Expansion of transportation and communication facilities fall under which dimension of Business Environment?
Answer & explanation
Correct answer: option 1
The correct answer is Option (1) → Economic Environment
Option (1) Economic Environment — Correct. The expansion of transportation and communication facilities is one of the components of the economic environment. Roads, railways, ports and phone networks are the economy’s infrastructure. They decide how cheaply goods can be moved and how far a business can sell.
Option (2) Political Environment — Incorrect. The political environment covers political conditions such as general stability and peace in the country, and the attitude of the government towards business.
Option (3) Technological Environment — Incorrect. The technological environment covers scientific improvements and new ways of producing goods and doing business. Transport and communication facilities may use technology, but their expansion is counted as a part of the economy.
Option (4) Social Environment — Incorrect. The social environment covers customs, traditions, values, social trends and what society expects from business.
NCERT (2026-27 Edition):
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Note: The same/similar question has been asked in different years by NTA as per the details given below:
| 2026 | 2025 | 2024 | 2023 | 2022 |
| 23-05 S2 | 21-05 S1 | – | – | – |