Question

Which element does not affect market assessment?

• A. Demand
• B. Micro-environment
• C. Market intermediaries
• D. Competitor

Hint:

While micro-environment affects business operations broadly, specific factors like demand and competition have more direct market impact.

Answer 1

The Correct Option is B

Step 1: Understanding Market Assessment.
Market assessment involves studying the various internal and external factors that influence a business’s market position.
It includes analyzing demand, competition, distribution channels, and pricing mechanisms.
Step 2: Role of Micro-environment.
The micro-environment includes factors such as customers, suppliers, intermediaries, and competitors that directly affect the company.
However, while these factors influence business decisions, the “micro-environment” itself is a broader category, not a single influencing element in market value determination.
Step 3: Analysis of options.
- (1) Demand: Strongly affects market conditions and pricing.
- (2) Micro-environment: Correct — it’s a broad category and not a direct element affecting market assessment.
- (3) Market intermediaries: Influence market distribution.
- (4) Competitor: Affects pricing and strategy decisions.
Step 4: Conclusion.
Hence, the Micro-environment does not directly affect market assessment as an individual factor.