Practicing Success

Target Exam

CUET

Subject

Business Studies

Chapter

Business Environment

Question:

Match the following-

LIST 1
LIST 2
(A) Increase in taxes by government (I) Make things expensive to buy
(B) Technological improvements (II) Existing products obsolete
(C) Political uncertainty (III) Create fear in the minds of investors
(D) Changes in fashions and tastes of consumers (IV) Shift demand in the market from existing products to new ones

 Choose the correct answer from the options given below:

Options:

 A-I, B-II, C-III, D-IV

 A-I, B-III, C-IV, D-II

 A-I, B-II, C-IV, D-III

 A-II, B-III, C-IV, D-I

Correct Answer:

 A-I, B-II, C-III, D-IV

Explanation:
LIST 1
LIST 2
(A) Increase in taxes by government (I) Make things expensive to buy
(B) Technological improvements (II) Existing products obsolete
(C) Political uncertainty (III) Create fear in the minds of investors
(D) Changes in fashions and tastes of consumers (IV) Shift demand in the market from existing products to new ones

Changes in government’s economic policies, rapid technological developments, political uncertainty, changes in fashions and tastes of consumers and increased competition in the market — all influence the working of a business enterprise in important ways.
* Increase in taxes by government can make things expensive to buy.
* Technological improvements may render existing products obsolete.
* Political uncertainty may create fear in the minds of investors.
* Changes in fashions and tastes of consumers may shift demand in the market from existing products to new ones.
* Increased competition in the market may reduce profit margins of firms.