Answer question based on following case study.

Mr. Rajan wants to start a new business. Before starting new business he made an analysis and found various external and uncontrollable forces which affect individual enterprise directly and indirectly. Because these forces keep on changing, it is difficult to predict future happenings. Some examples of these forces are growth rate of GDP, consumption habits, expansion of communication facilities etc.

'Consumption habits' is a component of:

Social Environment

The correct answer is Option (2) - Social Environment

Consumption habits refer to the patterns and behaviors exhibited by individuals or groups within a society concerning the consumption of goods and services. These habits are influenced by cultural norms, societal values, and lifestyle preferences, all of which are key elements of the social environment.

Major Elements of Social Environment

* Attitudes towards product innovations, lifestyles, occupational distribution and consumer preferences
* Concern with quality of life
* Life expectancy
* Expectations from the workforce
* Shifts in the presence of women in the workforce
* Birth and death rates
* Population shifts
* Educational system and literacy rates
* Consumption habits
* Composition of family