Question

1
Q1.
In order to boost and double India's export of goods and services to
over USD 1000 billion by 2025, it is important to lower effective
corporate tax rate, bring down cost of capital and simplify regulatory
and tax framework. Identify the related dimension of business
environment.
(a) social and legal dimension
(b) Technological and political dimension
(c) Political and social dimension
(d) Economic and legal dimension

Answer 1

Answer:

d) economic and legal dimension

Answer 2

(d) Economic and Legal dimension.

Economic Dimension of Business Environment

In the given paragraph the following lines indicate that it is talking about the Economic Dimension of Business Environment "...important to lower effective corporate tax rate, bring down the cost of capital..."

• The Economic environment consists of an economic system, economic policies, and economic conditions prevailing in a country.
• The factors that affect the economic environment are Interest Rates, Taxes, Inflation, Stock Market Indices, Value of the Domestic Currency (Rupee, in India's case), Personal Disposable Income, and Unemployment rate, etc.

Legal Dimension of Business Environment

Similarly, in the given paragraph the following lines indicate that it is talking about the Economic Dimension of Business Environment "...simplify regulatory and tax framework..."

• It includes various laws passed by the government, administrative orders issued by government authorities, court judgments as well as decisions rendered by the central, state, or local governments.
• Understanding of legal knowledge is a prerequisite for the smooth functioning of business and industry and helps them not fall into a legal tangle.
• The legal environment includes various laws like the Companies Act (2013), Consumer Protection Act (1986), Policies relating to licensing & approvals, foreign trade policies, etc.

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