The correct answer is option (1)- Dynamic.
The feature of the business environment that indicates changing business conditions, whether in terms of technological improvement or the entry of new competition, is Dynamic.
The business environment is described as dynamic because it is constantly changing due to factors like technological advancements, shifts in consumer behavior, and the emergence of new competitors. This dynamic nature requires businesses to adapt and respond to these changes to stay competitive.
OTHER OPTIONS
- 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.
- 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. In other words, environment is a complex phenomenon that is relatively easier to understand in parts but difficult to grasp in its totality. For example, it may be difficult to know the extent of the relative impact of the social, economic, political, technological or legal factors on change in demand of a product in the market.
- Relativity: Business environment is a relative concept since it differs from country to country and even region to region. Political conditions in the USA, for instance, differ from those in China or Pakistan. Similarly, demand for sarees may be fairly high in India whereas it may be almost non-existent in France.
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