Question

Which of the following is an example of social environment?

(a) Money supply in the economy

(b) Consumer Protection Act

(c) The constitution of the country

(d) Composition of family

Answer 1

Social environment refers to the social forces such as customs, traditions, social values, social trend etc. that affect the business opportunities and performance. Among the options given in the question, composition of family represents an example of social environment. If the composition of family is such that it comprises of more of children than elderly persons then, this implies greater business opportunity for baby product companies.