Question

The economic survey 2018 suggest that the psychological biases can be used in the realm of tax compliance. It is in favour of using religious norms such "dying in debt is a sin" to improve tax compliance. Identify the related dimensions of business environment. Answer (a) Legal and social dimension (b) Social, and economic dimension (c) Technological and political dimension (d) Political and economic dimension

Answer 1

Answer:

(b) Social, and economic dimension

Explanation:

The dimensions of a business environment refers to the various factors that must be taken into consideration so as to have a sustainable business in a particular environment. These factors include the economic, legal, social, technological and political policies guiding a particular environment. If these factors are disregarded, the business can easily crumble.

In the question above, social factors that involve the incorporation of norms, values, beliefs, traditions, impact, and social trends ensures the smooth running of the business.

In the economic dimension, economic policies and systems that include taxes, interest rates, unemployment rate, stock market indices, etc. play a key role in the success of the business.