Practicing Success
Which of the following is not an economic factor affecting management practices in a business enterprise? |
Interest rates Stock market indices Cultural factors Value of rupee |
Cultural factors |
The correct answer is option 3- Cultural factors. Interest rates, inflation rates, changes in disposable income of people, stock market indices and the value of rupee are some of the economic factors that can affect management practices in a business enterprise. Short and long term interest rates significantly affect the demand for product and services. Some components of economic environment-
Cultural factors came under the social dimension of business environment. |