Question : Case Study 4:
LMN Ltd. is a manufacturing company that relies heavily on imported raw materials. Due to changes in currency exchange rates, the cost of raw materials has increased significantly, affecting the company's profitability.
Q:- Which dimension of the business environment is highlighted in this case?
Option 1: Economic environment
Option 2: Social environment
Option 3: Technological environment
Option 4: Political environment
Correct Answer: Economic environment
Solution : The correct answer is (A) Economic environment
The dimension of the business environment highlighted in this case is the economic environment. The case involves changes in currency exchange rates, which are economic factors that can have a direct impact on a business, particularly in terms of costs and profitability. The economic environment encompasses various economic conditions and variables, including exchange rates, inflation, and financial factors that affect businesses.
