Match List-I with List-II List-I (Dimension of Business Environment)…

The correct answer is option 3- (A)-(IV), (B)-(III), (C)-(II), (D)-(I). 

List-I (Dimension of Business Environment)	List-II (Examples)
(A) Social Environment	(IV) A common trend is the increasing movement of young workers to cities away from rural areas.
(B) Political Environment	(III) The nature of the relationship of India with its neighboring countries.
(C) Economic Environment	(II) Higher cost of production will tend to force prices to go up.
(D) Legal Environment	(I) Smoking bans in restaurants, shopping malls and public parks can have a significant impact on business.

 

(A) Social Environment- (IV) A common trend is the increasing movement of young workers to cities away from rural areas.
A common trend is the increasing movement of young workers to cities away from rural areas is about people’s lifestyle, attitudes, and social trends. Urban migration reflects changing social preferences — people are seeking better jobs, education, and lifestyles in cities.

(B) Political Environment- (III) The nature of the relationship of India with its neighboring countries.
Political environment includes government policies, international relations, and political stability. Diplomatic ties affect trade agreements, import/export laws, and overall business confidence. Friendly relations can boost trade, tensions may disrupt supply chains or raise tariffs.

(C) Economic Environment- (II) Higher cost of production will tend to force prices to go up.
Economic environment involves inflation, interest rates, production costs, income levels, etc. Rising costs (e.g., raw materials, wages) affect pricing and profitability. It may lead to increased product prices, lower demand, or cost-cutting measures.

(D) Legal Environment- (I) Smoking bans in restaurants, shopping malls and public parks can have a significant impact on business.
Legal environment includes laws, regulations, and court decisions. This is a government-imposed regulation that businesses must follow.