Question

If a business wants to allow Parachute in India and a new brand name to be same in U.S., name the feature of business environment highlighted above.

• A. Dynamic nature
• B. Uncertainty
• C. Relativity
• D. Inter-relations

Hint:

Features of Business Environment:

• Totality of external forces
• Dynamic nature
• Relativity
• Complexity
• Uncertainty
• Inter-relatedness

Answer 1

The Correct Option is C

Concept:
The business environment differs from country to country and region to region. A practice, product, strategy, or business decision that is successful in one country may not necessarily succeed in another country because cultural, social, legal, economic, and consumer preferences vary across nations. This characteristic of business environment is known as Relativity.

Step 1: Understanding the meaning of Relativity.
Relativity means that the business environment is not identical everywhere.

• Consumer preferences vary across countries.
• Government regulations differ from nation to nation.
• Social values and cultural beliefs are different in different regions.

As a result, businesses must modify their products, branding, advertising, and strategies according to local conditions.

Step 2: Analyzing the given statement.
The question discusses the use of a brand name in India and the United States. This indicates that:

• A business strategy suitable in one country may not be suitable in another.
• Brand acceptance depends upon local market conditions and consumer perception.

Therefore, the statement highlights differences in business environments across countries.

Step 3: Analyzing the options.

• Option (A): Dynamic nature refers to continuous changes in the environment over time.
• Option (B): Uncertainty means future business conditions cannot be predicted accurately.
• Option (C): Relativity means business environments differ from place to place and country to country.
• Option (D): Inter-relations refers to interconnectedness among environmental factors.

Thus, the most suitable option is relativity.

Step 4: Final conclusion.
The feature of business environment highlighted in the question is: \[ \boxed{\text{(C) Relativity}} \]