Which business environment factor includes changes in interest rates and consumer purchasing power?
Correct answer: A. Economic factor
- A. Economic factor
- B. Political factor
- C. Cultural factor
- D. Legal factor
Explanation
Interest rates and purchasing power are economic conditions that influence costs, investment, and demand. Political factors concern government action, while legal factors concern binding rules and regulations.
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About The Business Environment
Business environment includes the internal factors and external forces that affect business decisions, performance and survival. It covers customers, competitors, suppliers, government, technology, economic conditions, society, law and ecology, including the distinction between the microenvironment and the wider PESTLE environment.
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