Practicing Success

Target Exam

CUET

Subject

Business Studies

Chapter

Business Environment

Question:

What is emphasized as an infrastructural factor in the economic environment?

Options:

Political stability

Modes of transportation and communication facilities

Educational institutions

Social media platforms

Correct Answer:

Modes of transportation and communication facilities

Explanation:

The economic environment in India consists of various macro-level factors related to the means of production and distribution of wealth which have an impact on business and industry. These include:
(a) Stage of economic development of the country.
(b) The economic structure in the form of mixed economy which recognises the role of both public and private sectors.
(c) Economic policies of the Government, including industrial, monetary and fiscal policies.
(d) Economic planning, including five year plans, annual budgets, and so on.
(e) Economic indices, like national income, distribution of income, rate and growth of GNP, per capita income, disposal personal income, rate of savings and investments, value of exports and imports, balance of payments, and so on.
(f) Infrastructural factors, such as, financial institutions, banks, modes of transportation communication facilities, and so on.