Question

Which of the following is not a part of the economic environment of business?

• A. Competitive Environment
• B. Economic System
• C. Changes in Patent Laws
• D. None of these

Answer 1

The correct option is D None of these

Dimensions of, or the factors constituting the business environment include economic, social, technological, political and legal conditions which are considered relevant for decision-making and improving the performance of an enterprise.

Economic Environment includes interest rates, inflation rates, changes in disposable income of people, stock market indices and the value of rupee are some of the economic factors that can affect management practices in a business enterprise. Short and long term interest rates significantly affect the demand for product and services.