Question

‘Business environment keeps on changing whether in terms of technological improvement, shifts in consumer preferences or entry of new competitors in the market.’

The feature of business environment highlighted in the above statement is :

• A. Totality of external forces
• B. Complexity
• C. Dynamic nature
• D. Relativity

Hint:

The statement is about a constantly changing environment, so it highlights the dynamic nature.

Answer 1

The Correct Option is C

Step 1: Understand what the statement says:
The statement says the business environment keeps changing. Technology improves, consumer tastes shift and new rivals enter the market.
So we need the feature that talks about constant change in the outside world of a firm.

Step 2: Recall the feature that matches:
Dynamic nature means the business environment is not fixed. It changes again and again, and a firm has to keep adjusting to it.
Technological improvement, shifting preferences and new competitors are all examples of such change.

Step 3: Why option (C) is correct:
Option (C) is Dynamic nature. The words keeps on changing in the statement point directly to this feature.
So (C) is the right choice.

Step 4: Why the other options are wrong:
Option (A), Totality of external forces, says the environment is the sum of all outside forces. The statement does not talk about the sum of forces, only about change.
Option (B), Complexity, means the environment has many forces that are hard to understand. The statement does not talk about difficulty in understanding.
Option (D), Relativity, means the environment differs from place to place. The statement does not compare places or countries.

Final Answer:
The feature of business environment described is Dynamic nature, option (C).