Question

Assertion (A): Sensitivity to environmental factors is crucial for an entrepreneur.

Reason (R): Scanning the environment helps in identifying threats and opportunities in the market.

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, but 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

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

Explanation:

An entrepreneur must be sensitive to environmental factors because business success depends on how well they understand and respond to changes in the environment. Environmental scanning helps in identifying threats and opportunities in the market, allowing entrepreneurs to plan effectively. Hence, both the assertion and the reason are true, and the reason correctly explains the assertion.