Question

The number of retail outlets selling silk and cotton sarees are much more in number in Chennai than in Delhi, due to more demand of sarees in Chennai. Which characteristic of Business Environment is reflected here?

Options

• Relativity

• Inter-relatedness

• Dynamic

• Complexity

Answer 1

Relativity

Explanation:

Relativity as a characteristic of the business environment means that business conditions differ from place to place, region to region, or country to country.

In this case:

• Chennai has more retail outlets selling silk and cotton sarees compared to Delhi because of higher demand in Chennai.
• This difference in demand based on regional preferences and cultural differences shows that the business environment is relative to the local context.