Question

Which of the following is an economic factor affecting environmental scanning?

• A. Stage of economic development
• B. Economic policies
• C. Market situation
• D. All of these

Hint:

Economic environment = Development stage + Government policies + Market conditions.

Answer 1

The Correct Option is D

Step 1: Meaning of environmental scanning.
Environmental scanning refers to analyzing external factors that affect business operations, including political, social, technological, and economic factors.
Step 2: Economic factors in scanning.
- Stage of economic development: Determines opportunities available in a country (developed, developing, or underdeveloped economy).
- Economic policies: Influence trade, taxation, investment, and competition.
- Market situation: Includes demand-supply, competition, and consumer preferences.
Step 3: Option analysis.
- (A) Stage of economic development: Correct but partial.
- (B) Economic policies: Correct but incomplete.
- (C) Market situation: Correct but only one aspect.
- (D) All of these: Correct, since all these factors affect environmental scanning.
Step 4: Conclusion.
Environmental scanning is influenced by stage of development, policies, and market situation.