Match List-I (features of business environment) with List-II (situations):
| List-I | List-II |
|---|---|
| (A) Relativity | (I) A phone maker cannot tell which features buyers will want next year, as models change every few months. |
| (B) Uncertainty | (II) Woollen shawls sell well in Punjab but hardly at all in Kerala. |
| (C) Complexity | (III) Wider use of smartphones raised the demand for online shopping, and online shopping in turn changed buying habits. |
| (D) Inter-relatedness | (IV) A soap maker cannot work out how much of its fall in sales came from social factors and how much from economic factors. |
Choose the correct answer from the options given below:
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → (A)-(II), (B)-(I), (C)-(IV), (D)-(III)
| List-I | List-II | Reason |
|---|---|---|
| (A) Relativity | (II) Woollen shawls sell well in Punjab but hardly at all in Kerala. | Relativity means the environment differs from region to region. Demand for the same product is high in one region and almost nil in another. |
| (B) Uncertainty | (I) A phone maker cannot tell which features buyers will want next year, as models change every few months. | Uncertainty means future happenings are very difficult to predict, more so where changes come too often. |
| (C) Complexity | (IV) A soap maker cannot work out how much of its fall in sales came from social factors and how much from economic factors. | Complexity means it is hard to know the relative impact of social, economic and other factors on demand. |
| (D) Inter-relatedness | (III) Wider use of smartphones raised the demand for online shopping, and online shopping in turn changed buying habits. | Inter-relatedness means the parts of the environment are closely linked. One change led to another, which in turn changed habits. |
NCERT (2026-27 Edition): “(iii) Inter-relatedness: Different elements or parts of business environment are closely interrelated. 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.” “(v) 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.” “(vi) 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.” “(vii) Relativity: Business environment is a relative concept since it differs from country to country and even region to region. …” |