Read the following statements : Assertion (A) and Reason (R). Assertion (A) : General forces such as social, political, legal and technological conditions affect an individual firm only indirectly. Reason (R) : General forces have an impact on all business enterprises, in contrast to, specific forces that affect individual firms directly and immediately in their day-to-day working. Choose the correct alternative from the following :
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Use the word "because" between the Assertion and Reason. If the sentence makes logical sense as a whole, (A) is likely the correct choice.
Both Assertion (A) and Reason (R) are correct and Reason (R) is the correct explanation of Assertion (A).
Both Assertion (A) and Reason (R) are correct, but Reason (R) is not the correct explanation of Assertion (A).
Both Assertion (A) and Reason (R) are incorrect.
Assertion (A) is correct, but Reason (R) is incorrect.
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The Correct Option isA
Solution and Explanation
Step 1: Understanding the Concept:
The business environment is composed of "Specific forces" (investors, customers, competitors) which affect a firm directly, and "General forces" (PESTEL) which affect the entire industry or all firms. Step 2: Detailed Explanation:
Assertion (A) is correct because general forces set the overall climate but don't usually hit a single shop's daily operations without affecting others. Reason (R) provides the definition of why (A) is true: it contrasts general forces (impacting everyone) with specific forces (impacting one firm directly). Therefore, (R) explains (A). Step 3: Final Answer:
The correct alternative is (A).
