Which of the following element does not fall under Social Environment?

The correct answer is Option (4) → Expansion of transportation facilities

The social environment is made up of the social forces around a business, such as customs, values and the make-up of the population.

• Option (1) Life expectancy — An element of the social environment (Incorrect). People living longer changes what they need, for example more health products and services.

• Option (2) Birth and death rates — An element of the social environment (Incorrect). They decide the size and age make-up of the population, and so the demand for goods.

• Option (3) Population shifts — An element of the social environment (Incorrect). The movement of people, for example from villages to cities, changes where and what they buy.

• Option (4) Expansion of transportation facilities — Not an element of the social environment (Correct). Roads, railways and other transport facilities are infrastructure. Their growth belongs to the economic environment, not the social one.