Target Exam

CUET

Subject

Business Studies

Chapter

Business Environment

Question:

Read the following passage and answer the question.

A recent cut in the interest on loans announced by the SBIM Bank encouraged Anaya, a science student of Imperial School to take a loan from SBIM Bank to experiment and develop cars to be powered by fuel produced from garbage. She developed such a car and exhibited it at science fair organised by DOE. She was awarded Ist prize for his invention.

Which of the following force is highlighted in the above passage?

Options:

Technological environment

Economic environment

Both of these

None of these

Correct Answer:

Both of these

Explanation:

The correct answer is option 3- Both of these.

* A recent cut in the interest on loans announced by the SBIM Bank - Economic environment.
Economic Environment: Interest rates, inflation rates, changes in disposable income of people, stock market indices and the value of rupee are some of the economic factors that can affect management practices in a business enterprise. Short and long term interest rates significantly affect the demand for product and services.

* Develop cars to be powered by fuel produced from garbage- Technological environment.
Technological environment includes forces relating to scientific improvements and innovations which provide new ways of producing goods and services and new methods and techniques of operating a business. 

Thus both environment are highlighted in the given passage.