Which of the following pairs of a feature of business environment and its description is correctly matched?
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → Uncertainty – It is very difficult to predict future happenings, especially in information technology or fashion industries.
Option (1) Relativity – It is difficult to comprehend at once what exactly constitutes a given environment. — Incorrect. This description is of complexity. Relativity means the environment differs from country to country and region to region.
Option (2) Uncertainty – It is very difficult to predict future happenings, especially in information technology or fashion industries. — Correct. Uncertainty means it is very difficult to predict future happenings. This is most so where changes come too often, as in information technology or fashion.
Option (3) Complexity – Business environment differs from country to country and even region to region. — Incorrect. This description is of relativity. Complexity means it is hard to understand at once what makes up a given environment.
Option (4) Dynamic nature – Business environment is the sum total of all things external to business firms and is aggregative. — Incorrect. This description is of totality of external forces. Dynamic nature means the environment keeps on changing.
NCERT (2026-27 Edition): “(i) Totality of external forces: Business environment is the sum total of all things external to business firms and, as such, is aggregative in nature.” “(iv) Dynamic nature: Business environment is dynamic in that it keeps on changing whether in terms of technological improvement, shifts in consumer preferences or entry of new competition in the market.” “(v) Uncertainty: Business environment is largely uncertain as it is very difficult to predict future happenings, especially when environment changes are taking place too frequently as in the case of information technology or fashion industries.” “(vi) Complexity: Since business environment consists of numerous interrelated and dynamic conditions or forces which arise from different sources, it becomes difficult to comprehend at once what exactly constitutes a given environment. …” “(vii) Relativity: Business environment is a relative concept since it differs from country to country and even region to region. …” |