Practicing Success

Target Exam

CUET

Subject

Business Studies

Chapter

Business Environment

Question:

Match the following:

1. Economic environment A. Kiosks and world wide web used for information and advertisement
2. Social environment B. Rise in the disposable income due to rise in GDP
3. Technological environment C. Companies Act 2013
4. Legal environment D. Increased business opportunities due to celebration of Diwali, Eid, Christmas.
Options:

1-B, 2-D, 3-C, 4-A

1-C, 2-D, 3-B, 4-A

1-A, 2-D, 3-B, 4-C

1-B, 2-D, 3-A, 4-C

Correct Answer:

1-B, 2-D, 3-A, 4-C

Explanation:

* Economic environment: 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. For example: Rise in the disposable income of people due to increase in the gross domestic product of a country creates increasing demand for products. 

* Social environment: The celebration of Diwali, Eid, Christmas, and Guru Parv in India provides significant financial opportunities for greetings card companies, sweets or confectionery manufacturers, tailoring outlets and many other related businesses.

* Technological environment: Technological environment includes forces relating to scientific improvements and innovations which provide new ways of producing goods and services and new methods and techniques of operating a business. For example, recent technological, advances in computers and electronics have modified the ways in which companies advertise their products. It is common now to see computerized information kiosks, and World Wide Web multimedia pages highlighting the virtues of products.

* Legal environment: Legal environment includes various legislations passed by the Government administrative orders issued by government authorities, court judgments as well as the decisions rendered by various commissions and agencies at every level of the government— centre, state or local. For example: Comapnies act 2013.