CMA Foundation · Fundamentals of Business Economics and Management · Economic and Business Environment
A traditional Indian sweets manufacturer starts using online ordering, UPI payments and automated packing machines to cut costs and reach distant customers. This change in the business environment is chiefly the result of which environmental factor?
The change is mainly due to the technological environment. Online ordering, UPI payments and automated packing are applications of new technology that lower costs and widen market reach, so the firm is responding to technological developments rather than to political, natural or purely demographic factors.
- ATechnological environmentCorrect
- BDemographic environment only
- CNatural environment
- DPolitical environment
Explanation
Online ordering, UPI and automation are applications of new technology to business operations. Adopting them is a response to the technological environment. They are not primarily driven by demographics, natural resources or political change.
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