Technological improvements, shifts in consumer preferences or the entry of new competitors into the market highlight the __________ nature of the Business Environment.
Answer & explanation
Correct answer: option 4
The correct answer is Option (4) → Dynamic
Option (1) Interrelated — Incorrect. This feature means the parts of the environment affect each other, as when longer life and health awareness raise the demand for health products.
Option (2) Complex — Incorrect. This feature means the environment is made of many forces that are hard to understand together.
Option (3) Uncertain — Incorrect. This feature means future events are hard to predict. The question speaks of the changes themselves, not of how hard they are to predict.
Option (4) Dynamic — Correct. The business environment keeps on changing: new technology, new consumer tastes and new competitors keep coming. This is its dynamic nature.
NCERT (2026-27 Edition): “Dynamic nature: Business environment is dynamic in that it keeps on changing whether in terms of technological improvement, shifts in consumer preferences or entry of new competition in the market. |