Practicing Success

Target Exam

CUET

Subject

Business Studies

Chapter

Business Environment

Question:

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.

Which feature has been indicated for the identified concept in the phrase 'These forces keep on Changing'?

Options:

Complexity

Dynamic

Inter-relatedness

Relativity

Correct Answer:

Dynamic

Explanation:

The correct answer is Option (2) - Dynamic

The feature indicated for the identified concept in the phrase "These forces keep on Changing" is Dynamic.

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.