Question

‘High inflation rates generally result in constraints on business enterprises as they increase the various costs of business such as the purchase of raw materials and payment of wages and salaries to employees, etc.’ The dimension of business environment referred to above is:

Options

• Political Environment

• Technological Environment

• Social Environment

• Economic Environment

Answer 1

Economic Environment

Explanation:

Costs going up and inflation are two important signs of an economy. They affect how businesses operate and how they decide to spend their money.