Match the following list I (element of various general forces) with list II.

 Choose the correct answer from the options given below:

 A-III, B-IV, C-I, D-II

* Rates of saving and investment- 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. Short and long term interest rates significantly affect the demand for product and services. A rise in the disposable income of people due to increase in the gross domestic product of a country creates increasing demand for products. High inflation rates generally result in constraints on business enterprises as they increase the various costs of business such as the purchase of raw materials or machinery and payment of wages and salaries to employees. Some components of economic environment-
* Existing structure of the economy in terms of relative role of private and public sectors.
* The rates of growth of GNP and per capita income at current and constant prices
* Rates of saving and investment
* Volume of imports and exports of different items
* Balance of payments and changes in foreign exchange reserves
* Agricultural and industrial production trends
* Expansion of transportation and communication facilities
* Money supply in the economy
* Public debt (internal and external)
* Planned outlay in private and public sectors

* Life expectancy- Social Environment: The social environment of business include the social forces like customs and traditions, values, social trends, society’s expectations from business, etc. Traditions define social practices that have lasted for decades or even centuries. Major Elements of Social Environment-
* Attitudes towards product innovations, lifestyles, occupational distribution and consumer preferences
* Concern with quality of life
* Life expectancy
* Expectations from the workforce
* Shifts in the presence of women in the workforce
* Birth and death rates
* Population shifts
* Educational system and literacy rates
* Consumption habits
* Composition of family

* The extent and nature of government intervention in business- 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.

* Trade Union Act 1926- 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. It is imperative for the management of every enterprise to obey the law of the land. Therefore, an adequate knowledge of rules and regulations framed by the Government is a pre-requisite for better business performance. Non-compliance of laws can land the business enterprise into legal problems. In India, Constitutional Provisions; Companies Act 2013; Industries (Development and Regulations) Act 1951; Foreign Exchange Management Act and the Imports and Exports (Control) Act 1947; Factories Act, 1948; Trade Union Act; 1926; Workmen’s Compensation Act, 1923; Industrial Disputes Act, 1947, Consumer Protection Act, 1986.