CSEET · Economic and Business Environment · Business Environment
A textile company in Surat finds that changes in consumer tastes, new import policy and a rival's price cut all affect its sales together, and the effects cannot be studied in isolation. Which feature of business environment does this mainly illustrate?
The situation shows the complexity and interrelatedness of the business environment. Many factors such as tastes, policy and competition act together and influence one another, so their effects are hard to isolate. It is not static, nor free from uncertainty.
- ASpecificity
- BComplexity and interrelatedness of its elementsCorrect
- CStatic nature
- DAbsence of uncertainty
Explanation
Business environment is made up of many factors that interact and influence one another, which makes it complex and hard to separate. Specificity refers to differing impact on different firms, and the environment is dynamic, not static.
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