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CBSE-Business-studies-2016--->View question

Identify and explain the dimensions of business environment discussed in the above case .-CBSE business studies 2016 class 11

A recent rate cut in the interest on loans announced by the Banks encouraged Amit, a science student of Progressive School to take a loan from State Bank of India to experiment and develop cars to be powered by fuel produced from garbage. He developed such a car and exhibited it in the Science Fair organised by Directorate of Education. He was awarded first prize for his invention. Identify and explain the dimensions of business environment discussed in the above case


Asked On2017-07-19 15:33:40 by:milan-ransingh

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Answer:
Dimensions of business environment being referred to in the given case:
1. Economic environment: A fall in loan interest rate implies a variation in the economic environment of the country.
Explanation: Economic environment includes the effect of changes in the interest rates, levels of income and stock market fluctuations. Example: An increase in imports leads to a fall in the price of domestic currency and vice versa.
2. Technological environment: Development of a car which is powered by fuel produced from garbage implies a change in technological environment of the economy.
Explanation: Technological environment takes into account various changes in technology of an economy. It involves infrastructural changes or changes related to the information technology revolution. For example, smartphones and e-commerce are the foundations of most business start-ups in the modern era. Competing with different market players would require a company to launch an app and a website.

Answerd on:2017-07-20 Answerd By:Aparna-Dasgupta

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