Practicing Success

Target Exam

CUET

Subject

Business Studies

Chapter

Business Environment

Question:

Match the following.

Dimension of Business Environment

Component

A. Economic

I. Festivals

B. Social

II. Court Judgements

C. Political

III. Public Debt

D. Legal

IV. Ideology of ruling party

Choose the correct answer from the options given below: 

Options:

A-II, B-I, C-IV, D-III 

A-III, B-I, C-IV, D-II 

A-IV, B-III, C-II, D-I 

A-III, B-II, C-IV, D-I

Correct Answer:

A-III, B-I, C-IV, D-II 

Explanation:

* 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. Public Debt is also an economic indicator.

* 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. For example, the celebration of Diwali, Eid, Christmas.

* 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. Ideology of govt effect business conditions.

* 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.