The correct answer is option 2- (A)-(II), (B)-(III), (C)-(I), (D)-(IV).
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List - I
(Features of
business environment)
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List - II
(Applications)
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(A) Dynamic Nature
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(II) Entry of new competitors in the market.
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(B) Inter-relatedness
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(III) New health products have changed people's lifestyles.
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(C) Complexity
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(I) Difficult to know the relative impact of the social
environment on changes in demand for a product.
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(D) Relativity
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(IV) Demand for sarees may be fairly high in India,
whereas it may be almost non- existent in France.
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(A) Dynamic Nature- (II) Entry of new competitors in the market.
Dynamic nature: Business environment is dynamic in that it keeps on changing whether in terms of technological improvement, shifts in consumer preferences or entry of new competition in the market.
(B) Inter-relatedness- (III) New health products have changed people's lifestyles.
Inter-relatedness: Different elements or parts of business environment are closely inter-related. For example, increased life expectancy of people and increased awareness for health care have increased the demand for many health products and services like soft drinks, fat free cooking oil, and health resorts. New health products and services have, in turn, changed people’s lifestyles.
(C) Complexity- (I) Difficult to know the relative impact of the social environment on changes in demand for a product.
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. For example, it may be difficult to know the extent of the relative impact of the social, economic, political, technological or legal factors on change in demand of a product in the market.
(D) Relativity- (IV) Demand for sarees may be fairly high in India, whereas it may be almost non- existent in France.
Relativity: Business environment is a relative concept since it differs from country to country and even region to region. Political conditions in the USA, for instance, differ from those in China or Pakistan. Similarly, demand for sarees may be fairly high in India whereas it may be almost nonexistent in France. |
