Correct Answer: Political stability

Solution : The correct answer is (C) Political stability

The demographic environment refers to the study of population characteristics and factors that influence population dynamics. It includes factors such as age distribution, gender ratio, income levels, education levels, occupation structure, and other demographic attributes. These factors help in understanding the composition, size, and trends within a population and how they may impact businesses and society.

Political stability, however, is not typically considered a component of the demographic environment. Political stability is a broader factor that falls under the political environment, which pertains to the influence of political institutions, policies, and actions on organizations and business operations. Political stability refers to the absence of political unrest, conflicts, or disruptions within a country or region. While political stability can indirectly impact demographic factors and other aspects of the business environment, it is not directly part of the demographic environment itself.