The newly appointed Government of a country has created an atmosphere of uncertainty and fear in the country. As a result of which the price of dry fruits has risen. Which feature and dimension of Business Environment is related to above case?

(A) Complexity and Political Environment
(B) Uncertainty and Social Environment
(C) Inter-relatedness and Political Environment
(D) Dynamic nature and Political Environment

Choose the correct answer from the options given below.

(C) Only

The correct answer is Option (3)- (C) Only.

According to NCERT,

Features of Business Environment include: Uncertainty, Complexity, Inter-relatedness, Dynamic Nature , Relativity etc.

Dimensions of Business Environment include: Economic, Political, Social, Technological, Legal

Now apply to the case:

• The event involves a new government → Political Dimension

• The result is uncertainty and fear affecting the market (dry fruit prices rising) → a reflection of the uncertain and inter-related nature of the environment

So, the most directly applicable feature + dimension pair is:

 Inter-relatedness (Feature)
 Political Environment (Dimension)

Inter-relatedness: Different elements or parts of business environment are closely inter related. For example, increased life expectancy of people and increased awareness for health care have increased the demand for many health products and services like soft drinks, fat free cooking oil, and health resorts. New health products and services have, in turn changed people’s life styles.\

Political Environment: Political environment includes political conditions such as general stability and peace in the country and specific attitudes that elected government representatives hold towards business. The significance of political conditions in business success lies in the predictability of business activities under stable political conditions. On the other hand, there may be uncertainty of business activities due to political unrest and threats to law and order. Political stability, thus, builds up confidence among business people to invest in the long term projects for the growth of the economy. Political instability can shake that confidence. Similarly, the attitudes of government officials towards business may have either positive or negative impact upon business.

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