Question:
‘Gamma Ltd.’, with its state-of-the-art manufacturing set-up in Karnesha, produces smartphones for the Indian market. Rapid technological improvements, changing consumer preferences and the entry of new competitors in the market push the company to revise its plans frequently. This reflects which characteristic of business environment ?
‘Gamma Ltd.’, with its state-of-the-art manufacturing set-up in Karnesha, produces smartphones for the Indian market. Rapid technological improvements, changing consumer preferences and the entry of new competitors in the market push the company to revise its plans frequently. This reflects which characteristic of business environment ?
Show Hint
Rapid changes in technology, tastes and competition show that the business environment is dynamic.
Updated On: Oct 26, 2026
- Inter-relatedness
- Dynamic nature
- Complexity
- Relativity
Show Solution
Verified By Collegedunia
The Correct Option is B
Solution and Explanation
Step 1: Read the case carefully:
Gamma Ltd. faces rapid technological improvements, changing consumer preferences and new competitors.
Because of these, the company has to revise its plans frequently.
Step 2: Find the feature:
When outside conditions keep changing and a firm must keep changing its plans, the feature is dynamic nature.
The words rapid, changing and frequently show constant change.
Step 3: Why option (B) is correct:
Option (B) is Dynamic nature. The environment is not stable, so Gamma Ltd. has to keep adapting.
Step 4: Why the other options are wrong:
(A) Inter-relatedness means the different forces are linked and affect each other. The case does not show one force affecting another.
(C) Complexity means the environment has many forces that are hard to understand. The case talks about change, not difficulty.
(D) Relativity means the environment differs from one place to another. The case is about one company in one market.
Final Answer:
The case shows the dynamic nature of business environment, option (B).
Gamma Ltd. faces rapid technological improvements, changing consumer preferences and new competitors.
Because of these, the company has to revise its plans frequently.
Step 2: Find the feature:
When outside conditions keep changing and a firm must keep changing its plans, the feature is dynamic nature.
The words rapid, changing and frequently show constant change.
Step 3: Why option (B) is correct:
Option (B) is Dynamic nature. The environment is not stable, so Gamma Ltd. has to keep adapting.
Step 4: Why the other options are wrong:
(A) Inter-relatedness means the different forces are linked and affect each other. The case does not show one force affecting another.
(C) Complexity means the environment has many forces that are hard to understand. The case talks about change, not difficulty.
(D) Relativity means the environment differs from one place to another. The case is about one company in one market.
Final Answer:
The case shows the dynamic nature of business environment, option (B).
Was this answer helpful?
0
0
Top CBSE CLASS XII Business Studies Questions
What is the Planning Process?
- ................ is one of the most important attitudes of an entrepreneur, which is defined as the ability to continue to do something, even when it is difficult.
(A) Decisiveness
(B) Interpersonal skills
(C) Perseverance
(D) Taking initiative - Mention any four most common environmental barriers which an entrepreneur may face while running his/her venture.
- ____is the process of searching for prospective employees and stimulating them to apply for jobs in the organization.
‘Vishesh Constructions’, a construction company, decided to strictly implement ‘No Helmet, No Entry’ and put the following sign at their construction sites :
Identify the type of plan indicated by the above sign :
View More Questions
Top CBSE CLASS XII Business Environment Questions
- VBR Cinema an Indian multiplex cinema hall was the first to recognize the change in consumption habits of people. It changed its food menu from burgers, pizza, soft drinks, etc. and switched over to healthier options like salads and smoothies, soups and anjeer-based sweets. Within a month, the revenue of the multiplex from sale of food items doubled. VBR Cinema, by continuously monitoring the environment and adopting suitable business practices, was able to improve its revenues and profits and was hopeful that it will continue to succeed in the market in the long run too. Identify and explain one dimension of business environment and one point of importance of understanding the business environment highlighted in the above case.
- Due to increasing presence of women in the workforce, 'Kisan Mart' comes out every Friday with big discount offers on daily use items to attract office-going women to shop on weekends. Which dimension of business environment is being highlighted in the above case?
- Raunaq, while studying at the university, felt that there should be a food joint in the university campus to provide food to students round the clock. After passing out of college, he set up 'Hunger Point,' a food joint with a varied menu ranging from burgers, pizzas, street food, and much more, in the university campus. For this, he obtained necessary permissions from the university administration. Since he was the first one to recognize the need for a food joint for all the students in an environment where students study day and night, it soon became a popular eating joint. Within six months, 'Hunger Point' started earning good profits.
Identify the point of importance of business environment discussed in the above case: - Choose the incorrect statement with respect to demonetization:
- Statement- I: Business Environment is dynamic as it differs from country to country. Statement II: Business Environment is largely uncertain as it is very difficult to predict future happenings. Choose the correct option from the following:
View More Questions
Top CBSE CLASS XII Questions
- 2, b, c are in A.P. and the range of determinant $\begin{vmatrix}1&1&1\\ 2&b&c\\ 4&b^{2}&c^{2}\end{vmatrix}$ is [2, 16]. Then find range of c is
- A boy of mass 50 kg is standing at one end of a, boat of length 9 m and mass 400 kg. He runs to the other, end. The distance through which the centre of mass of the boat boy system moves is
- A capillary tube of radius r is dipped inside a large vessel of water. The mass of water raised above water level is M. If the radius of capillary is doubled, the mass of water inside capillary will be
- A circular disc is rotating about its own axis. An external opposing torque 0.02 Nm is applied on the disc by which it comes rest in 5 seconds. The initial angular momentum of disc is
- A circular disc is rotating about its own axis at uniform angular velocity \(\omega.\) The disc is subjected to uniform angular retardation by which its angular velocity is decreased to \(\frac {\omega}{2}\) during 120 rotations. The number of rotations further made by it before coming to rest is
View More Questions