Practicing Success

Target Exam

CUET

Subject

Business Studies

Chapter

Business Environment

Question:

Read the following statements and choose your correct answer.

Assertion: Political factors plays an important role in shaping the environment in which a business operate.
Reasoning: Political stability builds up confidence among the businesses to invest in long term.

Options:

Both Assertion (A) and reasoning (R) are correct and R is the correct explanation of A.

Both Assertion (A) and reasoning (R) are correct and but R is not the correct explanation of A.

Assertion (A) is true but Reasoning (R) is not correct.

Assertion (A) is not true but Reasoning (R) is correct.

Correct Answer:

Both Assertion (A) and reasoning (R) are correct and R is the correct explanation of A.

Explanation:

Both Assertion (A) and reasoning (R) are correct and R is the correct explanation of A.
Political factors do indeed play a crucial role in shaping the business environment, and political stability does contribute to building confidence among businesses for long-term investments.