Direction: In the question below are two statements labelled as Assertion (A) and Reason (R). In the context of the two statements, which one of the following is correct?

Assertion (A): Business environment does not affect much the decision-making of the companies.
Reason (R): Business environment is related to only the external forces outside the organization.

Both A and R are false.

Both A and R are false.

* Business environment have a significant effect on the decision-making of the companies.
* Business Environment is sum or collection of all internal and external factors such as employees, customers needs and expectations, supply and demand, management, clients, suppliers, owners, activities by government, innovation in technology, social trends, market trends, economic changes, etc. These factors affect the function of the company and how a company works directly or indirectly. Sum of these factors influences the companies or business organisations environment and situation.