Question : Identify the dimensions of business environment which has impact on the interest rate, inflation rate, changes in disposable income of the people, etc.
Option 1: Economic environment
Option 2: Social environment
Option 3: Technological environment
Option 4: Political environment
Correct Answer: Economic environment
Solution : Economic environment refers to those factors that have economic impact on the business activities such as interest rate, inflation rate, change in the disposable income of the people, stock market etc. Short and long term interest rate significantly affect the demand for product and services. Hence Option A is correct.
Question : Which environment involves the study of changes in technology and its impact on business operations?
Option 1: Technological environment
Option 2: Economic environment
Option 3: Social environment
Question : Identify the component of business environment. The demand for baby product has reduced as with increase in the birth rate and fall in the death rate the infants have now bigger share in composition of population.
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