Question : Just after the declaration of Lok sabha Election in 2014, the Bombay stock exchange index rose by 1000 points. Identify the dimension of business environment?
Option 1: Social environment
Option 2: Economic environment
Option 3: Political environment
Option 4: Technological environment
Correct Answer: Political environment
Solution :
Political environment constitutes all the factor related to governmnet affairs such as type of government in power, attitude of government towards different groups of societies, policy changes implemented by different government etc. In the above case, Just after the declaration of Lok sabha Election in 2014, the Bombay stock exchange index rose by 1000 points. This highlights the political environment of business environment.
Hence, option 3 is the correct answer.