Target Exam

CUET

Subject

Business Studies

Chapter

Business Environment

Question:

According to the World Health Organization, 39% of adults are overweight. Over the last 40 years, the prevalence of obesity has tripled around the world. With over half of consumers drinking at least one sugary drink on a given day, regulations towards the beverage sector are likely to become increasingly onerous. In the U.K., for example, a sugar tax was introduced in 2018 on beverages containing more than 5% sugar.

Identify the related dimensions of business environment.

Options:

Social dimension and Legal dimension

Social dimension and Economic dimension

Technological dimension and Political dimension

Political dimension and Economic dimension

Correct Answer:

Social dimension and Legal dimension

Explanation:

The correct answer is option 1- Social dimension and Legal dimension.

The related dimensions of the business environment in this context are Social dimension and Legal dimension.

Social Dimension: This includes changing lifestyles, health consciousness, and consumer behavior. The rise in obesity, overweight statistics, and consumer habits (like sugary drink consumption) fall under this. The statistic about 39% of adults being overweight and the tripling of obesity prevalence over the last 40 years reflect societal trends and health concerns. The mention of over half of consumers drinking sugary drinks also points to a social behavior and consumption pattern. These factors create a social context that businesses in the beverage sector must consider.

Legal Dimension: The introduction of a sugar tax in the U.K. on beverages with more than 5% sugar is a clear example of government regulation impacting the beverage industry. This falls under the legal dimension of the business environment, as it involves laws and policies that businesses must comply with. The statement that regulations are "likely to become increasingly onerous" further emphasizes the importance of the legal dimension.

Therefore, the correct answer is Social dimension and Legal dimension.