Question:
Read the following statements carefully :
Statement I : Business environment includes both specific and general forces.
Statement II : Specific forces have an impact on all business enterprises and thus may affect an individual firm only indirectly.
In light of the given statements, choose the correct alternative from the following :
Read the following statements carefully :
Statement I : Business environment includes both specific and general forces.
Statement II : Specific forces have an impact on all business enterprises and thus may affect an individual firm only indirectly.
In light of the given statements, choose the correct alternative from the following :
Show Hint
Statement I is correct. Statement II describes general forces, not specific forces, so it is false.
Updated On: Oct 26, 2026
- Statement I is true and Statement II is false.
- Statement I is false and Statement II is true.
- Both Statement I and Statement II are true.
- Both Statement I and Statement II are false.
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The Correct Option is A
Solution and Explanation
Step 1: Recall the two types of forces:
The business environment has two kinds of forces. General forces affect all business firms in a similar way, such as social, political, economic and legal factors.
Specific forces affect an individual firm directly, such as investors, customers, competitors and suppliers.
Step 2: Check Statement I:
The business environment is the sum of all outside forces. It includes both specific forces and general forces.
So Statement I is TRUE.
Step 3: Check Statement II:
Statement II says specific forces affect all enterprises and only indirectly affect one firm. This describes general forces, not specific forces.
Specific forces affect a particular firm directly. So Statement II is FALSE.
Step 4: Match with the options:
(A) Statement I is true and Statement II is false: this matches our finding, so it is correct.
(B) Statement I false and II true: wrong, because I is true and II is false.
(C) Both true: wrong, because II is false.
(D) Both false: wrong, because I is true.
Final Answer:
Statement I is true and Statement II is false, which is option (A).
The business environment has two kinds of forces. General forces affect all business firms in a similar way, such as social, political, economic and legal factors.
Specific forces affect an individual firm directly, such as investors, customers, competitors and suppliers.
Step 2: Check Statement I:
The business environment is the sum of all outside forces. It includes both specific forces and general forces.
So Statement I is TRUE.
Step 3: Check Statement II:
Statement II says specific forces affect all enterprises and only indirectly affect one firm. This describes general forces, not specific forces.
Specific forces affect a particular firm directly. So Statement II is FALSE.
Step 4: Match with the options:
(A) Statement I is true and Statement II is false: this matches our finding, so it is correct.
(B) Statement I false and II true: wrong, because I is true and II is false.
(C) Both true: wrong, because II is false.
(D) Both false: wrong, because I is true.
Final Answer:
Statement I is true and Statement II is false, which is option (A).
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