Which of the following is not a component of social environment?
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → Stock market indices
Option (1) Customs and traditions — A component of social environment (Incorrect). Customs and traditions are social practices that have lasted for many years. They are a social force.
Option (2) Stock market indices — Not a component of social environment (Correct). Stock market indices are an economic factor. They are listed with interest rates, inflation rates and the value of the rupee under the economic environment.
Option (3) Values — A component of social environment (Incorrect). Values are ideas that society holds in high esteem, such as social justice and equality of opportunity.
Option (4) Celebration of festivals — A component of social environment (Incorrect). An example of tradition is the celebration of Diwali, Eid, Christmas and Guru Parv. These festivals give business chances to sweet makers, card companies and tailors.
NCERT (2026-27 Edition): “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. …” “Social Environment … Traditions define social practices that have lasted for decades or even centuries. For example, 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 business. Values refer to concepts that a society holds in high esteem. …” |