Practicing Success

Target Exam

CUET

Subject

Business Studies

Chapter

Business Environment

Question:

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.

Infrastructural factors that influence the economic environment include:

Options:

Artistic trends

Financial institutions, banks, and transportation modes

Literary preferences

Clothing fashion

Correct Answer:

Financial institutions, banks, and transportation modes

Explanation:

Infrastructural factors, such as, financial institutions, banks, modes of transportation communication facilities, and so on. They are needed to carry on the business. They contribute in the development of the country as without the proper infrastructural facilities a business cannot carry its functions.