Question

Aiming to revive Jammu and Kashmir’s attraction as a top location for film shooting the J&K film policy, 2021 offers a host of incentives to the filmmakers, such as subsidies and low long term interest rates, for films with patriotic and certain other themes shot in J&K, for giving work opportunities to local artistes, etc. This will have an impact on business enterprises in the state. Which component of business environment is highlighted above: 

(a) Specific and general forces 

(b) Technological environment 

(c) Economic environment 

(d) Totality of external forces

Answer 1

Answer: (c) Economic environment

Economic environment comprises of the factors like interest rates, inflation rates, and changes in disposable income of people, etc. which have an impact on business enterprise. Economic environment includes economic forces like economic policies, economic system, economic conditions, economic development, etc.

Answer 2

(c) Economic environment