Question

'Since business environment consists of numerous interrelated and dynamic conditions or forces which arise from different sources, it becomes difficult to comprehend at once what exactly constitutes a given environment'. Thus it is relatively easier to understand the environment in parts but difficult to grasp in its totality. Identify the feature of business environment highlighted above:

• A. Uncertainty
• B. Complexity
• C. Relativity
• D. Dynamic nature

Hint:

Complexity questions emphasize "interrelated factors" and "difficulty in total comprehension". Uncertainty focuses on unpredictability.

Answer 1

The Correct Option is B

The description matches Complexity because:
1. Multidimensional Nature: - "Numerous interrelated conditions" - Example: PESTEL factors affecting simultaneously
2. Analytical Challenge: - "Easier to understand in parts" - Requires decomposition (SWOT, Porter's Five Forces)
3. Key Indicators: - Multiple stakeholders - Interconnected variables - Non-linear relationships
Why not others: - (A) Uncertainty: About unpredictability, not interconnectedness - (C) Relativity: Context-specific nature not discussed - (D) Dynamic: Change speed not emphasized
Final Answer: (B) Complexity