Question

Economic environment of business is influenced by

• A. Economic policy
• B. Economic system
• C. Economic development
• D. All of these

Hint:

The economic environment is shaped by various factors, including government policies, the economic system, and overall development.

Answer 1

The Correct Option is D

Step 1: Understanding the economic environment of business.
The economic environment of business refers to the various economic factors and conditions that affect businesses, including policies, systems, and developmental factors that influence economic activities. All of these play a role in shaping the business environment.
Step 2: Analyzing the options.
(A) Economic policy: Correct. Economic policy includes government actions such as fiscal and monetary policies, which directly affect businesses.
(B) Economic system: Correct. The type of economic system (capitalism, socialism, etc.) influences the way businesses operate.
(C) Economic development: Correct. Economic development, such as improvements in infrastructure and technology, creates opportunities for business growth.
(D) All of these: Correct. All of the mentioned factors contribute to the economic environment of business.
Step 3: Conclusion.
The correct answer is (D) All of these, as the economic environment is influenced by policies, systems, and development.