Which of the following statement is TRUE :

Rates of Savings & Investment is a component of Economic Environment

The correct answer is option (1) : Rates of Savings & Investment is a component of Economic Environment

The statement that is TRUE among the options provided is :

1. Rates of Savings & Investment is a component of Economic Environment

Let me explain each option individually :

1. Rates of Saving & Investment is a component of Economic Environment:The rates of saving and investment are integral components of the economic environment. They directly impact the overall economic growth, development, and stability of a country. These rates are closely monitored by economists and policymakers to gauge the health and trajectory of the economy.

2. Administrative orders issued by Government authorities is a part of Social Environment: Administrative orders issued by government authorities typically pertain to regulations, policies, and directives that influence the overall business and social environment. They often address issues such as public welfare, safety, and regulatory compliance. While they may indirectly impact the social environment, they primarily fall within the realm of the legal and regulatory environment.

3.Internal threats to the country is a part of legal Environment: Internal threats to the country are more related to national security and public safety, falling primarily within the domain of the political and security environment rather than the legal environment. The legal environment primarily encompasses the legal framework, laws, regulations, and legal systems that govern business operations and activities.

4. Use of artificial intelligence by business is a part of Economic Environment: The use of artificial intelligence by businesses is more closely associated with technological advancements and innovation rather than the economic environment. While it can have economic implications, its primary categorization falls under the technological or digital environment.