complex phenomenon that is relatively easier to understand in parts but difficult to grasp in its totality. …”

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