Question

Assertion (A): Business environment does not affect much the decision-making of the companies.

Reason (R): Business environment is related to all external forces outside the organisation.

Options

• Both Assertion (A) and Reason (R) are True and Reason (R) is the correct explanation of Assertion (A).

• Both Assertion (A) and Reason (R) are True and Reason (R) is not the correct explanation of Assertion (A).

• Assertion (A) is True but Reason (R) is False.

• Assertion (A) is False but Reason (R) is True.

Answer 1

Assertion (A) is False but Reason (R) is True.

Explanation:

Assertion (A):

• The statement “Business environment does not affect much the decision-making of the companies” is false.
• In reality, the business environment has a significant impact on the decision-making process of companies.
• Companies must continuously adapt to economic, social, legal, political, and technological changes in their environment.

Reason (R):

• The statement “Business environment is related to all external forces outside the organisation” is true.
• It includes external forces like customers, competitors, government policies, technology, and economic conditions that influence the organisation but are beyond its control.