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Match List-I with List-II

List-IList-II
Business EnvironmentDimension
(A) Economic(I) KYC compliance is mandatory in mutual funds investment
(B) Social(II) Construction companies prefer low longer-term interest rates
(C) Legal(III) The government maintains general stability and peace in the country
(D) Political(IV) Rise in demand for goods during festivals

Choose the correct answer from the options given below:

Solution

✅ Correct Option: 1

Option 1 -> (A)-(II) Economic-Interest rates, (B)-(IV) Social-Festivals demand, (C)-(I) Legal-KYC compliance, (D)-(III) Political-Government stability. All matchings align correctly with their respective dimensions.

Option 2 -> Incorrectly matches (B) Social with (III) government stability (which is political) and (D) Political with (IV) festivals (which is social). The social and political dimensions are swapped.

Option 3 -> Incorrectly matches (B) Social with (I) KYC compliance (which is legal) and (C) Legal with (IV) festivals (which is social). The social and legal dimensions are confused.

Option 4 -> Incorrectly matches (A) Economic with (III) government stability (which is political) and (D) Political with (II) interest rates (which is economic). The economic and political dimensions are swapped.


Hence, Option 1: (A)-(II), (B)-(IV), (C)-(I), (D)-(III) -> Economic environment relates to interest rates affecting construction costs; Social environment reflects festival-driven demand patterns; Legal environment encompasses KYC regulatory compliance; Political environment involves government's role in maintaining stability -> correct

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