Read the following statements and choose your correct answer.

Assertion: Study of business environment helps a firm to cope up with rapid change.
Reasoning: Changes in business environment affects all the firms in the same way.

Assertion (A) is true but Reasoning (R) is not correct.

The correct answer is option 3- Assertion (A) is true but Reasoning (R) is not correct.

Assertion: "Study of business environment helps a firm to cope up with rapid change" — This statement is true. Studying the business environment allows firms to anticipate changes, adapt to external factors (like technological, economic, or legal changes), and stay competitive in a dynamic market. It helps companies understand the opportunities and threats in the external environment and make informed decisions.

Reasoning: "Changes in business environment affect all the firms in the same way" — This statement is false. Changes in the business environment do not affect all firms in the same way. Different firms may respond differently to external changes based on their size, resources, strategy, market position, or sector. For example, a technological change might benefit one company but create challenges for another.

Changes in the business environment can indeed affect different firms in different ways. Factors such as industry, size, market positioning, and management strategies play a significant role in determining how a particular change impacts a specific business. It's the ability of a firm to understand and adapt to these changes that contribute to its success in coping with a dynamic business environment. Thus, assertion is true but reason is not correct.