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CMA Foundation · Fundamentals of Business Economics and Management · Economic and Business Environment

Which of the following is an example of a factor belonging to the social and cultural environment of a business?

The rising preference of urban consumers for health-oriented packaged foods is a social and cultural factor, because it reflects changing lifestyles and values of society. Repo rate, GST slabs and fiscal deficit targets are economic or legal-policy factors, not social-cultural ones.

  1. AChange in the repo rate announced by the RBI
  2. BRising preference of urban consumers for health-oriented packaged foodsCorrect
  3. CIntroduction of a new GST rate slab
  4. DIncrease in the fiscal deficit target

Explanation

Social and cultural environment covers attitudes, values, lifestyles, beliefs and demographic preferences of society. A shift in consumer preference toward healthy food is a lifestyle change. The repo rate and fiscal deficit are economic factors, and a GST slab is a legal/political-policy factor.

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